NS&I pulls out of treasurers accounts

National Savings & Investments has announced that it will no longer be running Treasurer’s Accounts, which are designed for non-profit organizations and charities to make deposits.

The move means that around one thousand organizations and charities will have to find alternative accounts with other companies. No further Treasurer’s Accounts can now be opened with NS&I, and from August 10th no further transactions other than account closure can be made on existing accounts.

Launches in 1996, the number of Treasure’s Accounts and the amount of money invested in them has declined over the years. In 2003 there were 992 of these accounts running with NS&I, with total investments of £67 million. This has now dropped to 932 accounts with total investments of £61.3 million. Officials from NS&I state that it is necessary to make this move, as it is more cost effective for them to now concentrate their efforts on personal savings accounts.

Peter Cornish, director at NS&I, said: ‘The Treasurer’s Account has been in decline for some time which has prompted our decision to close the account. Banks and building societies offer similar accounts for non-profit-making organisations so there are plenty of alternatives available in the market place.’

He added that to continue offering this sort of account a substantial investment would need to be made, and that because of this it was no longer worth the company taking on these accounts.

Amongst those that have Treasurer’s Accounts with NS&I are various charities, and a range of clubs and societies, including youth groups, church groups, and other non-profit organizations. The accounts were thirty day notice accounts, with minimum investment levels of £10,000 and maximum investment levels of £2M.

Tom Smith
26th May 2007

More information: Treasurer’s accounts no longer available

Tags: alternatives, closed, accounts, non-profit, charity, bank, investment