(1)[F1The Director of Savings may, with the consent of the Treasury, from time to time determine the rate or rates at which interest is to be payable on amounts deposited in ordinary accounts or that no interest is to be payable on such amounts, and any such determination in relation to amounts deposited in any ordinary deposit account may be made][F2by reference to any one or more of the following factors, namely—
(a)the balance of the account at any time or over any period or the aggregate balance of that account and the depositor’s other ordinary deposit accounts at any time or over any period; and
(b)the number of withdrawals from that account over any period or the number of withdrawals from that account and the depositor’s other ordinary deposit accounts.]
[F3(1A)The Director of Savings shall give notice in the London, Edinburgh and Belfast Gazettes of any determination under subsection (1) above; and any such determination may affect deposits received at or before, as well as after, the time the determination is made.]
(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4
(3)Interest on an ordinary deposit shall not commence until the first day of the month next following the day of deposit, and shall cease on the first day of the month in which the deposit is withdrawn.
(4)Interest on ordinary deposits shall be calculated to 31st December in every year and shall be added to and become part of the principal; but interest shall not be calculated on any amount less than one pound or some multiple of one pound.
(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F5
(6),(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F6
Textual Amendments
F1Words substituted by Finance Act 1989 (c. 26, SIF 110), s. 184(2)(5)
F2Words added by Finance Act 1982 (c. 39, SIF 63:1), Sch. 20 para. 4(1)
F3S. 5(1A) inserted by Finance Act 1989 (c. 26, SIF 110), s. 184(3)(5)
F4S. 5(2) repealed by Finance Act 1989 (c. 26, SIF 110), s. 187(1), Sch. 17, Pt. XIII
F5S. 5(5) repealed by Finance Act 1989 (c. 26, SIF 110), s. 184(4), Sch. 17, Pt. XIII
F6S. 5(6)(7) repealed by Finance Act 1989 (c. 26, SIF 110), s. 187(1), Sch. 17, Pt. XIII
Modifications etc. (not altering text)
C1S. 5 modified by S.I. 1972/764, reg. 43 (as substituted by S.I. 1991/72, reg. 2)
C2S. 5 modified (11.02.1991) by S.I. 1991/72, reg. 2 (as substituted by S.I. 1972/764, reg. 43)
C3S. 5 modified (6.4.2015) by The National Savings Regulations 2015 (S.I. 2015/623), regs. 1(1), 35