Is NS&I safe? Premium Bonds and the Treasury guarantee

For your capital, yes. National Savings and Investments is part of the government, and it says it is the only UK savings provider that secures 100% of savings above £120,000, because HM Treasury stands behind every pound: in NS&I's words, it guarantees "100% of everything you invest in NS&I. Not just £120,000 - every penny." A bank or building society account is protected by the FSCS only up to £120,000 per person per banking licence. The trade-offs are that NS&I's rates are set to meet the government's borrowing needs, not to lead the market, and that the guarantee is about repayment, not about NS&I never making mistakes.

How the guarantee works

NS&I is not a bank. It is both a non-ministerial government department and an executive agency of the Chancellor of the Exchequer, and it has no legal identity of its own (HM Treasury framework document). Saving with it is lending to the state: "When customers invest in NS&I products, they are lending to the Government" (NS&I annual report 2025-26). "Backed by HM Treasury" means the law makes repayment a charge on the government's own funds:

Is NS&I covered by the FSCS?

No, and it does not need to be. The FSCS covers deposits with firms authorised by the Prudential Regulation Authority; NS&I is a government department instead. The FSCS itself gives the example that "some products such as Premium Bonds are instead backed by HM Treasury" (FSCS consumer research, 2022). So money in NS&I does not use up any of your £120,000 limit at a bank, and has no limit of its own beyond each product's maximum holding.

How much you can hold

From each product's page on nsandi.com, read 6 November 2026. All of it is covered by the Treasury guarantee.

Are Premium Bonds safe in a financial crash?

The money you put in is: a bank failure or market crash does not touch the government's obligation to repay it. What can change is the return. Premium Bonds pay no interest; an annual prize fund rate pays for monthly tax-free prizes, and NS&I can "change it up or down from time to time, for example when the Bank of England base rate changes". NS&I's own warning: "inflation can reduce the true value of your money over time."

NS&I or a bank?

Up to £120,000 per person per banking licence, a UK-licensed bank's FSCS protection does the same job, so the choice comes down to the rate. NS&I matters for larger sums, which it protects in full. Its rates are not set to compete: the minister sets an annual net financing target, £15 billion (plus or minus £4 billion) for 2026-27, approves NS&I's rates, and NS&I prices its products to meet the target while "balancing the interests of our savers, taxpayers and broader market stability" (target; annual report 2025-26). For money above the bank limit, the alternatives are spreading it across separately licensed banks or a temporary high balance after events such as a house sale (the safest bank account in the UK).

What the guarantee does not cover

The Treasury guarantee is about NS&I being able to repay you; it does not stop administrative failures. On 26 March 2026 the government announced that NS&I had not always repaid every account of customers who had died. By 4 November 2026 up to 30,300 estates worth up to £181.9 million might be affected, and over £3 million had been paid to 613 estates so far, with the scheme due to finish in the first half of 2027. For 2025-26 the government's internal audit rated NS&I's risk management, control and governance "unsatisfactory" (NS&I annual report 2025-26). The money remains owed by the government; the risk is delay and the effort of getting it back.

Frequently asked questions

Is NS&I safe?

Yes for your capital. NS&I is part of the government and HM Treasury guarantees 100% of the money in it, with no £120,000 limit. Repayment is a charge on the government's own funds under the National Loans Act 1968, the National Savings Bank Act 1971 and the Finance Act 1980.

Is NS&I safer than a bank?

For amounts above £120,000, yes: a bank or building society account is protected by the FSCS only up to £120,000 per person per banking licence, while NS&I is backed in full by HM Treasury. Below that, both are protected in full, so the choice comes down to the rate.

Are Premium Bonds safe?

The money you put in is backed 100% by HM Treasury, up to the £50,000 maximum holding. What is not guaranteed is the return: Premium Bonds pay prizes from a variable prize fund rate instead of interest, and inflation can reduce their real value.

Are Premium Bonds safe in a financial crash?

Yes for the capital: a bank failure or market crash does not affect the government's obligation to repay Premium Bonds. NS&I can lower the prize fund rate at any time, so the prizes you win can fall.

Is NS&I covered by the FSCS?

No. The FSCS covers deposits with PRA-authorised banks, building societies and credit unions; NS&I is a government department, and its products are backed by HM Treasury instead, with no compensation limit.

How much can I put in NS&I?

Per person: £50,000 in Premium Bonds, £1 million in Income Bonds, £2 million in Direct Saver, £1 million in each issue of Guaranteed Growth or Income Bonds, and the annual ISA allowance in the Direct ISA. All of it is Treasury-backed.