HC Deb 01 December 1992 vol 215 cc103-4W
Mr. Alex Carlile

To ask the Chancellor of the Exchequer what criteria he used in proposing to increase the minimum for each deposit into ordinary account with national savings, including the amount required to open an account; and if he will make a statement.

Mr. Nelson

The minimum deposit level of national savings products is kept under review. Since each deposit costs the same to administer, irrespective of the amount involved, small transactions are disproportionately expensive. Given the need to achieve running costs savings in the 1992 public expenditure survey, I therefore decided that the minimum deposit should be increased from £5 to £10.

Mr. Alex Carlile

To ask the Chancellor of the Exchequer what criteria he used in proposing to increase the minimum for each deposit into an investment account with national savings, including the amount required to open an account; and if he will make a statement.

Mr. Nelson

The minimum deposit level of national savings products is kept under review. Since each deposit costs the same to administer, irrespective of the amount involved, small transactions are disproportionately expensive. Given the need to achieve running costs savings in the 1992 public expenditure survey, I therefore decided that the minimum deposit should be increased from £5 to £20.