NS&I is a trusted name by many Britons who are looking to secure their savings for the future. But what are the Bond options currently available to customers?
NS&I, otherwise known as National Savings and Investments, provides monetary security and peace of mind for those looking to put away sums of money. The bank is backed by the Treasury, meaning that any funds deposited with it are 100 percent safe. While other banks provide security for money under the Financial Services Compensation Scheme (FSCS), this is only up to an £85,000 limit.
As such, NS&I can be particularly useful for individuals who are looking to save higher amounts, or make their money grow.
With millions flocking to the bank each year, it is worth noting the options available to savers.
And Bonds are likely to be an attractive option as they are slightly different to regular savings accounts.
Firstly on offer from NS&I is the Income Bond account.
As the website explains, this account provides a monthly return, which is well-suited to those who do not want to wait to obtain extra income.
The account allows Britons to invest anywhere from £500 to £1million, so can work for those who are looking to establish a savings journey.
It is also an easy access account, meaning no notice needs to be provided for withdrawal, nor is there any penalty for doing so.
The interest rate for this account currently stands at 1.15 percent, which is arguably healthy in the current market.
However, NS&I explains this type of account is not best suited for savers who are looking for guaranteed returns.
In addition, if people want interest to build up so the investment grows in value, then the Income Bond may not be the best choice.
Income Bonds are available to customers aged 16 or over.
And a person can also invest in trust for someone else, perfect for individuals who may be looking to secure savings for family members.
The other Bond option available to savers is perhaps NS&I’s most well known product: Premium Bonds
With just a small investment of £25 up to £50,000, Britons may get the chance to win big each month.
This is because Premium Bonds operate through a prize draw which creates two lucky millionaires each month.
While the interest rate for this account is set at 1.40 percent, this does not grow a person’s savings.
Instead, the rate goes towards the annual prize fund, which could prove advantageous for those hoping for a windfall.
Premium Bonds also create other prize winners, and sums other than the lucky £1million can rack up in the thousands.
Additionally, Premium Bonds can be bought for children under 16.
Once again, this could serve as an effective way for investing towards a loved one’s future.
And because the money is 100 percent safe, there is no need to worry about any funds deposited.
Premium Bond holders are only gambling the interest on the account, with their money remaining secure.
For those looking to set up Bonds through NS&I, the process is designed to be simple.
Britons can either apply online, by phone or by post, where they will be provided with further information.