Finance

‘Good news’ for NS&I savers amid ‘staggering’ announcement – but there’s a savings warning

It’s something which Kay Ingram, Director of Public Policy at LEBC Group, has spoken about.

Speaking to Express.co.uk about NS&I Income Bonds in May, she said: “The Government backed savings are suitable for those who wish to receive a regular income from their savings, and these savers have recently received a boost due to the Treasury’s decision to maintain the variable rate of interest at 1.15 percent ( 1.16 percent AER).

“A planned rate cut from May 1, announced in February will  not now  happen, making this rate highly competitive following recent cuts to other savings rates, following the Bank of England slashing the cost of borrowing to 0.1 percent.

“This could be a sign of things to come. It is clear that the Chancellor has to find ways of paying for the debt built up by the Government to tackle the Covid 19 outbreak.

“He could and may raise taxes, but with the economy expected to take months or years to recover this may prove difficult.



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