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National Savings & Investments (NS&I)

Welcome to the HM Revenue & Customs NS&I product page. This page tells you about NS&I products and whether you should pay tax on them.

Full details of all National Savings & Investments (NS&I) products can be found on the NS&I website

EASA

The Easy Access Savings Account (EASA) is a new kind of National Savings & Investments account in place of the National Savings Ordinary Account. (It will not be possible to open a new Ordinary Account after 28 January 2004.)

If you are a student, please use this link.

All the interest you receive from an EASA is taxable, but unlike other savings income - such as bank and building society interest - no tax is taken off your EASA interest before it is paid to you. Although the interest is paid without tax taken off you may have to pay tax on it.

If you do not normally have to pay tax you may not have to pay tax on your EASA interest - you do not even have to tell us about it. This will usually be the case if your total income, including the interest, is less than your personal tax allowance. This is £4895 a year at present, unless you are entitled to extra allowances.

If you do have to pay tax, you must tell us about your EASA account. If you do not know how to contact your tax office you can find the address and telephone number here - contact us.

Cash mini ISA

All interest received from a Cash mini ISA is tax free. You do not need to tell us about any interest unless your ISA manager has to repair or cancel subscriptions you have made.

If this happens your manager will give you the information you need about the interest paid to you. You will need to tell your tax office about this income

  • if you have already completed a tax return for the tax year in which the interest was paid, or
  • if you are liable to pay tax at the higher rate on any of this interest.

If you do not know how to contact your tax office you can find the address and telephone number here - contact us.

Premium Bonds

All prizes received from Premium Bonds are tax free. You do not need to tell us about any winnings.

Fixed Interest Savings Certificates

All interest received from Fixed Interest Savings Certificates is tax free. You do not need to tell us about any interest.

Index linked Savings Certificates

All interest and index linking from Index Linked Savings Certificates is tax free. You do not need to tell us about any interest.

Children's Bonus Bonds

All interest, including bonuses, received from Children's Bonus Bonds is tax free. You do not need to tell us about any interest.

Fixed Rate Savings Bonds

The interest from Fixed Rate Savings Bonds is taxable income.

NS&I deduct the tax (at 20%) from the interest before they pay it to savers. They then pay over this tax to the Inland Revenue.

If you pay tax at the starting rate of 10% you may be able to claim back some or all of the tax deducted - contact your tax office for more details. If you do not know how to contact HM Revenue & Customs you can find the telephone number here - contact us.

If you pay tax at the basic rate of 22% the tax deducted meets your tax bill on the interest. This is because tax is payable on savings income at the lower rate of 20%.

If you pay tax at the higher rate of 40% you will need to tell HM Revenue & Customs about this income. If you do not know how to contact us you can find the telephone number here - contact us.

Some savers may be able to claim back from the HM Revenue & Customs all the tax deducted from their Fixed Rate Savings Bonds interest, because they are not due to pay any tax. Others savers may be able to claim back some of the tax deducted, because the amount taken off their interest is more than they are due to pay.

NS&I will tell you that because tax is deducted from interest payable on these Bonds the product is more suitable for taxpayers. Non-taxpayers have to claim back the interest from the HM Revenue & Customs.

First Option Bonds (no longer available to buy)

The interest from First Option Bonds is taxable income.

NS&I deduct the tax (at 20%) from the interest before they pay it to savers. They then pay over this tax to HM Revenue & Customs.

If you pay tax at the starting rate of 10% you may be able to claim back some or all of the tax deducted - contact your tax office for more details. If you do not know how to contact HM Revenue & Customs you can find the telephone number here - contact us.

If you pay tax at the basic rate of 22% the tax deducted meets your tax bill on the interest. This is because tax is payable on savings income at the lower rate of 20%.

If you pay tax at the higher rate of 40% you will need to tell your tax office about this income. If you do not know how to contact HM Revenue & Customs you can find the telephone number here - contact us.

Some savers may be able to claim back from the HM Revenue & Customs all the tax deducted from their First Option Bonds interest, because they are not due to pay any tax. Others savers may be able to claim back some of the tax deducted, because the amount taken off their interest is more than they are due to pay.

