When official interest rates rise, as they have relentlessly during the past year, borrowers are typically punished much more quickly than savers are rewarded. This leads to accusations of profiteering by banks when their net interest margins balloon. For once, governments have come up with a way of using market forces rather than the blunt instrument of regulation to force financial institutions to increase their savings rates.

National Savings & Investments, the UK state-owned savings bank, is offering one-year retail savings bonds paying 6.2%, the highest interest rate available since the institution took over government-backed savings programs in 2008. Not only is this is more than the 6% currently available from some smaller commercial lenders, it’s also government guaranteed. By offering nearly a full percentage point more than the current Bank of England rate, it doesn't get much better for income-starved savers who don't require instant access.

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