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 both a non-ministerial government department and an executive agency of the Chancellor of the Exchequer. Historically, the aim of NS&I has been to attract funds from individual savers in the UK for the purpose of funding the government's public sector borrowing requirement (i.e., the funds in excess of taxation that the government requires to fund its expenditure). NS&I attracts savers through offering savings products with tax-free elements on some products, and a 100% guarantee from HM Treasury on all deposits.
Video National Savings and Investments
History
National Savings and Investments was founded by the Palmerston government in 1861 as the Post Office Savings Bank, the world's first postal savings system. The aim of the bank was to allow ordinary workers a facility "to provide for themselves against adversity and ill-health", and to provide the government with access to debt funding. As an example, savings certificates were issued in World Wars I and II to help finance the war effort. On 1 June 1957, the Premium Bonds draws were inaugurated, using E.R.N.I.E. - the Electronic Random Number Indicator Equipment machine (now located in the Science Museum).
In 1969, the bank was transferred from the Post Office to the Treasury. Its name was changed to National Savings Bank, and it gained an independent legal identity under the National Savings Bank Act 1971.
The name was changed again in 2002 to National Savings and Investments.
The current graphic identity of NS&I, including the NS&I logotype, was created in 2005 by Lloyd Northover, the British design consultancy founded by John Lloyd and Jim Northover.
Maps National Savings and Investments
Role
NS&I manages around £150 billion in savings. Funds from NS&I have historically been a relatively cheap source of government borrowing. The bank sets interest rates both to attract savers and provide low-cost finance for the government. 100% of savings are government guaranteed, with rules in place to ensure that it does not offer market-leading products that would stifle competition.
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. The back office site is located offshore in Chennai. Until July 2011, the contract was held by Siemens IT and Solutions. In the past, it offered many of its services through post offices, and was founded in 1861 as a postal savings system. In November 2011, it was announced that most products would only be available by telephone, online, or by post. Premium Bonds would be the only remaining product sold in post offices. From 1 August 2015, NS&I stopped selling Premium Bonds through post offices, and became a purely direct business.
Current products
NS&I offers a wide range of savings and investment products, specialising in tax-free and income-generating products. Some of these are off-sale and only available for roll-over by maturing investments:
- Premium Bonds
- Direct ISA
- Index-linked Savings Certificates
- Fixed Interest Savings Certificates
- Income Bonds
- Guaranteed Growth Bonds
- Guaranteed Income Bonds
- Children's Bonds
- Direct Saver Account
- Investment Account
- Investment Guaranteed Growth Bond
- Junior ISA
Premium Bonds celebrated their 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:
- 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;
- Easy Access Savings Account;
- Children's Bonus Bonds.
Government guarantee
All savings and investment products are 100% backed by HM Treasury.
See also
- National Savings Movement
- Rainbow Dance, Post Office Savings Bank film, 1936
- Blythe House, headquarters 1903-1970s
References
External links
- Official website
Source of the article : Wikipedia
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