National Savings Bank Act 1971

General

The National Savings Bank

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• (1) The establishment known as the National Savings Bank shall continue in existence for the receipt and repayment of deposits.

• (2) The business of the National Savings Bank shall be carried on by the Director of Savings.

General power to make regulations

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• (1) The Treasury may make regulations for superintending, inspecting and regulating the manner in which the accounts of persons making deposits with the National Savings Bank are kept and examined, and with respect to the making of deposits and to the withdrawal of deposits and interest, and all other matters incidental to the carrying of this Act into execution.

• (1A) Regulations under this section may restrict the classes of persons who may open accounts with the National Savings Bank, but any such restriction shall not apply to any account opened before the coming into force of the regulations imposing the restriction.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Provisions as to deposits

Ordinary and investment deposits

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• (1) A deposit with the National Savings Bank may be made either as an ordinary deposit or as an investment deposit.

• (1A) But subsection (1) is subject to any provision made in relation to ordinary accounts or ordinary deposits by regulations under section 2 of this Act made by virtue of section 8(3) of this Act.

• (2) Regulations under section 2 of this Act may make different provision with respect to ordinary deposits and with respect to investment deposits and with respect to investment deposits of different descriptions, and may prevent the making of an investment deposit or an investment deposit of a particular description unless the person who will be the depositor in respect thereof is also a depositor in respect of ordinary deposits and the sum due to him in respect of those deposits is not less than such amount as may be specified in the regulations.

Limit on amount of deposits

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• (1) The Treasury may by order limit the amount which may be received by way of deposit in the National Savings Bank from any person whatsoever either in one year or in the aggregate.

• (1A) The Treasury may by order prescribe an amount as the minimum balance for investment accounts and may provide for converting into a different description of investment account any account into which investment deposits of any description are made if the balance of that account falls below the minimum balance so prescribed for an account of that description.

• (2) An order under this section—

• (a) may make different provision with respect to ordinary deposits and with respect to investment deposits and with respect to investment deposits of different descriptions,

• (b) may fix different limits as respects different classes of persons,

• (c) may provide that any limit fixed by the order shall have effect subject to any exceptions or exclusions specified in the order,

• (d) may contain special provisions with respect to depositors whose deposits, at the date on which the order takes effect, exceed the limit fixed by the order as regards deposits,

• (e) may contain such consequential and supplemental provisions as appear to the Treasury to be necessary for giving full effect to the order, and

• (f) may be revoked or varied by a subsequent order.

• (3) For the purposes of this section a person who is a trustee shall be treated separately in his personal capacity and in his capacity as trustee, and in the latter capacity separately in respect of each separate trust fund.

• (4) Regulations under section 2 of this Act may include any provision that may be included in an order under this section.

Interest on ordinary deposits

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• (1) The 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 madeby 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.

• (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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interest on investment deposits

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• (1) Investment deposits shall be received on such terms as to interest, other than terms as to rate of interest, as may from time to time be prescribed and different terms may be prescribed in relation to different descriptions of investment deposits.

• (2) Interest on investment deposits shall be payable at such rates as the Treasury may from time to time determine, and different rates may be so determined in relation to different descriptions of investment deposits and different periods of notice of withdrawal.

• (2ZA) The Treasury may determine that a rate of interest payable on investment deposits, or investment deposits of a particular description, is to be a rate produced by the operation of a formula involving the movement of an index or indices or any other factor.

• (2A) Without prejudice to the generality of subsection (2) above, the Treasury may determine, in relation to an account into which investment deposits of any description are made, different rates of interest by reference to any one or more of the following factors, namely—

• (a) the balance of that account at any time or over any period or the aggregate balance of the account and the depositor’s other accounts of the same description, or the depositor’s other investment accounts of any description, 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 accounts of the same description, or the depositor’s other investment accounts of any description, over any period.

• (3) The Director of Savings shall give notice in the London, Edinburgh and Belfast Gazettes of any alteration in a rate of interest payable on investment deposits or investment deposits of a particular description(other than one occasioned by the operation of a formula); and any such alteration may affect deposits received at or before, as well as after the time the alteration is made.

