Savers desert NS&I as confidence returns

by Gill Montia

Story link: Savers desert NS&I as confidence returns

Britain’s savers withdrew a net £1 billion from National Savings & Investments (NS&I) in the three months to the end of June, compared with net inflows of £1.1 billion over the same period last year.

As the financial crisis gathered pace, the government-backed saving provider that benefits from a 100% guarantee on deposits was inundated by savers looking for a safe place to keep their cash.

In the final quarter of 2008, which covered the height of the banking crisis, NS&I reported a 65% rise in new deposits, with £9.55 billion invested.

However, some confidence has returned to the broader savings market and gross outflows totalled £4.5 billion in the second quarter of 2009, as customers searched for higher returns.

Chief executive, Jane Platt, says NS&I will try to level off its inflows and outflows for the rest of the year.