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| Version 1 | Version 2 |
|---|---|
| NS&I cuts savings rates and number of Premium Bond prizes | NS&I cuts savings rates and number of Premium Bond prizes |
| (35 minutes later) | |
| The number of Premium Bond prizes is to be reduced, and National Savings and Investments is also cutting savings rates on a number of its products. | The number of Premium Bond prizes is to be reduced, and National Savings and Investments is also cutting savings rates on a number of its products. |
| From June 2016, the chances of winning a Premium Bond prize will change from 26,000 to one, to 30,000 to one. | From June 2016, the chances of winning a Premium Bond prize will change from 26,000 to one, to 30,000 to one. |
| The savings rates on Direct Isas, Direct Saver, Income Bonds and the Investment Account will also be cut. | The savings rates on Direct Isas, Direct Saver, Income Bonds and the Investment Account will also be cut. |
| NS&I said the new rates would still be competitive with other savings rates in the market. | NS&I said the new rates would still be competitive with other savings rates in the market. |
| Direct Isa rates were previously reduced in November 2015. | Direct Isa rates were previously reduced in November 2015. |
| "This is another serious blow for savers who like the absolute security offered by NS&I, but now face even lower returns on their cash," said Danny Cox of Hargreaves Lansdown. | |
| However NS&I defended its decision to cut savings rates, which follows a continuing reduction in returns to savers from banks and building societies over the past seven years. | |
| "The majority of the new interest rates on offer are either at, or above, average market rates," said Jane Platt, the chief executive of NS&I. | "The majority of the new interest rates on offer are either at, or above, average market rates," said Jane Platt, the chief executive of NS&I. |
| "We believe they present a fair offer to customers, who will also continue to benefit from our 100% HM Treasury guarantee on all holdings, as well as tax-free prizes for Premium Bonds." | "We believe they present a fair offer to customers, who will also continue to benefit from our 100% HM Treasury guarantee on all holdings, as well as tax-free prizes for Premium Bonds." |
| NS&I has been told by the Treasury to raise less money for the government in 2016/17 than it did in the current tax year. | |
| One reason is that it is currently cheaper for the Treasury to raise money by issuing government bonds than through NS&I. |