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Post Office to drop sales of premium bonds 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.”