NS&I savings products explained
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Quick answer: National Savings & Investments offers Premium Bonds, Direct Saver and fixed-term products backed by HM Treasury — Premium Bond prizes are tax-free but not guaranteed.
NS&I is a government-backed provider popular for security and prize draws. Rates change with market conditions and government funding needs. This guide compares main products for UK savers.
Last reviewed:
Read the full savings & ISAs guide →Quick answer: What is NS&I? →Primary source: www.gov.uk/government/organisations/ns-i
Interest-paying NS&I
Direct Saver accepts deposits from £1 with easy access. Green Savings Bonds have fixed terms supporting environmental projects with set rates at launch.
Income Bonds pay monthly interest to retirees needing regular income — rates track government decisions.
Safety and limits
All NS&I money is 100% backed by HM Treasury — no FSCS limit applies because it is government debt. This makes NS&I popular for holding large cash balances above the £85,000 FSCS limit.
Online and phone management is standard — NS&I does not have branches. You manage Premium Bonds, savings accounts and bonds through the NS&I website or by phone.
Common questions
Are Premium Bonds worth it?
Depends on prize luck and tax position. Higher-rate taxpayers may value tax-free prizes more than basic-rate savers.
Can children hold Premium Bonds?
Yes — adults can buy bonds for under-16s held in trust until they turn 16.
How do I cash in?
Premium Bonds can be cashed online anytime with no penalty — funds arrive in a few days.