Virgin Money launches two new savings products

Mon, 06 Feb 2012 15:05:20 GMT

Virgin Money has announced the addition of two new accounts to its growing range of savings products. The new Virgin Fixed Rate Bond and Virgin Fixed Rate Cash ISA both offer competitive rates and the accounts are available in Northern Rock branches, online, by post and over the telephone. Interest rates are the same through all distribution channels and ISA customers receive the same great rates as those with a non-ISA account.

The Virgin Fixed Rate Bond offers customers a fixed rate of 3.00% for one year (issue 1) and 3.30% for three years (issue 2). It is a simple, straightforward, fixed rate savings account, available through Northern Rock branches, online or by post. Customers choosing to receive their interest monthly receive the same AER as those receiving annual interest.

The Virgin Fixed Rate Cash ISA offers customers a rate of 3.00% for one year (issue 1) and 3.30% for three years (issue 2) respectively. This matches the rate available for a non-ISA savings account and savers also benefit from the tax-efficiency of the ISA wrapper. These accounts are also available across all Northern Rock channels, and allow transfers in from existing ISAs. Customers can withdraw subject to a charge equivalent to 60 and 120 days loss of interest respectively.

These Virgin Money branded accounts are personal deposit accounts with Northern Rock plc. The Financial Services Compensation Scheme (FSCS) provides protection to customers with these accounts under Northern Rock plc's existing FSCS membership up to a maximum of £85,000 per person. The £85,000 limit relates to a customer's combined deposits with Northern Rock plc under the Northern Rock brand or Virgin Money brand names.

Pete Wood, Head of Savings Products said: "We saw a great response from customers to the first Virgin Money savings accounts we launched in January. Following this I am delighted to announce the addition of a new fixed rate bond and a fixed rate cash ISA account to our range. These products are designed to be simple, fair and transparent."

More information on the savings range is available at www.northernrock.co.uk/savings.

- ENDS -

About Virgin Money:
Virgin Money announced the acquisition of Northern Rock plc from Her Majesty's Treasury on 17 November 2011. The deal completed on 1 January 2012. The acquisition included:
- 75 Northern Rock branches
- One million customers
- c.£14bn mortgage book
- c.£16bn retail deposit book
- c.2,100 employees

Combined with Virgin Money's existing business of three million customers, the enlarged Group has over four million customers. The combined business operates under the Virgin Money brand.

Virgin Money's business ambition is to make "everyone better off" - this philosophy underpins its approach to business by offering good value to customers, treating employees well, making a positive contribution to society and delivering a profit to shareholders.

About Northern Rock plc:
Northern Rock is a bank, authorised by the FSA as a deposit taker and mortgage lender. It offers savings accounts and mortgage products to customers in the UK, with a mortgage calculator available on the Northern Rock site. New products are offered through both direct channels - including a national branch network - and mortgage intermediaries.

Northern Rock launches new eBond issues

Mon, 10 Oct 2011 16:30:16 GMT

Northern Rock has launched two new issues of its new online fixed rate e-bond account, providing competitive interest rates for those savers who wish to operate their accounts online. e-bond (issues 18 and 19) will are available now.

With a minimum deposit of just £1, customers can benefit from a competitive fixed rate of interest until 20 October 2012 on e-bond issue 18, which pays 3.00% gross*/AER** annually. Alternatively, they can choose e–bond issue 19, which pays 3.25% gross*/AER** pa, fixed until 20 October 2014. Monthly interest rate options are also available on all three products. Accounts must be opened and operated online and initial deposits can be made online by electronic transfer from another bank or building society.

Account holders can choose to have their interest paid annually (interest is calculated daily) on 5 August, or monthly (the monthly interest rate is 0.30% below the gross* annual rate) on the 7th of the month (available next business day).

