Government Backed
Government-backed savings from National Savings & Investments. 100% capital protection — backed by HM Treasury.
NS&I is the only UK savings provider backed directly by HM Treasury rather than the FSCS. That is the entire proposition, and for some savers it is decisive.
The FSCS covers £85,000 per person per banking licence. NS&I has no such ceiling — every pound is government-backed. For anyone holding a large cash balance, that removes the tedious business of spreading money across multiple banks to stay inside protection limits.
Who it suits. Savers with balances well above the FSCS limit, and anyone who values certainty over squeezing out the last fraction of a percent. Premium Bonds are the well-known product, though they pay prizes rather than interest — the effective return depends entirely on luck, and most holders earn less than the headline prize rate suggests.
Worth knowing. NS&I rates are set with an eye on government funding targets rather than on beating the market, so they move up and down for reasons unrelated to the Bank of England. They are periodically excellent and periodically uncompetitive.