by Insignis Cash Solutions in Industry Perspective
With NS&I rate cuts in effect as of 24 November, we discuss an available savings alternative for customers.
One of the largest savings organisations, NS&I, has slashed their rates by more than 99%, dropping their top easy-access rate to just 0.01%. This is part of a wider set of cuts across their variable rate savings products.
Why have the NS&I cuts taken place?
The state-backed savings provider, NS&I, must strike the balance between the interests of savers, taxpayers, and the broader financial services sector. The savings provider is set a yearly target by HM Treasury, which states the amount of money it can raise. In the wake of the pandemic this year, its target increased from £6bn to £40bn for the year. Even with the new targets in place, the public continued to increase their savings with NS&I, raising over £38bn in just the last two quarters.
All of this has culminated leaving NS&I taking drastic action to implement significant cuts on its products. In doing so, NS&I aims to disincentivize customers from saving money with them, thereby controlling the amount of money its raising. The taxpayer will benefit as the government will be able to raise money more cheaply whilst simultaneously ensuring NS&I’s interest rates are aligned appropriately against those of competitors.
While this is obviously a blow to NS&I savers, we recognise the need for NS&I to meet various stakeholder needs.
So how can I help my clients maximise savings?
Insignis Cash Solutions could help. Our platform gives your clients access to a range of easy access and fixed-term savings products from various banks and building societies, all from a single sign-up procedure. We can offer a choice of competitive rates, far above comparable products offered by NS&I and other large high street banks.
Keeping up to date with new bank accounts and constantly changing interest rates is a persistent challenge that your clients just don’t have the time or appetite for. We do that for them. You can increase the percentage of their cash that is protected by the FSCS guarantee whilst boosting the return on that cash at the same time.
We’ll even send you alerts when top rates are added, so you can continue ensuring their cash is working hard.
Getting started is simple and straightforward. Just get in touch with us by any of the below.