Additional deposits to the bonds can be made during the offer period up to a maximum of £500,000 per customer. The fixed rate bonds (Issues 18 and 19) are non-redeemable and none of the issues allow any withdrawals or closure during their respective fixed rate periods. The bonds are offered on a strictly limited issue basis and will be withdrawn without notice once fully subscribed. Once withdrawn, no further deposits will be accepted.

Full product details are available at Northern Rock's website at www.northernrock.co.uk/savings.

Notes to editors:
The rates for the new issues of fixed rate e-bonds are as follows:
3.00% gross*pa/AER** fixed until 20 October 2012 (issue 18)
3.25% gross*pa/AER** fixed until 20 October 2014 (issue 19)
Minimum initial deposit of just £1

*GROSS is the rate of interest paid to eligible non-taxpayers without deduction of tax. Customers should note that interest will be paid net of tax unless they are eligible to receive interest gross and submit the required registration form to us.
**AER stands for Annual Equivalent Rate and shows what the interest rate would be when interest is paid and added to the capital balance each year.

About Northern Rock:
Northern Rock plc is a new bank, authorised by the FSA as a deposit taker and mortgage lender from 1 January 2010. It offers savings accounts, including a cash isa to customers in the UK and Ireland and mortgages to UK borrowers. New products are offered through both direct channels - including a national branch network - and mortgage intermediaries.

Northern Rock continues to operate within the compensatory measures agreed with the EC as part of the State Aid approval announced in October 2009.

In June 2011, Northern Rock was awarded a national Big Tick Award in Business in the Community's Awards for Excellence, in the category of Building Stronger Communities.

Northern Rock maintains healthy interest rates for Fixed Rate Cash ISA savers

Thu, 29 Sep 2011 16:21:43 GMT

Northern Rock is launching three new issues of its fixed rate cash ISA, offering savers the chance to take advantage of tax-free* interest rates.

The new accounts, which are fixed over one, three and five years, are available now with a minimum initial deposit of £500.

A strictly limited issue, the fixed rate cash ISAs (issue 174-176) allow transfers from other providers and Northern Rock has increased the interest rates it pays for savers who are happy to lock their tax-free* savings away, whether for the short or long term.

The product can be opened either by post or through Northern Rock's branches and additional deposits (£250 minimum) can be made to the cash ISA, within HM Revenue and Customs limits (£5,340 per tax-year). This issue may be withdrawn without notice once fully subscribed.

To ensure funds are accepted they must be received within 30 days from account opening. Any deposits received after 30 days may be returned. This includes any funds transferred in from existing cash ISAs. Subscriptions are not allowed to any other Cash ISAs in the same tax year(s) that customers subscribe to this Cash ISA, even if they have not used their full annual allowance(s).

Interest, which can be added to the account or paid into another account, is paid annually on 30 November. Minimum withdrawals of £250 can be made from the account, subject to a charge equivalent to 60 days' loss of interest on the amount withdrawn (Issue 174), 120 days' loss of interest on the amount withdrawn (Issue 175) and 180 days' loss of interest on the amount withdrawn (Issue 176). If balances fall below £500, our current basic rate of interest will be paid (0.10% tax-free* pa /AER**).

Notes to Editors:
Tax-free* savings over one, three or five years
2.90% tax-free* pa/AER** fixed until 15 October 2012 (Issue 174)
3.30% tax-free* pa/AER** fixed until 15 October 2014 (Issue 175)
3.60% tax-free* pa/AER** fixed until 15 October 2016 (Issue 176)

*The tax-free rate is the contractual rate of interest payable where interest is exempt from income tax.
**AER stands for Annual Equivalent Rate and shows what the interest rate would be when interest is paid and added to the capital balance each year.

About Northern Rock:
Northern Rock plc is a new bank, authorised by the FSA as a deposit taker and mortgage lender from 1 January 2010. It offers savings accounts and fixed rate bonds to customers in the UK and Ireland and mortgages to UK borrowers. New products are offered through both direct channels - including a national branch network - and mortgage intermediaries.

