NS&I pulls top 6.2% fixed-rate deal – where to look now?

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NS&I pulled their top paying one-year fixed rate recently and some other banks are following suit. Here’s what could be next, and how you can make more of your savings.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Published on 20 October 2023

It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.

A host of banks and building societies have removed products from the savings market.

There’s also nearly £2tn currently held in savings accounts. It’s therefore crucial for everyone to make sure they’re squeezing as much out of their cash as they can.

This rate retreat is particularly focused on fixed-term products at the top end of the market. And is a result of the withdrawal of NS&I’s 1 year fixed rate of 6.2% – the highest ever rate for its savings bond.

The river of cash flowing into NS&I has now been diverted to the next best products in the market.

Because a lot of those rates are provided by smaller banks, with smaller capacities, the best rates are disappearing fast.

For longer fixed terms, we saw the most exciting deals some time ago. With the last three-year fix over 6%