This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/money/2015/jun/25/post-office-sales-premium-bonds
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Premium bonds to be pulled from post offices | |
(35 minutes later) | |
Savers will no longer be able to buy premium bonds in branches of the Post Office after July, National Savings & Investments announced on Thursday. | Savers will no longer be able to buy premium bonds in branches of the Post Office after July, National Savings & Investments announced on Thursday. |
The bonds, which allow savers to lock away money in a government-backed account that gives them the chance to win up to £1m a month rather than earning interest, have been available over the counter since their launch in 1956. | The bonds, which allow savers to lock away money in a government-backed account that gives them the chance to win up to £1m a month rather than earning interest, have been available over the counter since their launch in 1956. |
However, NS&I said that as a result of changing consumer demand and efforts to reduce costs the current contract with the Post Office would not be renewed when it runs out on 31 July 2015. | However, NS&I said that as a result of changing consumer demand and efforts to reduce costs the current contract with the Post Office would not be renewed when it runs out on 31 July 2015. |
After that date bonds will only be available directly from the government’s savings provider, through its website, by phone or by post, or through a regular standing order. | After that date bonds will only be available directly from the government’s savings provider, through its website, by phone or by post, or through a regular standing order. |
Around one in five sales of premium bonds take place in Post Office branches. In 2014-15, 750,000 transactions were made over the counter while 3.2m were made directly. Over the same period, £3.9bn worth of bonds – a third of sales by value – were sold in post offices. | Around one in five sales of premium bonds take place in Post Office branches. In 2014-15, 750,000 transactions were made over the counter while 3.2m were made directly. Over the same period, £3.9bn worth of bonds – a third of sales by value – were sold in post offices. |
NS&I’s chief executive, Jane Platt, said customers who had recently bought premium bonds from a post office would be written to and informed of the end of over-the-counter sales. | NS&I’s chief executive, Jane Platt, said customers who had recently bought premium bonds from a post office would be written to and informed of the end of over-the-counter sales. |
She said: “As our relationship with the Post Office comes to an end on 31 July this year, I would like to thank them for the support and service they have given our customers over the years and wish them every success for the future. | She said: “As our relationship with the Post Office comes to an end on 31 July this year, I would like to thank them for the support and service they have given our customers over the years and wish them every success for the future. |
“The majority of our customers already use direct channels to buy their premium bonds, and so moving to 100% direct sales is a natural next step for NS&I. It should also be intuitive and straightforward for these customers given that they already manage and repay their premium bonds with us directly.” | “The majority of our customers already use direct channels to buy their premium bonds, and so moving to 100% direct sales is a natural next step for NS&I. It should also be intuitive and straightforward for these customers given that they already manage and repay their premium bonds with us directly.” |
Since 2013, customers have been unable to cash in the bonds or make any administrative changes at the post office, and have had to deal with NS&I directly for everything accept the initial purchase. | Since 2013, customers have been unable to cash in the bonds or make any administrative changes at the post office, and have had to deal with NS&I directly for everything accept the initial purchase. |
Despite changes to premium bonds which reduced the smallest prize paid out by half to £25, the savings lottery has remained popular with investors and more than 20 million people hold them. Recently the maximum sum that could be held in bonds was increased by £10,000 to £50,000 per person. | Despite changes to premium bonds which reduced the smallest prize paid out by half to £25, the savings lottery has remained popular with investors and more than 20 million people hold them. Recently the maximum sum that could be held in bonds was increased by £10,000 to £50,000 per person. |
The National Federation of Subpostmasters said the end of the NS&I contract illustrated the challenges facing the Post Office and the need to modernise. | The National Federation of Subpostmasters said the end of the NS&I contract illustrated the challenges facing the Post Office and the need to modernise. |
In a statement it said: “This is very disappointing news, particularly for our elderly and more vulnerable customers who rely on face-to-face support from subpostmasters with handling these types of transactions. | In a statement it said: “This is very disappointing news, particularly for our elderly and more vulnerable customers who rely on face-to-face support from subpostmasters with handling these types of transactions. |
“It is a shame too for Post Office branches but comes as little surprise. In recent years NS&I have made clear their approach and it’s consistent with the government’s wider failure to back Post Office in delivering front office public services.” | “It is a shame too for Post Office branches but comes as little surprise. In recent years NS&I have made clear their approach and it’s consistent with the government’s wider failure to back Post Office in delivering front office public services.” |
Previous version
1
Next version