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  • National Savings Investments

National Savings are an excellent way to save.National Savings

Interest rates are generally lower than most other investment companies, but sometimes very competitive rates are offered in the short term.

Some investment products are tax free making them attractive investments such as premium bonds for higher rate tax payers.  Others are not so attractive.

Security is key with National Savings as they are backed by the British Government.

Most people should have some National Savings plans as part of their investment portfolio to spread risk and take advantage of any tax incentives.

For help and advice with your national savings contact us.

Types of National Savings - A summary of national savings accounts.

This list contains the facts for national savings products and the security in place for each.

1. National Savings ISA

  • Factfile: National Savings and Investments (NSANDI)
  • Minimum Investment: £1
  • Maximum Investment: £15,000 from Aug 2014
  • Investment Access: Funds normally received within 7 working days by BACS or crossed warrant
  • Life Insurance Included: No

Tax and Benefits:

  • Tax- free
  • Easy access
  • Postal and telephone deposits and withdrawals

Suitable For:

  • Individuals 16+ resident in UK for tax purposes
  • Non Tax Payers
  • Basic Rate Tax Payers
  • High Rate Taxpayers

Compensation Limits: Not applicable
Secured by British Government i.e. virtually guaranteed security

2. Premium Bonds

  • Factfile: National Savings and Investments (NSANDI) - Premium Bonds
  • Minimum Investment: £100
  • Maximum Investment: £30,000
  • Investment Access: Funds normally received within 8 working days by BACS or crossed warrant
  • Life Insurance Included: No

Tax and Benefits:

  • Two £1million jackpots
  • Over 1 million prizes each month
  • Chances to win every month (Bonds eligible for prize draws one clear month after purchase)
  • All prizes tax free

Suitable For:

  • Individuals 16+
  • Children under 16, investments by parents, guardians, grandparents and great grandparents
  • Non Tax Payers
  • Basic Rate Tax Payers
  • High Rate Taxpayers
Compensation Limits: Not applicable
Secured by British Government i.e. virtually guaranteed security
 
3. Children's Bonds
  • Factfile: National Savings and Investments (NSANDI) - Children's Bonus Bonds
  • Minimum Investment: £25
  • Maximum Investment: £3,000 per issue, per child
  • Investment Access: Funds normally received within 8 working days by crossed warrant. No interest if repaid in first year. Otherwise reduced interest if repaid before 5th anniversary.
  • Life Insurance Included: No
Tax and Benefits:
  • Tax-free – even if children become taxpayers
  • Guaranteed rate
  • Bonus every five years and final bonus on 21st birthday
  • No tax for parents to pay

Suitable For:

  • Anyone aged 16+ who invests for individuals under 16
  • Adults
  • Non Tax Payers
  • Basic Rate Tax Payers
  • High Rate Taxpayers

Compensation Limits: Not applicable
Secured by British Government i.e. virtually guaranteed security

4. Index Linked Certificates

  • Factfile: National Savings and Investments (NSANDI) - Index Linked Certificates
  • Periodically not available from NS and I but usually
  • Minimum Investment: £100
  • Maximum Investment: £15,000 per issue
  • Investment Access: Funds normally received within 8 working days by BACS or crossed warrant. No interest if repaid in first year (except Reinvestment Certificates).  If held less than full term, see NS and I terms and conditions.
  • Life Insurance Included: No

Tax and Benefits:

  • Tax-free
  • Inflation beating
  • Choice of terms
  • Reinvestment options at maturity

Suitable For:

  • Children
  • Adults
  • Trusts
  • Charities
  • Non Tax Payers
  • Basic Rate Tax Payers
  • High Rate Taxpayers

Compensation Limits: Not applicable
Secured by British Government i.e. virtually guaranteed security

5. Fixed Interest Certificates

  • Factfile: National Savings and Investments (NSANDI) - Fixed Interest Certificates
  • Periodically unavailable but when they are:
  • Minimum Investment: £100
  • Maximum Investment: £15,000 per issue
  • Investment Access: Funds normally received within 8 working days by BACS or crossed warrant. No interest if repaid in first year (except Reinvestment Certificates). If held less than full term, see NS and I terms and conditions.
  • Life Insurance Included: No

Tax and Benefits:

  • Tax-free
  • Guaranteed returns
  • Choice of terms
  • Reinvestment options at maturity

Suitable For:

  • Children
  • Adults
  • Trusts
  • Charities
  • Non Tax Payers
  • Basic Rate Tax Payers
  • High Rate Taxpayers

Compensation Limits: Not applicable
Secured by British Government i.e. virtually guaranteed security

6. Fixed Rate BondBook to Speak to an Adviser

  • Factfile: National Savings and Investments (NSANDI) - Fixed Rate Bond
  • Periodically unavailable but when they are:
  • 1 year, 3 year and 5 year Fixed Rate Bonds
  • Minimum Investment: £500
  • Maximum Investment: £1,000,000 in total in all bonds
  • Investment Access: Funds normally received within 8 working days by BACS or crossed warrant. No penalty for repayment at full term. Otherwise 90-day penalty
  • Life Insurance Included: No

