National Savings and Investments

National Savings and Investments (NS&I), formerly called the National Savings Bank, is a state owned saving bank in United Kingdom. National Savings and Investments was founded by the British government in 1861 as the Post Office Savings Bank, the world's first postal savings system. The aim of the bank was to allow workers "to provide for themselves against adversity and ill-health", and to provide the government with access to debt funding. In 1969 the bank was transferred from the Post Office to the Treasury and its name was changed to National Savings. The name was changed again in 2002 to National Savings and Investments.


Now as an executive agency of HM treasury the aim of National Savings and Investments is to attract funds from individual savers in the UK for the purposes of funding the government’s public sector borrowing requirement (i.e., the funds in excess of taxation that the government requires to fund its activities). NS&I attracts savers by offering saving products with tax free elements on some products, and a 100% guarantee from HM Treasury on all deposits. However, as any other less-risk investment, its rates are often low.


The most popular product of NS&I is Premium Bond, a lottery bond, already celebrated its 50th anniversary in November 2006 with a grand celebration in which 5 times £1m jackpot draw was announced.