Capital Bonds

All the interest you receive each year from a Capital Bond is taxable, but unlike other savings income - such as bank and building society interest - no tax is taken off your Capital Bond interest before it is paid to you. Although this interest is paid without tax taken off you may have to pay tax on it.

If you do not normally have to pay tax you may not have to pay tax on your Capital Bond interest - you do not even have to tell us about it. This will usually be the case if your total income, including the interest, is less than your personal tax allowance. This is £4895 a year at present, unless you are entitled to extra allowances.


If you do have to pay tax, you must tell us about your Capital Bond interest. If you do not know how to contact your tax office you can find the telephone number here - contact us.

Pensioners Bonds

All the interest you receive from a Pensioner Bond is taxable, but unlike other savings income - such as bank and building society interest - no tax is taken off your Pensioner Bond interest before it is paid to you. Although this interest is paid without tax taken off you may have to pay tax on it.

If you do not normally have pay tax you will not have to pay tax on your Pensioner Bond interest - you do not even have to tell us about it. This will usually be the case if your total income, including the interest, is less than your personal tax allowance. This is £4895 a year at present, unless you are entitled to extra allowances.


If you do have to pay tax, you must tell us about your Pensioner Bond interest. If you do not know how to contact your tax office you can find the telephone number here - contact us.

Income Bonds

All the interest you receive from a Income Bond is taxable, but unlike other savings income - such as bank and building society interest - no tax is taken from your Income Bond interest before it is paid to you. Although this interest is paid without tax taken off you may have to pay tax on it.

If you do not normally have to pay tax you will not have to pay tax on your Income Bond interest - you do not even have to tell us about it. This will usually be the case if your total income, including the interest, is less than your personal tax allowance. This is £4895 a year at present, unless you are entitled to extra allowances.


If you do have to pay tax, you must tell us about your Income Bond interest. If you do not know how to contact your tax office you can find the telephone number here - contact us.

Investment Account

All the interest you receive from an Investment Account is taxable, but unlike other savings income - such as bank and building society interest - no tax is taken off your Investment Account interest before it is paid to you. Although this interest is paid without tax taken off you may have to pay tax on it.

If you do not normally have to pay tax you may not have to pay tax on your Investment Account interest - you do not even have to tell us about it. This will usually be the case if your total income, including the interest, is less than your personal tax allowance. This is £4895 a year at present, unless you are entitled to extra allowances.

If you do have to pay tax, you must tell us about your Investment Account interest. If you do not know how to contact HM Revenue & Customs you can find the telephone number here - contact us.

Ordinary Account

The first £70 of any interest you receive from a National Savings Ordinary Account is tax free. You may have to pay tax on any interest which is more than £70 but all of your interest will be paid to you without tax taken off.

If you do not normally have to pay tax you may not have to pay tax on your Ordinary Account interest - you do not even have to tell us about it. This will usually be the case if your total income, including the interest, is less than your personal tax allowance. This is £4895 a year at present, unless you are entitled to extra allowances.

If you do have to pay tax, you must tell us about your Ordinary Account interest. If you do not know how to contact HM Revenue & Customs you can find the telephone number here - contact us.

After 28 January 2004 it will not be possible to open a new National Savings Ordinary Account. The Easy Access Savings Account (EASA) is a new kind of National Savings & Investments account in place of the Ordinary Account.

You will not have to switch the money in your Ordinary Account to an EASA unless you want to, but no further deposits into Ordinary Accounts will be possible after 31 July 2004, and the only withdrawal allowable after 31 July 2004 will be the balance in full to close the account. No part withdrawals will be allowed.

Guaranteed Equity Bonds

All the income you receive from a Guaranteed Equity Bond is taxable, but unlike other savings income - such as bank and building society interest - no tax is taken from your Guaranteed Equity Bond income before it is paid to you. Although this income is paid without tax taken off you may have to pay tax on it.

If you do not normally have to pay tax you will not have to pay tax on your Guaranteed Equity Bond income - you do not even have to tell us about it. This will usually be the case if your total income, including the interest, is less than your personal tax allowance. This is £4895 a year at present, unless you are entitled to extra allowances.

If you do have to pay tax, you must tell us about your Guaranteed Equity Bond income. If you do not know how to contact HM Revenue & Customs you can find the telephone number here - contact us.

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