NS&I Products Explained — Premium Bonds and More
Premium Bonds, Income Bonds, Direct Saver and where each Treasury-backed NS&I product actually fits your savings.
Savings guides
Personal Savings Allowance, Premium Bonds, regular savers, emergency funds — making cash work as hard as it can outside the ISA.
Easy-access vs fixed-rate savings — the interest premium for locking up cash
The trade-off between easy-access savings and fixed-rate bonds, the rate premium for locking your money up, the rate-risk argument that complicates the picture, and the laddering approach some savers use.
What's the Difference Between APR and AER UK? (2026/27)
APR is the cost of borrowing per year including fees. AER is the equivalent annual interest rate including compounding. They serve opposite purposes.
Best Way to Save for a House Deposit UK (2026/27)
Mix of Lifetime ISA (25% bonus), cash ISA, regular savings. Time horizon determines whether to risk equities. 3-5 year deposit savings typically stay in cash.
What is a Regular Saver Account? Is It Worth It?
Regular savers pay 5–7% AER but cap deposits at £100–£500 a month. Best for drip-feeding salary, not lump sums.
How to Build an Emergency Fund UK (2026/27)
Target 3-6 months of essential expenses in instant-access cash. The standard UK approach — accounts, savings rate, and when to dial up to 12 months.
How Does the Personal Savings Allowance Work UK?
PSA is £1,000 for basic-rate, £500 for higher-rate, £0 for additional-rate taxpayers. Interest above is taxable. Applies to non-ISA savings only.
How Do Premium Bonds Work UK and Are They Worth It?
Premium Bonds enter you into monthly tax-free prize draws. Prize fund rate ~3.8%. 100% NS&I-backed beyond FSCS. Maximum £50,000 holding. Returns vary.
Do I Pay Tax on Savings Interest in the UK? (2026/27)
Yes, above your Personal Savings Allowance (£1,000/£500/£0 by tax band). ISA interest stays completely tax-free.
Premium Bonds — the maths behind the prize draw
How the NS&I Premium Bonds prize draw actually works, what the 'prize rate' means versus what most holders earn, and when Premium Bonds make sense compared to an easy-access ISA.