Northern Rock continues to operate within the compensatory measures agreed with the EC as part of the State Aid approval announced in October 2009.

In June 2011, Northern Rock was awarded a national Big Tick Award in Business in the Community’s Awards for Excellence, in the category of Building Stronger Communities.

Northern Rock adopts QR technology as it adds three new accounts

Thu, 25 Aug 2011 16:08:33 GMT

Northern Rock has launched three new competitive instant access savings accounts, adding further options to its flexible savings range. To make it easier to navigate to the relevant product pages on its award-winning website, Quick Response (QR) codes have also been introduced on selected new product adverts.

For those who are looking for a straightforward, instant-access savings account which can be operated in branch, by post or by phone, Everyday Access offers the interest rate of 2.05% gross* pa/AER** variable on balances over £1, with no bonus rate attached. (Balances falling below this rate will receive Northern Rock's prevailing rate of interest which is 0.10% gross* pa/AER** variable). Alternatively, customers may wish to opt for the monthly interest rate of 2.03% gross* variable (2.05% AER**).

The account can be opened and operated with a minimum balance of £1. Additional deposits can be made up to the maximum balance of £250,000. Only one account per customer per issue is allowed.

For those who prefer the convenience of the internet with which to manage their instant-access savings, Everyday Access Online, which is also available to open with a minimum deposit of £1 (or £250 by cheque) and pays a competitive interest rate of 2.75% gross* pa/AER** variable on balances over £1. (Balances falling below this rate will receive Northern Rock's prevailing rate of interest which is 0.10% gross* pa/AER** variable).

Those who prefer a monthly interest option can choose to receive 2.72% gross* variable (2.75% AER**), and additional deposits can be made up to the maximum balance of £100,000. Only one account per customer per issue is allowed.

Finally, for those looking for an instant access account which they can manage by post from the comfort of their own home, Saver Reward offers a market-leading rate and can be opened with a minimum deposit of £1,000. The account can be opened by post or by telephone (a nil balance is permitted if opening by telephone prior to an electronic transfer) but once opened the account must be operated via the postal channel.

As part of the launch of Saver Reward, Northern Rock will also be introducing Quick Response (QR) codes to its advertising. These codes will allow consumers to navigate straight to the relevant product page of the Northern Rock website using their smartphone.

ENDS

Notes to Editors:
*GROSS is the rate of interest paid to eligible non-taxpayers without deduction of tax. Please note interest will be paid net of tax unless you are eligible to receive interest gross and submit the required registration form to us.

**AER stands for Annual Equivalent Rate and shows what the interest rate would be when interest is paid and added to the capital balance each year.

***NET is the annual rate of interest payable after the deduction of basic rate tax (currently 20%). Interest will be paid net or, subject to the required certification, gross. Where the tax deducted exceeds an investor's tax liability (if any) a claim may be made to HM Revenue & Customs for repayment of tax. For individuals whose income falls within the basic rate band, the tax deducted will match their liability to tax on the interest and they will have no more tax to pay on it. Individuals who are liable at the higher rate(s) of income tax will have to pay additional tax due.

About Northern Rock:
Northern Rock plc is a new bank, authorised by the FSA as a deposit taker and mortgage lender from 1 January 2010. It offers savings accounts and a cash isa to customers in the UK and Ireland and mortgages to UK borrowers. It also offers fixed rate bonds. New products are offered through both direct channels - including a national branch network - and mortgage intermediaries.

Northern Rock launches new fixed rate e-ISAs

Fri, 19 Aug 2011 16:51:16 GMT

Northern Rock has launched three new online issues of its fixed rate cash e-ISA to complement its competitive portfolio of internet-based savings accounts.

e-ISA offers those who prefer to operate their accounts via the internet an online option for their tax-free* savings. e-ISA is a cash ISA set at a competitive fixed rate of interest over a choice of one, two or three years and can be opened with no minimum initial deposit.

