National Savings & Investments (NS&I) was established over 150 years ago, with an aim to offer a secure way for people to save money.
Currently, over 25 million customers in the UK have invested savings worth £167 billion with NS&I, becoming one of the leading and largest savings providers in the country. One of the reasons why the agency’s popularity has grown spontaneously is the backing from the UK’s HM Treasury as well as the diverse savings and investment products.
This guide explains the basics of national savings and investments and the benefits that come with each of the agency’s products.
What Is The NS&I?
The National Savings & Investments, formerly referred to as Post Office Savings, is an agency of the UK government established to provide investment and savings products to members of the public. It is also an executive agency under the office of the Chancellor of the Exchequer.
Which Are the NS&I Products?
National Savings & Investments offers a wide range of products that fall under two categories, including taxable and tax-free accounts.
Taxable Accounts:
1. Income Bonds
These accounts generate interest on a monthly basis, providing users with a regular income. An income bond account can be opened with as low as £500 to a maximum savings of £1 million. One must be above 16 to open this account.
2. Direct Saver Account
The Direct Saver account provides users with easy access to their savings, as the account can be managed by phone or online.
3. Guaranteed Bonds
These are fixed-rate accounts with varied choices of terms depending on the user’s intended duration of the investment.
With guaranteed bonds, you can invest up to £1 million in a single lumpsum per every issue. Users must also be over 16 to invest in these accounts.
4. Investment Account
For savers who prefer managing their savings by post, then this is the type of account to go for, as they are designed for that purpose.
Tax-Free Accounts
1. Direct Individual Savings Accounts (ISA)
This account offers users a variable rate of interest. The account can be managed by phone or online, allowing savers to withdraw money at any time.
2. Index-linked Savings Certificates
These are accounts that hold up your savings for a specified investment term with an objective offer returns during inflation. Due to their nature of keeping up with inflation, these accounts have become quite popular, following the high cost of living.
3. Premium Bonds
These are probably the most popular NS&I accounts. The accounts offer users an opportunity to win cash prizes that are tax-free, including a £1 million-worth jackpot and other prizes valued from £25 to £100,000.
These bonds, however, do not earn you a monthly interest. Users can save from as low as £100 to a maximum of £50000.
4. Children’s Bonds
These are accounts designed for parents who are interested in saving for their children. The accounts are opened using a lumpsum of amounts ranging from £25 to £3000 per issue.
Each bond matures after 5 years, but they can be rolled over into the successive bond issue. Children’s bonds entirely belong to children, and they are designed to mature for good once the child attains the age of 16.
How to Open an NS&I Account?
The National Savings & Investments accounts are available for purchase in two ways, including phone service and online signup. For online registration, here is what to do;
- Browse the National Savings & Investments (NS&I) website.
- Before you register, visit the area of the site where information on the various types of accounts is highlighted.
- Enter an area with the type of account you are interested in, and get information on the rates, accessibility, and investment limits linked to each account type.
- Register and login. Check for the ‘Register and Login’ button on the site’s navigation bar.
- Activate your account by depositing money as per the investment limits of the specific account.
- For winnings on a premium account, browse the site’s NS&I prize checker.
Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances or needs.
Risk Warning: Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved.
