National Savings Bank Act 1971

1971 CHAPTER 29

Contents

Go to Preamble

1. General

   1. 1. The National Savings Bank

   2. 2. General power to make regulations

2. Provisions as to deposits

   1. 3. Ordinary and investment deposits

   2. 4. Limit on amount of deposits

   3. 5. Interest on ordinary deposits

   4. 6. Interest on investment deposits

   5. 7. Withdrawal of deposits

   6. 8. Regulations as to particular matters

   7. 9. Payment on death without representation

   8. 10. Settlement of disputes

   9. 11. Fees on reference of disputes

   10. 12. Secrecy

   11. 13, 14.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

   12. 15. Transfer of deposits from and to overseas savings banks

   13. 16. Deposits by charities etc

3. Management of ordinary deposits

   1. 17. Application of ordinary deposits

   2. 18. Securities in which ordinary deposits may be invested

   3. 19. Annual statement with respect to ordinary deposits

   4. 20. Adjustment of balances relating to ordinary deposits

4. Management of investment deposits

   1. 21—23... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Miscellaneous and general

   1. 24. Sums to be included in expenses of Director of Savings and Commissioners

   2. 25. Ultimate liability of Consolidated Fund for repayment of deposits

   3. 26. Regulations, orders and warrants

   4. 27. Interpretation

   5. 28. Repeals and transitional provisions

   6. 29. Short title, commencement and extent

6. SCHEDULE 1

7. SCHEDULE 2

   Repeals

An Act to consolidate certain enactments relating to the National Savings Bank, with amendments to give effect to recommendations of the Law Commission and the Scottish Law Commission.

[12th May 1971]

General

1 The National Savings Bank

(1)The establishment known as the National Savings Bank shall continue in existence for the receipt and repayment of deposits.

(2)The business of the National Savings Bank shall be carried on by the Director of Savings.

2 General power to make regulations

(1)The Treasury may make regulations for superintending, inspecting and regulating the manner in which the accounts of persons making deposits with the National Savings Bank are kept and examined, and with respect to the making of deposits and to the withdrawal of deposits and interest, and all other matters incidental to the carrying of this Act into execution.

[F1(1A)Regulations under this section may restrict the classes of persons who may open accounts with the National Savings Bank, but any such restriction shall not apply to any account opened before the coming into force of the regulations imposing the restriction.]

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2

Provisions as to deposits

3 Ordinary and investment deposits

(1)A deposit with the National Savings Bank may be made either as an ordinary deposit or as an investment deposit.

(2)Regulations under section 2 of this Act may make different provision with respect to ordinary deposits and with respect to investment deposits [F1and with respect to investment deposits of different descriptions], and may prevent the making of an investment deposit [F2or an investment deposit of a particular description] unless the person who will be the depositor in respect thereof is also a depositor in respect of ordinary deposits and the sum due to him in respect of those deposits is not less than such amount as may be specified in the regulations.

4 Limit on amount of deposits

(1)The Treasury may by order limit the amount which may be received by way of deposit in the National Savings Bank from any person whatsoever either in one year or in the aggregate.

[F1(1A)The Treasury may by order prescribe an amount as the minimum balance for investment accounts and may provide for converting into a different description of investment account any account into which investment deposits of any description are made if the balance of that account falls below the minimum balance so prescribed for an account of that description.]

(2)An order under this section—

(a)may make different provision with respect to ordinary deposits and with respect to investment deposits [F2and with respect to investment deposits of different descriptions],

(b)may fix different limits as respects different classes of persons,

(c)may provide that any limit fixed by the order shall have effect subject to any exceptions or exclusions specified in the order,

(d)may contain special provisions with respect to depositors whose deposits, at the date on which the order takes effect, exceed the limit fixed by the order as regards deposits,

(e)may contain such consequential and supplemental provisions as appear to the Treasury to be necessary for giving full effect to the order, and

(f)may be revoked or varied by a subsequent order.

(3)For the purposes of this section a person who is a trustee shall be treated separately in his personal capacity and in his capacity as trustee, and in the latter capacity separately in respect of each separate trust fund.

[F3(4)Regulations under section 2 of this Act may include any provision that may be included in an order under this section.]

5 Interest on ordinary deposits

(1)[F1The Director of Savings may, with the consent of the Treasury, from time to time determine the rate or rates at which interest is to be payable on amounts deposited in ordinary accounts or that no interest is to be payable on such amounts, and any such determination in relation to amounts deposited in any ordinary deposit account may be made][F2by reference to any one or more of the following factors, namely—

(a)the balance of the account at any time or over any period or the aggregate balance of that account and the depositor’s other ordinary deposit accounts at any time or over any period; and

(b)the number of withdrawals from that account over any period or the number of withdrawals from that account and the depositor’s other ordinary deposit accounts.]

