NS&I savings rates — compare every account, plus switch offers and guides

Who they are

NS&I was founded by the British government in 1861 as the Post Office Savings Bank, the world's first postal savings system. Today it is a state-owned savings bank, and an executive agency of HM Treasury. The core mission has never really changed: attract funds from individual savers in the UK to help fund the government's deficit.

What makes NS&I genuinely different from any bank or building society is the security it offers. NS&I is the only UK savings provider where the £85,000 FSCS limit does not apply. Every deposit carries a 100% guarantee from HM Treasury - there is no cap. For most savers the FSCS limit is plenty, but if you are holding a large lump sum - say, after a house sale - that unlimited backing can matter. NS&I sets rates both to attract savers and provide low-cost finance for the government, and rules are in place to ensure it does not offer market-leading products that would stifle competition. That last point is worth keeping in mind: you are rarely going to find the single best rate on the market here.

Savings accounts

NS&I keeps its range deliberately simple. There are no current accounts or mortgages - savings only.

Premium Bonds are the headline act. The prize fund rate currently stands at 4.35%, with odds of 22,000 to 1 per £1 Bond each month. Prizes are tax-free and your capital is instant-access from £25. But that 4.35% is not a guaranteed return - it is the average across the entire prize pool, heavily skewed by the two monthly £1 million jackpots. Many holders, particularly those with smaller balances, will win less than the headline rate suggests, or nothing at all in a given year.

For straightforward variable-rate saving, the Direct Saver pays 3.75% and can be opened online or by phone from £1. Income Bonds match that at 3.75% with a £500 minimum, paying interest monthly to a nominated bank account - useful if you want a regular income stream.

On the ISA side, the Direct ISA pays 3.80% tax-free with instant access from £1, and the Junior ISA pays 3.70% tax-free, locked until your child turns 18. Both are variable rate, so the figure can move.

For those happy to lock money away, Guaranteed Income Bonds pay fixed rates across four terms: 4.82% over 1 year, 4.81% over 2 years, 4.83% over 3 years and 4.85% over 5 years, all from a £500 minimum. No access until maturity on any of these, so make sure you genuinely will not need the cash.

All NS&I accounts carry FSCS protection up to £120,000, though the Treasury backing goes well beyond that with no upper limit.

Is it right for you?

NS&I suits a specific kind of saver rather than everyone. The security angle is the strongest argument: if you have more than £85,000 to put somewhere safe and do not want to spread it across multiple providers, nowhere else gives you that same peace of mind.

Premium Bonds make most sense if you are a higher or additional-rate taxpayer who has already used your ISA allowance and Personal Savings Allowance - the tax-free prize structure is genuinely valuable in that situation. For basic-rate taxpayers with smaller balances who have not yet used their ISA allowance, a straightforward easy-access account or Cash ISA is likely to deliver a better and more predictable outcome.

The fixed-rate Guaranteed Income Bonds are worth a look if you want the government backing alongside a locked-in return, though you should compare them against the broader fixed-rate market before committing.

Rates on all NS&I variable products can and do change. The live figures shown on this page are always the most up-to-date place to check before you decide.