Is NS&I the best option for my cash savings?

On 21st July 2022, NS&I announced across the board increases in the interest rates offered on their different savings products. This reflects NS&I’s response to the increases in the Bank of England base rate, along with the general increase of interest rates in the cash savings market. But is this the best option for your cash?

What is NS&I?

National Savings and Investments (NS&I) is the government-backed cash savings account provider for UK residents. It is primarily known as the issuer of Premium Bonds (which give the holders a monthly chance to win a jackpot of £1million), however it also offers several other cash products ranging from instant access savings to fixed term bonds.

What are the new rates?

The new interest rates offered by NS&I depend on the type of product, the liquidity of the product (how easy it is to access your money) and whether you are investing new funds with NS&I or re-investing existing funds with NS&I. The full list of products and interest rates is available here – Our saving products | National Savings & Investments | NS&I (

Are NS&I rates the best on the market?

The return on an investment is linked to the amount of risk involved in the investment (even for cash). NS&I deposits are 100% backed by HM Treasury whereas bank and building society deposits are 100% backed up to a maximum of £85,000 per person under the Financial Services Compensation Scheme. This means, in the cash deposit world, that NS&I deposits are more secure, and therefore the return offered as interest is slightly lower compared to bank and building society savings accounts.

Is NS&I the best option for my cash?

The answer depends on your personal circumstances, how much cash you want to invest and how easily you want to be able to access the cash in the future.

How can we help?

Carpenter Box Financial Advisers can help you ascertain the amount of cash you need to hold based on your attitude to risk and current circumstances. We can then recommend the best solution for your cash as part of a wider financial plan. If you would like to discuss cash management, or financial planning more widely, please feel free to call us on 01907 534587 or contact us via our website.