NS&I on course to hit government target

NS&I on course to hit government target

NS&I - one of the largest savings organisations in the UK - saw net inflows of £6.8bn in the first three quarters of 2017/18, putting it well on course to meet its targets.

Offering a range of savings and investment products backed by HM Treasury to 25m people, NS&I is unique in that it sets the interest rates on its products with three groups in mind - it's customers, taxpayers to raise cost-effective finance for the government, and the wider financial services sector to support stability. 

It is most well-know for offering Premium Bonds, introduced in 1956, in which bondholders have the chance to win cash prizes on the 1st day of every month.

The government-backed savings organisation has a target of £10.2bn of net inflows, or net financing, as NS&I calls it, which refer to the difference between a company's cash inflows and outflows in a given period. 

The £10.2bn target compares to net financing of £11.8bn for 2016/17.

Net inflows spiked in the third quarter of the year, reaching £3.3bn, compared to £1.8bn in the previous three months.

Elsewhere the statement reported NS&I's "value indicator", which is used to measure the organisation's cost-effectiveness in raising financing for the government, was £188m for the first three quarters of 2017/18.

In today's Spring Statement, HM Treasury confirmed NS&I’s target forecast for 2017-18 is £10.2bn, in line with the revised net financing target of £8bn - that is within a range of £5bn to £11bn - set out in the Autumn Budget in November 2017.

Today the Treasury also confirmed NS&I would have a 2018/19 net financing target of £6bn, within a range of £3bn to £9bn.

NS&I’s 2018/19 value indicator target is to deliver £125m, with a lower limit of zero.