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National Savings to end Post Office accounts | National Savings to end Post Office accounts |
(40 minutes later) | |
National Savings and Investments (NS&I) is to stop operating its accounts via the Post Office. | National Savings and Investments (NS&I) is to stop operating its accounts via the Post Office. |
No more Investment or Easy Access Savings accounts will be opened from 28 November, though Premium Bonds will still be available. | No more Investment or Easy Access Savings accounts will be opened from 28 November, though Premium Bonds will still be available. |
In future all its savings accounts will be available only via the post, phone or online. | In future all its savings accounts will be available only via the post, phone or online. |
The change will immediately affect 2.3 million people with Investment Accounts and 260,000 with Easy Access Accounts. | |
Investment Accounts will go through a transitional period after 28 November until May 2012. | |
During this period, no new accounts can be opened, but those with existing Investment Accounts will still be able to operate them at Post Offices and by post. | |
However, in May 2012 the accounts will become postal only for existing customers. At that point, new accounts can also be opened, but only by post. | |
A new higher rate of interest will be announced then as well. | |
However, the Easy Access Savings Account will be closed entirely in July 2012. | |
Until then its existing customers will still be able to operate their accounts either at a Post Office or by phone, as at present. | |
But in July they will be offered the choice of moving their money the new postal Investment Account, the existing Direct Saver Account, or simply moving their money elsewhere. | |
Direct dealing | |
Premium Bonds now account for about 75% of all NS&I sales in Post Offices, which is why they will remain on sale there. | |
NS&I said the changes were part of a wider plan to "simplify and modernise" its range, saving 10% of its running costs. | |
Jane Platt, chief executive of NS&I, said it was part of its long-running ambition to persuade all its customers to deal with it directly. | |
"We're very proud of the service we deliver to savers by post, online and, in particular, via our UK call centres [which] are available seven days a week, 365 days a year," she said. | "We're very proud of the service we deliver to savers by post, online and, in particular, via our UK call centres [which] are available seven days a week, 365 days a year," she said. |