National Savings and Investments pulls popular products

The NS&I (National Savings and Investments) has recently withdrawn two very popular state backed investment products from the investment arena. This comes at a time when the UK government is looking to reduce the burden on UK taxpayers and with the close relationship between the NS&I and the UK government (with the NS&I effectively financed by the UK taxpayer) the withdrawal of these products is disappointing but not necessarily unexpected.

The products in question are the inflation beating fixed interest savings certificates although we have seen a reduction in general savings rates. The NS&I has recently been very competitive in the marketplace, attracting record inflows of cash over the last few weeks thereby placing more and more pressure upon UK taxpayers who ultimately fund the operation. It is the very fact that these products are government guaranteed which also adds to their attractions although in the short term it looks as though the NS&I may well become one of the "also-rans" with regards to invest returns.

Savers in the UK are finding it more and more difficult to find attractive rates without taking undue risk. Unfortunately, this situation is likely to remain for some time to come with savers yet again appearing to be bottom of the list with regards to the UK financial arena.