NS&I Annual Report 2001-2002

Achievements for customers

• Changed from National Savings to National Savings and Investments in February 2002 to more accurately describe the reality of what NS&I offers customers
• Achieved a milestone target by opening a 24 hours a day, seven days a week, 365 days a year customer call centre, enabling customers to buy six NS&I products over the phone, day or night
• Launched a brand new product - the Guaranteed Equity Bond, which offered investors a return linked to the performance of the FTSE 100 Index over five years with no risk to their capital. It is the first equity-based product ever offered by NS&I
• Launched a free tracing service for forgotten or dormant accounts.

Business achievements

• Sales and reinvestments amounted to £10.3 billion
• Sales of Premium Bonds - NS&I's most popular product - were £3.8 billion
• Total of Premium Bonds in the monthly prize draw at the end of the year came to £17.2 billion
• In January 2002 alone, £400 million Premium Bonds were sold - the highest level of monthly sales recorded since their launch in 1956
• The call centre received 1.7 million calls, up 57 per cent from the last financial year
• Telephone sales increased by 253 per cent
• Gained Investors in People re-accreditation.

Taxpayer benefits

• Value added of £176 million for the year (see editor's note 1)
• NS&I products accounted for 17.9 per cent of net public sector debt.

The National Savings and Investments 2001-2002 Annual Report is the last to be published under the leadership of Peter Bareau, Chief Executive.

Bareau said:

"The past year has seen further consolidation of the modernisation programme which, over the past few years, has transformed the capability and potential of National Savings and Investments. The excellent results speak for themselves. Looking forward, we are confident of being able to live up to our vision of providing cost effective financing to Government by attracting and retaining retail customers with the offer of secure savings and investments."

Notes to Editors

1. Value Added is the name given to the way we measure how cost effective NS&I is at raising finance for the Government. The total cost of raising funds, including NS&I's operating costs, is compared to how much it would cost the Government to raise funds in the wholesale market.
2. Peter Bareau is available for interviews. Please contact the NS&I Press Office direct for details. 
3. National Savings and Investments' aim is to help reduce the cost to the taxpayer of government borrowing now and in future. To achieve this, National Savings and Investments' vision is "to be a distinct and valued part of people's savings and investments" and "an integral and valued component of national debt management". National Savings and Investments finances 17.9 per cent of the national debt and accounts for around 10 per cent of the cash-based deposit market.
4. The Government-backed savings provider embarked on an ambitious modernisation programme in April 1999 when it signed a pioneering public private partnership with Siemens Business Services. The partnership has delivered real benefits in improved customer service levels and the introduction of new products into the market faster than was possible before.