National Savings & Investments, or NS&I, is losing its reputation as the nation’s favourite savings institution. “I’ve long been a champion of NS&I... and I know many readers feel the same way,” says James Coney, Money editor of The Sunday Times. “Or at least, they did.”
So what’s gone wrong? It started in spring when Treasury-backed NS&I was given extra funding so it could offer better rates. “Customers flocked to it, but like many financial institutions it faced the challenge of keeping service levels up when lockdown came,” says Coney. “Phone waiting times rose from ten seconds to 12 minutes.”
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
“The decision to stop sending Premium Bond prizes out by post was made to save paper,” says Fiona Parker in the Daily Mail. “However, the bank’s Direct Isa customers are now discovering they cannot move their money online – ironically forcing them to fill in a form and put it in the post in a process that can take weeks.”
The final insult came last month when NS&I slashed interest rates, in some cases from 1.15% down to just 0.01%, and lengthened the odds of winning on the Premium Bonds.
As a result, millions of customers are trying to take their money elsewhere. “But those trying to move their money are having to wait weeks as they struggle to navigate the... new website or to speak to anyone about it on the telephone,” says Parker.
“Enough is enough,” says Coney. “It is time for the Treasury select committee to haul in NS&I‘s boss Ian Ackerley to investigate this fiasco…this is one of Britain’s... most loved financial institutions being badly run, lumbering from one disaster” to the next.
-
Millions of state pension records ‘set to be deleted’ – putting thousands at risk of never getting their moneyThousands of families could miss out on money owed to them if the government deletes historic state pension records.
-
What makes you wealthy in the UK? Could it make you a target in Rachel Reeves’ Budget?Wealthy Brits could be at risk from a Budget tax raid – but how much money do you need to be considered wealthy in the UK?
-
'Gen Z is facing an AI jobs bloodbath'Opinion It has always been tough to get your first job, but this year, it's proving tougher than ever. AI is to blame, says Matthew Lynn
-
Beazley: a compelling specialist insurerThe insurer Beazley is unusually profitable at present, and that looks set to continue. The stock is also a valuable portfolio diversifier, says Jamie Ward
-
Is Britain heading for a big debt crisis?Opinion Things are not yet as bad as some reports have claimed. But they sure aren’t rosy either, says Julian Jessop
-
What is the Enterprise Investment Scheme and should you have one?The Enterprise Investment Scheme is tax-efficient and potentially lucrative. Taking a chance on the scheme could trim your family’s IHT bill, says David Prosser
-
What are wealth taxes and would they work in Britain?The Treasury is short of cash and mulling over how it can get its hands on more money to plug the gap. Could wealth taxes do the trick?
-
Self-employed? Start saving for your pension nowBritons who are self-employed have neglected to build up their retirement fund. They must act now
-
Premium Bonds winners announced – did you scoop the September jackpot?NS&I has announced the winners for September’s Premium Bonds prize draw, with two lucky savers becoming overnight millionaires. Did you win this month?
-
Why is Britain's industrial base crumbling?Opinion More and more factories in the UK are closing, and the government doesn’t seem to care. What’s going on?
