HC Deb 12 November 1992 vol 213 cc969-70W
Mr. Ainsworth

To ask the Chancellor of the Exchequer what plans he has to change the minimum deposit or purchase for national savings products.

Mr. Nelson

Small value transactions are expensive to administer so we regularly review the minimum deposit or purchase levels. As part of the survey of public expenditure priorities for the next three years I have decided that the following changes should be made:

  • Ordinary account minimum for each deposit—from £5 to £10.
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  • Investment account minimum for each deposit—from £5 to £20.
  • Premium bond minimum purchase for children under 16—from £10 to £100.

Amendments to regulations to effect these changes will be brought before Parliament shortly.

I propose that these changes will come into effect from 1 February 1993.

The changes are expected to produce running cost savings on the Department for National Savings budget of just under £5 million in a full year.