New banking code in force from 1 March 2003

The Code sets out the minimum standards of good practice that NS&I and other subscribing banks and building societies in the UK must follow when they are dealing with personal customers.

NS&I's subscription is part of its continuing transformation 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.

During January and February 2003, NS&I has been training its staff to help with any customer queries regarding subscription to the Banking Code once it comes into effect on 1 March.

Alan Cook, National Savings and Investments' chief executive, said:

"Our subscription to the Banking Code demonstrates our commitment to meeting industry best practice and contributing to openness in the financial services industry." 

Notes to Editors

1. The Banking Code will, among other requirements, oblige subscribers to:
   - write, once a year, to all customers who have variable rate accounts containing more than £500 to tell them what interest rates have applied over the previous year
   - 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 has changed by 0.5 per cent or more in relation to base rate
   - remind customers every three years of the opportunity to opt out of marketing campaigns
   - provide easy access to complaints procedures
2. 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 Code's sponsors and it was proposed that a new version of the Banking Code would become effective from 1 March 2003.
3. This will be the first time NS&I has subscribed to the Banking Code. However, 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