Interest, which can be added to the account or paid into another account, is paid annually on the first business day following 5th August on minimum balances of £500 (balances which fall below this amount will earn Northern Rock’s prevailing rate of interest, 0.10% tax free* pa /AER**).

Strictly limited issues, the fixed rate cash e-ISAs (issues 19, 20 and 21) allow transfers in from other providers and additional deposits can be made to the cash ISAs, within HM Revenue and Customs limits (£5,340 per tax-year from 6 April 2011) up to 30 days after the product is withdrawn (excepting postal applications to transfer in from other banks and building society ISA accounts, which must be received while the product remains on sale).

To guarantee funds are accepted into a new account, Northern Rock advises all funds to be deposited within 30 days from the account opening date. Any deposits received after 30 days may be returned to customers. This includes any funds transferred in from an existing cash ISA, therefore customers should ensure that they initiate any Cash ISA transfers in as soon as they receive their new Cash ISA details. Subscriptions are not allowed to any other Cash ISAs in the same tax year(s) that customers subscribe to this Cash ISA, even if they have not used your full annual allowances(s).

30 days following the products withdrawal, no further deposits will be accepted and all three issues may be withdrawn without notice once fully subscribed.

Minimum withdrawals of £1 by BACS and £250 by CHAPS can be made from the account, subject to a charge equivalent to 60 days' loss of interest on the amount withdrawn (Issue 19), 90 days' loss of interest on the amount withdrawn (Issue 20), or 120 days’ loss of interest on the amount withdrawn (Issue 21). There is a £35 fee for transfers out via CHAPS.

- ENDS -

Notes to Editors:
*The tax-free rate is the contractual rate of interest payable where interest is exempt from income tax.
**AER stands for Annual Equivalent Rate and shows what the interest rate would be when interest is paid and added to the capital balance each year.

Online cash ISA rates are as follows:
3.20% tax-free* pa /AER** fixed until 24 September 2012 (Fixed Rate e-ISA Issue 19)
3.55% tax-free* pa /AER** fixed until 24 September 2013 (Fixed Rate e-ISA Issue 20)
3.80% tax-free* pa /AER** fixed until 24 September 2014 (Fixed Rate e-ISA Issue 21)

About Northern Rock:
Northern Rock plc is a new bank, authorised by the FSA as a deposit taker and mortgage lender from 1 January 2010. It offers savings accounts to customers in the UK and Ireland (including fixed rate bonds) and mortgages to UK borrowers. New products are offered through both direct channels - including a national branch network - and mortgage intermediaries.

Northern Rock continues to operate within the compensatory measures agreed with the EC as part of the State Aid approval announced in October 2009.

In June 2011, Northern Rock was awarded a national Big Tick Award in Business in the Community’s Awards for Excellence, in the category of Building Stronger Communities.

Northern Rock wins prestigious national Big Tick award

Mon, 13 Jun 2011 11:34:43 GMT

Northern Rock has been heralded among the most responsible businesses in the UK after receiving Business in the Community's (BITC) coveted national Big Tick for its work to tackle financial exclusion in partnership with credit unions.

The Big Tick award is the first level of award available to entrants of the national BITC Awards for Excellence, which recognises inspirational programmes that are making a positive impact on the community, the environment or wider society.

Northern Rock's contribution, which involved volunteers skilled in a number of disciplines, helping to rebrand and relaunch South Tyneside Credit Union as Bridges Your Community Bank, has also been shortlisted for consideration for the title of Example of Excellence - the overall winner for the Building Stronger Communities category.

The final results will be announced at the BITC Awards for Excellence Gala Event, sponsored by Unilever, which will be held at the Royal Albert Hall on 5 July.

Northern Rock's Customer and Commercial Director Andy Tate said: "We are absolutely delighted to receive this Big Tick in recognition of our important work in the local community, in this instance for our work with Bridges.

