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Bank Accounts Latest News National Savings & Investments to break from the Post Office
Bank Accounts Latest News National Savings & Investments to break from the Post Office National Savings & Investments to break from the Post Office
NS&I delivered a bitter blow for savers as it announced the end of its 150 year affiliation with the Post Office.
As part of what it describes as a 'modernisation programme', NS&I are to retract to postal, phone and online services. The only NS&I savings accounts that will be available through the Post Office will be Premium Bonds, which currently comprise a large proportion of all NS&I activity at Post Office branches. This is expected to make finances more difficult to manage for many of their customers.
Other Post Office savings products, such as Online Saver, Online Bond, Cash ISA and more, will still be available in branch and online.
NS&I are also withdrawing their products for what it describes as a 'transitional period'. Their popular Investment Accounts, held by 2.3 million people, will no longer be available to open from 28th November.
Existing customers will be able to manage their accounts from Post Offices until May 2012, after which all operations will become postal. New applications will only be considered at this point.
Backed by the government, NS&I intends to reduce its cost to the taxpayer and save 10% of its running costs. One attractive feature of their accounts has been the security for savers, with a full guarantee offered on all savings.
NS&I notes that the majority of accounts had remained untouched in the last twelve months, and where transactions took place, only half were made via the Post Office. It is unclear whether the Post Office's own savings accounts and bonds drove a wedge between the partnership.
Nevertheless, the break is a huge disappointment for savers, and especially those in remote areas, where the Post Office has become the stalwart fixture. Popular products are being withdrawn from the market, and customers will no longer be able to deposit or withdraw money at Post Office branches. It could signal serious problems for small Post Office branches, which are set to suffer the withdrawal of yet another popular service.
Are you an NS&I customer who may have to move your savings to retain easy access? With NS&I's products becoming unavailable and also more difficult to manage, why not use Which4U's savings account tables to find your next best alternative today?
By Mark Hornby
Friday, 04 November 2011 11:09
Comments (5)
The comments listed below are opinions held by the individuals posting and are not endorsed by, or representative of opinions held by which4u.co.uk. We cannot be held responsible or liable for the accuracy or content of any comments submitted. We reserve the right to publish, remove or edit comments as we see fit.
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Roy Forbes 2011-11-29 16:21:18I feel that this is a backward step and one that could really sound a greater death knoll for the Post Office. It will make obtaining the NS&I information even harder than it is now.
Come on NS&I and the Post Office - let's have some serious thinking about life in the rural parts. -
Noel Hudson 2011-11-29 19:08:48I completely agree with Roy Forbes comments. Living in a rural part of North Yorkshire the Post Offices are very well supported by the locals as they are seen as a life line in many instances. Reducing services and opportunities is a backward move.
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Keith [Editor] 2011-11-30 12:27:48Many thanks for your comments.
The NS&I / Post Office split does seem very harsh on those in rural communities, especially during times when it's clear how hard local businesses have to work to diversify.
We had a comment recently concerning the cost of banking for newsagents. One can only hope that local businesses (including Post Office branches) will be able to weather the storm until financial institutions feel confident in expanding again rather than contracting. As you both note, it's not helping anybody at the moment. -
Maureen Cartlidge 2012-01-23 17:01:21With NS&I pulling away from the post office makes it very hard for small savers like myself, who can only save money occationally and not everyone has a computer, or is very conversant on the phone.
Think twice NS&I you could loose a lot of custom. -
Keith [Editor] 2012-02-02 11:34:33Hi Maureen. Thanks for your comment.
We've been looking over this recently. NS&I have just dropped their savings rates because of the huge value of deposits. At the moment, UK savers' deposits are protected up to £85,000 per registered institution. Because NS&I is affiliated with the Treasury, this is where many wealthy savers have turned to as a safe haven. Some deposits have been close to £2 million, apparently.
Because of this, NS&I are gaining rather than losing custom. It will presumably need the support of consumer groups for NS&I to reprise their accessibility again. But, of course, we are hopeful that they will.
Top 5 Savings Accounts
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Provider |
Notice |
Interest Paid |
Min Bal |
Apply |
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|---|---|---|---|---|---|
| View Full Table > | |||||
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3.01%
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Instant
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Monthly
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£1
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 |
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3.10%
|
Instant
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Monthly
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£1
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 |
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2.50%
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Instant
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Monthly
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£1
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2.50%
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Instant
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Annually
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£10,000
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2.50%
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Instant
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Monthly
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£1,000
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Post Office Online Saver
- Access your savings 24/7/365
- Apply online in less than 10 minutes
- Instant account opening
- Open a savings account with just £1
- Rate applies to annual interest option and includes 1.36% gross/AER fixed interest bonus for the first 12 months
- Monthly interest option also available
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
ING Direct Savings Account
- New customers can enjoy a variable rate of 3.10% AER (3.06% gross p.a.) including a 2.56% gross p.a. bonus fixed for 12 months from the business day following account opening.
