• NS&I delivered a record £23.8 billion of Net Financing to the Government in 2020-21.
  • Update on Premium Bonds prize payment options: NS&I will no longer be moving all customers to having Premium Bonds prizes paid directly to their bank accounts, meaning that customers who receive their prizes by cheque can continue to do so. 
  • In 2021-22, NS&I will deliver a green savings bond for retail investors on behalf of the Government; and will start the long-term transformation of its business and operations.

Exceptional demand drives record Net Financing

In 2020-21, NS&I experienced exceptional demand and delivered a record £23.8 billion of Net Financing to the Government. This means that while NS&I did not meet its revised 2020-21 target of £35 billion (within a range of £30 billion to £40 billion), it delivered the highest annual level of Net Financing in its history, playing a key role in providing funding throughout the Covid-19 pandemic.

Operationally, 2020-21 was a challenging year, which saw customer service fall below NS&I’s usual high standards; however, NS&I has currently restored call waiting times to normal levels and cleared outstanding complaints.

NS&I Chief Executive, Ian Ackerley, said: “In a hugely challenging year, I regret the impact of operational issues on our customers, and apologise that they did not receive the levels of service that they have come to expect from NS&I. We are in a better position now, despite the ongoing pandemic, but there is more to do in the months ahead.

“Despite the challenges faced, I am proud of what we have achieved in an exceptional 12 months. We have delivered unprecedented levels of financing for government and served millions of savers, as well as evolving our operation so that we can learn from this year and build a stronger and more resilient business that continues to attract the loyalty of millions of savers.”

The vast majority of Premium Bonds prizes now paid directly but NS&I opts not to remove prize cheques completely

In September 2020, NS&I announced plans to phase out Premium Bonds prize cheques and to pay all prizes directly to customers’ bank accounts or have prizes reinvested into more Bonds. This plan was paused in December 2020.

NS&I has today announced that while it will continue to encourage all customers to have Premium Bonds prizes paid directly into their bank accounts or reinvested, customers can continue to receive their prizes by cheque.

The vast majority of Premium Bonds prizes are paid directly into customers’ bank accounts, or automatically reinvested into more Premium Bonds (up to £50,000) giving them a greater chance of winning. In the June 2021 Premium Bonds prize draw, nearly 9 out of 10 prizes (88%) were either paid directly into customers’ bank accounts or reinvested into more Premium Bonds.

NS&I Chief Executive, Ian Ackerley, said: “We have responded to feedback from some of our customers and we have decided to retain the option for them to receive Premium Bonds prizes through the post. We will continue to encourage customers to have their prizes paid directly into their bank account, as many have done so in the last 12 months.

“Having prizes paid directly into bank accounts is quicker, easier and more secure for our customers, while also being more sustainable and better value for the taxpayer. Customers who want to have their Premium Bonds prizes paid directly to their bank accounts or have their prizes reinvested, do not need to choose to manage their NS&I accounts online or over the phone, and our customer service teams will be on hand to help if they require further assistance.”

Looking ahead to 2021-22

The March 2021 Budget set NS&I’s Net Financing target for 2021-22 at £6 billion (+/- £3 billion) and a Value Indicator target has been agreed with HM Treasury to be more positive than –£900 million.

In March 2021, NS&I received investment and approval to secure the long-term transformation of the business and the retender of our operational services contract. NS&I’s new Rainbow Programme will transform the business and transition NS&I to a multi-supplier operating model, ensuring that we have a strong, resilient infrastructure and a flexible and scalable operation that can continue to serve savers and the Government for generations to come.

NS&I will continue to deliver on behalf of government over the next year, firstly by offering a green savings bond for retail investors. This product will give UK savers the opportunity to support projects that will accelerate the transition to a low carbon economy, create green jobs, and participate in the collective effort to tackle climate change. More details will be available in the coming months. Meanwhile, NS&I has also been appointed by HM Treasury to administer the new Mortgage Guarantee Scheme, designed to enable more households to access mortgages with smaller deposits.

NS&I Chief Executive, Ian Ackerley, said: “I am proud that NS&I has been chosen to deliver a green retail savings product on behalf of the Government. 2021-22 will be an exciting year as we embark upon our green savings launch and also accelerate our long-term programme to transform NS&I so that we remain fit for the future.”

2020-21 Service Delivery Measures

NS&I met five and missed six of its eleven service delivery measures. NS&I met the service delivery measures for: Government Payment Services delivery performance; Net contribution to Departmental Expenditure Limit from Government Payment Services; Digital-first; Efficient administration of funds; and Financial Ombudsman Service.

NS&I did not meet its service delivery measures for: Net Financing; Operational delivery; Customer satisfaction; Fraud management; the Diversity Index; and Employee engagement. See pages 13 – 15 of NS&I’s 2020-21 Annual Report for full details.

2020-21 annual results


Gross inflows (including reinvestments)




Gross outflows


Net Financing


Total stock


Value Indicator



















































*C&AIP is capitalised and accrued interest and prizes earned. All figures are in £ billion and subject to rounding.

**Excluding 65+ Bonds.

***Excluding 65+ Bonds and Investment Guaranteed Growth Bonds.

****Excluding Investment Guaranteed Growth Bonds.

NS&I reports quarterly on gross inflows and outflows, Net Financing and total stock. Each quarter, NS&I releases unaudited figures and has published its audited Annual Report and audited accounts for 2020-21, which can be downloaded here.

Notes to Editors

  1. NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to 25 million customers. All products offer 100% capital security, because NS&I is backed by HM Treasury.
  1. NS&I’s business strategy, Inspire & Invest, launched on 1 April 2018. It sees continued focus on delivering sustainable cost-effective financing for the Government as NS&I’s core purpose. The strategy will ensure that NS&I continues to resonate with savers in a highly competitive savings market through developing products, services and a customer experience that are simple, straightforward and user-friendly.
  2. Net Financing – the measure of the net change of NS&I funds, meaning total inflows from deposits, retention of maturing monies and capitalised and accrued interest, less the total outflows from withdrawals and interest or Premium Bonds prize draw payments. A positive Net Financing figure represents a positive contribution to government financing.
  3. Value Indicator – an indication of NS&I’s cost-effectiveness in raising finance for the Government. In general, it compares the total cost of delivering Net Financing and servicing existing customers’ deposits with how much it would cost the Government to raise funds through the wholesale market via equivalent gilts. Some adjustments and assumptions are made to the calculation, including in identifying and applying an equivalent gilt, in response to specific NS&I product features. Index-linked Savings Certificates are included in the calculation of the Value Indicator and use the same approach as for other products, with one exception to the formula. As the real yield gilt comparators for RPI linked products are currently negative, NS&I applies a floor to the comparative yield set at zero, which means the calculation does not fully reflect the Value Indicator profile of this product. The Value Indicator methodology is agreed with HM Treasury and is reviewed and revised periodically, with its agreement, to support a long-term approach to product strategy. The Value Indicator target was suspended for 2020-21 to reflect exceptional market conditions.