"We are also honoured to have been shortlisted for the overall Example of Excellence and we are very proud of what has been achieved through the dedication of our staff."

Stephen Howard, Chief Executive of Business in the Community said: "I congratulate Northern Rock on achieving its Big Tick. It is a challenging time for business, but this is a sign that companies are not losing their focus and are transforming their businesses to make a positive impact on people and society; and are prepared to lead by example. That's what Business in the Community’s Awards for Excellence is all about - celebrating responsible business, the leadership that makes it happen and the benefits to the business and society of doing so.

"Communities and consumers need to see that businesses are proactive, visible and engaged on the big issues of the day, as Northern Rock has demonstrated."

Representatives from Northern Rock will be presented with the Big Tick award at a regional celebration event at the Gateshead Hilton at the end of June.

ENDS

About Northern Rock:
Northern Rock plc is a new bank, authorised by the FSA as a deposit taker and mortgage lender from 1 January 2010. It offers savings accounts (including an ISA) to customers in the UK and Ireland and mortgages to UK borrowers. New products, such as fixed rate bonds, are offered through both direct channels - including a national branch network - and mortgage intermediaries.

Northern Rock continues to operate within the compensatory measures agreed with the EC as part of the State Aid approval announced in October 2009.

About Business in the Community:
Business in the Community's Awards for Excellence identify and celebrate companies having a positive impact on the community, environment, marketplace and workplace.

The Big Tick winners demonstrate significant impact and high quality management of their responsible business practices and can show a positive impact both on society and on the business. Now in their 14th year, they are the UK’s leading awards for responsible business practice. BITC received over 370 entries for the national Awards for Excellence.

Business in the Community stands for responsible business - it is a business-led charity with a growing membership of 850 companies, from large multinational household names to small local businesses and public sector organisations.

Business in the Community advises, supports and challenges its members to create a sustainable future for society and to improve business performance.

Its members work with it to define what responsibility looks like in the workplace, marketplace, community and the environment - and the charity shares what it learns about driving performance through responsible business practice.

Northern Rock launches two new account options for savvy savers

Mon, 15 Nov 2010 16:59:23 GMT

Northern Rock has launched two new variable rate savings options for customers who want access to their funds, but don't want to compromise on the interest they'll receive.

Rainy Day Saver is a new 120-day notice account, paying 2.90% gross/AER pa variable, which includes a 1.50% gross/AER pa bonus payable for 12 months from account opening. Longer term, the interest rate is also guaranteed to be no less than the Bank of England base rate until 30th June 2013. Rainy Day Saver is available to open by post or telephone with a minimum initial deposit of £5,000, and can be operated by post.

Rainy Day Saver allows charge-free withdrawals and transfers (minimum withdrawal is £500 unless closing the account) provided 120-days notice is given (there is a £35 fee for transfers via CHAPS). Withdrawals and transfers cannot be made from the account before the expiry of the 120-day notice period.

The account has a minimum balance of £5,000 and the interest rate will fall to Northern Rock's prevailing rate of interest (currently 0.1%) for the duration of any period the balance of the account falls below £5,000.

Additional deposits (£500 minimum) and transfers can be made to the Rainy Day Saver, up to a maximum of £2 million per customer. Interest, which can be added to the account or paid into another account, is paid annually on 30 June, or for those who prefer a monthly option, on the last day of the month (available first business day of the following month).

Save Up is a new postal savings account which allows charge-free and notice-free access of one withdrawal (£1 minimum) per calendar month (there is a £35 fee for withdrawals via CHAPS). It pays 2.60% gross/AER pa variable, which includes a 1.50% gross/AER pa bonus payable for 12 months from account opening. Longer term, the interest rate is also guaranteed to be no less than Bank of England base rate until 30th June 2013.

Save Up is available to open by post or telephone with a minimum initial deposit of £1, and can be operated by post.

