NS&I has dropped planned cuts to variable interest rates on savings and other products to “support savers” during the pandemic.

The government savings organisation says planned interest rate reductions on NS&I variable rate products, including Premium Bonds, will not go ahead.

The move is designed to help savers coping with the impact of Coronavirus.

NS&I says planned interest rate reductions on NS&I variable rate products - announced in February and due to take effect on 1 May - will not now be implemented.

However, cuts to fixed term product interest rates, also announced in February, will go ahead and will become effective from 1 May. 

NS&I says customers do not need to do anything to continue to receive interest at previous rate and should disregard any letters or notifications about interest rate cuts to NS&I variable rate savings products. 

Details of the cancelled rate changes:

Variable rate savings products - rate changes cancelled

Premium Bonds prize fund rate to remain at 1.40% 

Fixed term savings products - rate changes to go ahead from 1 May 

For example, 1 year Guaranteed Growth Bond will be cut from 1.25% to 1.1% and 3 year Guaranteed Income Bond will

be cut from 1.65% gross to 1.25% gross.