National Savings and Investments
Encyclopedia
National Savings and Investments (NS&I), formerly called the Post Office Savings Bank and National Savings, is a state-owned savings bank
in the United Kingdom. It is an executive agency
of the Chancellor of the Exchequer
. The aim of NS&I is to attract funds from individual savers in the UK for the purposes of funding the government’s public sector borrowing requirement (i.e., the funds in excess of taxation that the government requires to fund its activities). NS&I attracts savers through offering saving products with tax free elements on some products, and a 100% guarantee from HM Treasury on all deposits. However, its rates are often low.
. The aim of the bank was to allow workers "to provide for themselves against adversity and ill-health", and to provide the government with access to debt funding. In 1969 the bank was transferred from the Post Office to the Treasury and its name was changed to National Savings. The name was changed again in 2002 to National Savings and Investments.
. In November 2011, it was announced that most products would only be available by telephone or online. Premium bonds would be the only remaining product sold in post offices.
, NS&I's range of products includes:
NS&I's most popular product, Premium Bond
s, celebrated its 50th anniversary in November 2006 when a special 5× £1m jackpot draw was announced. A second 5× £1m jackpot anniversary draw in June 2007 celebrated 50 years since the very first prize draw.
Savings bank
A savings bank is a financial institution whose primary purpose is accepting savings deposits. It may also perform some other functions.In Europe, savings banks originated in the 19th or sometimes even the 18th century. Their original objective was to provide easily accessible savings products to...
in the United Kingdom. It is an executive agency
Executive agency
An executive agency, also known as a next-step agency, is a part of a government department that is treated as managerially and budgetarily separate in order to carry out some part of the executive functions of the United Kingdom government, Scottish Government, Welsh Assembly or Northern Ireland...
of the Chancellor of the Exchequer
Chancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...
. The aim of NS&I is to attract funds from individual savers in the UK for the purposes of funding the government’s public sector borrowing requirement (i.e., the funds in excess of taxation that the government requires to fund its activities). NS&I attracts savers through offering saving products with tax free elements on some products, and a 100% guarantee from HM Treasury on all deposits. However, its rates are often low.
History
National Savings and Investments was founded by the British government in 1861 as the Post Office Savings Bank, the world's first postal savings systemPostal savings system
Many nations' post offices operated or continue to operate postal savings systems to provide depositors who do not have access to banks a safe, convenient method to save money and to promote saving among the poor.-Great Britain:...
. The aim of the bank was to allow workers "to provide for themselves against adversity and ill-health", and to provide the government with access to debt funding. In 1969 the bank was transferred from the Post Office to the Treasury and its name was changed to National Savings. The name was changed again in 2002 to National Savings and Investments.
Role
NS&I manages around £98 billion in savings, 9% of the UK savings market. This accounts for 16% of the UK's national debt. As funds from NS&I are a relatively cheap source of government borrowing, the bank sets interest rates both to attract savers and provide low-cost finance for the government.Operations
NS&I's head office is in Pimlico, London, with operational sites in Blackpool, Glasgow and Durham. However, its entire back office operation is contracted out to a French company, Atos IT Solutions and Services. Until July 2011 the contract was held by Siemens IT and Solutions. It offers many of its services through post offices, and was founded in 1861 as a postal savings systemPostal savings system
Many nations' post offices operated or continue to operate postal savings systems to provide depositors who do not have access to banks a safe, convenient method to save money and to promote saving among the poor.-Great Britain:...
. In November 2011, it was announced that most products would only be available by telephone or online. Premium bonds would be the only remaining product sold in post offices.
Current products
NS&I offers a wide range of savings and investment products, specialising in tax-free and income generating products. Besides the very popular Premium BondPremium Bond
A Premium Bond is a lottery bond issued by the United Kingdom government's National Savings and Investments scheme. The government promises to buy back the bond, on request, for its original price. They were introduced by Harold Macmillan in his 1956 budget....
, NS&I's range of products includes:
- Premium BondsPremium BondA Premium Bond is a lottery bond issued by the United Kingdom government's National Savings and Investments scheme. The government promises to buy back the bond, on request, for its original price. They were introduced by Harold Macmillan in his 1956 budget....
- Individual Savings AccountIndividual Savings AccountAn Individual Savings Account is a financial product available to residents in the United Kingdom. It is designed for the purpose of investment and savings with a favourable tax status. Money is contributed from after tax income and not subjected to income tax or capital gains tax within a holding...
(ISAs) (Direct ISA or Cash ISA) - Inflation Index-Linked Savings CertificatesIndex-linked Savings CertificatesIndex-linked Savings Certificates are inflation linked bonds from National Savings and Investments the state-owned savings bank in the United Kingdom. The bond terms are typically 2,3 or 5 years. The returns are linked to the RPI with an escalating premium on top...
- Fixed Interest Savings Certificates
- Income Bonds
- Guaranteed Growth Bonds
- Guaranteed Equity Bonds
- Children's Bonus Bonds
- Direct Saver Account
- Investment Account
- Easy Access Savings Account
NS&I's most popular product, Premium Bond
Premium Bond
A Premium Bond is a lottery bond issued by the United Kingdom government's National Savings and Investments scheme. The government promises to buy back the bond, on request, for its original price. They were introduced by Harold Macmillan in his 1956 budget....
s, celebrated its 50th anniversary in November 2006 when a special 5× £1m jackpot draw was announced. A second 5× £1m jackpot anniversary draw in June 2007 celebrated 50 years since the very first prize draw.
Old products
Products which are no longer on sale with NS&I include:- Cash ISA
- TESSA-only ISA
- Fixed Rate Savings Bonds
- Pensioners Bonds and Capital Bonds
- Ordinary Account/Treasurer's Account/SAYE/Yearly Plan/Deposit Bonds
- FIRST Option Bonds
- National Savings Stamps and Gift Tokens