09 November 2020
You may be aware that NS&I interest rate announcements have been made reducing rates and confirming that the prize on Premium Bonds will be reduced from 24th November.
| Product | Current annual interest rate | New annual interest rate |
| Premium Bonds | 1.4% | 1% |
| Direct ISA | 0.9% | 0.1% |
| Direct Saver | 1% | 0.15% |
| Income Bonds | 1.16% | 0.01% |
| Investment Account | 0.8% | 0.01% |
This will impact many savers who have been holding cash and using NS&I for what were better rates. NS&I also provides separate protection to cash in the bank as they are HM Treasury backed and not covered under the FSCS. We recommend our clients to Tilney, one of the UK’s leading private client investment and wealth management advisors, who have a cash management facility via Flagstone which we can be used as an alternative way to manage cash savings from £50,000 and above with rates for a 95 day notice account starting at 0.8% AER and better rates for the longer the account is held. Accounts can be opened for individuals, companies, Trusts and charities.
A key aspect of the Flagstone service is maximising FSCS protection and better than high street interest rates. There is one application form and the use of a ‘client hub account’ to access numerous banks, time periods and rates. Please also view a brief explanatory video here.
