What is National Savings & Investments?
National Savings & Investments – NS&I – is a government department and an executive agency of the Chancellor of the Exchequer, offering several government-backed savings and investment options.
As funds are backed by HM Treasury, your money has 100% security – there’s no limit to the amount of compensation if NS&I went bust (as this would mean the UK government would have gone bust).
The organisation began in 1861, intended as a secure place for people to save, and as a source for public borrowing.
Today, it has several savings and investment options, from its popular premium bonds to a Junior Isa. Here, we explain what these products are and how they work.
See our separate guide dedicated to premium bonds.
What are NS&I Guaranteed Income bonds?
NS&I Guaranteed Income bonds are much like a fixed-term bond savings account offered by many banks.
You invest your cash for a fixed term and are ‘guaranteed’ an income on your savings as the rate will be fixed for the duration of the term.
As of March 2026, the rates are:
Interest is calculated daily and paid monthly, and counts towards your personal savings allowance, so you may be taxed on it.
All bonds require a minimum initial deposit of at least £500.
You have to apply for the bonds online, but they can be managed online, by post or over the phone.
You can withdraw money before the end of the term, but there will be a penalty equal to 90 days’ interest on the amount you cash in, and you must keep at least £500 saved for the bond to remain open.
When your bond matures (ie the fixed term comes to an end), you can withdraw your cash with no penalty.
Or, you can put it into another bond – NS&I will contact you a month beforehand to let you know about what other options are available, and customers renewing a maturing bond can sometimes access exclusive products.
What are NS&I Guaranteed Growth bonds?
Also functioning similarly to a fixed-rate savings account, these are fairly similar to Guaranteed Income bonds. The main difference is that interest is paid in one go when the bond matures.
The rate on the bonds when you take them out is guaranteed for the whole term.
As of March 2026, the rates are:
You’ll need to make a minimum initial deposit of at least £500.
Withdrawing money before the term is up will result in a loss of 90 days’ interest on the amount you take out.
What you earn in interest is taxable and goes towards your personal savings allowance.
What are NS&I Income Bonds?
As of March 2026, NS&I Income Bonds pay 3.05% AER, paying interest monthly into your bank account – hence providing an ‘income’. Interest is paid on the 5th of each month (or the next working day if the 5th is a weekend or bank holiday).
There’s a £500 minimum initial deposit, and you can hold up to £1m per person. You can make withdrawals as often as you like with no penalties – but you must keep a balance of at least £500 to keep the account open.
You can also add money whenever you like, but each deposit must be at least £500.
Interest earned is taxable and counts towards your personal savings allowance.
What is the NS&I Direct Isa?
As of March 2026, the NS&I Direct Isa pays 3.50% AER, paying interest annually on 6 April. It’s an easy-access Isa, meaning you can take money out whenever you like.
The rate is variable, so it may change at any time. Accounts can be opened with £1, and you can pay in up to £20,000 in each tax year – this is the annual Isa allowance across all Isas that you hold.
This is not a flexible Isa, so any deposits you make during the tax year will count towards your Isa allowance, regardless of whether you make any withdrawals.
NS&I doesn’t currently accept any transfers from other providers into the Direct Isa.
You can withdraw funds with no notice or penalty, as long as at least £1 remains in the account to keep it open.
Money held in an Isa wrapper is tax-free, meaning it can be a good option for those with large savings pots.
What is the NS&I Junior Isa?
A savings product specifically for saving for your children. As of March 2026 the NS&I Junior Isa pays 3.55% AER, adding interest annually.
The account is for children under the age of 18, and you can deposit up to £9,000 in the 2026-27 tax year.
Money cannot be withdrawn, except by the child when they turn 18. At this time, the money will be transferred to an adult Isa, where they’ll have full control over it.
The money held in an Isa is tax-free, so it won’t contribute towards the child’s personal savings allowance.
Find out more in our full guide to the best Junior cash Isas.
What is the NS&I Direct Saver?
This is essentially an instant-access savings account. As of March 2026, it pays 3.05% AER, with interest paid annually.
You can open the account with £1, and can save up to £2m. The interest rate is variable, so may increase or decrease at any time.
You can withdraw money at any time without incurring a penalty – as long as at least £1 is held in the account at all times.
