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Press release
NEW EASY ACCESS SAVINGS ACCOUNT FROM NATIONAL SAVINGS AND INVESTMENTS OPENS TODAY
29 January 2004
New card account in place of passbook-based Ordinary Account
From today (29 January 2004), Britain's savers will be able to open an Easy Access Savings Account, the new flexible, safe, straightforward and convenient account from National Savings and Investments (NS&I).
The Easy Access Savings Account offers easier access 24 hours a day, interest rates which are in the top quarter for this type of account - between three and eight times higher than the Ordinary Account - and higher than many rates offered on branch-based passbook accounts.
Customers can open the new Easy Access Savings Account over the counter at Post Office® branches, with NS&I over the telephone and by post. The account can be operated through these channels and via LINK ATMs (Automated Teller Machines). Customers can also open the account online at NS&I's website at www.nsandi.com.
Easy Access Savings Account key features
Access
- Savers will get instant access to their money (no penalties or charges apply)
- Account card to carry out transactions over the counter at Post Office® branches and to make withdrawals at LINK ATMs using a Personal Identification Number (PIN)
Balances
- Minimum balance: £100
- Maximum balance: £2 million (£4 million for joint accounts)
- Customers can check their balances at ATMs, by telephone and over the counter at Post Office® branches
Deposits and withdrawals
- Deposits over the counter at Post Office® branches by cash, cheque or postal order (minimum £10)
- Deposits over the telephone by debit card (minimum £10)
- Deposits by post by cheque (minimum £10)
- BACS transfer into the account
- Standing order payments into the account (minimum £10)
- Maximum daily withdrawal at ATM or Post Office® branch: £300 (balance must remain at £100+ for account to remain open)
- Minimum withdrawal: £10 (depending on cash availability at ATM)
Opening the account
- Minimum £100 required to open an Easy Access Savings Account
- Can be opened over the counter at Post Office® branches, by telephone, via the internet and by post (see notes to editors)
- Can be opened by anyone aged 11 and above (no maximum age)
- A nominated bank or building society account is required when opening the Easy Access Savings Account to accept non-cash withdrawals
Interest and tax
- Interest rates are variable and tiered
- Interest is earned daily and paid gross on 31 March each year
- Interest is taxable but paid gross (i.e. without deduction tax). Taxpayers will need to declare the interest to the Inland Revenue
- Customers will receive quarterly statements (February, May, August and November each year)
| Account balance | Interest rate |
| £100 - £999 | 1.00% |
| £1,000 - £4,999 | 2.50% |
| £5,000 - £9,999 | 2.80% |
| £10,000 - £24,999 | 3.05% |
| £25,000 - £49,999 | 3.30% |
| £50,000+ | 3.55% |
There are no fees or penalties and, backed by HM Treasury, the new Easy Access Savings Account will provide the 100% security that NS&I customers have come to expect.
Ordinary Account now closed
The Ordinary Account, the passbook account which has been in operation since 1861, has now closed to new business and after 31 July 2004 existing Ordinary Account customers will not be able to transact on their accounts, unless it is to close the account or transfer into an Easy Access Savings Account. However, any money left dormant in these accounts after 31 July 2004 will remain safe, continuing to earn interest, and customers will be able to come forward at any time and claim their money.
Transferring into an Easy Access Savings Account
During February and May this year, National Savings and Investments will be writing to all active Ordinary Account customers - some 2.7 million people - outlining the options available to them and inviting them to transfer to the new Easy Access Savings Account. Customers will also be able to request a transfer form by telephone or download a copy from the NS&I website. It will also be possible to transfer from the Investment Account - NS&I's other passbook account - into the Easy Access Savings Account.
Customer demand
Alan Cook, chief executive of National Savings and Investments, said: "With the new Easy Access Savings Account available from today, anyone with money to save now has the opportunity to put their money in an instant access savings account that offers flexibility, competitive interest rates and complete capital security.
"With the this new account, there's never been a better time to start the savings habit and we hope to encourage more people to save regularly, whether they are people who currently don't have savings or investments with NS&I or if they are existing Ordinary Account customers.
"We seek to be the first port of call for anyone with money to save and invest and the Easy Access Savings Account represents a good opportunity for people to save their money in an account that offers instant access and 100% capital security."
ENDS
Notes to editors
- High resolution photographs of Alan Cook, NS&I chief executive, and Gill Cattanach, NS&I commercial director, and images of the Easy Access Savings Account card are available from the NS&I media team - see below for contact details.
- Alan Cook, Gill Cattanach, John Prout and Peter Cornish are available for interview. Please contact the media team for details.
- An audio feature is available for radio. Please contact the media team for details.
- The Easy Access Savings Account can be opened over the counter at Post Office® branches, by telephone on 0845 366 6667, via the internet at www.nsandi.com and by post - customers can pick up an application form at any Post Office® branch and send it to Easy Access Savings Account, National Savings and Investments, Glasgow G58 1SB.
- The Easy Access Savings Account cannot be opened over the counter at Isle of Man, Channel Islands, and BFPO post office branches.
- The Easy Access Savings Account card conforms to the LINK card scheme and current UKIS ATM standards. Customers will need their card when making deposits and withdrawals over the counter at Post Office® branches and when making withdrawals at ATMs. The card PIN can be changed by writing to National Savings and Investments or by self-selection at Moneybox ATMs.
- National Savings and Investments is an Executive Agency of the Chancellor of the Exchequer.
- National Savings and Investments' values are security, straightforwardness and integrity, delivered with a human touch.
NS&I media team
Media team
NS&I has a number of spokespeople available for interviews and our experienced radio team is available via our ISDN line: 020 7602 4522.
The numbers below are for media use only.
Customers
wishing to contact NS&I can find details here.
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