National Savings

HC Deb 26 March 1970 vol 798 cc502-3W

Mr. David Howell

asked the Chancellor of the Exchequer what action he has taken to meet the representations made to him in 1968 by the National Savings Committee for a new form of National Savings such as a medium-term contractual scheme geared to offer some protection against erosion of capital by inflation.

Mr. Taverne

The Save As You Earn scheme which started on 1st October, 1969 offers attractive rewards to contractual savers and will give a high real return on savings.

Mr. David Howell

asked the Chancellor of the Exchequer what was the additional cost to public funds of action of the staff of the department of National Savings entering additional interest on every Post Office Savings Bank account card resulting from the change, made on 1st October, 1968, of the rate of interest payable to depositors from 6 per cent. to 6½ per cent. compared with the cost of making this change on the normal date, 31st December.

Mr. Taverne

The cost of changing the rate of interest on the National Savings Bank (formerly Post Office Savings Bank) Investment accounts from 6 per cent. to 6½ per cent. on 1st October, 1968 as against the 31st December was not a charge on public funds but was borne as management expenses on the National Savings Bank Investment Account Fund.

Mr. David Howell

asked the Chancellor of the Exchequer what is the number of National Savings Bank ordinary accounts for which the annual interest is less than the £15 allowed free from income tax; and what is his estimate of the total cost of this concession for the most recent convenient year.

Mr. Taverne

Approximately 19.3 million and £10 million for the year 1969–70.

Mr. David Howell

asked the Chancellor of the Exchequer what was the administrative cost to public funds of selling and cashing National Savings stamps for the most recent 12–month period.

Mr. Taverne

The administrative cost of National Savings Stamps for the financial year 1968–69, the latest available figure, was £3.7 million. Almost the whole of this cost arises from selling and cashing the stamps.