National Savings has record year

National Savings and Investments (NS&I), the Government-backed savings and investments provider, has had its best-ever year as billions of pounds flowed into Premium Bonds and its tax-free cash ISA. The group published gross sales of all NS&I products increased from £11.9 billion to £14.1 billion in the year to end of March 2007.

The company claimed the sales boost was largely due to extra £1 million jackpot prizes to commemorate the 50th anniversary of the launch of Premium Bonds. In addition, rapid growth in sales of inflation-beating savings products and its Direct ISA, which pays 6.3%.

The group also attributed the record achievement to the hugely successful TV advertising campaign featuring Sir Alan Sugar, well known for the popular BBC TV series The Apprentice.

The total sum now invested by 27 million savers increased from £73.34 billion in the last financial year to nearly £79 billion in 2006-2007. Internet sales increased from £1.25 billion to £2.43 billion and telephone sales rose from £1.68 billion to £2.16 billion. Post Office counter sales were slightly down at £4.43 billion, but Post Office postal sales were slightly ahead at £2.77 billion.

NS&I grew by £5.56 billion when repayments and prizes were taken into consideration – this figure surpassed its financing target by accomplishing its 5-year target 12 months early. NS&I calculated it saved taxpayers more than £336 million during the year by cutting the cost of Government borrowing.

A spokesperson for NS&I commented that they aim to build on this success in the future by delivering sustainable long-term value to stakeholders and customers by modernising and diversifying the business.

NS&I has also revealed a joint venture with retailer WH Smith. More than 1.2 million customers use the group’s 500 High Street shops each day and will be able to pick up brochures for NS&I products available online or by telephone. The venture will commence in early November and will undergo a test phase before marketing activity starts in April 2008.

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