- After 12 months the rate will revert to our ING Direct Savings Account variable rate, currently 0.50% AER
- Move your money when you like, with no penalties or restrictions
- Start saving from £1, with no minimum or maximum monthly deposits required
- Open an account in minutes
- Award winning UK call centres
Barnsley Building Society Online Saver
- Great on-going rate of 2.50% gross pa/AER† variable with NO bonus period!
- Apply online with Barnsley Building Society award-winning, paperless application. No forms to sign.
- Open an Online Saver with as little as £1
- Make withdrawals at any time as long as you leave a minimum balance of £1
- Check your balance and view your statements whenever you wish
- Log into our secure website to transfer money to your nominated bank or building society account or a nominated account held with us
- Rate includes a bonus of 0.50% until 31/12/2010.
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Lloyds TSB eSavings Account
- You must be an existing Lloyds TSB customer AND signed up to Lloyds Online Banking to be able to apply for this product
- Earn 1.60% AER/Gross from £1, and up to 2.50% AER/Gross on balances of £10,000 or more View eSavings Account interest rates.
- These rates include an introductory bonus of 1.50% AER on all tiers for the first 12 months.
- Interest paid annually.
- Start saving with only £1.
- Instant access - the convenience of Internet Banking or PhoneBanking means you can access your savings when it suits you.
- Set up a standing order - saving regularly from your current account is the easy way to grow your savings.
- Name your account to suit you, such as holiday, rainy day or simply savings.
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Nationwide Regular Savings
- A competitive rate of interest of up to 2.50% AER, (2.50% gross p.a.)
- Flexibility to make unlimited withdrawals if you need to giving you the highest level of flexibility available.
- Open an account with as little as £1!
- Save up to £1000 each month.
- Open and manage your account online using the Nationwide MySave Online Savings site.
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Lloyds TSB Easy Saver
- A variable rate of interest, currently 1.60% AER/Gross.
- This rate includes a fixed introductory bonus of 1.50% AER for the first 12 months.
- Open from as little as £1.
- Interest paid annually.
- Instant access - the convenience of Internet Banking or PhoneBank® means you can access your savings when it suits you.
- No limits on how much you can save.
- The options to have a standing order payment into your account, so you know your savings are always growing.
- Optional Cashpoint® card for easy access on the move.
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Scottish Widows Direct Transfer Account
- Rate includes a bonus of 0.89% for 12 months
- Minimum balance £1000
- Deposits can be made by internet banking, telephone or post
- No notice period or penalties for withdrawals
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Cheshire Building Society Direct Cash ISA
- Deposit £1000+ and get 3.35% AER (variable) tax-free including a fixed 2.35% AER bonus interest rate, paid until 30th November 2013
- Deposit £1-£999 and get 0.25% AER only.
- Easy access to your cash, with unlimited withdrawals and deposits up to your annual cash ISA allowance (transfers from existing ISAs are not permitted)
- However, you will need to open your account online today with at least £1,000.
- You will receive a welcome letter with everything you need to manage your account by post.
Lloyds TSB Cash ISA Saver
- Earn a variable rate of 2.65% AER/tax-free.
- This rate includes a fixed introductory bonus of 1.65% AER for the first 18 months from account opening.
- Interest paid annually on the 31st March.
- Save up to £5,640 per tax year.
- Make withdrawals from as little as £1.
- Set up regular payments into your ISA from your current account.
- Manage your Cash ISA Saver through Internet Banking if you're registered.
- You can transfer your existing ISA into us, with our ISA transfer form.
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Aldermore Easy Access Saver
- Transparent - our competitive rates are not artificially inflated by bonuses or introductory offers
- Reassurance - our interest rate is guaranteed to be at least 1.70% above Base Rate until 1 March 2013
- Fast and easy setup - open an account, complete identity checks and move your money in minutes
- Accessible - open an account with just £1,000
- Flexible - add to your savings whenever you like
- Unlimited withdrawals - access your money whenever you need it, without restriction or loss of interest
- Easy to manage - do it online, by phone or by post
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Chelsea BS Fixed Rate ISA
- Guaranteed fixed rate of interest for the duration of the Fixed Rate e-ISA
- Minimum investment of £100
- ISA transfers in*** from other providers and deposits up to your 2011/2012 ISA limit, can be made whilst the product remains on sale. Transfer charges may apply, please check with your existing provider
- Interest paid annually
- Withdrawals are not permitted during the term
- Early closure or transfer out to another ISA provider is permitted subject to 90 days loss of interest on the closing balance. Early closure would mean loss of tax free status other than transfers to another ISA provider.
- YOUR SAVINGS ARE PROTECTED UP TO £85,000 PER PERSON BY THE FSCS - Financial Services Compensation Scheme
Top Growth Bonds
|
Provider |
Capital Protected |
ISA Option |
Apply |
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|---|---|---|---|---|
| View Full Table > | ||||
| No Products Currently Listed | ||||
Top Income Bonds
|
Provider |
Interest Paid |
Capital Protected |
ISA Option |
Apply |
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|---|---|---|---|---|---|
| View Full Table > | |||||
| No Products Currently Listed | |||||
