National Savings & Investments (NS&I) today announced that it saved the UK taxpayer £1.4bn in the year ended 31 March 2010.
Savers with NS&I are effectively lending their money to the government. In return, the government pays NS&I customers interest, stock market-linked returns and, in the case of Premium Bonds, tax-free prizes.
If the government couldn’t borrow money through NS&I, it would need to issue gilts. Compared with the amount the government would have raised through gilt issues on the wholesale market, NS&I delivered £1.4 billion extra to the Treasury, using NS&I’s ‘Value Indicator measure’.
NS&I Savings Certificates withdrawn and Direct Saver and Income Bond rates cut
As well as the £1.4bn ‘saving’, NS&I also announced that both Fixed Interest Savings Certificates and Index-linked Savings Certificates (also known as Inflation-Beating Savings) have been withdrawn from general sale today.
NS&I is also reducing the interest rates paid on its Direct Saver and Income Bonds by 0.25% with immediate effect.
For full details, read our news story on today’s changes in NS&I products.
Protecting your savings
While the rates on offer from NS&I can be beaten by Best Rate savings accounts and Best Rate fixed-rate savings accounts, savings with NS&I are 100% guaranteed by HM Treasury, so are very secure. Savings with banks and building societies are generally only guaranteed up to £50,000 per person through the Financial Services Compensation Scheme (FSCS). For more detail on the FSCS, reading the .
For more details on tax-free investments, including NS&I savings certificates, read the Which? guide to Tax on savings and investments.
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