NS&I Savings Tax Calculator

Yes. All Premium Bond prizes, regardless of size, are completely tax-free. They do not count as savings income, do not use your Personal Savings Allowance, and do not appear on your self-assessment return.

NS&I announces rate changes periodically, often linked to Bank of England base rate decisions. Current rates are published at nsandi.com. The Prize Fund Rate for Premium Bonds determines the total value of prizes distributed each month, not a guaranteed return.

Yes. Interest earned on the NS&I Direct Saver is taxable as savings income. It counts against your Personal Savings Allowance (£1,000 for basic rate, £500 for higher rate, £0 for additional rate taxpayers). Interest is paid annually and you may need to report it on self-assessment.

No. Despite the green branding, NS&I Green Savings Bonds pay taxable interest. They work like a conventional fixed-rate bond and interest must be reported as savings income. The environmental impact is at the government level, not a personal tax benefit.

The maximum Premium Bond holding is £50,000 per person. Children's Premium Bonds can also be up to £50,000 per child. Couples can each hold £50,000, for a household total of £100,000.

Yes. NS&I Income Bond interest is paid monthly and is taxable as savings income. You'll receive a statement at the tax year-end showing the interest paid, which should be reported on your self-assessment return if you exceed the Personal Savings Allowance.

No. NS&I products cannot be held within an ISA (the only exception historically were ISA-specific accounts which NS&I no longer offers). Premium Bonds are already tax-free, so the ISA wrapper would add no benefit for those.

Premium Bond prizes do NOT affect adjusted net income (they are not income). Taxable NS&I interest DOES count towards adjusted net income and can therefore affect: the personal allowance taper (above £100,000), high income child benefit charge, and the tapering of the pension annual allowance.