National Savings and Investments (NS&I) have recently announced plans to stop selling savings accounts at the Post Office. This means that Investment or Easy Access Savings accounts will no longer be available from November 28th.
Despite this, Premium Bonds will still be available at the Post Office.
In future, all the NS&I savings accounts will be available only via the post, phone or online. This will affect 2.3 million people with Investment Accounts and 260,000 with Easy Access accounts.
There will be a transitional period after 28th November until May 2012 for Investment Accounts.
Easy Access Savings Accounts will be closed completely in July 2012, until then existing customers will be able to operate their accounts via the internet, post or phone. This could be a blessing in disguise for many savers with NS&I accounts as the government admitted that 2.5 million savers are getting paid less than 0.7% interest.
The governmentís saving arm recently confessed that savers on the NS&I Investment Account receive a maximum of just 0.3% interest.
Savers are already struggling to make any returns on their money, with record low interest rates. This marks a serious blow to savers on such accounts.
The move by NS&I comes as part of a ëmodernisationí process which began in 2007.
Chief Executive Jane Platt says; ìSince 2007 we have been working to simplify and modernise our range of savings and to encourage our customers to invest with us directly. At the same time, the Post Office has grown its own range of savings products.
ìWe’re very proud of the service we deliver to savers by post, online and, in particular, via our UK call centres where staff have an average of over 24 years’ experience and are available seven days a week, 365 days a year.
ìWe believe their expert knowledge of NS&I’s savings and investments will help our customers transfer to dealing with NS&I directly and we will work with our colleagues at the Post Office to support our customers through the changes.î
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