From Premium Bonds to Income Bonds, many savers have opted to store their hard-earned cash with NS&I. The former savings option doesn’t pay out monthly interest, but instead eligible Premium Bonds are entered into a monthly prize draw.
The odds of winning are currently 24,500 to one, but the top prize each month comes in at a £1million tax-free jackpot.
Other savings products offered by NS&I include the Direct ISA, Direct Saver, and Income Bonds – with the latter currently paying a market-leading interest rate of 1.15 percent/ 1.16 percent gross/AER.
Income Bonds savers must deposit a minimum of £500, and they can put in up to £1million.
Meanwhile, the Direct Saver can be opened with just £1, and up to £2million may be invested in this account.
READ MORE: Savers urged to check their accounts as UK crashes into deepest recession on record
Like Income Bonds, the rate is variable, with this account currently offering one percent gross/AER.
However, unlike other savings providers, NS&I rules mean account holders must be given two months’ notice of any changes to the interest rates.
This week, a savings warning was issued, after the UK feel into its deepest recession on record, following the coronavirus pandemic lockdown earlier this year.
Data published yesterday showed the UK economy shrank 20.4 percent between April and June compared with the first three months of 2020.
It meant the UK has seen two consecutive quarters of economic decline in 2020 – something which defines a recession.
Following the news of the recession, John Westwood, Group Managing Director at Blacktower Financial Management Group, suggested there may be some tips members of the public want to take on board.
And, this included taking a look at one’s savings.
He said: “It’s important to ensure your savings are protected by [the] Financial Services Compensation Scheme (FSCS) – this will cover your savings up to £85,000.”
“So all the money you invest with us is 100 percent secure. Always.”
NS&I has been holding savings since 1861, and has 25 million customers.
In August 2020, the Premium Bonds prize fund was in excess of £108million.
More than 3.7 million prizes were paid out, including to two people who each scooped a jackpot payout of £1million.