Investing March 28, 2026 0 Comments

The Shocking Truth Behind This Weekend’s National Scandal That Could Change Everything You Thought You Knew

What’s more surprising than a headline-grabbing resignation these days? Well, it’s seeing the top dog at National Savings & Investments (NS&I) step down over what’s basically an administrative mess involving £476 million trapped in Premium Bonds. It’s the kind of blunder that makes you wonder—how did a government-backed institution, trusted by more than 24 million customers, let this slip through the cracks? And yet, despite the millions affected and the heartache of families stuck waiting years to reclaim their money, the root cause seems to be less about malicious intent and more about systemic failure. Still, when you’re backed 100% by the government, the stakes—and standards—are sky-high. So, what does this say about trust, responsibility, and just how unforgiving the spotlight can be for those at the helm? If you’ve ever vouched for “safe as houses” investments like NS&I, this week’s shake-up offers plenty to chew on. LEARN MORE

What caught my eye this week.

Considering the high hurdle that politicians and business leaders have set themselves for something to be considered a sacking offence, I was surprised to see the boss of National Savings & Investments (NS&I) resign this week.

Of course, the NS&I FUBAR was a rough experience for the 37,500 people affected. NS&I’s mistakes saw bereaved families facing delays accessing their relatives’ Premium Bonds with a total value of up to £476m.

To give just one example from a BBC report:

Tracy McGuire-Brown from Newbury in Berkshire […] took six years to claim £2,000 in premium bonds her late father had left in his will.

The 61-year-old former care home manager says she “cannot describe how upsetting and frustrating” it was to deal with NS&I, and that she had to send in her father’s will and other original documents at her own expense.

“It was the most awful, awful experience,” she says.

No doubt – and not what anyone wants to deal with in the wake of the death of a loved one.

However, NS&I has more than 24 million customers holding £240bn with the institution, so the number affected is relatively small. According to Which the problems were caused by administrative failures – bad, certainly, but not malicious. The long delay between problems emerging and NS&I coming clean is problematic, but again the scale of the operation mitigates this to some extent.

With all that said – and, again, not to make light of having to fight to get your own money back – I think the real reason boss Dax Harkins had to go was because NS&I is held to a higher standard than a typical High Street bank, on the basis of its 100% government backing.

Trust buster

I’ve often recommended NS&I savings or Premium Bonds to fretful – but essentially financially uninterested – friends and relatives looking for somewhere safe to put their cash. Especially after the financial crisis.

No worries about bank runs with NS&I, or Financial Services Compensation Scheme limits, or your savings somehow getting muddled up in riskier lending. Just okay interest rates, the infinitesimal chance to win big with ERNIE, and a recommendation made in the same vein as nobody getting fired for buying IBM.

Also, faith in NS&I’s systems underwrites the Premium Bond draw.

There are already conspiracies about which Bonds win and who gets what prizes. NS&I can do without incompetence creeping into the mix, too.

From Monevator

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The natural yield model portfolio wheels are turning – Monevator [Members]

From the archive-ator: A plan to be financially independent in ten years – Monevator

News

OECD says UK will be hardest hit by Iran war, sees 4% inflation – CNBC

World faces ‘stark and deep recession’, says BlackRock boss – This Is Money

Temporary petrol shortages possible at some pumps, warns ASDA – Guardian

How Trump and the oil price move in sync [Charts] – BBC

Reminder: the state pension age rises in April – Which

Buying UK housing most affordable since 2015 on price-to-earnings basis… – ONS

…as London house prices drop again… – City AM

…but rents are at an all-time high relative to incomes – Sky

Final candidates for seven new towns named – BBC

SpaceX’s mooted IPO valuation is in another orbit – Sherwood

Government defends landlord tax hikes as ‘fairer’ system – Property 118

FCA launches later life mortgage [a.k.a. equity release] study – Mortgage Strategy

Who ate all China’s stock market returns? [Paywall] – FT

Products and services

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