UK savings: 5% interest deals may vanish soon, experts warn

Experts warn that attractive UK savings deals offering over 5% interest may be short-lived, as providers often withdraw products once they attract sufficient deposits. National Savings & Investments (NS&I) has raised rates on its British savings bonds to their highest in nearly three years, with some now exceeding 5%. NS&I's one-year growth bond now pays 4.99%, while two, three, and five-year rates have risen to 5.07%, 5.1%, and 5.17% respectively. However, top rates elsewhere reach 5.12% for one-year and 5.37% for five-year bonds, though these come from lesser-known providers. NS&I bonds allow investments up to £1 million per person, backed by the Treasury. These fixed-term bonds do not permit early withdrawals, so experts recommend keeping emergency funds in easy-access accounts. Starling Bank offers a 5% easy-access rate for new current account holders, while Marcus by Goldman Sachs raised its one-year fixed rate to 4.75%.