NS&I: The top interest rate savings accounts for UK savers

NS&I: The top interest rate savings accounts for UK savers

NS&I is totally backed by the Treasury, which means any money invested with the savings company is 100 percent safe. For this reason, NS&I is often thought to have the upper hand over other providers, who provide insurance of sums up to £85,000 under the Financial Service Compensation Scheme (FSCS). Undoubtedly, the COVID-19 crisis has taken its toll on the savings market, and with the unprecedented lowering of the Bank of England base rate, the options for savers to grow their money are limited.

The account is a straightforward savings option which is monitored and managed by post.

It is suitable for those who want easy access to their money, as well as savers who wish to operate an account on behalf of a child or grandchild.

It is worth noting that interest is paid without deducting any tax, however, the interest is taxable and so it will count towards savers’ Personal Savings Allowance. 

Also available is the Direct ISA from NS&I which is perfect for those looking to earn tax-free interest.

This account is only for those who have not invested in a cash ISA in the 2020/21 tax year, so it is important for this group to seize the opportunity.

With a minimum investment of £1, and a maximum annual investment of £20,000, this is a suitable account for those who want to make their money grow.

The interest rate currently sits at 0.90 percent tax-free variable. 

Income Bonds are suitable for those who have slightly more to put forward as a minimum investment, with NS&I asking for £500 to get started.

However, with a maximum of £1million, the savings company describes this account as a “nice little earner”.

The interest rate on this account is currently 1.15 percent gross, and is suitable for those who want easy access to their money.

The account provides monthly returns, which allows people to get their hands on money quicker than other options may perhaps allow.

Finally, Premium Bonds are by far the most well-known investment NS&I currently offers.

Those who have £25 to £50,000 to invest and are looking for 100 percent security for their money are encouraged to look into this option.

The lottery bonds are paid into by the government, and a monthly prize draw then provides selected bond holders with a payout. 

Because Premium Bonds are a type of lottery bond, the more you buy, the greater your chance is of winning. 

The odds of winning for each £1 Bond number currently stand at 24,500 to 1, and anyone 16 or over can apply.

While this form of saving does not offer interest, the interest rate funds a monthly prize draw for tax-free prizes.

And those who have invested via this savings form should pay attention, with the next prize draw scheduled to take place in a matter of days. 

Published at Fri, 26 Jun 2020 14:12:00 +0000