Press Release

BRITS TOO BUSY TO SAVE

1 March 2006

• Half of Brits would save more if it was easier
• One in three to convert to new finance channels
• NS&I and Tesco Personal Finance extend their partnership to over 700 stores

New savings channels are set to flourish as busy Brits try to keep on top of their finances, according to research from National Savings and Investments (NS&I) and Tesco Personal Finance.

Almost half (46%) of Brits complain they only have limited time to make financial decisions, making it harder for them to keep on top of their finances. A need for speed and convenience is seeing many turning to non-traditional personal finance channels such as supermarkets and internet-only accounts. While only 6% currently save this way, NS&I research shows this will grow to 26% in the next few years as consumers demand decisions 'on the move' in our 24/7 culture.

Of the non-traditional personal finance channels, supermarkets were one of the first to meet this consumer demand. Last September NS&I teamed up with Tesco Personal Finance to make it easier for customers to save with NS&I while they do their weekly shop. Following a successful pilot, brochures for two of NS&I's tax-free products - Premium Bonds and its range of Inflation-beating Index-linked Savings Certificates are now available in over 700 Tesco stores nationwide.

Convenience is the answer

NS&I's Quarterly Saving Survey shows only 55% of the population are saving regularly. While many people state affordability as the biggest stumbling block to saving more, Brits are also calling for financial providers to help them develop a savings habit by making it more convenient to save. Almost half (48%) of Brits claim they would save more if it was easier.

Statistics show 32 million people visit a supermarket each week as a one stop shop, which appeals to people who are time-poor. The NS&I and Tesco Personal Finance partnership taps into the problem of people having too little time to investigate savings products.

The partnership

NS&I chose Tesco Personal Finance in September 2005 to market its products to make saving and investing with NS&I more accessible. This will be achieved through Tesco's proven retail and financial services experience, in store-marketing opportunities and access to over 15 million customers every week.

Following a successful pilot in 50 stores over the last four months, the leaflets will now be available in over 700 stores. The stores cover the breadth of Scotland, England, Wales and Northern Ireland.

Shoppers will be able to apply by phone, online via www.tesco.com or by post. Customers will enjoy exactly the same benefit of 100% security as customers who invest directly with NS&I or through the Post Office.

This marketing partnership will run initially for five years.

Save time and money

Trevor Bayley, NS&I's acting chief executive said: "Hectic lifestyles mean that we often find it difficult to keep on top of our finances and providers can help by making saving more accessible. We have teamed up with Tesco Personal Finance to do just this. The partnership will make it even more straightforward, and easy for people to find out about our savings and investments, while carrying out their weekly shop."

Jim Macdonald, Tesco Personal Finance chief executive, said: "We want to help people reach their savings goals, so this is great news for our customers.  By combining the unique range of NS&I products with the accessibility and convenience of Tesco stores, we can help make saving for the future easier than ever."