NS&I Interest Rate Cuts – Providing A Solution To Your Clients

National Savings & Investments (NS&I) interest rates were significantly reduced on Tuesday 24 November, with NS&I’s Income Bond and Investment Account rates being cut to just 0.01%.


NS&I Product


Current NS&I
(Gross) rate


NS&I (Gross) rate
from 24 November


Income Bond



Direct Saver



Investment Account



Guaranteed Growth Bond (1 Year)



Guaranteed Growth Bond (2 Year)



Guaranteed Growth Bond (3 Year)



Guaranteed Growth Bond (5 Year)



Guaranteed Income Bond (1 Year)



Guaranteed Income Bond (2 Year)



Guaranteed Income Bond (3 Year)



Guaranteed Income Bond (5 Year)



Fixed Interest Savings Certificate (2 Year)



Fixed Interest Savings Certificate (5 Year)



Source: Moneyfacts


There are 10,000 individuals who are holding more than £1m on deposit with NS&I, 67,000 hold deposits in excess of £250,000 and a million individuals hold £50,000 or more in cash with NS&I[1]. With NS&I having cut its rates on Tuesday 24 November, these affluent clients will be looking for an alternative that offers them not only better returns, but also comparable levels of protection.


Maximise interest. Minimise Risk.  

Flagstone offers exactly this solution, enabling clients to maximise the interest they’re earning on their cash and importantly empowering them to reduce their risk exposure through optimal Financial Services Compensation Scheme (FSCS) utilisation[2].


FSCS protection of up to £3.57m for joint account holders

Flagstone’s secure, user-friendly platform gives clients access to hundreds of deposit accounts from 48 banks through a single application, enabling them to quickly and easily achieve exceptional diversification; with private clients able to benefit from full FSCS protection on deposits of up to £2m [2][3] and joint account holders up to £4m [2][3].

With many clients using the extra time available to them during ‘lockdown’ to organise their finances and plan for what might lie ahead, now could be the ideal time to discuss how you can help them to protect their cash and improve their returns from it, by introducing them to Flagstone.


Generate value for your clients and your practice with Flagstone  

The material benefits of using the platform are immediately visible and future value is easy to illustrate. Moreover, introducing clients to Flagstone enhances your understanding of their holistic wealth, with ongoing visibility of their cash portfolios and maturity/liquidity events providing you with regular opportunities to discuss how their cash can be re-invested when market conditions are right.


The time to act is now

The consequences of NS&I’s rate cut announcement will be felt in the wider market in the coming months. Banks will no longer be competing on rate with NS&I to attract retail deposits from savers, so it’s important that clients act quickly to secure best-in-market fixed term rates, before they’re reduced. Locking in a fixed term inflation-beating rate now means that the deposit won’t be affected by any falls in market rates over the account’s term and gives peace of mind that the value of the deposit isn’t being eroded by sitting in a suboptimal account.

Fixed term deposit rates currently available on the Flagstone platform include:

  • 0.50% 6 Month Fixed Term Deposit Account - Exclusively available on the Flagstone platform [3]
  • 0.65% 12 Month Fixed Term Deposit Account [3]
  • 0.75% 24 Month Fixed Term Deposit Account [3]
  • 1.00% 36 Month Fixed Term Deposit Account [3]
  • 1.25% 60 Month Fixed Term Deposit Account [3]

Hundreds of Instant Access Accounts and Notice Accounts are also available on the platform to enable clients to easily plan and manage their liquidity requirements, with market-leading and exclusive rates including:

  • 0.50% Instant Access Deposit Account - Exclusively available on the Flagstone platform [3]
  • 0.60% 35 Day Notice Account - Exclusively available on the Flagstone platform [3]


Speak to Flagstone

Flagstone is here to provide you and your clients with a solution for cash, and to ensure that you retain ongoing visibility of the asset in order that you can continue to deliver holistic, timely advice. For more information, please contact us.


1 Source: NextWealth, ‘Giving Credence to Cash: Why It’s Time for Financial Advisers to Challenge Their Assumptions’

2 As at 26/03/2021 Financial Services Compensation Scheme (FSCS) deposit protection is £85,000 per depositor per authorised bank (and £170,000 for joint account holders). For more information go to www.fscs.org.uk. Incremental FSCS protection is achieved by diversifying deposits into accounts with different authorised banks.

3 Correct as at 26/01/2021. Rates are subject to change or withdrawal and are shown gross of Flagstone's Annual Management Charge, illustrating what the interest rate would be before the management fee is deducted. For Fixed Term Deposit Accounts, interest is paid at the end of the term. For details of how interest is paid on Instant Access Accounts and Notice Accounts, please refer to the Terms & Conditions for the specific account available on the platform. The minimum deposit required to open a platform account is £250,000. Dependent upon whether your client is an individual, looking to open a joint account, or acting on behalf of a company, charity, trust, SIPP or SSAS; different banks, accounts and rates will be available to them on the platform. The number of accounts available to clients may also be reduced dependent upon their domicile, residency and other factors. Please contact us at BusinessDevelopment@FlagstoneIM.com to create a personalised illustration for your client or to refer them to Flagstone.  



Adviser Spotlight: James Lindley, Castell Wealth Management

Wednesday, 17 May 2023
Read more

Flagstone vs Premium Bonds – more bang for your buck?

Monday, 15 May 2023
Read more

What the 0.25% base rate hike means for your savings

Thursday, 11 May 2023
Read more