Chancellor announces plans for NS&I in 2014 Budget

The government has announced plans for National Savings and Investments (NS&I) to help support savers by:

  • launching a choice of market leading savings bonds for people aged over 65 in January 2015
  • increasing the Premium Bonds investment limit from £30,000 to £40,000 on 1 June 2014; and increasing it again to £50,000 during 2015-16
  • increasing the number of £1 million Premium Bonds prizes per month to two, starting with the August 2014 prize draw
  • announcing a net financing target for 2014-15 of £13 billion, within a range of £11 billion to £15 billion, to allow NS&I to undertake these measures

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New ISA rules

As well as the specific plans for NS&I, the Chancellor also announced major changes to how ISAs will work. From 6 April 2014 the overall ISA limit will increase to £11,880, of which up to £5,940 can be invested in a cash ISA, as previously announced in the Autumn Statement.

Then from 1 July 2014:

  • ISAs will be reformed into a simpler product – the New ISA
  • all existing ISAs will become New ISAs (NISAs)
  • the overall ISA limit each tax year will increase to £15,000
  • savers can split their subscriptions however they want between cash and stocks and shares NISAs

Find out more about NS&I in the 2014 Budget