National Savings and Investments (NS&I) offers a wide range of cash savings products that are fully backed by government guarantee.
What is NS&I?
NS&I is a government agency that offers saving and investment products to the public. NS&I changes its products often, and at any given time you might find the following.
How they work
- When saving or investing with NS&I, you’re lending to the government and your money is totally secure.
- Different NS&I products will pay interest, stock market or inflation-linked returns (income) or, in the case of Premium Bonds, tax-free prizes.
Risk and return
- You can be sure that you’ll get all your money back.
- As with any cash-based product, if inflation is high your money might not hold its value in real terms – in other words its ‘buying power’ may reduce.
- There are no explicit charges.
Safe and secure?
- Your cash is fully backed by the government, however much you pay in.
Where to get NS&I products
You can buy NS&I products directly from NS&I online. Premium Bonds and Children’s Bonus Bonds can also be bought via the Post Office.
Some NS&I products pay tax-free returns. These include Premium Bonds, Fixed Interest and Index-Linked Savings Certificates, Children’s Bonus Bond and ISAs. Guaranteed Income Bonds and Guaranteed Growth Bonds pay returns with basic rate income tax deducted at source (at, currently, 20%), although non-taxpayers can reclaim this tax. For other products, returns are taxable but paid ‘gross’ (without tax taken off). If you’re a UK taxpayer, you have a duty to declare the income to HM Revenue & Customs and pay any tax you owe.