A prominent personal finance expert has issued a stark warning to savers with National Savings and Investments (NS&I), urging them to consider moving their money following a fresh round of rate cuts.
Rate Reduction Serves as a 'Clear Reminder'
On Tuesday, 6th January 2026, NS&I reduced the interest rates on several of its savings products. This move comes shortly after an increase implemented in November, a decision that has drawn criticism from industry observers. Kevin Mountford, co-founder and personal finance expert at Raisin UK, stated that the swift change acts as a "clear reminder that even the safest names do not always offer the best home for your savings."
While acknowledging NS&I's enduring appeal due to its 100% Treasury guarantee and simplicity, Mountford emphasised that savers are now facing a significant trade-off. "The trade-off is now very obvious in the form of lower returns," he commented.
The Cost of Inaction for Savers
Mountford strongly advised customers against complacency, warning that staying put can be a costly mistake. "When rates are moving, doing nothing can be costly," he explained. "Many savers will roll over or stay put out of habit, but that can quietly erode the value of their money."
He encouraged savers to proactively seek better returns elsewhere, highlighting that numerous safe alternatives offer superior rates while remaining protected under the Financial Services Compensation Scheme (FSCS).
Competitive Alternatives Available Now
The expert pointed to specific, competitive deals currently available on the Raisin UK platform that comfortably outperform NS&I's new rates:
- A one-year fixed rate bond with Ziraat Bank, paying 4.22% AER.
- An easy access account offering 4.07% AER for greater flexibility.
For those hesitant to lock funds away for a full year, Mountford highlighted attractive "micro-fixing" options:
- A six-month fix at 4.17% AER with Aldermore.
- A nine-month fix at 4.12% AER with FCMB.
"Put it this way, if you were paying more for your energy you would shop around and switch to a better deal. Your savings deserve the same attention," Mountford concluded, adding that "safety does not have to mean settling for less." He urged savers to spend a few minutes reviewing what their money is earning, asserting that such a simple check could make a meaningful financial difference.
