UK savings rates: NS&I launches one-year deal offering record 6.2%

Government-backed bank throws down gauntlet to high street lenders with new growth bonds

The UK government's savings bank, NS&I, has thrown down the gauntlet" to high street rivals by launching a one-year fixed-rate savings account paying a table-topping 6.2%.

Commentators said NS&I was likely to experience strong demand from savers keen for a decent return, as it means they get to secure a record rate that comes with a 100% Treasury guarantee.