National Savings Bank Act 1971
| Year | 1971 |
National Savings BankAct 1971
1971 CHAPTER 29
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]
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
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.
(2) Regulations under this section may provide for applying to the National Savings Bank all or any of the provisions of the enactments relating to trustee savings banks, either without modification or with such modifications as may seem necessary or proper for the better execution of this Act.
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, and may prevent the making of an investment deposit 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.
(2) An order under this section—
(a ) may make different provision with respect to ordinary deposits and with respect to investment deposits,
(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.
5 Interest on ordinary deposits.
(1) The rate of interest payable on ordinary deposits, except deposits in accounts closed before 1st January 1972, shall be 312 per cent. per annum or such other rate as may be specified in an order of the Treasury under this section.
(2) The rate of interest payable on ordinary deposits in accounts closed before 1st January 1972 shall be 212 per cent. per annum or such other rate as may be specified in an order of the Treasury under this section.
(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) The Treasury may by order alter the rate of interest payable on ordinary deposits, but not so as to reduce it to a rate of less than 212 per cent. per annum.
(6) An order under this section, so far as it relates to interest for a period before 1st January 1972, may be made so as to apply only as respects deposits in accounts not closed before that date, or so as to make different provision for such deposits and other deposits.
(7) An order under this section may be revoked or varied by a subsequent order.
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.
(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 different periods of notice of withdrawal.
(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 and, if the alteration affects deposits received before it is made, the length of that notice shall not be less than that of the notice of withdrawal applicable to the deposits.
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 deposit, or part of a 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.
(2) The terms as to notice of withdrawal of investment deposits shall be such as may from time to time be prescribed; and accordingly so much of...
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