What are National Savings and Investments?

National Savings & Investments (NS&I) are a scheme set up by the post office in 1851 to encourage ordinary wage earners to save more of their money in case of emergency. Now NS&I are a government agency that provides many savings products to all members of the public.

NS&I have two principals of business that have been in place since its inception. The first is to provide a totally secure place for people to save, backed by the Government and the second is to provide the Exchequer with a source of funding (Public Spending). This partnership between the government and NS&I is of benefit to the consumer in two ways, that public facilities and amenities are improved or sustained through borrowing from NS&I and more directly to the investor, the backing of the government means that the products provided are extremely secure and low risk, but the returns are equally as low.

 

What are the types of National Savings and Investments?

There are several types of product, with different tax treatments.

  • Individual Savings Account (ISA)
    • Cash mini ISA
    • Direct ISA
  • Savings Certificates
    • Fixed Interest Savings Certificates
    • Index – Linked Savings Certificates
  • Income Bonds
  • Pensioners Guaranteed Income Bonds
  • Fixed Rate Savings Bonds
  • Capital Bonds
  • Children’s Bonus Bonds
  • Guaranteed Equity Bonds

 

Why Should I invest in National Savings and Investments?

National Savings & Investments products are suitable for investors who wish to have a low level of risk in their portfolio. As they are backed by the treasury, that will satisfy the need for a low risk investment.

But, if investors are looking for something that will have a high yield, then this isn’t an appropriate investment.

 

How Do I take out a National Savings and Investments Account?

The first and most important step after you have decided you may want to take out a National Savings & Investment is to have a discussion with us to provide you with independent financial advice.

Once we have agreed what the most suitable type of National Savings & Investments for your particular circumstances we make an application on your behalf to pay a single premium or regular contribution into selected funds based on how much you can afford your personal tax situation and the amount of fund required at maturity, at the acceptable level of risk you are prepared to take to match your needs.

 

Want to know more?

Talk to one of our qualified financial advisers on 01553 777600 or e-mail us at enquiries@ringassociates.co.uk

Also you may want to read the articles and associated links

Financial Services Authority (http://www.moneymadeclear.fsa.gov.uk/products/savings/types/national_savings_and_investments.html)

and National Savings and Investments (http://www.nsandi.com/products/index.jsp)