Provider has reduced interest rates from today, and here's why.
National Savings and Investments has reduced interest rates from today.
Becky O’Connor, Head of Pensions and Savings for interactive investor, said: “NS&I’s motto on the website homepage is ‘Saving. Nothing more, nothing less’. The ‘nothing more’ rings especially true following the reduction in interest rates effective from today. NS&I has reduced saving to its basic function as a place to store your money safely.
“Our relationship with savings is fundamentally changing from one where we hope to receive some kind of return to one where we should expect nothing, so we are not disappointed.
“There are still good reasons to keep money in cash savings, but not too much if you want it to actually grow in value, rather than be slowly eroded over time.
“The days are long gone where you could simply put all your money in a savings account and know that you’ll make something decent as a reward for your effort.
“For those who want some kind of return above inflation over the long term, investing, even at low risk, should be a consideration.”
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