Investments  

NS&I more than doubles takings with pensioner bonds

NS&I more than doubles takings with pensioner bonds

National Savings & Investments’ results have revealed the government-backed savings bank more than doubled the amount it took from savers in the three months to June, backed by rising pensioner bond sales.

Their net financing - the balance of all the money savers have paid in after the full amount NS&I have paid out - reached £5.4bn for the quarter, compared with £2.1bn during the same period last year.

This is in line with expectations, according to the report, and reflects popularity of the 65 plus bonds and a “smooth closure” of the product on 15 May.

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Pensioners bought £1.1bn of bonds - a total of 110,000 sales - within two days of the 15 January launch, with the chancellor extending their availability in February and total sales reaching £13.7bn.

Premium Bond sales have also contributed to net financing, after the investment limit was raised from £40,000 to £50,000 on 1 June.

The value indicator savings of £22m have been delivered at a time of continuing volatility in the gilt markets, read the results.

Given the fluctuation of gilt yields, against which NS&I measures its cost-effectiveness in raising finance for the government, the value indicator target for 2015-16 is again to deliver positive value, but with a lower limit of -£100 million (excluding 65+ bonds).

The last Budget confirmed that NS&I’s 2015 to 2016 net financing target is to deliver £10bn, in a range of £2bn either side of this.

In March, a statement from NS&I said that according to the value indicator, it delivered £57m of value to the taxpayer in the quarter. Its net financing forecast for 2014/15 is £18.3bn, above the range of £11bn to £15bn set in the 2014 Budget, and net financing target for that period of £10bn, within a range of £8bn to £12bn.

Jane Platt, chief executive at NS&I, said: “These results are in line with our expectations: underlining the success of 65+ bonds and the smooth closure of the product; and for the profile of net financing at this stage in the financial year.”

peter.walker@ft.com