Tax and Benefits:

  • 20% tax deducted at source, higher rate tax payers have further liability
  • Guaranteed rates
  • Growth or income options (monthly income option available at slightly lower rates)
  • Tiered interest rates

Suitable For:

  • Individuals 16+ or joint names
  • Small Trusts  - trustees for not more than 2 individuals
  • Basic Rate Tax Payers
  • High Rate Taxpayers - although not too much given tax liability
Compensation Limits: Not applicable
Secured by British Government i.e. virtually guaranteed security

7. Capital Bond

  • Factfile: National Savings and Investments (NSANDI) - Capital Bond.  Periodically unavailable but when they are:
  • 5 year Fixed Rate Bonds
  • Minimum Investment: £500
  • Maximum Investment: £1,000,000 in total in all bonds
  • Investment Access: Funds normally received within 8 working days by BACS or crossed warrant. No penalty for repayment at full term. See NS and I terms and conditions if not held for 5 years. 
  • Life Insurance Included: No

Tax and Benefits:

  • Interest paid gross but is taxable 
  • Guaranteed rates
  • Growth option only

Suitable For:

  • Individuals 16+ or joint names
  • Small Trusts - trustees for not more than 2 individuals
  • Non Tax Payers
  • Basic Rate Tax Payers
  • High Rate Taxpayers - although not too much given tax liability
Compensation Limits: Not applicable
Secured by British Government i.e. virtually guaranteed security

8. Pensioners Bond

  • Factfile: National Savings and Investments (NSANDI) - Pensioners Bond.  Periodically unavailable but when available
  • 1 year, 3 year and 5 year Fixed Rate Bonds Paying Monthly Income
  • Minimum Investment: £500 
  • Maximum Investment: £1,000,000 in total in all bonds 
  • Investment Access: No notice at maturity. Otherwise 60 days’ notice with no interest during notice period. Or no notice and 90-day penalty.  Repayment by BACS or crossed warrant.
  • Life Insurance Included: No

Tax and Benefits

  • Interest paid gross but is taxable
  • Guaranteed monthly income
  • Exclusive to over 60s
  • Fixed interest rates
  • Choice of terms - 1 year, 3 year, 5 year

Suitable For:

  • Individuals 60+ or joint names
  • Small Trusts - trustees for not more than 2 individuals also 60+
  • Non tax payers
  • Basic Rate Tax Payers
  • High Rate Taxpayers - although not too much given tax liability

Compensation Limits: Not applicable
Secured by British Government i.e. virtually guaranteed security

9. Income BondTypes of National Savings

  • Factfile: National Savings and Investments (NSANDI) - Income Bond. Periodically unavailable but when available
  • Minimum Investment: £500 
  • Maximum Investment: £1,000,000 in total in all bonds
  • Investment Access: Easy access (no notice, no penalty). Repayment by BACS or crossed warrant.
  • Life Insurance Included: No

Tax and Benefits:

  • Interest paid gross but is taxable
  • Regular Monthly income
  • Higher rates of interest on investments of £25,000+

Suitable For:

  • Individuals 16+ or joint names
  • Small Trusts - trustees for not more than 2 individuals
  • Non tax payers
  • Basic Rate Tax Payers
  • High Rate Taxpayers - although not too much given tax liability

Compensation Limits: Not applicable
Secured by British Government i.e. virtually guaranteed security

10. Investment Account

  • Factfile: National Savings and Investments (NSANDI) - Investment Account
  • Minimum Investment: £20
  • Maximum Investment: £1,000,000 Individual or Joint accounts
  • Investment Access: Easy access ( no notice, no penalty). Repayment by crossed warrant or cash warrant up to £2,000.
  • Life Insurance Included: No

Tax and Benefits:

  • Interest paid gross but taxable
  • Passbook
  • Tiered interest rates

Suitable For:

  • Children
  • Adults
  • Non Tax Payers
  • Basic Rate Tax Payers
  • High Rate Taxpayers

Compensation Limits: Not applicable
Secured by British Government i.e. virtually guaranteed security

11. Easy Access Savings Account

  • Factfile: National Savings and Investments (NSANDI) - Easy Access Savings Account
  • Periodically unavailable but when it was
  • Minimum Investment: £100 
  • Maximum Investment: £2,000,000 per person
  • Investment Access: Instant access up to £300 per day at Post Offices and cash machines
  • Life Insurance Included: No

Tax and Benefits:

  • Interest paid gross but taxable
  • Telephone service
  • Cash Card
  • Tiered interest rates

Suitable For:

  • Children
  • Adults
  • Non Tax Payers
  • Basic Rate Tax Payers
  • High Rate Taxpayers
Compensation Limits: Not applicable
Secured by British Government i.e. virtually guaranteed security
 
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