[F3(1A)The Director of Savings shall give notice in the London, Edinburgh and Belfast Gazettes of any determination under subsection (1) above; and any such determination may affect deposits received at or before, as well as after, the time the determination is made.]

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4

(3)Interest on an ordinary deposit shall not commence until the first day of the month next following the day of deposit, and shall cease on the first day of the month in which the deposit is withdrawn.

(4)Interest on ordinary deposits shall be calculated to 31st December in every year and shall be added to and become part of the principal; but interest shall not be calculated on any amount less than one pound or some multiple of one pound.

(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F5

(6),(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F6

6 Interest on investment deposits

(1)Investment deposits shall be received on such terms as to interest, other than terms as to rate of interest, as may from time to time be prescribed [F1and different terms may be prescribed in relation to different descriptions of investment deposits].

(2)Interest on investment deposits shall be payable at such rates as the Director of Savings may from time to time determine with the consent of the Treasury, and different rates may be so determined in relation to [F2different descriptions of investment deposits and] different periods of notice of withdrawal.

[F3(2A)Without prejudice to the generality of subsection (2) above, the Treasury may determine, in relation to an account into which investment deposits of any description are made, different rates of interest by reference to any one or more of the following factors, namely—

(a)the balance of that account at any time or over any period or the aggregate balance of the account and the depositor’s other accounts of the same description, or the depositor’s other investment accounts of any description, at any time or over any period; and

(b)the number of withdrawals from that account over any period or the number of withdrawals from that account and the depositor’s other accounts of the same description, or the depositor’s other investment accounts of any description, over any period.]

(3)The Director of Savings shall give notice in the London, Edinburgh and Belfast Gazettes of any alteration in a rate of interest payable on investment deposits [F4or investment deposits of a particular description; and any such alteration may affect deposits received at or before, as well as after the time the alteration is made].

7 Withdrawal of deposits

(1)Subject to subsection (2) below, where a depositor, or a person legally authorised to claim on behalf of a depositor, makes in the prescribed form a demand for repayment of a [F1ordinary deposit, or part of an ordinary deposit,] authority for repayment shall be transmitted to the depositor forthwith, and the depositor shall be absolutely entitled within ten days after his demand is made to repayment, at any place at which deposits can be withdrawn, of any sum due to him.

[F2(2)The terms as to withdrawal of investment deposits shall be such as may from time to time be prescribed.]

(3)Where regulations under section 2 of this Act extend a period of notice of withdrawal of investment deposits, the extension shall not apply to any deposits received before the coming into operation of the regulations.

8 Regulations as to particular matters

(1)The power of the Treasury to make regulations under section 2 of this Act shall include power to make regulations for any of the following purposes—

(a)for prescribing what declaration shall be required from a depositor, other than the Public Trustee, on opening an account in the National Savings Bank;

[F1(b)for the giving of statements of accounts or the issuing of depositors’ books and for prescribing the entries to be made in such books;]

(c)for the giving of receipts and acknowledgments;

(d)for treating entries, receipts [F2, acknowledgements or statements of accounts made or given] in pursuance of the regulations as evidence or conclusive evidence of such facts as may be prescribed;

(e)for preventing the making of deposits of less than such amount as may be specified in the regulations;

(f)for the payment or transfer of sums in the National Savings Bank which belong to persons appearing to be minors or incapable through disorder or disability of mind of managing their property and affairs, or form part of the personal estate of any person appearing to be deceased;

(g)for the transfer of deposits from one account to another account, whether an existing or a new account;

(h)for determining the receipts which are to be a good discharge to the Director of Savings in the case of the payment or transfer of any sum;

(i)for the addition of one or more names to an account already in the National Savings Bank;

(j)for the purpose of the payment or transfer of any sum, for authorising a person to be treated as having been domiciled in the place in which he was resident at the date of his death;

(k)for directing that, except as provided by the regulations, no entry with respect to any trust (express, implied or constructive) shall be made in the account of any depositor, and that, except as aforesaid, no notice of any such trust shall be receivable by the Director of Savings;

(l)for determining the date on which a deposit is to be deemed to be withdrawn, and for prescribing the method by which payment of sums withdrawn is to be made;

(m)for providing that where any person to whom any sum, being the whole or any part of the deposit of a deceased depositor, is payable is unable by reason of any incapacity whatsoever to give a legal discharge therefor the sum may be paid to any person undertaking to maintain the incapacitated person;

(n)for prescribing the means by which particular facts may be proved and the manner in which evidence thereof may be given, and for authorising the Director of Savings to treat proof of any particular facts given in the prescribed manner as conclusive evidence of those facts for the purpose of the payment or transfer of any sum.

