National Savings & Investment (NS&I) is to cut the interest rate on its easy-access Direct ISA to 1.25%, a move experts said was a "bitter blow to savers" and further called into question the value of cash products.
NS&I said it would make the 0.25% reduction in mid-November and that the change reflects rates on comparable products. "Interest rates in the easy access ISA market have been in decline over the year and our Direct ISA rate has stood out at the top of the best buy tables for some time," said NS&I chief executive Jane Platt. "To ensure that we continue to strike a balance between the needs of our savers, taxpayers and the stability of the broader financial services sector, we have taken the difficult decision to reduce the rate on our Direct ISA." But experts said the decision refle...
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