NS&I, otherwise known as National Savings and Investments, is a government-backed savings organisation allowing people to both save their money and to make it grow. Bank accounts are often considered as safe options for savers as they can insure money up to £85,000. This is because the Financial Services Compensation Scheme (FSCS) has a programme in place to protect savers’ money should the worst happen.
Under the Income Bond account, savers must invest a minimum of £500, but can only invest up to £1million per person.
Income Bonds are currently available for people aged 16 or over, and savers can open an account in their own name, or jointly with one other person.
The account can be applied for and managed online, by post or by phone, making it easier for those who wish to have flexibility.
And savers can also take money out of this account with no notice or penalty, as long as the balance remains at least £500.
The Direct Saver account currently offers 1.00 percent interest, allowing investment of anywhere between £1 to £2million.
While the interest rate is variable, once again, money can be withdrawn without notice or penalty.
This account is managed via phone or online, though, so is not suitable for those who prefer to use their account at a branch or by post.
Also available with a healthy interest rate for the current market is the Investment Account.
This provides Britons with 0.80 percent gross interest on their savings, with a minimum investment of £20.
This account, unlike others, is solely managed by post, so savers should take this into account before applying.
Interest on this account is paid without deducting any tax, but the interest is taxable and thus counts towards any Personal Savings Allowance a saver has.
Finally, an attractive option for savers could come in the form of Premium Bonds.
Premium Bonds are perhaps the best-known savings method available from NS&I, partly due to the prize draw which sees two lucky Bond holders become millionaires each month.
Savers can invest anywhere between £25 and £50,000 in Premium Bonds, with a draw taking place each month to provide selected holders with prizes.
The interest rate on this account is 1.40 percent, but it goes straight towards financing the prize fund, so those who are looking for guaranteed returns should probably investigate other options.
Another two millionaires were announced today in the August Premium Bond draw, alongside many other prize winners.