Additional deposits (£1 minimum) and transfers can be made into Save Up, up to a maximum of £2 million per customer. Interest, which can be added to the account or paid into another account, is paid annually on 31 December (available three business days later if sent by BACS to an external account), or for those who prefer a monthly option, on the last day of the month (available first business day of the following month or three business days later if sent by BACS to an external account).

Northern Rock's Customer and Commercial director Andy Tate said: "Both Save Up and Rainy Day Saver offer customers the best of both worlds by providing them with access to their savings without losing out on a leading rate of interest.

"We expect these latest additions to our expanding variable rate product range to prove extremely popular."

Notes to Editors:

About Northern Rock:
Northern Rock plc is a new bank, authorised by the FSA as a deposit taker and mortgage lender from 1 January 2010. It offers savings accounts to customers in the UK and Ireland and mortgage products to UK borrowers. New products are offered through both direct channels - including a national branch network - and mortgage intermediaries.

Northern Rock continues to operate within the compensatory measures agreed with the EC as part of the State Aid approval announced in October 2009.

Northern Rock plc - Registered in England and Wales (Company No. 6952311).
Registered Office: Northern Rock House, Gosforth, Newcastle upon Tyne, NE3 4PL.
Authorised and regulated by the Financial Services Authority.

NS&I finds Brits not serious about saving until 25

Fri, 12 Mar 2010 16:17:05 GMT

The latest NS&I (National Savings and Investments) survey release has shown that the average age for Britons to start saving seriously is 25 years-old. More than a fifth (22%) of the population said they didn't start setting money aside in earnest until they were past their 30th birthday, while more than 13% fail to seriously save until they are 40 years or older. 15% confessed that they had actually never saved at all.

The NS&I study into savings habits also explored what kick starts savings behaviour. Surprisingly, holidays and other short-term outgoings get most women (67%) in Britain saving, with planning for the future a secondary thought. In contrast, more men (60%) think about longer-term events, such as saving for their wedding, starting a family or buying a house.

Additionally, reading stories about how others, without savings, have suffered in an emergency encouraged a third of Britons to start saving for the first time (33%), with a similar number (31%) confessing that it was when they suffered a financial shock personally that they began their savings habit and 39% citied they saw their parents worrying about money and wanted to save to have peace of mind. 14% said they began saving to pay for further education.

As well as looking at what makes people start setting money aside, the research looked into how life experiences affect attitudes to saving. Almost a quarter (24%) wished that they had saved more in the last 18 months' to deal with the recent economic turbulence and 32% wished they had started saving much earlier in life than they did.

John Prout, NS&I's savings spokesperson, explained: "It's great to see that most Britons started to save seriously in their mid-twenties. And for those who have not yet developed the habit it is not too late to start. However it is important to not just see savings as a reaction to major events. Our research shows that 32% of savers say that they have saved in the past but have not managed to continue putting money away."

With the end of the tax year approaching, NS&I is urging people to use the opportunity to take a fresh look at their finances and learn from their past regrets. John Prout continued; "We're urging Britons to review their future financial needs and to develop the habit of saving."

ENDS

Notes to Editors
*The survey, which questioned people about their financial habits, was carried about by TNS in January 2010 among 1004 GB adults aged 16+.

About NS&I
NS&I is one of the UK's largest financial providers with almost 27 million customers and over £95 billion invested. It is best known for Premium Bonds, but also offers Inflation-Beating Savings accounts, ISA and Cash ISA accounts, Guaranteed Equity Bonds and Children's Bonus Bonds in its range. All products offer 100% security, because NS&I is backed by HM Treasury.

NS&I products are available over the telephone, internet, post and by standing order. They are also available through a network of Post Office(R) branches, and our product range guide is available in over 400 WHSmith high street stores.

