What are National Savings and Investment Certificates?

National Savings and Investments (NS&I) is a government-run savings bank.

It was previously called the Post Office Savings Bank, and then the National Savings Bank. NS&I pays interest on personal savings, and deposits are 100% guaranteed by the government.

NS&I Savings Certificates are a kind of deposit bond. This means you can buy a ‘bond’ or certificate for a fixed period of time, usually 2, 3 or 5 years, and after that time you receive the value of the bond plus a certain amount of interest. In the case of NS&I bonds, you can cash in the bond at any time, although you will not receive the full interest if you cash a bond early. NS&I bonds are linked to the Retail Prices Index measure of inflation, which means that their potential value varies according to the overall level of inflation.

Many different NS&I products and services are available. Interest gained on NS&I Certificates counts as taxable income, although the initial value of the bonds is not taxable.