Negative interest rates: Accounts ‘could go down this path’ as NS&I cut rates – get ready | Personal Finance | Finance

On NS&I’s savings decision, which will affect millions of savers across the UK, Rachel Springall, a financial expert at Moneyfacts, had the following to say: “The cuts from NS&I in November could well test customer loyalty, particularly if they have a large pot and are relying on the return of interest as a form of income.

“Whilst this is disappointing news for savers who are already struggling to earn a decent return on their hard-earned cash, it was almost an inevitable move to see NS&I make some cuts as a government backed brand to manage the flow of deposits.

“We have seen rate adjustments on these accounts in the past and it will be over six months once these cuts are made that NS&I made a U-turn in its planned rate cuts in May.

“This was a positive move to support savers during the Coronavirus pandemic, but fundamentally raising more deposits could aid the economic crisis by providing more spending money to the Government.”

READ MORE: Martin Lewis: Best savings and Lifetime ISA rates revealed

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