NS&I introduces exit penalties for savers

30 August 2012

Savers could incur penalties when they withdraw money early from popular National Savings & Investments (NS&I) accounts.

Customers with index-linked savings who roll their money over into new certificates from 20 September stand to lose 3.2% in returns from early withdrawals.

NS&I savings certificates pay 0.25% above the retail prices index measure of inflation, which currently stands at 3.2%.

Previously, savers could cash in early after a year, and it would only cost them the extra interest on top of the index-linked amount.

This was a popular option, as savers could withdraw money from fixed accounts if they thought inflation would fall, or they needed the money early.

In future, customers will leave with just 0.19% interest on the amount they withdraw for the year. And the amount they withdraw will be stripped of 90 days' interest and index-linked returns.

If your certificate matures before 20 September however, the same rules still apply.

Savers will not be affected by changes until the end of their investment term.


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