NS&I Direct ISA change
NS&I is reducing the interest rate on its Direct ISA by 0.25% per annum from today (5 November 2012). The rate will reduce from 2.50% to 2.25% tax-free/AER.
NS&I sets its interest rates to balance the interests of its savers, taxpayers, and supporting stability in the wider financial services sector. NS&I has taken the decision to reduce the interest rate on its Direct ISA following its regular review of the savings market, which includes the interest rates payable on products comparable to Direct ISA.
The interest rates on NS&I’s other savings products remain unchanged. The move ensures that NS&I will continue to meet its requirement to balance the interests of its savers, taxpayers and supporting stability in the wider financial services sector.
| New variable rates | Rate p.a. (change in brackets) | AER* |
|---|---|---|
| Direct ISA | 2.25% (-0.25%) | 2.25% |
* AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It shows what the notional annual rate would be if interest was compounded each time it was credited or paid out. Where interest is credited once a year the rate quoted and the AER will be the same.
Notes to Editors
1. Tax-free means that interest is exempt from UK Income Tax and Capital Gains Tax.
2. AER stands for Annual Equivalent Rate and enables the comparison of interest rates from different financial institutions and across different products on a like-for-like basis. It shows what the notional annual rate would be if interest was compounded each time it was credited or paid out. Where interest is credited once a year the rate quoted and the AER will be the same.
3. Information on the Direct ISA account can be found here.
4. For further information, or to request an interview, please contact the NS&I media team.