National Savings - 100% safe?

derbyjon

After having our fingers burned with IceSave, we are thinking of temporarily reducing our exposure to retail banking by moving a large chunk of our funds into National Savings (savings certificates and premium bonds probably). At present we are more interested in not losing than how much we can gain.

How safe is National Savings? They claim 100% guarantee but after recent events I no longer take guarantees at face value. What happens to money invested with them? They are backed by the Treasury but I assume that means they are not one and the same, are they a limited company, plc? Under what circumstances (however unlikely) could money invested with National Savings be lost?

silvercar

Only if the country went bankrupt. I suppose, if there was a run of people withdrawing their money, the government could put a temporary ban on withdrawing of funds.

Short of keeping your money under your mattress, NS is probably one of the safest places.

Crabman

Hi derbyjon

This is explained in the following article:

http://www.moneysavingexpert.com/savings/safe-savings

derbyjon

I agree under normal circumstances the advice in the safe savings article is sound - i.e. they are 100% cast-iron nailed-on safe.

However, these times are far from normal. I'm intending to place many of my eggs in one basket, and if anyone thinks I'm placing my family's financial well-being at risk by adopting this strategy I'd very much appreciate them speaking up now, rather than gloating after the event which seems to have been the order of the day by many on here recently.

IT_nerd

I think NS&I are going to get quite a bit of business soon. Around 330,000 new customers I think

darktrader

National Savings is 100% guaranteed/safe. But don't belive me. I just post in this forum. Talk to a professional IFA or look on the NS&I Website.

barak

derbyjon wrote: »

.....I'm intending to place many of my eggs in one basket, and if anyone thinks I'm placing my family's financial well-being at risk .....

You are absolutely right to think "eggs/one basket" - it's a pity more people don't - but NS&I is the one exception to the rule, so if it's what you want to do to sleep better, then go ahead; however, I don't think you should worry provided you are keeping within the FSCS limits.

By the way, it appears that Icesave depositors will not lose any if their deposits.

Dealmad

I removed all my savings from NSI and put it into KE fixed term , wished i never bothered now.

It maybe lower intrest but i would sooner be that then end up losing money then filling a load of forms out to get my money back.


Im withdrawing all my money and going back , i would agree they are the safest bet to go with at the moment.

Chippy99

Dealmad wrote: »

I removed all my savings from NSI and put it into KE fixed term , wished i never bothered now.

It maybe lower intrest but i would sooner be that then end up losing money then filling a load of forms out to get my money back.

And considering the loss of interest whilst you are waiting (months?) to get your money back!

campestris

The following claim for NS&I investments is untrue and misleading. The claim cannot be substantiated and does not take account for circumstances beyond the control of HM Treasury.

"100% security for your money
At NS&I we offer a range of savings and investments to suit different people’s needs. Because National Savings and Investments is backed by HM Treasury, you can rest assured that all your capital is 100% secure, however much you invest."

Crabman

campestris wrote: »

The following claim for NS&I investments is untrue and misleading. The claim cannot be substantiated and does not take account for circumstances beyond the control of HM Treasury.

"100% security for your money
At NS&I we offer a range of savings and investments to suit different people’s needs. Because National Savings and Investments is backed by HM Treasury, you can rest assured that all your capital is 100% secure, however much you invest."

Please take a look at the Are Your Savings Safe article - it would need HM Government to go bankrupt before any losses were incurred.