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Media centre /
Press releaseNATIONAL SAVINGS AND INVESTMENTS CONFIRMS INVESTMENT ACCOUNT IS NOT CLOSING12 August 2004The Investment Account - a one month notice passbook account - is not closing and customers with this account can continue to use it as before, National Savings and Investments (NS&I) has confirmed. NS&I closed the Ordinary Account, also a passbook account which could be used at the Post Office, on 31 July 2004, and customer calls received make it clear that some confusion has arisen between the two types of accounts, leading to some customers thinking their Investment Account is closing. Investment Account and Ordinary Account: the differences Investment Account
Ordinary Account
The Investment Account pays 3.00% on balances under £500 and 3.90% on £50,000 and above. These interest rates make it one of the highest paying one month or 30-day notice accounts currently available. The account can be opened by anyone aged seven and over, with just £20, and the maximum investment is £100,000 for a single or joint account. Closure of the Ordinary Account In December 2003, NS&I announced the Ordinary Account was to close. On 31 July it was closed to transactions and customers can no longer use the account. Any money left in Ordinary Accounts not closed before 31 July remains completely safe. Customers can transfer to another NS&I account or withdraw this money at any time and close their account. Customers with Ordinary Accounts are being encouraged to transfer to NS&I's new cash card based Easy Access Savings Account. Customers who prefer a passbook account can transfer to the Investment Account, which remains open. Investment Account customers need to give one month's notice when withdrawing their money to avoid a penalty. Reassurance John Prout, NS&I's sales director, said: "We would like to reassure all Investment Account customers that their accounts are not closing and they can continue to use them in exactly the same way as they always have done. "It is the Ordinary Account that has closed and if you have one of these you do need to act. You can transfer your money to our Easy Access Savings Account or, indeed, into the Investment Account, or ask for repayment." ENDS Notes to EditorsThe Investment Account is a one month notice account. Money can be withdrawn without giving notice but there will be penalty equal to 30 days interest on the amount withdrawn. To claim lost or forgotten savings, with or without account passbooks, customers should contact NS&I and ask for a Tracing Service form or download a copy from the website at www.nsandi.com. Call 0845 964 5000 for further information. If, for any reason, customers did not transfer their Ordinary Account before 31 July their money will remain 100% safe and available to transfer at any time in the future. National Savings and Investments is an Executive Agency of the Chancellor of the Exchequer and a government department.
Media team The numbers below are for media use only. Customers wishing to contact NS&I can find details here.
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