NS&I will cut interest rates on its Direct Saver and Income Bonds products from 12 February 2026 to “reflect changes in the wider savings market”.
The Direct Saver rate will fall from 3.30% gross/AER to 3.05% gross/AER. The Income Bonds rate will decrease from 3.26% gross/3.30% AER to 3.01% gross/3.05% AER.
AER stands for ‘annual equivalent rate’ and allows interest rates from different financial institutions and across different products to be compared on a like-for-like basis. Where interest is credited once a year, the rate quoted and the AER is the same.
Both products are easy access, variable savings accounts. Their rates have remained unchanged since 5 March 2025.
Andrew Westhead, NS&I retail director, said: “We keep all our savings rates under review as market conditions change.”