NS&I reports savings levels drop this winter

Fri, 12 Mar 2010 11:52:13 GMT

NS&I's Savings latest survey has found that this winter, the amount of money the population is saving has decreased to its lowest level for over two years. On average, the British public is now setting aside 6.25% of their monthly take-home income. This figure has fallen consistently since this time last year (6.48%), and is at its lowest level since summer 2007 (6.22%).

In pounds, average savings have fallen from £90.12 twelve months ago, winter 2008/09, to £81.94. In addition the average income has fallen to £1310, from £1384 last quarter and at its lowest level since Spring 2008 (£1306).

Examining savings attitudes across the country, savers in East Anglia and the West Midlands recorded positive savings behaviour, managing to set aside more money as a percentage of their income than other areas. East Anglian savers were highest at 7.77% (6.01% in winter 2008/09) with the West Midlands at 6.50% (5.89% in winter 2008/09). In Greater London the average amount saved per person fell below £100 for the first time in almost two years. On average people in London are now saving £99.45 per month.

Tim Mack, Senior Savings Spokesman, NS&I said: "With the new financial year approaching, now is a good time for people to take a closer look at their finances and set themselves savings goals for the year ahead."

Fewer people say they are regularly making regular savings money this quarter. Over the past five years, this figure has fluctuated between 47% and 55%, but this winter it has fallen to 44%, one of the lowest ever recorded levels*.

The amount of money regular savers set aside each month has fallen below £200 for the first time in over a year to £195.08.

ENDS

Notes to editors:
The Savings Survey (Previously the Quarterly Savings Survey) was conducted by TNS, amongst 3003 GB adults aged 16+ between 4 December 2009 and 7 February 2010.
* The lowest ever recorded figure for this savings index was 43% in winter 2006/07.

About NS&I
NS&I is one of the UK's largest financial providers with almost 27 million customers and over £95 billion invested. It is best known for Premium Bonds, but also offers Inflation-Beating savings accounts, Guaranteed Equity Bonds and Children's Bonus Bonds in its range, as well as ISAs and Cash ISAs. All products offer 100% security, because NS&I is backed by HM Treasury.

NS&I products are available over the telephone, internet, post and by standing order. They are also available through a network of Post Office branches, and our product range guide is available in over 300 WHSmith high street stores.

NS&I announces financial results

Tue, 28 Jul 2009 10:35:58 GMT

NS&I (National Savings and Investments), the government-backed savings and investments provider, today announced its annual results for the year to 31 March 2009 and for the first quarter of 2009-10.

Highlights for the financial year for year ending 31 March 2009 included net financing of £12.5 billion– against a revised November 2008 forecast of £11 billion (within a range of £2 billion either side) – due to unsolicited savings deposits following the 'flight to safety' which began in mid-September last year and making sales of £8.5 billion through premium bonds - an increase of almost £2 billion from the previous year.

The 'flight to safety' is now over and NS&I is operating in a more challenging savings environment; however, the focus remains on balancing the interests of savers, the taxpayer and supporting stability in the wider financial services marketplace by maintaining an appropriate competitive position

Jane Platt, NS&I's chief executive, said: "The global financial crisis, which began last September, meant that demand for our products increased dramatically despite us cancelling all discretionary marketing and led to us delivering £12.5 billion of net financing last year. I’m proud of the way the teams at our operations centres responded to this challenge and helped to ensure we remained open for business and maintained our high customer service standards, in spite of the unsolicited inflows of money.

"As the Bank of England base rate continued to fall rapidly and financial markets remained unusually volatile, we agreed with HM Treasury that NS&I’s Value Add target for 2008-09 would be temporarily suspended and no target set for the coming year. Our decision-making is now driven by the need to maintain a balance between offering a fair rate to our customers, delivering cost-effective finance to Government, and the need to support stability across the wider financial services marketplace by maintaining an appropriate competitive position."

Notes to editors:
NS&I’s Annual Report and Accounts 2008-09 were presented to the House of Commons on 15 July 2009, pursuant to section 7 of the Government Resources and Accounts Act 2000.

