NS&I: The best ways to save through the government-backed bank


NS&I, otherwise known as the National Savings and Investment company, is a state-owned savings bank available in the UK. At present, it offers a range of savings and investments, including its most well-known option, Premium Bonds, which through a prize draw make two millionaires each month. However, there is one component which often makes saving through NS&I particularly attractive.

To be eligible, Britons must invest a minimum of £25, and a maximum of £50,000 per person.

Premium Bonds can be bought online , by phone or by post, however, they must be in whole pounds.

They can then be managed online or by phone once a person has registered.

For those customers who may be looking for a more secure return, a Direct Saver account could be a suitable option.

This account can be opened with just £1, and allows customers to invest up to £2million.

At present, the interest rate stands at 1.00 percent, but with lowered interest rates across the market due to the financial impacts of COVID-19, this is competitive. 

NS&I says this account is suitable for savers who wish to easily access their savings, as well as people who wish to manage the account online or by phone. 

The Investment Account provides a straightforward savings opportunity by post, with Britons allowed easy access to their money.

With an interest rate of 0.80 percent, customers can invest anywhere from £20 to £1million.

Access is available with no notice and no penalty, but only through the postal system, so those who wish to monitor their money in a different way may not find this account suitable.

READ  Travel Insurance UK: How to compare travel insurance and get the best deal

Finally, a Direct ISA could be an appropriate option for savers.

With a 0.90 percent interest rate, paid tax free, Britons can save up to £20,000 without paying any extra.

However, this option of saving is only available to those who have not invested in a cash ISA in the 20201/21 tax year already.

It is worth noting, though, that a Direct ISA through NS&I is not a flexible ISA, so all deposits in the tax year count towards the annual allowance, even if withdrawals are not made. 





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here