Renewing an NS&I Bond When It Matures

When an NS&I bond reaches the end of its term, NS&I writes to you at least 30 days before the maturity date to set out your options¹. You can normally renew for another term of the same length, renew for a term of a different length, or cash the bond in². If you do nothing, the bond renews automatically for another term of the same length².

The money is not at risk while you decide. NS&I is the UK government savings bank, and your capital is backed by the Treasury rather than by the Financial Services Compensation Scheme³. Guaranteed Growth Bonds accept up to £1 million per person in each Issue, and the minimum age is 16¹.

The main things to get right are the deadline for telling NS&I what you want, the fact that a renewed bond cannot be switched mid-term, and the tax treatment of the interest, which is taxable in the tax year the bond matures¹.

What happens when an NS&I bond reaches its maturity date

A bond's maturity value is the amount an investor is repaid when the term ends⁵. For NS&I's fixed-term bonds, that repayment is your original capital plus the interest earned over the term. On Guaranteed Growth Bonds with terms from 1 May 2019, interest is paid at maturity rather than annually, so the whole amount arrives in one payment⁶.

NS&I's approach is to give you notice rather than let the date pass silently. Guaranteed Growth Bonds, Guaranteed Income Bonds and Green Savings Bonds all carry the same commitment: NS&I will contact you to let you know your options at least 30 days before your bond matures¹. The letter sets out what you can do and, for renewals, the rate you would receive.

If you do not respond, the default is renewal. For Guaranteed Growth Bonds, that means automatically renewing for another term of the same length². The same structure applies to Green Savings Bonds, which renew for another three-year term unless you choose otherwise⁹.

One consequence of automatic renewal is worth flagging before the date arrives: the money stays locked in for the new term. Guaranteed Growth Bonds cannot be cashed in before the end of the term, and NS&I states plainly that you cannot take money out until the Bond reaches the end of its term¹.

Your options at maturity: renew, switch or cash in

There are three routes, and they are the same across NS&I's fixed-term bonds. For Green Savings Bonds, NS&I lists them as automatically renewing for another three-year term, switching to another NS&I account, or cashing the bond in⁹. For Guaranteed Growth Bonds, the choice is to automatically renew for another term of the same length, renew for a term of a different length, or cash it in².

If you want to switch to another NS&I account rather than renew, timing matters. NS&I needs to receive your instruction no later than two working days before your fixed term investment matures⁴. There is a workaround if you are close to the date: you can mark on the form that you want to defer the switch until the maturity date, and you can do this if the investment is within 30 days of its maturity⁴.

Cashing in and moving the money elsewhere is a genuine option, not a last resort. NS&I's online and phone service covers Premium Bonds, Green Savings Bonds (online only), Income Bonds, Direct Saver, Junior ISA (online only) and Direct ISA¹⁰. Premium Bonds are open to anyone aged 16 or over with a UK bank account, and you need to hold them for a whole month before they are eligible for the prize draw¹¹. NS&I does not offer a flexible ISA³.

Switching mid-term is not allowed on renewed bonds

This is the rule most likely to catch people out. If you invested or renewed a Guaranteed Growth Bond or Guaranteed Income Bond on or after 1 May 2019, you will not be able to switch mid-term⁴. The money is committed for the whole term.

The same restriction appears across NS&I's fixed-term products. Green Savings Bonds are designed to be held for the whole term, and NS&I states that you cannot cash the bond in before the end of the term¹². Guaranteed Growth Bonds carry the same message: no withdrawals until the bond reaches the end of its term¹.

This is not unique to NS&I. Fixed-rate bonds generally lock the money away for the term, and a five-year fixed rate bond from a building society, for example, states that withdrawals and transfers are not permitted until maturity¹³. The difference with NS&I is the scale of the holding and the fact that the default on silence is renewal, so an unreturned letter can commit a large sum for several more years.

There is one exception worth knowing about, and it concerns inheritance rather than a change of mind. If you inherit a Green Savings Bond, you can transfer it into your name even if it takes you over the investment limit for that Issue, though no more bonds of the same Issue can then be bought¹². Premium Bonds work differently: they cannot be passed on, and must instead be cashed out by the executor, or left for another 12 months on the death of the holder¹⁴.

Tax on bond interest and the Personal Savings Allowance

Interest on NS&I's fixed-term bonds is taxable. NS&I adds interest without deducting any tax, but the interest counts towards your Personal Savings Allowance⁷. For Guaranteed Growth Bonds, NS&I confirms that the interest is taxable in the tax year your bond matures¹. The same applies to Green Savings Bonds, where the interest counts towards your Personal Savings Allowance in the tax year the bond matures⁸.

