NS&I SUPPORTS SAVERS IN THIS UNPRECEDENTED TIME

• Planned interest rate reductions on NS&I variable rate products, including Premium Bonds, will not now be implemented.
• The cancellation of these interest rate reductions will support savers during the coronavirus pandemic.
• Customers do not need to take any specific action as a result of this announcement.
• NS&I is urging customers to go online to nsandi.com if they wish to invest or if they need help to manage their savings during the coronavirus pandemic. This will help NS&I free up our contact centre capacity for those customers who need to access it most at this time. Customers should also only send NS&I anything by post if they have no other choice.

Planned interest rate reductions on NS&I variable rate products due to be effective on 1 May 2020 will not now be implemented. The variable interest rate changes announced on 17 February 2020 will be cancelled and rates will remain unchanged to ensure savers are supported during the coronavirus pandemic.

Customers should disregard any letters or notifications that they have received, or will receive, about interest rate cuts to NS&I variable rate savings products.

Fixed term product interest rate reductions, also announced in February, will go ahead as planned and will become effective from 1 May 2020.

Variable rate savings products

Product	Current rate to remain in place	Planned reduction, now cancelled
Direct Saver	1.00% gross/AER	0.70% gross/AER (-30 basis points)
Investment Account	0.80% gross/AER	0.60% gross/AER (-20 basis points)
Income Bonds	1.15% gross / 1.16% AER	0.70% gross / 0.70% AER (-45 basis points)

Premium Bonds prize fund rate to remain at 1.40%

The Premium Bonds prize fund rate will also remain the same at 1.40% (the planned reduction of 10 basis points to 1.30% has been cancelled). The odds of any £1 Bond number winning any prize will remain at 24,500 to 1 (the planned reduction in odds to 26,000 to 1 has been cancelled).

Current prize fund rate	Current odds	Planned prize fund rate now cancelled	Planned odds now cancelled
1.40% tax-free	24,500 to 1	1.30% tax free	26,000 to 1

Contacting NS&I

NS&I is urging customers to go online if they need help to manage their savings during the coronavirus pandemic. NS&I is currently receiving more calls than usual and it is taking longer than normal to help customers. Customers should use nsandi.com to deal with their queries, so that those who are most in need, such as those who do not have access to the internet or those who require critically urgent help, can deal with NS&I by phone. Customers should also only send NS&I anything by post if they have no other choice.

Customers registered for our online and phone service can use nsandi.com to:

• Check their balances
• Pay money in or take money out
• Choose to have any Premium Bonds prizes paid to their bank account
• Transfer money between NS&I accounts
• Provide instructions for when a fixed term investment matures
• Update personal details

If a customer wishes to invest into an existing NS&I account, the quickest way for customers to do this is to make a transfer from their bank account. Customers can invest into Premium Bonds, Income Bonds, Direct Saver, Direct ISA, Junior ISA and Investment Account by bank transfer. Full details can be found at: https://www.nsandi.com/can-i-buy-bank-transfer-or-regular-standing-order

Fixed term savings products

Reductions to fixed term savings products will remain in place and will be effective from 1 May 2020.

Customers holding Guaranteed Growth Bonds, Guaranteed Income Bonds and Fixed Interest Savings Certificates and whose investments mature on or before 1 June 2020 and who automatically renew into a new Issue of the same term, will receive the previous, higher interest rate.

However, any customers who choose to renew into a new Issue but a term of a different length, will receive the reduced interest rate effective from 1 May 2020.

Current holdings will be unchanged until they mature and customers do not need to take action now. NS&I will write to all holders of Guaranteed Growth Bonds, Guaranteed Income Bonds and Fixed Interest Savings Certificates at least 30 days before the end of their term.

Product	Current rate	Interest rate from 1 May 2020 (change in brackets)
Guaranteed Growth Bonds (1-year)	1.25% gross/AER	1.10% gross/AER (-15 basis points)
Guaranteed Growth Bonds (2-year)	1.45% gross/AER	1.20% gross/AER (-25 basis points)
Guaranteed Growth Bonds (3-year)	1.70% gross/AER	1.30% gross/AER (-40 basis points)
Guaranteed Growth Bonds (5-year)	2.00% gross/AER	1.65% gross/AER (-35 basis points)
Guaranteed Income Bonds (1-year)	1.20% gross / 1.21% AER	1.05% gross / 1.06% AER (-15 basis points)
Guaranteed Income Bonds (2-year)	1.40% gross / 1.41% AER	1.15% gross / 1.16% AER (-25 basis points)
Guaranteed Income Bonds (3-year)	1.65% gross / 1.66% AER	1.25% gross / 1.26% AER (-40 basis points)
Guaranteed Income Bonds (5-year)	1.95% gross / 1.97% AER	1.60% gross / 1.61% AER (-35 basis points)
Fixed Interest Savings Certificates (2-year)	1.30% tax-free/AER	1.15% tax-free/AER (-15 basis points)
Fixed Interest Savings Certificates (5-year)	1.90% tax-free/AER	1.60% tax-free/AER (-30 basis points)

-Ends-

Notes to Editors

1. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to 25 million customers. All products offer 100% capital security as NS&I is backed by HM Treasury.

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. Gross is the taxable rate of interest without the deduction of UK Income Tax.

4. Information on our product range can be found here.

For further information please contact the NS&I media team as follows:

NS&I media team

Jonty Alone 020 7932 6633 jonty.alone@nsandi.com

Chris Dowsett 020 7932 6799 chris.dowsett@nsandi.com

Sam Faulkner 020 7932 6801 sam.faulkner@nsandi.com

Out of hours: All numbers above diverted to staff mobile phones

Follow us on Twitter: @nsandi

Website: www.nsandi.com