§ Mr. Marplesasked the Chancellor of the Exchequer what has been the percentage change, at current and constant prices, respectively, of the sum invested at the end of each of the last 10 years of each type of National Savings.
§ Mr. TaverneThe information is given in the table below.
399W400W401W
1962 1963 Current Prices Per cent. Constant Prices Per cent. Current Prices Per cent. Constant Prices Per cent. Defence Bonds 1.97 1.89 3.30 3.24 National Development Bonds British Savings Bonds Premium Savings Bonds 12.06 11.62 11.68 11.47 National Savings Bank and Trustee Savings Banks Ordinary Accounts 1.63 1.57 2.64 2.59 National Savings Bank Investment Accounts and Trustee Savings Banks Special Investment Department 21.21 20.43 21.78 21.38 Other Marketable Stock on the National Savings Stock Register -0.98 -0.94 -2.25 -2.21 1964 1965 Current Prices Per cent. Constant Prices Per cent. Current Prices Per cent. Constant Prices Per cent. National Savings Certificates Principal only -1.22 -1.18 -5.91 -5.65 National Savings Certificates Principal and Interest 0.37 0.36 -4.12 -3.94 Defence Bonds 7.04 6.82 -0.87 -0.83 National Development Bonds British Savings Bonds Premium Savings Bonds 12.51 12.12 10.97 10.49 National Savings Bank and Trustee Savings Banks Ordinary Accounts 2.39 2.32 1.51 1.44 National Savings Bank Investment Accounts and Trustee Savings Banks Special Investment Department 19.93 19.31 11.38 10.87 Other Marketable Stock on the National Savings Stock Register -0.39 -0.38 -0.45 -0.43 1966 1967 Current Prices Per cent Constant Prices Per cent. Current Prices Per cent. Constant Prices Per cent National Savings Certificates Principal only 0.51 0.49 3.11 3.03 National Savings Certificates Principal and Interest -1.25 -1.20 1.98 1.93 Defence Bonds -11.75 -11.32 -7.80 -7.60 National Development Bonds British Savings Bonds Premium Savings Bonds 8.53 8.22 8.26 8.05 National Savings Bank and Trustee Savings Banks Ordinary Accounts -2.58 -2.48 -2.10 -2.04 National Savings Bank Investment Accounts and Trustee Savings Banks Special Investment Department 16.73 16.12 14.48 14.11 Other Marketable Stock on the National Savings Stock Register 3.57 3.44 2.84 2.77 1968 1969 Current Prices Per cent. Constant Prices Per cent. Current Prices Per cent. Constant Prices Per cent. National Savings Certificates Principal only -0.56 -0.54 -4.30 -4.08 National Savings Certificates Principal and Interest -0.59 -0.57 -3.86 -3.66 Defence Bonds -6.49 -6.22 -9.96 -9.45 National Development Bonds British Savings Bonds Premium Savings Bonds 10.84 10.39 8.84 8.39 National Savings Bank and Trustee Sayings Banks Ordinary Accounts -2.96 -2.84 -3.82 -3.62 National Savings Bank Investment Accounts and Trustee Savings Banks Special Investment Department 12.74 12.21 7.41 7.03 Other Marketable Stock on the National Savings Stock Register 0.80 0.76 9.82 9.31
§ Mr. Marplesasked the Chancellor of the Exchequer if he will split the total sum currently invested in the National Savings Movement by the gross rates of interest being paid by the Government.
§ Mr. TaverneThe total amount invested in National Savings on 31st January, 1970, was: £8,459.2 million.
This comprises:
NATIONAL SAVINGS CERTIFICATES
Principal: £1,934.8 million.
Accrued Interest: £556.8 million.
Rates of Interest vary from one Savings Certificate Issue to the next and vary from year to year for individual Issues. Rates range from £1 9s. per cent. per annum to £8 2s. 2d. per cent. per annum. Interest is exempt from United Kingdom income tax, surtax and capital gains tax.
BRITISH SAVINGS BONDS (on sale since 1968) £313.6 million.
Rates of Interest (taxable, but tax is not deducted at source) £6 per cent. and, for the current issue, £7 per cent. per annum. A 2 per cent. Premium (exempt from United Kingdom income tax, surtax, corporation tax and capital gains tax) is payable on bonds held to maturity (5 years).
NATIONAL DEVELOPMENT BONDS (on sale from 1964 to 1968) £424.6 million.
