National Savings and Investments (NS&I)


NS & INational Savings and Investments (NS&I) are rarely mentioned in the press or investment articles and blogs but they really ought to form part of the foundations for savers in the UK. Given they are UK Government backed, and compare well with bank savings rates, with some providing tax free income we thought it would be useful to provide a summary.

What type of National Savings and Investments (NS&I) are there and who would benefit from each product? Let’s consider them.

Premium Bonds (NS&I) – what are they and who are they for?

All prizes are tax free- The annual prize fund interest rate is 1.40% from December 2017.

Odds of winning 24,500 to 1.

For those that-

  • want the chance every month to win a £1 million jackpot and other tax-free prizes
  • have £100 or more to invest
  • want 100% security for their money
  • want to make the most of tax-free investment opportunities

Investment Guaranteed Growth Bonds (NS&I)

Term 3 years paid gross – rate 2.20% pa

For those that-

  • are happy to invest and manage their Bond online
  • want their interest to build up so their investment grows in value
  • want to know exactly what return they’ll get
  • can leave their money invested for three years
  • have £100 or more to invest
  • OS want a long-term tax-free savings account for their child
  • are 16 or 17 and want to start saving tax-free for themselves
  • are happy to open and manage their account online only

ISA (NS&I)

Up to £20,000 0.75% pa tax free- Instant access

For those that-

  • want to earn tax-free interest
  • are happy to use their account online or by phone
  • have not invested in a cash ISA in the 2017/18 tax year

Junior ISA (NS&I)

2.25% pa tax free- No access before age 18.

For those that-

  • want a long-term tax-free savings account for their child
  • are 16 or 17 and want to start saving tax-free for themselves
  • are happy to open and manage their account online only

Direct Saver (NS&I)

£1 minimum – 0.95% pa paid gross- taxable, with instant access.

For those that-

  • to manage their account online or by phone
  • easy access to their savings

Income Bonds (NS&I)

£500 minimum- 1.00% pa gross- taxable, with instant access

For those that-

  • want a monthly income at a variable rate
  • want easy access to their money
  • have £500 or more to invest

Investment Account

£20 minimum- 0.70% pa- gross- taxable

For those that-

  • a straightforward savings account by post
  • easy access to their money
  • a savings account on behalf of their child or grandchild

 

National Savings Certificates (NS&I)

Current issues- Only for maturing certificates

Issue 54 –   2 years 1.55% pa tax free

Issue 104 – 5 years 2.15% pa tax free

 

The views expressed in this article are not to be construed as personal advice. You should contact a qualified and ideally regulated adviser in order to obtain up to date personal advice with regard to your own personal circumstances. If you do not then you are acting under your own authority and deemed “execution only”. The author does not except any liability for people acting without personalised advice, who base a decision on views expressed in this generic article. Where this article is dated then it is based on legislation as of the date. Legislation changes but articles are rarely updated, although sometimes a new article is written; so, please check for later articles or changes in legislation on official government websites, as this article should not be relied on in isolation.

This article was published on 29th  November 2017

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