The interest you make is taxable – so, if you have a large amount of money saved and exceed your personal savings allowance, you may have to pay tax on the interest your savings earn.
- Find out more: best savings accounts
What is the NS&I Investment Account?
While the term ‘investment account’ might suggest something to do with stocks and shares, this isn’t the case.
What does set this postal-only product apart is that accounts can be opened for a child under the age of 16 by their parent, guardian or grandparent. You can also invest in trust for someone else.
It only pays 1% AER, though, with interest paid annually on 1 January.
There’s a £1 minimum initial deposit.
If the account is held in your name, you can make withdrawals at any time without incurring a penalty – as long as at least £1 is saved.
NS&I Index-Linked Savings Certificates
This product is no longer available for new savers, but existing account holders still have the option to renew at the end of their term. The minimum amount you can renew is £100, and you can save up to £15,000.
Investing in an index-linked savings certificate means your money is protected from the devaluing effects of inflation over a set period of time – the investment term.
Savings receive the rate of inflation based on the Consumer Prices Index plus 0.01%.
There’s a two-year, three-year, and five-year option, and the rate changes in accordance with inflation on the anniversary of your investment. This is also when interest gets paid.
You can’t access your money until the end of the term.
What are NS&I Fixed Interest Savings Certificates?
Similar to the index-linked savings certificates, these products involve investing a lump sum for a set period – except, where the other accounts change according to inflation, these rates are fixed for the duration of the term.
There is a two-year term and a five-year term, both only available to existing customers renewing a maturing certificate.
You must save a minimum of £100 and a maximum of £15,000.
The interest you make is taxable and goes towards your personal savings allowance.
You can’t access your money until the end of the term.
What products has NS&I closed?
A number of popular products have now closed – even to existing customers. We outline what the accounts were, and what you should do if you held one.
65+ guaranteed growth bonds
These one- and three-year fixed-term investments were available from January-May 2015, for customers aged 65 and over.
Anyone who held these products should have received a maturity pack explaining their options – if no further instructions were given when the bonds matured, the funds would have been automatically invested in a standard guaranteed growth bond of the same term.
Easy access savings account
This account was closed on 27 July 2012, and any remaining funds left would have been transferred to the NS&I residual account.
If you want to have the money repaid, you’ll need to download, print and post a residual account repayment form.
Cash Isa and T Cash Isa (formerly Tessa-only Isa)
Both of these Isa accounts closed on 25 May 2013, and all accounts were transferred to a direct Isa. You can manage this online or over the phone.
Pensioners guaranteed income bonds and capital bonds
All of these bonds have now matured and closed completely. Any funds that were left in the accounts without further instruction will have been transferred to the NS&I residual account.
To get the money repaid, you’ll need to download, print and post a residual account repayment form.
Ordinary account/Treasurer’s account/SAYE/Yearly plan/Deposit bonds
All of these accounts have been closed, and remaining funds have been transferred to the NS&I residual account.
Customers who held any of these accounts and want their money repaid will also need to send the residual account repayment form.
NS&I income bonds for children
NS&I no longer offers this product for children, but if you opened an account for a child on or before 5 April 2013, and the child was at least seven-years-old on that date, they can manage the account themselves.
If they were younger than seven on that date, it must be managed by a person responsible for the child. Interest and withdrawals will be paid to a nominated account in the child’s name, or the name of the person managing the account. When the child turns 16, they will be responsible for managing their account.
National Savings stamps and gift tokens
These products are no longer being sold. If you have any, these can be redeemed at face value if you send them to NS&I with your name and address.
You can send them to: National Savings and Investments, Glasgow, G58 1SB
Older savings certificates (1916-1996)
If you held any old savings certificates, the amount invested and any interest, bonus and/or supplements earned will be calculated to give a total amount of what the certificate was worth on 10 November 2013. No additional returns would have been earned since then.
This is the case for the following products:
War savings certificates (1916-1920) and fixed interest savings certificates (1920-1939)
Fixed interest savings certificates (1940-1996)
Index-linked savings certificates (1975-1990)
Anyone who holds any of these accounts has the choice to cash in the money, reinvest into a current savings certificate or leave their money invested as it is.