Rates of Interest (taxable, but tax is not deducted at source) £5 per cent. per annum and £5 10s. per cent. per annum according to Issue. A 2 per cent. Premium (exempt from United Kingdom income tax, surtax, corporation tax and capital gains tax) is payable on Bonds held to maturity (5 years).
DEFENCE BONDS (on sale from 1939 to 1964) £84.7 million.
Rates of Interest (taxable, but tax is not deducted at source) £4 10s. per cent. per annum and £5 per cent. per annum according to Issue. A 3 per cent. or 2½ per cent. Premium according to Issue (exempt from United Kingdom income tax, surtax, corporation tax and capital gains tax) is payable on Bonds held to maturity (7 years).
SAVE AS YOU EARN ADMINISTERED BY THE DEPARTMENT FOR NATIONAL SAVINGS £1.9 million.
SAVE AS YOU EARN ADMINISTERED BY TRUSTEE SAVINGS BANKS £1.1 million.
There is no interest liability at present on Save As You Earn.
PREMIUM SAVINGS BONDS £756.0 million.
The Prize Fund represents interest at the rate of £4 12s. 6d. per cent. per annum. Prizes are exempt from United Kingdom income tax, surtax and capital gains tax.
402WNATIONAL SAVINGS BANK ORDINARY ACCOUNTS £1,503.2 million.
TRUSTEE SAVINGS BANK ORDINARY ACCOUNTS £1,034.3 million.
Rate of Interest £2 10s. per cent. per annum, the first £15 Interest payable to any depositor being exempt from United Kingdom income tax (but not surtax).
NATIONAL SAVINGS BANK INVESTMENT ACCOUNTS £251.6 million.
Current rate of interest £7 per cent. per annum (taxable, but tax is not deducted at source).
TRUSTEE SAVINGS BANK SPECIAL INVESTMENT DEPARTMENT £1,377.3 million.
Current rates of interest range from £4 10s. per cent. per annum to £7 10s. per cent. per annum (taxable, but tax is not deducted at source).
TRUSTEE SAVINGS BANK CURRENT ACCOUNTS £11.2 million.
No interest payable.
MARKETABLE STOCK ON THE NATIONAL SAVINGS STOCK REGISTER £208.1 million.
Coupon rates range from 2½ per cent. to 9 per cent. per annum (taxable, but tax is not deducted at source).
§ Mr. Hastingsasked the Chancellor of the Exchequer how many National Savings Bank accounts have been inactive more than five and 10 years, respectively; and whether he will take steps to close these accounts automatically after a period of inactivity.
§ Mr. TaverneInformation is not recorded in the form required. Currently there are some 24 million dormant accounts (representing a balance of £3.8 million) which have been inactive for 5 years or more; the cost of administering these accounts is minimal. The National Savings Bank, like banks generally, places no time limit on claims to deposits by a depositor or, in the event of his death, by his legal personal representative.
§ Mr. Hastingsasked the Chancellor of the Exchequer what is the total annual administrative cost of the National Savings Bank and other major forms of National Savings, respectively, expressed as a percentage of the total sum held invested in each at the end of the most recent year for which figures are available.
§ Mr. TaverneAdministrative costs for the financial year 1968–69* expressed as percentages of the sums remaining 403W invested at the end of the year are as follows:
Department for National Savings
- National Savings Bank Ordinary Accounts—£1 4s. 9d. per cent.
- National Savings Bank Investment Accounts—5s. 3d. per cent.
- National Savings Certificates—4s. 9d. per cent.
- Premium Savings Bonds—11s. 2d. per cent.
- National Savings Stock Register—2s. 8d. per cent.
Trustee Savings Banks
- Ordinary Departments—£1 4s. 4d. per cent.
- Special Investment Departments—7s. 5d. per cent.
- National Savings Stock Register—7d. per cent.
* In the case of D.N.S. the financial year ending 31st March, 1969; in the case of the Trustee Savings Banks the financial year ending 20th November, 1969.
§ Mr. Hastingsasked the Chancellor of the Exchequer how many accounts of the National Savings Bank are now processed by computer; what progress is being made in converting existing accounts to computer working; and whether accounts which have been inactive for more than five years are being similarly treated.
§ Mr. TaverneAbout 850,000 accounts are now processed by computer. All new accounts (some 1¼ million per annum) are now opened under the computer system. The conversion of existing manual accounts to computer working is not expected to start until 1974 when more powerful equipment will be installed. Accounts remaining inactive will not be converted.