National savings and investments

National Savings products are Government backed, and are used by the Government as a means of borrowing. Because they are Government backed, they are seen as one of the most secure forms of saving and investment. To make them more attractive, they offer certain tax concessions with upper limits on the amount that can be invested.

We list the main products offered below, but in some cases an individual product might not be available when you want to buy. National Savings offers other products in addition to the ones listed below.

National Savings Bank Accounts - easy access savings accounts are available.

Cash ISA - tax efficient savings.

Fixed Interest National Savings Certificates - savings contracts with tax-free interest rates fixed for the length of the chosen term, so that you will know how much interest will be earned each year. If savings are withdrawn before the end of the first year they will not receive any interest. If savings are withdrawn before the end of the chosen term they will earn a lower rate of overall return.

National Savings Index Linked Certificates - offer a small return plus the rate of inflation each year as measured by the Retail Price Index, provided the Certificates are held for more than a year. The proceeds are completely tax-free.

National Savings Income Bonds - pay income monthly at a variable rate of interest. The interest is taxable, but paid without deduction of tax.

Children’s Bonus Bond – is a 5-year tax-free investment for children designed mainly to let parents invest for their children in their child’s name.

Premium Bonds – a chance to win up to a million pounds, although numerous smaller prizes are also available in the monthly draw. All prizes are tax-free.

National Savings offer other products in addition to those listed. Products may be changed, withdrawn or altered at any time. Always consult your financial adviser before investing.

The value of investments can fall as well as rise and you may not get back the amount you originally invested. Past performance is not a guide to future performance.

Most National Savings and Investment products are not regulated by the Financial Conduct Authority.