NS&I — National Savings and Investments — is the UK government's savings bank. Because it is backed directly by HM Treasury, your savings are 100% secure regardless of amount — unlike high street banks where only the first £120,000 is protected by the FSCS. This security comes at a cost, however, as NS&I rates are not always the most competitive on the market.

📋 Key points
  • NS&I savings accounts
  • Are NS&I products right for you?

Premium Bonds

Premium Bonds are NS&I's most popular product, with over 25 million holders. Rather than paying interest, the bonds are entered into a monthly prize draw. The prize fund is equivalent to a notional interest rate — currently 4.4% — but distributed as tax-free prizes ranging from £25 to £1 million.

In practice, the average holder earns less than the advertised rate, because the rate assumes optimal prize distribution. However, all winnings are completely tax-free, which makes Premium Bonds particularly attractive for higher and additional rate taxpayers.

You can hold between £25 and £50,000 in Premium Bonds. Withdrawals are processed within three working days.

NS&I savings accounts

NS&I offers a range of savings accounts including easy-access accounts and fixed-rate Guaranteed Growth Bonds. Rates vary and are sometimes competitive with market rates, sometimes below. Check NS&I rates against the best market alternatives before committing.

NS&I Income Bonds pay monthly interest, which is useful for people who need a regular income from their savings.

Are NS&I products right for you?

The 100% government backing makes NS&I products worth considering for anyone with savings above the FSCS £120,000 threshold, or for those who prioritise absolute security over maximising returns.

For most savers with balances below £120,000, comparing NS&I rates against the best available market rates and choosing purely on return is usually the right approach — FSCS protection provides adequate security for the vast majority of people.

Bottom line

NS&I provides genuine value — particularly Premium Bonds for higher rate taxpayers and anyone wanting 100% government-backed security. But always compare rates against the market before choosing NS&I over a higher-paying alternative.