A table-topping NS&I bond has had its returns slashed,while the banks maintain simply given up trying to attract savers. We look at what’s going onThere was growing madden this week after almost half a million older savers who establish money into the government’s pensioner bonds had their interest rate slashed in half.
There was huge demand for the bonds when they went on sale in January, and the carrot of a table-topping rate 2.8% – prompted 470000 people to pile into the one-year version. But this week it emerged that when the bonds mature these savers will be automatically moved into another one-year savings account paying a much lower rate – 1.45%.
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Source: theguardian.com