The best savings deals as NS&I slashes rates and Premium Bonds prizes

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The best savings deals as NS&I slashes rates and Premium Bonds prizesMillions of account holders face deep cuts from next month, but there are alternatives
The savings bank NS&I has this week been accused of shutting the door on UK savers after it slashed interest rates on a raft of accounts. Suddenly customers who have been enjoying market-leading returns face rates as low as 0.01%.

The scale of the NS&I (National Savings & Investments) interest-rate cuts stunned many commentators: for example, the return on its income bonds will plummet from 1.15% to 0.01%. As a result, someone with £1,000 saved in the account will receive 10p gross interest after a year. So, after more than 20 years, you might amass enough interest to buy a cup of coffee.

NS&I has also cut the chances of winning money on the premium bonds, which will affect about 24 million people.

So what are the best options for NS&! customers, and others looking for a half-decent savings rate?

Thankfully, it's not all doom and gloom. Several savings accounts have been launched over the past few days, including one from NatWest that pays a market-leading 3% interest.

We have rounded up the products undergoing a rate cut and suggested some alternatives. All interest rates were correct at the time of writing, but things are moving quickly, so the Moneyfacts.co.uk website is a good…
Rupert Jones
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