UK Banks Face Pressure as NS&I’s 6.2% Retail Savings Bond Hits Market

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The UK’s state-backed savings bank has upped the rates on its key products, adding to the pressure on commercial lenders to improve their offerings.

The National Savings and Investments, or NS&I, is releasing new one-year fixed rate bonds that pay 6.2%. That follows the launch of a three-year green savings bond last week, at a rate of 5.7%.

Since the end of 2021, the Bank of England has raised rates from near zero to 5.25%, and investors are pricing in at least two further quarter-point hikes.

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