National Savings and Investments (NS&I), formerly called the National Savings Bank, is a state-owned savings bank in the United Kingdom. It is an executive agency of HM Treasury. 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's head office is in Kensington, London, with operational sites in Blackpool, Glasgow and Durham. However, its entire back office operation is contracted out to a German company, Siemens IT Solutions and Services. Some work is off-shored to Chennai, India. ^[1] It offers many of its services through post offices, and was founded in 1861 as a postal savings system.

NS&I attracts savers through offering saving products with tax free elements on some products, and a 100% guarantee from HM Treasury over any deposits. However, its rates are often low, e.g. its cash ISA (which is tax-free with any institution) is at a mere 3.90% AER as of 1st November 2008 ^[2].

NS&I's most popular product, Premium Bonds, 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.

From the 1860s onwards, the customer would take their deposit book, such as this 1869 example, to a Post Office each time they made a transaction.

[edit] Role

National Savings and Investments was founded by the British government in 1861 as the Post Office Savings Bank, the world's first postal savings system. 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.^[3] The name was changed again in 2002 to National Savings and Investments.^[4]

NS&I manages around £83 billion in savings, 9% of the UK savings market. This accounts for 16% of the UK's national debt.^[5] 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.

[edit] 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 Bond, NS&I's range of products includes:

• Individual Savings Accounts (ISAs)
• Inflation Index-Linked Savings Certificates
• Fixed Interest Savings Certificates
• Income Bond
• Guaranteed Equity Bonds

All savings and investment products are 100% backed by HM Treasury.

[edit] References

[edit] External links

• National Savings and Investments Homepage
• About National Savings and Investments

v • d • e Her Majesty's Treasury Headquarters: 1, Horse Guards Road Ministers Chancellor of the Exchequer and Second Lord of the Treasury · Chief Secretary to the Treasury · Financial Secretary to the Treasury · Economic Secretary to the Treasury · Exchequer Secretary to the Treasury Executive agencies Buying Solutions (part of the Office of Government Commerce) · National Savings and Investments · Royal Mint · UK Debt Management Office