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Press release

NS&I TO SUBSCRIBE TO NEW BANKING CODE

30 December 2002

National Savings and Investments (NS&I), the government-backed savings and investments provider, has subscribed to the Banking Code which becomes effective from 1 March 2003.

The subscription is part of the continuing transformation of the organisation and signifies a further move by NS&I to strengthen its position in the retail financial services industry.

The subscription will mean greater transparency and improved communications between NS&I and its customers.

Although this is the first time NS&I has subscribed to the Banking Code, in April 2001 it introduced its own Customer Code which was based on the savings part of the previous Banking Code.

The NS&I Customer Code will remain in force until 1 March when the Banking Code becomes effective.

Alan Cook, National Savings and Investments chief executive, said: "As part of NS&I's continuing programme of development, our subscription to the Banking Code is another step forward in terms of the organisation's commitment to our customers and contribution to openness in the financial services industry.

"The Banking Code sets out standards of good practice that NS&I aims to follow to benefit its customers and subscription demonstrates our commitment to meeting industry best practice."

The Banking Code will, among other requirements, oblige subscribers to:

• write to all customers who have variable rate accounts containing more than £500 to tell them what interest rates apply to which products
• tell customers within 30 days if variable interest rates change by displaying notices in branches or in writing
• tell customers who have more than £250 in a variable rate account if, over a 12-month period, the interest rate increases or decreases by 0.5 per cent in relation to base rate
• remind customers every three years of the opportunity to opt out of marketing campaigns
• provide easy access to financial providers' complaints procedures.

Throughout January and February 2003, NS&I will be training its staff to deal with any customer queries regarding subscription to the Banking Code once it comes into effect on 1 March.

ENDS

Notes to Editors

In August 2002 it was announced that an independent review of the Banking Code was to be carried out. The findings of the review, undertaken by Professor Elaine Kempson of Bristol University, were published in October 2002. In the review, Prof Kempson made several recommendations to the Banking Code Standards Board and it was proposed that a new version of the Banking Code would become effective from 1 March 2003.

	Mark Brooks	020 7348 9301	mark.brooks@nsandi.com
	Jonathan Akerman	020 7348 9433	jonathan.akerman@nsandi.com
	Samantha Bennett	020 7348 9654	sam.bennett@nsandi.com
	Wendy Franklin	020 7348 9449	wendy.franklin@nsandi.com
	Fax	020 7348 9755
	Out of hours	07778 966387

Media team
NS&I has a number of spokespeople available for interviews and our experienced radio team is available via our ISDN line: 020 7602 4522.

The numbers below are for media use only. Customers wishing to contact NS&I can find details here.

Gill Stephens		020 7348 9449
		gill.stephens@nsandi.com
Iman Asante		020 7348 9301
		iman.asante@nsandi.com
Angela Mason		020 7348 9433
		angela.mason@nsandi.com
ISDN for interviews		020 7602 4522
Out of hours		All numbers above diverted to staffed mobile phones

 

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