NS&I bond rates highest for 13 years

NS&I savings rates have hit their highest for more than a decade – with the statebacked bank now paying customers up to 4pc in annual interest.

The 162-year-old institution has brought back on general sale its one-year fixed Guaranteed Growth Bonds and Guaranteed Income Bonds for the first time since 2019, paying up to 4pc and 3.9pc respectively.

It means NS&I now offers competitive interest rates for savers looking to lock away their money for 12 months, although savers can earn around 0.16 percentage points on one-year deals at rival providers.

Meanwhile, Alison Rose, Natwest’s chief executive, is under pressure to answer MPS’ questions on her bank’s poor savings rates after turning down a request to appear before Parliament.

The Commons Treasury committee will quiz bank bosses next week about a range of consumer issues, including why returns on savings accounts have not kept pace with the Bank of England’s interest rate rises.

It is understood Ms Rose is the only high street bank boss who refused to appear before the TSC. Ms Rose has blamed diary constraints.