Cambridge Encyclopedia » Cambridge Encyclopedia Vol. 53

National Savings

limited available held savers

A range of financial instruments provided by the UK government for use by small savers. There is a variety of securities in the system. All have full state guarantees for both capital and interest, are available at post offices without fees in small quantities, and are repayable on sight or relatively short notice. Some are tax-free; some are available only to pensioners; and some are indexed to the Retail Price Index (RPI). The amounts which can be held by any individual are limited, and they cannot be held by institutions. National Savings tend to have yields lower than the best obtainable by larger and more sophisticated investors, but their safety, at least in money terms, makes them attractive to small savers whose funds and information are both limited.

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