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NS&I says flight to safety over

National Savings & Investments (NS&I), the taxpayer-backed savings authority, said yesterday that the “flight to safety” by investors – which saw a record £26bn poured into its products last year – is over. As it announced its annual results for 2008/2009 and for the quarter ending 30 June, NS&I said it was operating in a “more challenging savings environment” than in the height of the banking crisis. For the quarter, it saw £4.5bn in outflows and just £3.2bn coming in, meaning that its net financing was down by a record £1bn. The NS&I said that premium bonds remain popular, but that overall cash outflows are being driven by rate competition again.