National Savings & Investments has received a new bumper fundraising target in the Budget.
Rachel Reeves has announced the Treasury-backed bank now has a net financing target for the financial year 2025/26 of £13billion within a range between £4billion.
Previously NS&I, had a fundraising target of £12billion, set at the Spring Statement.
NS&I uses Premium Bonds and other savings products such as British Savings bonds to raise money.
It means NS&I could raise as much as £17billion from savings products without bursting through its financial target.
NS&I has received a bigger fundraising target of £13billion within a range of +/- £4bn in the Budget
NS&I today revealed in its unaudited quarterly results for the second quarter from July to September 2025 that it delivered £1.4billion of Net Financing, giving a half-year total of £3.9 billion.
It means it could potentially raise a further £12billion without overshooting its fundraising target for the financial year.
With a larger fundraising target, NS&I customers will be wondering whether the Premium Bonds prize fund could rise or if the maximum amount that can be held in Premium Bonds could be increased from £50,000.
When This is Money asked experts if the Premium Bonds maximum limit could be raised to account for inflation, they said raising the maximum Premium Bonds limit from £50,000 would immediately spark a large inflow into NS&I which could cause it to exceed its fundraising target.’
It is more likely that savers could see interest rates on other savings accounts rise now that NS&I’s fundraising target has been boosted by £1billion, such as NS&I’s direct saver accounts.
Rachel Springall, finance expert at rates scrutineer says: ‘If NS&I have larger funding targets overall, it can lead to better on their standard savings accounts.’
NS&I chief executive, Dax Harkins says: ‘We are pleased to be able to support a further increase of £1billion, taking the target to £13 billion.
‘Our pricing is designed to meet this revised target and maintain market stability, and we expect our performance to continue steadily through the second half of the financial year.’
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