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Media centre /
Press releaseNATIONAL SAVINGS AND INVESTMENTS TEAMS UP WITH TESCO PERSONAL FINANCE 12 September 2005National Savings and Investments (NS&I) has teamed up with Tesco Personal Finance to market NS&I’s tax-free Premium Bonds and inflation-beating Index-linked Savings Certificates in over 500 stores from early 2006. An initial trial will be in 50 Tesco stores by the end of 2005. With a customer base of 26 million people and £69 billion invested, NS&I has sought new ways of reaching out to an even wider audience by signing up new partners to market its products. Tesco Personal Finance is the first new partnership. Tesco customers will be able to pick up the leaflets for two of NS&I's tax-free products - Premium Bonds and its range of inflation-beating Index-linked Savings Certificates. Customers will enjoy the same benefit of 100% security as any other NS&I customer. They will be able to invest in these two leading NS&I products by post, telephone or internet. NS&I chose Tesco Personal Finance to market its products to make it easy and convenient for people to save and invest alongside their weekly shop. This will be achieved through Tesco’s proven retail and financial services experience, in store-marketing opportunities and access to over 15 million customers every week. The agreement was signed officially by Alan Cook, NS&I chief executive, and Jim Macdonald, Tesco Personal Finance chief executive. Alan Cook, NS&I chief executive, said: “This marketing partnership will make it even more straightforward, convenient and easy for people to find out about our savings and investments. It means we have an additional retail channel to work alongside our strong and long-standing partnership with the Post Office. This is an exciting time in NS&I’s development and means we can reach a wider audience in Tesco stores across the country.” Jim Macdonald, Tesco Personal Finance chief executive, said: "This is great news for our customers. By combining the unique range of NS&I products with the accessibility and convenience of Tesco stores, we can help make saving for the future easier than ever.” This marketing partnership will run initially for five years. It coincides with the publication today of NS&I’s annual report and accounts for the year 2004/05 (see separate press release “National Savings and Investments annual results for year ending 31 March 2005”). NS&I grew by £1.97 billion in 2004/05. ENDS Notes to Editors National Savings and Investments NS&I, established in 1861, is a Government department and an executive agency of the Chancellor of the Exchequer. It offers a range of savings products through a network of 14,600 Post OfficeTM branches, over the telephone, internet, post and by standing order. It has 26 million customers and £69 billion funds invested. All products offer 100% security because they are backed by HM Treasury. For the first time in six years, NS&I has been advertising its Premium Bonds and inflation-beating range of Index-linked Savings Certificates on television and also since August, NS&I has been giving away two £1 million jackpot Premium Bond prizes as well as more than 1 million other tax-free prizes. Premium Bonds NS&I’s flagship product is Premium Bonds, in which 23 million people have invested £27 billion since they were launched in 1956. The amount invested has doubled since 1999. In September 2005, £68 million in 1.1 million tax-free prizes were awarded including two worth £1 million. The current prize fund rate is a tax-free 3.0% p.a. Inflation-beating Index-linked Savings Certificates Index-linked Savings Certificates were launched 30 years ago in 1975 and provide a tax-free return guaranteed to beat inflation (RPI). They are currently available in three and five year Issues. The current rates are : 3-year (10th Issue) – RPI + 0.95% tax-free : 5-year (38th Issue) – RPI + 1.00% tax-free Tesco Personal Finance Tesco Personal Finance is one of the UK’s fastest growing financial services businesses. Since its launch in 1997, the company has grown to five million in-force customer accounts and has launched, on average, three products each year. With 40% of sales now originating from the internet and 60% of business coming through the stores, many of which are open 24 hours, products are available where and when customers want them. The process The deal was signed on 9 September 2005 after a process to seek out, establish and maintain distribution partnerships with a wide range of organisations across a variety of sectors, including supermarkets, member organisations and high street retailers. In August 2004, NS&I issued a request for proposal through the Official Journal of the European Union. As a government department, NS&I is required to operate a strict procurement process. The notice in the Official Journal of the European Union also stated that NS&I would seek to partner with just one organisation in a number of different retail sectors. The notice attracted significant interest from many types of organisations, including Tesco Personal Finance. At this stage, NS&I has chosen the supermarket sector in which to establish its first marketing deal. During 2005, NS&I had a number of meetings with other supermarkets involved in the process to discuss the opportunities that could be gained from a relationship and how NS&I and a supermarket could work together. Tesco Personal Finance, issued their proposal documents in June 2005. During the following weeks, NS&I reviewed all the proposals and, in early August, NS&I’s Board made the decision to seek a marketing partnership contract with Tesco Personal Finance. Tesco Personal Finance
Media team The numbers below are for media use only. Customers wishing to contact NS&I can find details here.
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