• (4) In the case of an alteration in a rate of interest not affecting deposits received before it is made, any notice of the alteration required to be given by subsection (3) above may be given after the alteration is made.

Withdrawal of deposits

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• (1) Subject to subsection (2) below, where a depositor, or a person legally authorised to claim on behalf of a depositor, makes in the prescribed form a demand for repayment of a ordinary deposit, or part of an ordinary deposit, authority for repayment shall be transmitted to the depositor forthwith, and the depositor shall be absolutely entitled within ten days after his demand is made to repayment, at any place at which deposits can be withdrawn, of any sum due to him.

• (2) The terms as to withdrawal of investment deposits shall be such as may from time to time be prescribed.

• (3) Where regulations under section 2 of this Act extend a period of notice of withdrawal of investment deposits, the extension shall not apply to any deposits received before the coming into operation of the regulations.

Regulations as to particular matters

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• (1) The power of the Treasury to make regulations under section 2 of this Act shall include power to make regulations for any of the following purposes—

• (a) for prescribing what declaration shall be required from a depositor, other than the Public Trustee, on opening an account in the National Savings Bank;

• (b) for the giving of statements of accounts or the issuing of depositors’ books and for prescribing the entries to be made in such books;

• (ba) for the issuing of cards for use in making investment deposits or in withdrawing cash from investment accounts (or both) and regulating the use of such cards;

• (c) for the giving of receipts and acknowledgments;

• (d) for treating entries, receipts , acknowledgements or statements of accounts made or given in pursuance of the regulations as evidence or conclusive evidence of such facts as may be prescribed;

• (e) for preventing the making of deposits of less than such amount as may be specified in the regulations;

• (f) for the payment or transfer of sums in the National Savings Bank which belong to persons appearing to be minors or incapable through disorder or disability of mind of managing their property and affairs, or form part of the personal estate of any person appearing to be deceased;

• (g) for the transfer of deposits from one account to another account, whether an existing or a new account;

• (h) for determining the receipts which are to be a good discharge to the Director of Savings in the case of the payment or transfer of any sum;

• (i) for the addition of one or more names to an account already in the National Savings Bank;

• (j) for the purpose of the payment or transfer of any sum, for authorising a person to be treated as having been domiciled in the place in which he was resident at the date of his death;

• (k) for directing that, except as provided by the regulations, no entry with respect to any trust (express, implied or constructive) shall be made in the account of any depositor, and that, except as aforesaid, no notice of any such trust shall be receivable by the Director of Savings;

• (l) for determining the date on which a deposit is to be deemed to be withdrawn, and for prescribing the method by which payment of sums withdrawn is to be made;

• (m) for providing that where any person to whom any sum, being the whole or any part of the deposit of a deceased depositor, is payable is unable by reason of any incapacity whatsoever to give a legal discharge therefor the sum may be paid to any person undertaking to maintain the incapacitated person;

• (n) for prescribing the means by which particular facts may be proved and the manner in which evidence thereof may be given, and for authorising the Director of Savings to treat proof of any particular facts given in the prescribed manner as conclusive evidence of those facts for the purpose of the payment or transfer of any sum.

• (2) Regulations under section 2 of this Act may also provide—

• (a) for the nomination by a depositor not being under 16 years of age of any person to whom any sum payable to the depositor at his death (including any portion of any savings bank annuity or accrued interest payable to the representatives of the depositor) is to be paid at the death;

• (b) for the manner in which any such nomination may be revoked by the depositor and for the circumstances in which it is to be treated as having ceased to be operative, and for the payment of the specified amount to any nominee so nominated;

• (c) for directing that any person acting as witness to a nomination shall be disqualified from taking thereunder;

• (d) for authorising any person named as nominee in any nomination who dies after the death of the nominator but before receiving payment of the sum to be paid to him under the nomination to be treated as a depositor.

