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National Savings Investments - National Savings Investments Offer Sound Financial Growth

tax free government customers

The National Savings Investment is the largest financial savings organization in the U.K. today, serving millions of customers per year. It all began as the Postal Savings Account and then through the past century, grew and developed into something much more.

Currently, this organization is formally known as National Savings and Investment (NS&I) and is an Executive Agency of the Chancellor of the Exchequer. It is accountable to Parliament and Her Majesty’s (HM) Treasury. All monies and investments are 100% guaranteed by the government. There exists 12 products offered by National Savings and Investment at this time, five are tax-free and the others not. The most popular savings tool is the Premium Bond held by 23 million people, according to the official National Savings and Investment site.

National Savings Investment has a two point mission. First, it provides its citizens with reliable opportunities to save and prepare for the future. Second, it provides cost effective debt financing for the government which, of course, benefits the tax payer. Therefore, NS&I seeks to accommodate both of its stakeholders by providing fair interest rates to its customers and providing the financing that the government needs.

There are three avenues of service provided by National Savings Investment. The post offices in the U.K. are still the major service centers of choice for most citizens. Through these sites, investment product brochures and pamphlets can be acquired and some financial transactions can be performed. Electronic services via the internet have been upgraded and provide a convenient channel for most customers. Customers can also speak to a real person by phone, access products, and perform business transactions.

The Premium Bond, the most popular, is basically a tax-free lottery. Once a month there is a prize drawing with a jackpot worth E1 million and more tax-free prizes over E1 million. The higher number of bonds purchased increases your chances of winning. Bonds can be purchased by anyone 16 years or older. Parents and grandparents can also purchase such bonds on behalf of their younger children.

The National Savings Certificate is another tax-free product, also known as Index-linked Saving’s Certificates. Issues are not always available for sale, but if you register as interested, an e-mail notification alerting to availability will be sent. According to the official NS&I site, over the investment term, the value of your savings will always stay ahead of any increase in the retail price index.

One type of taxable investment product is the NS&T Direct Saver. This is simply a savings account where you can deposit and withdraw money. Withdrawals can happen at any time, with no notice required, no penalty applied. The interest rate is variable.

A key partnership with Siemens IT Services and Solutions has been instrumental in the provision of excellent customer service since 1999. Significant upgrades to their IT systems, as well as intentionally meeting private sector standards for effective customer service and banking procedures, have resulted in consistent professional recognition: Charter Mark Accreditation, Customer Service Excellence Award, and the IIP (Investor in People) accreditation for the 10th consecutive year.

WH Smith is currently another essential partner in the NS&I organization. It has been the marketing arm for National Savings and Investment since November 2007, producing the investment literature and guides for the benefit of current and future customers. These brochures and pamphlets can be found in the WH Smith’s high street stores as well as in the post offices – another essential partner in this effective agency.

National Savings Investment provides cost-effective financing for the U.K. government by offering a number of sound and fair savings investment products, taxable and tax-free, to its citizens. With all investments 100% government guaranteed, it is worth investigating potential savings and investment opportunities for now and in the future.

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