Is It Time To Look At NS&I?
The National Savings and Investment (NS&I) operation which sells an array of bonds and savings accounts which are guaranteed by the government has seen a massive rise in business levels with many investors deciding upon a 'flight to quality'. The move has seen gross sales for the last financial year grow by 9.9% to hit £15.5 billion, pushing the NS&I well ahead of its internal targets.
Those who follow the NS&I will know that the agency stopped actively marketing products last year after it became apparent that it was going to overshoot its financial targets. NS&I has over 28 million customers who between them have over £85 billion invested in the government backed accounts and investments.
As NS&I is used as a funding vehicle by the government it will come as no surprise that this cheap source of finance saved the government £375 million in borrowing costs last year, up from £337 million the year before. Even though the agency has attempted to take its foot of the gas there are signs that demand is growing with people looking for security for their investments as oppose to the best rates on the market. What will the authorities do this year if the NS&I overshoots its financial targets yet again?
Share this..
Related stories
Has the UK economy really turned the corner?
There is much comment and speculation in the press this morning regarding the UK economy and the fact that yesterday's growth figures of 0.1% in the final quarter of 2009 were well below analysts expectations. As we have seen in the past, the Office for National Statistics has recently revised a number of economic data downwards at a later stage. If the same was to happen with the final quarter ec...
Read MoreCould the ash cloud be back with a vengeance?
Only days after UK airspace was reopened following initial concerns regarding the volcanic ash plume, weather experts are concerned that we could be on the verge of volcanic ash lockdown part two. Experts have already identified two large plumes over the Outer Hebrides and there are concerns the wind patterns could bring these further down the UK and cause havoc with air travel in the short-term....
Read MoreNational Express to pay living wage
13/03/2015 National Express transport firm has pledged to pay all it’s workers the living wage from January 2016. National Express, who operate buses, coaches and trains have guaranteed that they will pay all their staff the living wage of £7.85 an hour (£9.15 an hour in London), which is around 20% higher than the national minimum wage of £6.50. Hundreds of low paid workers will now be...
Read MoreBankers Pay Back?
Lord Turner, Chairman of the Financial Services Authority, has issued a warning to failed banks that they could be forced to repay two years worth of salary. Lord Turner has followed current US legislation as he has stated he feels that this would be an attractive option to deter banks from taking unnecessary or excessive risks in their business. Business Secretary, Vince Cable, has criticis...
Read MoreUK motor insurance premiums increase yet again
The AA insurance has today commented upon the state of the UK motor insurance market with a suggestion that the average comprehensive motor insurance policy is now costing in excess of £1000 a year. This is an increase of around 20% on the 2008 figure and is predominantly because of fraudulent claims and the damage caused by uninsured drivers in the UK. All in all it is believed that UK motori...
Read More