About NS&I
NS&I is one of the UK's largest financial providers with almost 27 million customers and over £94 billion invested. It is best known for premium bonds, but also offers inflation-beating savings accounts, guaranteed equity bonds and guaranteed growth bonds in its range. All products offer 100% security, because NS&I is backed by HM Treasury.

NS&I PR contact:
Gill Stephens
National Savings and Investments
375 Kensington High Street
London
W14 8SD
020 7348 9449
www.nsandi.com

NS&I reports UK savings reach record high in spring 2009

Wed, 24 Jun 2009 09:37:33 GMT

The National Savings and Investments (NS&I) Quarterly Savings Survey for spring 2009, which has been running for almost five years, has revealed that the amount the population is saving is higher than previously recorded. On average, Britons are setting aside £92.41 each month, up from £90.12 in winter 2008/09. The survey also shows that those who regularly save are also putting away the largest amounts since the report began four and a half years ago, £209.23 a month this quarter.

This increase in both key measures of the population's savings comes despite a small drop in income levels over the same period. In fact, across the population, the amount saved as a percentage of income has increased from 6.35% in spring 2008 and 6.48% in winter 2008/09 to 6.83% this spring. The number of people saving regularly has also remained constant for the fifth quarter in a row, with nearly half (47%) of the population setting some money aside each month.

Driving these record savings levels, Britons are setting themselves the highest savings targets since the Survey began in autumn 2004. People ideally want to save £219.11, up from £210.26 last quarter and £195.67 this time last year. This represents 16.20% of average income, compared with 15.13% in winter and 14.99% in spring 2008. People also appear to be keeping more careful control of their spending with a decrease in the percentage of people saying that they overspent each month, 28% this quarter down from 30% in winter 2008/09 and spring 2008.

Dax Harkins, senior savings strategist, NS&I said: "Many of us are cutting back on unnecessary spending and instead are putting a priority on saving, as saving for an emergency continues to be the number one reason for putting money aside. Our survey shows people are setting themselves their highest ever savings targets. However as we've seen previously we are still falling a long way short of our aspirations. One way that people could tackle this is to identify clear goals to save for; at the moment just over a quarter (27%) of those with savings set aside are saving for something specific."

The results show some very positive savings behaviour this spring, with the average amount held in savings accounts up from £17,372 in winter 2008/09 to £18,443. However some people should look carefully at whether they could improve their savings habits. At present, 32% of savers don't think they have enough savings to cope in the event of an emergency; this equates to more than 15 million Britons (15,381,440). It is also important that these levels are maintained. Almost two fifths (39%) of the population said they would be less likely to save in the coming months.

ENDS

Notes to editors

Quarterly Savings Survey
NS&I's Quarterly Savings Survey, case studies and further information on the statistics supplied in this release can be obtained from the NS&I media team. Previous copies of the NS&I Quarterly Savings Survey are available from the NS&I online press room. Selected regional data is also available on request. The telephone survey, was carried out by TNS among 3006 GB adults aged 16 and above, between 6 March and 3 May 2009.

About NS&I
NS&I is one of the UK's largest financial providers with almost 27 million customers and over £94 billion invested. It is best known for Premium Bonds, but also offers Inflation-Beating Savings, Guaranteed Equity Bonds, Guaranteed Income Bonds, Easy Access Savings Accounts and Children's Bonus Bonds in its range. All products offer 100% security, because NS&

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Northern Rock launches new eBond issues

Northern Rock maintains healthy interest rates for Fixed Rate Cash ISA savers

Northern Rock adopts QR technology as it adds three new accounts

Northern Rock launches new fixed rate e-ISAs

Northern Rock wins prestigious national Big Tick award

Northern Rock launches two new account options for savvy savers

NS&I finds Brits not serious about saving until 25

NS&I reports savings levels drop this winter

NS&I announces financial results

NS&I reports UK savings reach record high in spring 2009