National Savings & Investments

National Savings & Investments (NS&I) is a type of Government borrowing and is therefore 100% backed by the Goverment regardless of the amount that you invest. NS&I offer a number of different products of which we have highlighted four types, each with different time scales. Several of NS&I's products are tax free. We have grossed up these to give a post tax Gross Annual Equivalent Rate which allows for a direct comparison with other cash options.

Growth and Income Bonds are identical except that Income Bonds pay monthly interest. Therefore, for terms of over a year, the Annual Equivalent Rate for Income Bonds will be lower as investors will not earn interest on their interest.

Fixed Interest Saving and Index Linked Savings Certificates are tax free (currently not available - read our related news story: 'Withdrawal of NS&I Savings Certificates'). Index Linked Savings are fixed to the Retail Price Index (RPI), not the Consumer Price Index (CPI).

National Savings & Investments	Gross Yield	As of	Term	Min Deposit	Max Deposit	Net Lower Rate tax	Net Higher Rate tax
Direct Saver	1.50%	31/01/2012	Instant	£1	-	1.40%	1.05%
Direct ISA	2.50%	31/01/2012	Instant	£100	£5,100	3.13%	4.17%
Income Bonds	1.46%	31/01/2012	Instant	£1	£24,999	1.17%	0.88%
Income Bonds	1.76%	31/01/2012	Instant	£25,000	-	1.41%	1.06%

The value of your investments and the income from them can go down as well as up and you can get back less than you originally invested. Any yields quoted cannot be taken as a reliable indicator of future returns. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Bestinvest (Brokers) Ltd & Bestinvest (Consultants) Ltd are authorised and regulated by the Financial Services Authority. This site is for UK Investors only

Investment Research

National Savings & Investments