Base rate and gilt yields shift NS&I interest

NS&I says gilt yields have decreased by an average 0.25% since the last interest rate changes were made in November 2003, so most of the fixed-rate gross interest savings bonds and tax-free certificates will see interest cut by between 5 and 25 basis points (0.05% - 0.25%) while variable rate products will see returns increase by up to 0.25%. Premium bonds should also see a 20 basis point uplift in prize value from June 1st, says NS&I, to 2.6% tax-free, although the government-owned investment group says it did not pass on two base rate cuts last year. New Tax-free Rates* (Fixed and ...