Not upheld: interest rates on savings products; misleading information complaint against National Savings and Investments (NS&I)

Decision detail

Summary

Mr R complained about low interest rates earned on Index Linked Savings Certificates and Fixed Interest Savings Certificates purchased from NS&I in 1992. After the five-year fixed periods ended in 1997, the FISC rate fell to as low as 0.30% over the decades. Mr R discovered this in February 2025 and complained. The ombudsman found NS&I was entitled to set its own rates and had provided clear information about the accounts and applicable rates through letters and responses to enquiries over the years. NS&I also demonstrated fair value assessment under the FCA's Consumer Duty from 31 July 2024 onwards. The only error was misleading information in NS&I's final response letter, for which the ombudsman upheld NS&I's offer of £50 compensation.

The Ombudsman's reasoning

The ombudsman found that NS&I is entitled to set its own interest rates and was under no obligation to offer particular rates before 31 July 2024. After that date, NS&I provided confidential submissions demonstrating it assessed the products as offering fair value under the FCA's Consumer Duty. The ombudsman was satisfied that NS&I communicated clearly about the accounts, their values, and applicable rates on several occasions over the years through 'Keeping You Informed' letters and responses to Mr R's enquiries. When Mr R received clear information, he did not take action until February 2025, suggesting earlier proactive communication would not have made a difference. The only clear error was NS&I's misleading information in its final response letter regarding the purchase date and maturity dates, for which £50 compensation was appropriate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website