What is The National Savings and Investment Products
National Savings and Investments (NS&I) are government-backed savings and investment products in the UK.
They offer a range of low-risk, tax-free products such as premium bonds, savings certificates, and ISAs with the aim of encouraging savings and investment among the general public.
Since the UK government backs NS&I products, they are thought to be safe. This makes them a good choice for people who want to save or invest their money.
The Chancellor of the Exchequer is in charge of National Savings and Investments (NS&I). HM Treasury uses the money invested in NS&I products to help pay for government needs and manage the national debt in a way that saves money.
Income Bonds
Income bonds offer a type of investment that pays interest regularly to the holder. You can invest from £500 up to £1 million per person in total across all your Income Bond accounts, and you can get your money back whenever you want with no notice and no penalties.
The interest is deposited into your bank or building society account on a monthly basis. Interest rates are variable.
You can find out more and apply online at the National Savings and Investment (NS&I) website.
Premium Bonds
Premium bonds can be purchased by anyone over the age of 16. Parents, legal guardians, and (great) grandparents can invest for their under-16-year-old child or grandchild.
You can invest anything from £25 to £50,000 in total.
Premium bonds don’t pay any interest. Instead, your bonds enter a monthly prize draw for a chance to win tax-free prizes.
Premium Bonds – the prize draw
More than two million prizes are paid out every month to lucky bond holders whose numbers are generated completely at random.
You get a unique bond number for every £1 you invest. Every number has a separate and equal chance each month of winning a prize.
Prizes range from £25 to £1 million and are all tax-free.
You can find out more, apply online, or, if you have Premium Bonds, find out if you’ve won at the National Savings and Investment (NS&I) website.
Direct Saver
Direct Saver offers you the convenience of managing your account online and by phone.
You can pay in or take out money whenever you want, with no notice and no penalties.
Anyone aged 16 or over can open an account, either individually or jointly with someone else.
You can save anything from £1 to £2 million per person.
You can find out more and apply online at the National Savings and Investment (NS&I) website.
Direct ONE
Direct ISAs are a simple and secure way to save tax-free and manage your account online or by phone.
Anyone aged 16 or older who is resident in the UK for tax purposes can open an account. You can save anything from £1 to £20,000 in the 2019-20 tax year.
A cash ISA is the only one offered, not a stocks and shares ISA or an innovative finance ISA.
You can find out more and apply online at the National Savings and Investment (NS&I) website.
Junior ONE
A Junior ISA is suitable for anyone who wants to make a long-term, tax-free investment for a child’s future.
Parents, legal guardians, and (great) grandparents can invest for their under-16-year-old child or grandchild.
Invest from £1 up to £4,368 (tax year 2019–20) per child, per issue.
You can find out more and apply online at the National Savings and Investment (NS&I) website.
Investment Accounts
Anyone aged 16 or over can open an investment account, either by themselves or jointly with someone else.
You can have more than one account. You can save anything from £20 to £1 million per person across all of your investment accounts.
You can also invest in trusts on behalf of someone else (called the “beneficiary”). The trustees need to use a different application form.
Only a parent, guardian, grandparent, or great-grandparent will be able to open an account and make deposits for a child.
Until the child’s 16th birthday, the parent or guardian nominated on the application looks after the account, and all correspondence will be sent to them.
You can find out more on the National Savings and Investment (NS&I) website.
Index-linked Savings Certificates
When you invest in an index-linked savings certificate, you agree to keep it until the end of the term.
National Savings and Investment will write to you around 30 days before that date to let you know your options.
If you have a certificate that is about to expire, visit the NS&I website to learn more.
