Website of the UK government

The difference between NS&I and a bank or building society

Banks and building societies are private organisations. When you save with a bank or building society, your money is usually reinvested to generate profit, which is then shared between the organisation's shareholders and/or members.

NS&I is a government department offering saving and investment schemes to the general public. It is not like saving with a bank or building society. Instead you are lending money to the government to finance public spending. Because NS&I is backed by HM Treasury, you can rest assured that all your capital is 100 per cent secure, however much you invest.

Types of NS&I saving schemes

NS&I currently offers eleven different products. These are split into the following categories:

Tax-free 

Some of NS&I’s products are tax-free. This means you do not have to pay UK Income Tax or Capital Gains Tax on any interest or prizes you receive.

Currently, these are:

• Premium Bonds
• Index-linked Savings Certificates
• Fixed Interest Savings Certificates
• Direct ISA
• Children's Bonus Bonds

• More about tax-free savings from NS&I Opens new window

Guaranteed returns

• Guaranteed Growth Bonds
• Index-linked Savings Certificates
• Fixed Interest Savings Certificates

Income

• Guaranteed Income Bonds
• Income Bonds

Savings accounts

• Investment Account
• Easy Access Savings Account
• Direct ISA

Other

• Guaranteed Equity Bonds

Further information

The number of products available and their details change from time to time. You can get the latest information by visiting the NS&I website below, or by picking up a brochure from the Post Office and at selected WHSmith stores.

If you believe that you may hold an investment which is no longer being sold by NS&I and would like further information, then please visit the 'Products no longer on sale' page on the NS&I website below.

Alternatively, you can call NS&I free on 0500 007 007 - lines are open seven days a week, between 7.00 am and midnight. Calls from mobiles may not be free. Calls may be recorded.

• Current products offered by National Savings and Investments Opens new window

• Visit the NS&I website Opens new window

• NS&I products no longer on sale Opens new window

Deciding whether to invest with NS&I

If you are looking for somewhere to save that guarantees your savings are secure, NS&I may be a good choice. However, you may need to consider other savings and investment options if you'd prefer to accept some risk for the chance of higher returns.

To assist you with your decisions you may want to visit 'You & your money', a website brought to you by NS&I containing practical independent financial information (see the link below). It is a great place to start if you are looking for a simple jargon-free resource on personal finance.

You can also pick up brochures summarising some of the key sections from the site in selected WHSmith stores.

Whatever your circumstances it is important you consider all the options available before you decide where to put your savings. If in any doubt, consult an independent financial adviser.

• Help finding an independent financial adviser - NS&I website Opens new window

• Information on NS&I from the Financial Services Authority Opens new window

• Further savings advice from the Financial Services Authority Opens new window

• Visit You & your money Opens new window

Opening an account

If you decide you do want to go ahead and save with NS&I, visit the NS&I website and use their online guide to help find the best savings product for you.

• NS&I online guide 'Help me to decide' Opens new window

You can also ring NS&I customer enquiries free on 0500 007 007, from 7.00 am until midnight, seven days a week. Calls from mobiles may not be free. Calls may be recorded.

You can open an account or invest:

• online*
• by telephone*
• by post
• in person - at Post Office branches*

*The following exclusions apply:

• Children’s Bonus Bonds and Investment Account cannot be bought online
• Children’s Bonus Bonds cannot be bought by phone either (only available through the post office or by post)
• Direct ISA, Income Bonds, Guaranteed Equity Bonds, Guaranteed Growth Bonds and Guranteed Income Bonds cannot be bought from the Post Office

• More about applying for NS&I products Opens new window

More useful links

• Tax on bank and building society accounts

• Saving and investing with ISAs

• More about bank and building society interest from HMRC Opens new window

• Guide to tax on bank and building society interest (PDF document, 564K) Opens new window

• Help with PDF files