National Savings

The Department of National Savings - known to consumers nowadays as National Savings & Investments (NS&I) - is a government department charged with bringing in extra cash to help the government pay its bills!

It has been described as the Government's little piggy bank, but the serious role of National Savings is to borrow money from you and me by selling us competitive investment products.

The first National Savings Certificates - then called War Savings Certificates - were issued in 1916. It was basically another way for the government to raise money for the Great War.

Since then successive U.K. governments have issued fresh certificates.

Today, you can buy:

Savings Certificates - these are free of income tax (capital gains tax does not apply to national savings).

Index-linked savings (to ensure your money keeps pace with inflation)

Savings bonds aimed especially at children and pensionersand

premium bonds (ERNIE).

Further information on savings rates

National Savings & Investments can be contacted on 0845 964 5000

Last Updated: February 2008 © Moneyextra.com

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