The NS and I and Premium Bonds

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					The NS&I and Premium Bonds

Premium bonds were conceived in 1861. It was set up so that ordinary
people could save and invest their money if case of accident or death.
The original name of the program was called the Post Office Saving Bank.
It popularity spread an soon the Chancellor was borrowing money from the
funds so that he could support public projects. This gave the premium
bonds a duel purpose. First the bond where considered a source of a
secure investment that could not go bankrupt or could not loose value.
Second the bonds were seen as a way to give the government a source of
funds when taxes and other monies were not enough.

The Post Office Bank sold saving certificates that did offer a lottery
system to go with them. In 1957 a lottery was issued once a month to
persuade British citizens to invest more money. In 1967 the Post Office
management changed hands and the Treasury Department took over. The
program was renamed the National Savings and the Post Office became the
major supplier of premium bonds. The National Savings part of it became a
source of other investments besides premium bonds. In 1996 the post
office became the store of the agency and the National Savings and
Investment became more aligned with the Chancellor. All a citizen had to
do was to go to the post office and make a hundred pound investment
toward a bond purchase. They could invest until they reached the cap of
thirty thousand pounds.

Siemens Corp became apart of the operation in 1999. In an attempt to
modernize the agency over 4000 agency employees were sent to Siemens
schools for business to learn new investing techniques. Since then the
employees have become more professional in the delivery of investment
services. New call centers were added and more technology was used in
the handling of investment portfolios. Siemens will end its contract with
the National Savings and Investments in 2014 and the agency will be self-
sufficient in its own affairs.

Through their training, the employees of the National Savings and
Investment have met goals of improved customer care and the professional
implication of investment opportunities. The use of the internet has made
the communication between provider and customer easier to facilitate and
information about the company can be found at the stroke of a keyboard.
As the popularity of premium bonds grows so will the commitment of
National Savings and Investment to provide their customers with
professional, friendly service.

The growth of premium bonds has skyrocketed in the past decade. The
negative impact of the growth is that the chances of having your bond
picked by the random number generator is widening. Statistically the
bigger the population of numbers the gap grows wider for the individual
investor to be selected. Many people are pulling their premium bonds
investment and putting them into traditional low interest savings
accounts. This pull back from impatient investors may reverse the numbers
so the chances of winning will grow.

				
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posted:7/25/2012
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