Services Home Saving Scheme

HC Deb 14 December 1992 vol 216 cc84-5W

Mr. Martlew

To ask the Secretary of State for Defence which financial institutions were chosen to provide the services home saving scheme accounts; and on what criteria the selections were based.

Mr. Archie Hamilton

I refer the hon. Member to the answer I gave to my hon. Friend the Member for Wyre (Mr. Coombs) on 19 November 1992,Official Report, column 296. The criteria used in selection of the four institutions included the investor protection provided, the institutions' commitment to developing, implementing and marketing the scheme, and the interest rates on offer to service personnel.

Mr. Martlew

To ask the Secretary of State for Defence what is the projected cost to his Department of the services home saving scheme.

Mr. Archie Hamilton

The cost of the special savings scheme will depend upon how many service personnel take advantage of the scheme, and the period for which they save. When fully operational, it might cost up to £50 million a year. This will represent a new commitment for which additional provision will be made.