A small history of saving in Britain

Saving for a
rainy day.
And a nation.

A guide to the institution behind the familiar green savings book, the monthly Premium Bonds draw and more than a century and a half of British life.

Step into the story ↓Meet Premium Bonds
Illustrative view of the Palace of Westminster beside the Thames in warm evening light
A public
institution,
in private
pockets.
WESTMINSTER, LONDON · ILLUSTRATIVE IMAGE
1861 · A new way to save✳1917 · Saving through wartime✳1956 · A bond with a twist✳2002 · A name for a long story
01 / The long view

Not quite a bank.
Not quite a museum.

National Savings & Investments sits in an unusual corner of British life: part savings provider, part public institution, and a name many people first met in a post office queue.

This is an independent educational guide, not an official NS&I website. It explains the history and products; it does not recommend where to put your money.
02 / Five moments, one evolving idea

The shape of saving
changes with the times.

From the first Post Office savings accounts to an online institution, the story tracks how Britain has asked people to save—and what it has asked their savings to do.

1861

A savings bank for everyone

The Post Office Savings Bank opens, bringing a simple way to save within reach of communities across Britain.

NS&I about us ↗
1916–17

Saving in wartime

War Savings Certificates arrive in 1916; National War Bonds follow in 1917 as saving becomes part of the national effort.

Historical overview ↗
1956

A different kind of bond

Premium Bonds go on sale on 1 November, replacing interest with the possibility of a tax-free prize.

NS&I archive release ↗
1969

A separate institution

The Post Office Savings Bank separates from the Post Office, taking a step towards the organisation we know today.

Historical overview ↗
2002

A name for a new era

The name National Savings & Investments is adopted, carrying a long history into a more modern service.

Historical overview ↗
Illustrative period scene of a customer presenting a savings book at a traditional Post Office counter
The local counter
that made saving tangible.
03 / The everyday institution
1861—
The Post Office Savings Bank

A passbook in your pocket. A bigger purpose behind it.

Launched in 1861, the Post Office Savings Bank gave ordinary savers a practical route to put money aside. Its network helped make saving feel less like an abstract financial idea and more like a familiar errand, close to home.

A national institution, encountered one local counter at a time.

Browse the National Archives catalogue ↗
04 / The famous one

One bond.
A monthly draw.

Premium Bonds made saving feel a little different. They are still a savings product—but instead of paying interest, they enter eligible holdings into a monthly prize draw.

Illustrative mid-century still life of well-used savings books and a brass number token
A product that turned waiting into wondering.
First on sale · 1 November 1956

Familiar, but not quite like other savings.

Premium Bonds are held as savings, with the chance of a prize taking the place of interest. The draw is part of their appeal—but a chance is not a promise.

Monthly prize drawEligible Bonds are entered into a monthly draw.
Prizes are tax-freeNS&I says Premium Bond prizes are tax-free.
No guaranteed returnYou may receive no prizes; returns are not assured.
Details can changeRates and odds may change. Check NS&I for current terms.
Read NS&I’s product details ↗
Backed by
HM Treasury
A note on the institution

Public backing.
Not personal advice.

NS&I states that it is backed by HM Treasury and has helped people save for over 160 years. That is useful context about the institution—not a guarantee of a particular return, nor a recommendation about whether a product suits you. For the current official explanation, visit NS&I’s own website.

05 / A few clear answers

Good questions
to keep handy.

A short guide to what NS&I is, what Premium Bonds do, and where to verify the details.

National Savings & Investments. The name was adopted in 2002, following a much longer institutional history that began with the Post Office Savings Bank in 1861.

NS&I describes Premium Bonds as a savings product. Rather than earning interest, eligible Bonds are entered into a monthly prize draw. Prizes are tax-free, but a return is not guaranteed.

No. A prize is possible, not certain, and you may receive no prizes. Rates and odds can change. Check the official product page for the latest terms, and consider independent guidance if you need help with a financial decision.

NS&I publishes its institutional history, and the National Archives catalogue provides records relating to the Post Office Savings Bank. We link to both below; the illustrations on this page are interpretive, not archival evidence.

06 / Follow the paper trail

Read beyond
this page.

History and product details can change in the telling and in the terms. Follow the primary sources—and a dated historical overview for context.

NS&I · About usOFFICIAL ORGANISATION PAGE ↗ NS&I · Premium BondsOFFICIAL PRODUCT PAGE ↗ NS&I · Premium Bonds at 70OFFICIAL ARCHIVE RELEASE ↗ National Savings & InvestmentsOFFICIAL WEBSITE ↗ The National Archives · Post Office Savings BankCATALOGUE RECORD ↗ The Private Office · NS&I historyDATED HISTORICAL OVERVIEW ↗