Will NS&I hike rates as competition heats up?

The government-backed bank saw significant outflows in June, which could encourage it to hike rates as it competes for business.

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Interest rates on the best savings accounts have been rising as providers pass the Bank of England’s (BoE) base rate hikes on to consumers, but it seems National Savings & Investments (NS&I) is failing to keep up. 

The latest figures from the Bank of England show this has put savers off the Treasury-backed savings provider. “With interest rates rising across most other savings providers, NS&I is struggling to keep up and attract enough assets,” says Laura Suter, head of personal finance at AJ Bell. 

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Nic studied for a BA in journalism at Cardiff University, and has an MA in magazine journalism from City University. She has previously worked for MoneyWeek.