NS&I Reduces Interest Rates on Two Variable Savings Accounts
NS&I (National Savings and Investments) is set to reduce interest rates on two of its savings accounts effective from February 12, 2026. This decision marks the first adjustment since March 2025 and reflects ongoing changes in the savings market.
Details of Interest Rate Changes
The interest rates for the Direct Saver and Income Bonds products will see notable reductions:
- Direct Saver: Decreasing from 3.30% gross/AER to 3.05% gross/AER.
- Income Bonds: Dropping from 3.26% gross/3.30% AER to 3.01% gross/3.05% AER.
AER, or annual equivalent rate, provides a standardized way to compare interest rates across various financial products. When interest is credited annually, the rate and AER are identical.
Impact on Customers
Both the Direct Saver and Income Bonds are considered easy access, variable savings accounts. These rates have remained constant since March 5, 2025. With the upcoming reduction, customers may need to reassess their savings plans and explore alternative options.
Expert Commentary
Andrew Westhead, NS&I’s retail director, emphasized the organization’s commitment to reviewing savings rates regularly. He stated, “We keep all our savings rates under review as market conditions change.”
This adjustment is crucial for savers seeking to maximize their returns in a fluctuating market environment. Participants in the savings sector should remain vigilant as further changes may arise in response to economic conditions.
