Press Release

NS&I INTRODUCES EASIER ACCESS TO ITS INVESTMENT ACCOUNT

23 May 2006

From 1 June 2006, National Savings and Investments (NS&I), the government backed savings and investments provider, is making its Investment Account more attractive for customers by removing the account's one month notice period and penalty. This improvement means the Investment Account offers a straightforward passbook account, with 100% capital protection and easier access to your money.

At the moment, customers need to give one month's notice to make withdrawals from their Investment Account without penalty, or they can make withdrawals with no notice by accepting a penalty equal to 30 days interest. Approximately 60% of customers take the penalty when making withdrawals from the Investment Account.

The new terms allow customers access to their money within a few days - with no notice and no penalty - making it easier for customers to manage their money. To make withdrawals, customers can apply to NS&I by post. 

Approximately three million customers have £6 billion invested in NS&I's Investment Account. The Investment Account is a variable rate product, currently offering tiered rates up to 3.80% gross p.a.

Welcome news

Peter Cornish, marketing director for National Savings and Investments, said, "We know from customer research that straightforward access is important to many of our customers. By removing the notice period for the Investment Account we are making it easier and more attractive for customers to manage their money.

"The Investment Account not only offers a safe home with attractive rates of return but now there is the added benefit of easy access which will appeal to existing and new customers alike."

What is the Investment Account?

The Investment Account is a straightforward passbook account which offers tiered rates of interest, so the more you save the better the rate you earn. Anyone aged seven or over can invest between £20 to £100,000, either individually or jointly.  The account can also be opened for a child under seven. Subsequent deposits must be a minimum of £20. Interest is credited on 31 December each year and is paid gross.

Making life easy

Customers can earn tiered rates of interest from their Investment Account safe in the knowledge their money is 100% secure and can be accessed whenever they need it.

Both current and new customers will benefit from this change. However, requests to make withdrawals from the Investment Account received before June will still be subject to the current notice or penalty requirements. Customers requiring instant access to their money should apply from 1 June.

Developing services for customers

Removing the notice period for the Investment Account is the latest in a number of developments that have increased customer access to NS&I's products and services.

In July 2005, NS&I completely removed the notice period on Income Bonds after reducing it from 90 days to six weeks in 2004. This was also the result of customer feedback and has given customers more flexibility in managing their finances.

NS&I is also increasing the ways customers can access their savings. In 2005 the website was re-launched with nine products now available online. Telephone sales and standing orders have also been introduced on products such as Premium Bonds and the Easy Access Savings Account and customers can pick up information on Premium Bonds and Inflation-Beating Savings in Tesco stores across the country. This combined with the continued options of post or Post Office® branches gives customers choice and flexibility in managing their savings.

How to invest in the Investment Account

Application forms can be downloaded from www.nsandi.com, are available in Post Offices. Standing orders are available.

If you would like further information on the Investment Account, please call 0845 964 5000 (from 7am until midnight, 7 days a week). Or visit our website at www.nsandi.com.