Explanatory Note
(This note is not part of the Regulations)
These regulations amend the National Savings Bank Regulations 1972 so as to introduce a new type of investment deposit account, called an individual savings account. The Regulations provide for an individual savings account to differ from other investment deposit accounts in a number of respects. References to particular regulations in the rest of this note are to the 1972 Regulations as amended by these Regulations.
Eligibility to make deposits to an individual savings accounts is restricted to individuals who are aged 18 or over and who are actually and ordinarily resident in the United Kingdom. Eligibility also extends to Crown employees serving overseas who perform duties which are treated as being performed in the United Kingdom (regulation 29L(2)).
The minimum deposit is normally £10 but may be a lesser amount, at the discretion of the Director of Savings (regulation 29L(4)).
Deposits can be made by cheque, cash, bank giro credit to an approved account, transfer from another National Savings bank account or pursuant to instructions given over the telephone (regulation 29N).
Applications for withdrawals are made either in writing or by telephone (regulation 29O).
Withdrawals are made by crossed warrant or by electronic transfer (regulation 29P).
Deposit books will not be used, but annual statements will be issued (regulation 29Q).
Regulation 29R sets out the procedure for deposits and applications for withdrawals made over the telephone.
Interest will be calculated to 5th April in every year and, providing the account contains £1 or more, will be credited on every whole penny. Accounts containing less than £1 will not earn interest (regulation 42(2)).
Certain regulations will not apply to individual savings accounts (regulation 29M).