NS&I withdraws market-leading savings products
interactive investor comments on the move by the government-backed bank.
6th October 2023 10:32
by Myron Jobson from interactive investor
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Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “The NS&I has been a victim of its own success with its market-leading one-year fixed rate savings accounts. The sheer number of people who subscribed to the accounts is unheard of, and it is clear that the government-backed bank is wary of the wider impact – clearly popularity can come at a cost in some cases.
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“This is another example that in a fast-paced, rapidly developing market where inflation is still hurting, you have to be on your toes.
“The move could be seen as an indication that the clock is ticking for savers to cash in on high interest rates. The prevailing sentiment among economists is that interest rates are close to their peak. If this is the case, the best deals will not be around long.
“Those who can afford to put money away for five years or more should consider investing for the potential of inflation-beating returns that far outstrip savings rates. Investing can be volatile on a day-to-day basis and while the potential for greater returns from the stock market comes with inevitable risk, taking a long-term view means you can smooth out some of those highs and lows while benefiting from the long-term potential that comes with this approach. But everyone needs a low-risk buffer too.”
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