NS&I to close Treasurer's Account

From 10 May 2007, organisations will no longer be able to open the Treasurer's Account operated by NS&I (National Savings and Investments).

From 10 August 2007 existing holders will not be able to make any further transactions unless it is to close the account. There are around 200 similar accounts offered by banks and building societies so there are viable alternatives for Treasurer's Account holders.

The Treasurer's Account is a deposit account for non-profit-making organisations and was opened by NS&I in 1996. It has 932 account holders with a total of £61.3 million invested but has been in decline since 2003. It represents less than 0.1% of the funds invested in NS&I.

The Treasurer's Account is unique within the NS&I range as only not-for-profit organisations can invest in this account.

NS&I believes it would take considerable investment to successfully grow its presence in this niche market and it is more cost-effective for NS&I to build on its success in the personal savings market.

Peter Cornish, NS&I's Director of Customer Offer said, "The Treasurer's Account has been in decline for some time which has prompted our decision to close the account."

He continues "Banks and building societies offer similar accounts for non-profit-making organisations so there are plenty of alternatives available in the market place."

NS&I will be writing to all account holders to inform them of the closure.