• (3) Regulations under section 2 of this Act may also make provision—

• (a) prohibiting the opening of ordinary accounts after a prescribed date;

• (b) prohibiting the opening of investment accounts of a prescribed description after a date prescribed in relation to that description of accounts;

• (c) prohibiting the making of ordinary deposits after a prescribed date;

• (d) prohibiting the making of deposits in investment accounts of a prescribed description after a date prescribed in relation to that description of accounts;

• (e) requiring the withdrawal of all of the money deposited in any dormant account of a prescribed description if any of the money deposited in it is withdrawn after a date prescribed in relation to that description of account;

• (f) for the transfer to investment accounts of a prescribed description of deposits in dormant accounts of a prescribed description;

• (g) for the transfer to a special Director’s account of deposits in dormant accounts of a prescribed description or in accounts to which deposits have been transferred pursuant to provision made by virtue of paragraph (f) above.

• (4) In subsection (3) above—

“ dormant account ” means an account in which deposits may not be made because of provision made by virtue of paragraph (c) or (d) of that subsection; and “ special Director’s account ” means an investment account in the name of the Director of Savings in which deposits are held on behalf of the persons entitled to them.

Payment on death without representation

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• (1) Where the sum in the National Savings Bank which forms part of the personal estate of a person appearing to be deceased does not exceed £1,500, then, if the regulations under section 2 of this Act so provide, and subject to such regulations, probate or other proof of the title of the personal representative of the deceased person may be dispensed with, and the sum may be paid or distributed to or among the persons appearing in manner provided by the regulations to be beneficially entitled to the personal estate of the deceased person, whether under such nomination of the deceased as is allowed by the regulations, or by law, or as next of kin, or as creditors, or otherwise, or to or among any one or more of such persons, exclusively of the others; and the person making such a payment shall be discharged from all liability in respect of the sum paid in accordance with the regulations.

• (2) Subsection (1) above shall be included among the provisions with respect to which the Treasury may make an order under section 6(1) of the Administration of Estates (Small Payments) Act 1965 substituting for references to £500 references to such higher amount as may be specified in the order.

Settlement of disputes

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Fees on reference of disputes

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Secrecy

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• (1) Subject to the following provisions of this section, the persons engaged in the receipt or payment of deposits shall not disclose the name of any depositor nor the amount deposited or withdrawn except to the Director of Savings or to such persons as may be concerned with carrying this Act into operation.

• (2) Subsection (1) above shall not prevent the disclosure, by a person authorised for the purpose by the Director of Savings, of information to any person in connection with an offence committed with reference to the account of a depositor or for the purpose of ascertaining whether or not an offence has been so committed.

• (2A) Subsection (1) above shall not prevent the disclosure, by a person authorised by the Director of Savings, of information to any person for a permitted purpose.

• (2B) A permitted purpose is a purpose connected with the provision of information about—

• (a) the business of the National Savings Bank;

• (b) any other means by which money is raised under the auspices of, by or through the Director of Savings.

• (2C) A person to whom information is disclosed in pursuance of subsection (2A) above shall not—

• (a) use the information for a purpose other than a permitted purpose;

• (b) disclose the information to any other person.

• (3) Subsection (1) above shall have effect subject to the provisions of section 17(3) of the Taxes Management Act 1970 (which relates to the obtaining of information as to interest paid or credited without deduction of income tax) and of Schedule 36 to the Finance Act 2008 (powers of officers of Revenue and Customs to obtain information and documents and inspect business premises)

Transfer of ordinary deposits to trustee savings banks

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• (1) If a depositor in the National Savings Bank desires to transfer an ordinary deposit to a trustee savings bank he shall, on application to the Director of Savings, be given a certificate stating the whole amount due to him, with interest, and thereupon his account shall be closed. ,

• (2) On delivery of the certificate to the trustee savings bank to which the depositor proposes to transfer the deposit, that bank may, if they think fit, open an account for the amount stated in the certificate for the depositor, who shall thereupon be subject to the rules of the bank.

• (3) The amount so transferred shall, upon the certificate being forwarded to the Commissioners, be written off in the books of the Commissioners from the amount of moneys received under this Act, and shall be carried to the account of the savings bank to which the transfer has been made.