Crunch driving consumers to govt savings

Posted 2008-04-10

The government-backed savings and investments provider NS&I has reported an "upsurge in interest" as a result of the economic downturn.

NS&I said that while its premium bonds have not seen a significant boost in demand, other products such as "inflation-beating savings" have become markedly more popular.

A spokesperson for the financial services provider attributed this to a growing understanding of the potential pitfalls of the current economic climate.

"People have a greater awareness of whats going on in the banking and financial industry at the moment," the spokesman explained. "So theyre really looking [at products] not just based on interest rates - theyre looking at the complete package of what banks, building societies and NS&I offer."

The spokesperson reiterated that "security and accessibility" were being ranked increasingly higher on savers list of priorities, leading to the surge in demand for NS&I financial products.

NS&I is backed by HM Treasury and so all money invested with the provider has a 100 per cent guarantee.

Leave a Reply