National Savings cuts rates

NATIONAL SAVINGS is cutting its savings rates in the wake of the Bank of England's half-point cut in base rates earlier this month.

Short-term variable rates will be cut by between 0.25 per cent and 0.5 per cent, with the Investment Account falling to 4.5 per cent gross on amounts less than pounds 500. Income bonds will fall by 0.5 per cent to 6.5 per cent gross, while premium bonds will slip from 5.90 to 4.5 per cent. The cuts will be phased in between December and March.