More than 25m people in the UK have savings invested with National Savings & Investments (NS&I). They’re one of the biggest savings organisations in the UK, with £179bn invested into their accounts…
NS&I are backed by the government, giving savers peace of mind that 100% of their money is protected. They offer different types of savings accounts (some are tax-free), as well as premium bonds – which give savers the chance to win tax-free monthly prizes, rather than receiving interest. NS&I is different to other savings providers. While savings accounts with other providers are generally protected up to a maximum of £85,000 by the FSCS, there is no upper limit on NS&I accounts. This is because NS&I is the government’s savings bank, so they’re backed by HM Treasury, meaning everything you invest in NS&I is safe.
NS&I offer both taxable and tax-free accounts, with various interest rate options. We’ve put this table together so you can compare the different types of accounts by their features, to help you decide which account suits you best.
| Account type | Withdrawal limit? | Taxable? | Minimum/maximum holdings | Things to note |
|---|---|---|---|---|
Direct Saver |
No notice needed and no penalty |
Yes, on gross interest |
Minimum: £1 Maximum: £2 million per person |
Can be managed online or by phone. Interest rate is not as competitive as other accounts |
Investment Account |
No notice needed and no penalty |
Yes, on gross interest |
Minimum: £20 Maximum: £1 million per person |
Managed by post |
Income Bonds |
No notice needed and no penalty |
Yes, on gross interest |
Minimum: £500 Maximum: £1 million per person |
Pays savers a monthly income. Must be aged at least 16 to invest |
Premium Bonds |
N/A |
No, all prizes are tax-free |
Minimum: £25 Maximum: £50,000 |
Odds of winning: 34,500 to 1 |
Direct ISA |
No notice needed and no penalty |
No, completely tax-free |
Minimum: £1 Maximum: £20,000 for 2020/21 tax year |
Can be managed online or by phone. Withdraw whenever you like |
NS&I have been described as a ‘government savings bank’, so can offer you a different level of protection when it comes to your savings. Most other banks are protected by the FSCS (Financial Services Compensation Scheme), while NS&I are backed by HM Treasury.
Unlike the FSCS’ maximum limit of £85,000 per person, with NS&I every penny you invest is protected if something goes wrong.
For most people, the FSCS maximum limit is more than enough to cover you should your bank go bust. But if you have a larger amount of money in savings, you may worry how your cash is protected.
If you have more than £85,000 in savings, NS&I may be a good option for you to be sure your money is safe, should the unexpected happen.
Whether income bonds are a good investment will depend on your personal, financial circumstances.
NS&I Income Bonds may suit you if:
NS&I Income Bonds may not be for you if:
Unsure about which savings account to choose? Our guide on choosing the best savings account for you can help you compare your options.
Finding the right savings account for you is made easy with MoneySuperMarket. We know that deciding on a savings account can be a tricky decision – there’s a lot of information to get your head around. But once you’ve decided which features are important to you, you can sort the type of account by easy access, fixed rate or ISA. Then compare the interest rates, notice period and minimum and maximum deposit before you make your decision. Once you've made your choice, you'll be directed to the provider, which will help you through the rest of the process. It’s that simple.
