National Savings and Investments
National Savings and Investments offers a range of savings accounts and bonds.
Originally known as the Post Office Savings Bank (set up in 1861) providing an easy way to encourage workers to save. It is backed by the Treasury, and is the UK's second largest savings institution, with more than 30 million customers.
These raise money for the government and pay the investor interest in return. Some investments with NSI offer tax-free interest, others are taxable.
A National Savings' investor lends their capital to the government and receives security for their investment in return. Interest rates may be fixed, variable or index-linked to the rate of inflation, depending on which type of account you choose.
There is a range of tax free fixed rate and index linked bonds. Index linked bonds promise to pay an interest that is above inflation Investors must agree to invest gor a fixed term (three to five years) All money invested in National Savings is capital protected, which means you get all your original investment back.
National Savings' children's bonus bonds,with around 140,000 accounts are a very popular children's savings account.
Premium Bonds are responsible for nearly 25% of all National Savings Investments. You can read more about Premium Bonds on our Premium Bond page.
National savings also offers a range of tax free fixed rate and index linked bonds.
Index linked bonds promise to pay an interest that is above inflation.In return you agree to keep your money invested for between three and five years.
All money invested in National Savings is capital protected, which means you get all your original investment back.
In addition, National Savings' children's bonus bonds are one of the most popular children's savings accounts in the country, with around 140,000 accounts opened.
You can visit the National Savings and Investments web site for more information.
Tags: Investments