A SAFE HAVEN FOR CASH!

While there is a great deal of competition by banks and building societies for your cash deposits, a safe and secure option is the National Savings and Investments Bank (NS&I).

While deposits with other savings institutions are insured by the Government up to a maximum

of £85,000 for each individuals, NS&I is a Government institution and ALL money held in S&I is guaranteed by the Treasury. (Note: The £85,000 limit applies to each banking group so you would need to check if you have savings with two or more companies which might in the same banking group, e.g. the Lloyds Banking Group includes Lloyds Bank, the Halifax and the Bank of Scotland so the £85,000 limit would apply to the total sum you have in all three of those institutions.)”.

Here is a look at some of the NS&I products:

1. Premium Bonds set to return 1.40% free of tax. Maximum £50,000 per person.

2. Guaranteed Income Bonds paying 1.45% guaranteed for one year or 1.90% guaranteed for 3 years (taxable). Maximum £10,000 per person in each.

3. Income Bond paying 1.15% with a maximum of £1 million (taxable)

4. Direct ISA paying 0.90% free of tax.

It is worth looking at NS&I as an option for your cash savings.