(2)Regulations under section 2 of this Act may also provide—

(a)for the nomination by a depositor not being under 16 years of age of any person to whom any sum payable to the depositor at his death (including any portion of any savings bank annuity or accrued interest payable to the representatives of the depositor) is to be paid at the death;

(b)for the manner in which any such nomination may be revoked by the depositor and for the circumstances in which it is to be treated as having ceased to be operative, and for the payment of the specified amount to any nominee so nominated;

(c)for directing that any person acting as witness to a nomination shall be disqualified from taking thereunder;

(d)for authorising any person named as nominee in any nomination who dies after the death of the nominator but before receiving payment of the sum to be paid to him under the nomination to be treated as a depositor.

9 Payment on death without representation

(1)Where the sum in the National Savings Bank which forms part of the personal estate of a person appearing to be deceased does not exceed [F1£1,500], then, if the regulations under section 2 of this Act so provide, and subject to such regulations, probate or other proof of the title of the personal representative of the deceased person may be dispensed with, and the sum may be paid or distributed to or among the persons appearing in manner provided by the regulations to be beneficially entitled to the personal estate of the deceased person, whether under such nomination of the deceased as is allowed by the regulations, or by law, or as next of kin, or as creditors, or otherwise, or to or among any one or more of such persons, exclusively of the others; and the person making such a payment shall be discharged from all liability in respect of the sum paid in accordance with the regulations.

(2)Subsection (1) above shall be included among the provisions with respect to which the Treasury may make an order under section 6(1) of the M1Administration of Estates (Small Payments) Act 1965 substituting for references to £500 references to such higher amount as may be specified in the order.

10 Settlement of disputes

(1)If a dispute arises between the Director of Savings and—

(a)a depositor, or

(b)a person who is or claims to be the personal representative or next of kin or creditor of a depositor, or the successor in the trusts of any depositor, being a trustee, or

(c)the trustee in bankruptcy or assignee of a depositor who is bankrupt or insolvent, or

(d)a person who claims to be entitled to money deposited in the National Savings Bank,

the matter in dispute shall be referred in writing to the [F1adjudicator].

(2)Upon the reference of the dispute, the [F1adjudicator] shall have power to proceed ex parte on giving notice in writing to the Director of Savings.

(3)Any award, order or determination made by the [F1adjudicator] shall be binding and conclusive on all parties and shall be final to all intents and purposes, without any appeal.

(4)On a reference under this section the [F1adjudicator] may inspect any books of the National Savings Bank relating to the matter in dispute and may administer an oath to any witness appearing before him.

11 Fees on reference of disputes

(1)The Treasury may by warrant direct that there shall be charged upon any award, order or determination made by the [F1 adjudicator] under section 10 of this Act such reasonable fee as may be fixed by the warrant.

(2)Every such fee shall be paid into the Consolidated Fund and shall be paid by such persons and in such manner as may be directed by the warrant.

(3)No fee which is not allowed by the warrant shall be charged or taken in respect of any matter for which a fee can be charged under this section.

12 Secrecy

(1)Subject to the following provisions of this section, the persons engaged in the receipt or payment of deposits shall not disclose the name of any depositor nor the amount deposited or withdrawn except to the Director of Savings or to such persons as may be concerned with carrying this Act into operation.

(2)Subsection (1) above shall not prevent the disclosure, by a person authorised for the purpose by the Director of Savings, of information to any person in connection with an offence committed with reference to the account of a depositor or for the purpose of ascertaining whether or not an offence has been so committed.

[F1(2A)Subsection (1) above shall not prevent the disclosure, by a person authorised by the Director of Savings, of information to any person for a permitted purpose.

(2B)A permitted purpose is a purpose connected with the provision of information about—

(a)the business of the National Savings Bank;

(b)any other means by which money is raised under the auspices of, by or through the Director of Savings.

(2C)A person to whom information is disclosed in pursuance of subsection (2A) above shall not—

(a)use the information for a purpose other than a permitted purpose;

(b)disclose the information to any other person.]

(3)Subsection (1) above shall have effect subject to the provisions of section 17(3) of the M1Taxes Management Act 1970 (which relates to the obtaining of information as to interest paid or credited without deduction of income tax) [F2and of section [F320(3) of that Act (requirement to deliver or make available documents relating to liability of a taxpayer).]]

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