National Savings & Investments - What we do

National Savings and Investments


About NS&I Our story Who we are What we do Regulations, policies and procedures Financial information Working at NS&I Useful links	About NS&I / What we do Our vision Our strategy Our products How we set our rates Sharia’a compliant savings review Corporate responsibility Our vision Securing a better financial future for our customers by providing the most valued and trusted savings experience. Our mission Our overall aim is to help reduce the cost to the taxpayer of Government borrowing now and in the future. With this in mind, our single strategic objective is to provide the Government with cost-effective retail finance compared with raising funds on the wholesale market. Our values When people think of NS&I, we want them to associate us with: Security: we offer a promise of 100% security, backed by HM Treasury Integrity: we are honest and responsible in everything that we do and say Straightforwardness: we always use clear, everyday language that is easy to understand Delivered with a human touch, pace and confidence: we treat our customers as individuals, recognise their needs and act on their behalf decisively and professionally. Back to top Our strategy Our five-year strategy, NS&I adding value, aims to deliver sustainable long-term value to stakeholders and customers by simplifying, modernising and diversifying the business as a whole. Strategically, NS&I adding value is rooted in the Landscape Review of 2005. The Landscape Review takes place every five years and establishes the basic framework for the way in which HM Treasury wants NS&I to develop. The Landscape Review influenced the new strategy’s shift of focus away from Net Financing to Value Add. Value Add is the name given to the way NS&I measures how cost-effective it is at raising finance for Government. The total costs of raising funds, including our operating costs and tax foregone, is compared to how much it would cost Government to raise funds in the wholesale market. Strategy phases To achieve our strategic objectives, the implementation of NS&I adding value has been split into three stages: Phase one – ‘optimise and build’ This phase covers years one and two of the five-year strategy. It will require the development and testing of the new capabilities required to deliver NS&I adding value. During this time, we are analysing customer requirements, streamlining our processes and standardising and modernising our product range. Phase two – ‘improve and leverage’ This phase covers years three and four of the five-year strategy and sees continued cost reduction through improved operations and improved internet capabilities. We aim to offer customers enhanced online services as well as products most suited to their needs. Phase three – ‘growth’ This covers year five of the strategy. At this time, the major transformation will have taken place, although there will still be some capability developments. The focus of this phase will be on promoting our new product offers and services to both existing and new customers. Value Add How we add value As well as giving customers value by offering competitive, 100% secure savings and investments, we also save taxpayers’ money. When the Government spends more than it receives in income, it borrows money to finance the difference. It does this in two ways: by selling Gilts (marketable Government bonds) and Treasury Bills – mostly to the wholesale market, including pension fund managers or investment companies – through the UK Debt Management Office by selling savings and investments products to the retail market, ie personal savers and investors, through NS&I. What is Value Add? Any money borrowed by the Government is called the national debt. A sizeable part of the Government’s annual expenditure goes towards paying interest on this debt. We help to keep this expense down by providing funds at a lower cost than financing the same amount through Gilts and Treasury Bills. Value Add is the name given to the way NS&I measures how cost-effective it is at raising finance for Government. The total costs of raising funds, including our operating costs and tax foregone, is compared to how much it would cost Government to raise funds in the wholesale market. The difference, i.e. the saving, is our Value Add. To achieve sustainable Value Add, it’s important that we give our customers a fair deal. As we operate in an increasingly competitive market, we need to offer products that suit our customers’ needs based on security, benefits and returns – backed by excellent service. Back to top Our products Click on the links below to view our product pages for more information. Premium Bonds – Monthly prize draw with a £1 million jackpot, tax-free prizes Inflation-Beating Savings – Ensure that the value of your savings will stay ahead of any increase in the Retail Prices Index over the investment term Fixed Interest Savings Certificates – Guaranteed returns, tax-free Guaranteed Equity Bond – Growth potential linked to the performance of the FTSE 100 index with a 100% capital guarantee Direct ISA – Tax-free ISA with the convenience of managing your account by phone and online Children's Bonus Bond – A tax-free lump sum to give a child a head start in life Income Bonds – Provides a monthly income at attractive variable rates Easy Access Savings Account – The easy way to build up savings Investment Account – Straightforward passbook savings account Guaranteed Growth Bonds – A guaranteed return on investment Guaranteed Income Bonds – A guaranteed monthly income Streamlining and simplifying our portfolio As part of our new five-year strategy, NS&I adding value, we began the process of simplifying and rationalising our product portfolio. To this end, in February 2008 we closed Pensioners’ Guaranteed Income Bonds and Capital Bonds on maturity, and repositioned Fixed Rate Savings Bonds as Guaranteed Income Bonds and Guaranteed Growth Bonds. We wrote to all affected customers informing them of their options. In early 2009, we also announced changes to our ISA savings products. From Monday 6 April 2009 NS&I’s Cash ISA was no longer available to new customers. In addition, the facility to deposit into an NS&I Cash ISA at Post