The timing point matters more than it first appears. Because interest on Guaranteed Growth Bonds is paid at maturity rather than annually, a multi-year bond can push several years of interest into a single tax year⁶. That can use up the allowance in one go and, for a large holding, create a tax bill where the saver had not expected one.

Guaranteed Income Bonds follow the same principle: NS&I adds interest without deducting tax, and the interest is taxable and counts towards your Personal Savings Allowance⁷.

The Personal Savings Allowance is the amount of savings interest you can receive tax-free each year. Its size depends on your marginal rate of income tax, and it applies to savings interest generally, not just to NS&I products. If your interest is likely to exceed it, the practical steps are to spread maturities across tax years where the terms allow, or to hold some of the money in a tax-free wrapper. NS&I's Direct ISA and Junior ISA are cash ISAs, and the Junior ISA is a cash ISA³.

Government backing: your money is backed by the government, with no upper limit

NS&I is the UK government savings bank³. That means your money is backed by the government rather than by the Financial Services Compensation Scheme, and the protection has no upper limit. This is the single biggest practical difference between NS&I and a high street bank or building society, where deposit protection is capped.

The cap matters for large balances. FSCS protection covers deposits up to £120,000 per person per institution, with a temporary high balance rule that covers up to £1 million for six months in certain circumstances, such as money held between property transactions¹⁵. NS&I's government backing has no equivalent ceiling, which is why it is often used for sums that would exceed the FSCS limit elsewhere.

The holding limits on NS&I's own products are separate from the protection question. Guaranteed Growth Bonds allow up to £1 million per person in each Issue, and you can invest up to a total of £100,000 per person when switching from another NS&I account¹. Guaranteed Growth and Guaranteed Income Bonds are described as accepting £1m per account¹⁷. Premium Bonds have a much lower ceiling: you can save up to £50,000 with NS&I completely tax-free through Premium Bonds, and a child must not hold more than £50,000 of Premium Bonds in total¹¹.

Problems with a maturing bond and how to complain

Most maturities pass without difficulty, but the things that go wrong tend to be administrative: a letter not received, a switch instruction arriving too late, or a payout delayed while identity is checked.

On identity, NS&I is required by law to check your identity and address when you apply to invest or register for its online and phone service, and possibly at other times to keep its records updated¹⁸. If you are opening a new NS&I account with the proceeds of a matured bond, expect to provide documents proving identity and address¹⁹. Where a bond is being gifted to someone else's child, NS&I asks the parent or guardian to provide proof of their own and the child's identity, and identity documents need to be sent by post if they are not already NS&I customers²⁰.

If something does go wrong, NS&I has its own complaints process, and the Financial Ombudsman Service can look at complaints that are not resolved. For NS&I Income Bonds, the key document states that you may be able to refer your complaint to the Financial Ombudsman Service free of charge²¹.

The ombudsman publishes complaint volumes by firm and product. In the first quarter of 2026/27, it recorded 98 complaints opened about Premium Bonds (NS&I only), of which 47% were upheld, and 58 complaints opened about Savings Certificates or Bonds²². In the same quarter a year earlier, it recorded 55 complaints opened about Premium Bonds (NS&I only), with 41% upheld²³. The figures give a sense of scale rather than a verdict on any individual case.

Renewing from outside the UK, and dealing with a bond for someone else

Two situations change how a maturity is handled: living abroad, and acting for someone else.

On living abroad, NS&I states that customers living outside the UK may still save with it if they have a UK bank account¹⁸. The UK bank account is the practical requirement, since that is where maturity proceeds and interest are paid. Premium Bonds are open to anyone 16 or over who has a UK bank account¹¹.

On acting for someone else, a lasting power of attorney lets you appoint one or more people to make decisions about money and property for you, including collecting your State Pension²⁴. To make an LPA you must be over 18 and able to make your own decisions, meaning you have mental capacity²⁴. The LPA must be registered with the Office of the Public Guardian before it can be used with NS&I, and registration can take up to 20 weeks²⁰. That timescale is worth building in if a bond matures while an attorney is being appointed.

Who sets the rate on a renewed bond

NS&I's interest rates and the Premium Bonds prize fund rate are set by HM Treasury and may change from time to time²⁵. NS&I does not set its own rates in the way a bank does.

When you renew, the rate you receive depends on the term you choose. If you renew a Guaranteed Growth Bond or Guaranteed Income Bond for another term of the same length, you receive the interest rate quoted in NS&I's letter, or the interest rate on offer on the date your bond matures, whichever is the higher². That protection applies to a renewal of the same length; choosing a different term puts you on the rate for that term.

Because rates are set by the Treasury and reviewed periodically, the rate on a renewal can differ from the rate on the bond that is maturing. The letter NS&I sends at least 30 days before maturity is the document that tells you what is on offer, which is why reading it before the deadline matters more than reading it afterwards.