Branch ban on NS&I accounts
SAVERS with National Savings & Investments (NS&I) will no longer be able to run their accounts over the Post Office counter from next month.
In a blow to savers who want a passbook account combined with access in the High Street, National Savings and Investments (NS&I) is writing to the 2.35 million savers in its Investment Account outlining changes that will come into force next month.
From May 21 savers will have to run it through the post. The passbook on the account, launched 45 years ago, will disappear to be replaced by ‘transaction records’ and an annual statement.
Passbooks remain popular with some savers, including children. One Money Mail reader wrote: ‘ I opened an Investment Account for each of my five grandchildren when they were born.
‘The two older children get really excited each birthday when they look at their books and see how their money has grown.’
While NS&I is abandoning the High Street, others still offer decent accounts to children — with a passbook. The top rates of interest come from Northern Rock Little Rock at 3 pc before tax, Swansea BS Cygnet at 2.75 pc, Skipton Leap 2 at 2.25 pc — but 2.75 pc in the first year — and Stafford Railway First Express at 2.25 pc.
Other accounts include C&G Young Saver and Chelsea BS Ready Steady Save at 2 pc along with Norwich & Peterborough Young Saver and Yorkshire BS Freedom account at 1.75 pc.
Other local societies such as Saffron, Furness and Newbury all come with a passbook and pay at least 1.5 pc.
When opening an account, fill in form R85 for non-tax-paying children, available from banks and building societies. NS& I automatically pays interest before tax, while banks and building societies deduct it unless you fill in the one-page ‘Getting your interest without tax taken off’ form.
The form to close an NS&I Investment Account will be available at Post Offices until May 20. After that you will have to call NS& I for a form or download one from its website (
NS&I has promised to raise the rates on its Investment Account from a low of 0.2 pc next month.
www.nsandi.com).