Office branches or by bank giro credit was also withdrawn. Existing Cash ISA customers can continue to save with the account and can manage their Cash ISA by dealing directly with us - by phone, post, through electronic transfer or by standing order. To support the changes to the Cash ISA, we also made changes to our Direct ISA to make it more accessible to a wider range of customers. From 1 February 2009 the minimum transaction amounts for the Direct ISA, including the minimum opening deposit, were reduced. Back to top How we set our rates As with any commercial operation, a reasonable return must be provided to both customers and owners. For NS&I, the owner is the Government. The return is assessed by comparing our overall cost of funds with two benchmarks: comparing the cost of our variable rate products with the Bank of England base rate comparing the cost of our fixed rate products with the yield on equivalent Gilts. We set our interest rates to meet Government’s financing targets, while delivering consistently good value to our customers. We also consider the interest rates and terms and conditions offered on similar products by other providers in the market, as well as our own costs, when making interest rate decisions. As NS&I’s Tax free products deprive HM Treasury of tax revenue, NS&I adjust rates offered on its products to take account of the lost revenue. When we set our interest rates, our policy is always to be consistent with our pricing principles and our brand values, and that any changes meet the requirements of the Banking Code. Back to top Sharia’a compliant savings review To support their objectives for Islamic finance the Government requested NS&I conduct a review of the feasibility of offering a Sharia’a compliant retail product. The findings of this review are contained in the document below. Click on the link below to download it. The pdf will open in a new window. Sharia'a compliant savings review Back to top Corporate responsibility We are committed to making NS&I even more socially and environmentally responsible. We have developed and implemented a Sustainable Development Action Plan (SDAP), and are driving this plan forward. Sustainability is at the heart of our business strategy, and we take seriously our commitment to sustainable business practice and governance. We seek to deliver long-term value to our stakeholders in a way that is financially viable and socially and environmentally responsible. Sustainable development Our sustainable development policy In 2006/07 we introduced our sustainable development policy. This policy provides a framework for the measurement of our social and environmental performance and the management of our activities. Our aim is to minimise our impact on the environment and maximise ways of promoting quality, integrity and good governance. Our sustainable development policy outlines our commitment, with reference to six specific stakeholder groups: customers, employees, partners, suppliers, communities and HM Treasury. It also sets out our broader commitments to: • comply with all relevant legislative and regulatory requirements and associated codes of practice • support the Government’s sustainable development strategy • support HM Treasury in its commitment to raising the rate of sustainable growth, considering environmental protection. Download a copy of the NS&I sustainable development policy Our Sustainable Development Action Plan (SDAP) Our SDAP builds on our sustainable development policy and describes the key actions we will undertake over the next five years to achieve our sustainability goals. The plan aims to address the six stakeholder groups identified in our policy, sets out five key action areas relevant to our business and is driven by our Sustainability Committee: • using resources efficiently • reducing carbon emissions • supporting our community • involving people • leading by example. Our SDAP marks the start of our formal sustainable development journey and a wide range of people within NS&I and Siemens have contributed to the plan and its implementation. Accreditation In February 2008, NS&I achieved ISO140001 accreditation. This is an international standard used to evaluate an organisation’s environmental management systems. This is a significant achievement, which demonstrates our commitment to environmental sustainability, and shows that we are successfully controlling those aspects of our operations that can have an impact on the environment. Through our promotion of payroll giving, this year we also achieved the Gold Award standard from the Payroll Giving scheme, with 26% of our staff now opting to make monthly donations to charity. Action Throughout the year we carried out a number of actions and initiatives aimed at maximising our positive environmental impact and minimising our negative impact. Our main activities for 2007/08 included: • Reducing paper consumption • Reducing carbon emissions associated with NS&I operations • Simplifying our product range to ensure transparency and clarity • Being straightforward and fair in our dealings with stakeholders • Encouraging employee engagement with sustainable development commitments • Increasing fundraising efforts for National Literacy Trust • Giving staff additional leave for voluntary activities • Ensuring partners and suppliers are aware of, and support, NS&I’s environmental procedures and obligations • Working on our estate strategy to ensure buildings are fit for purpose and sustainability • Waste recycling: performance and targets Corporate charity The National Literacy Trust is NS&I’s Corporate Charity of the Year for 2009/10. The National Literacy Trust believes that society will only be fair when everyone has the literacy skills they need to communicate, to fulfil their potential and to contribute more to society. One in six people in the UK struggle to read and write, and since the charity was founded 15 years ago literacy has increasingly been acknowledged as a national priority. The National Literacy Trust campaigns to improve public understanding of the vital importance of literacy, as well as delivering projects and working in partnership to reach those most in need of support. Back to top Home Print Email to a friend		Search