Banking: Savings Accounts

Lord Brooke of Alverthorpe Excerpts

Monday 23rd May 2011 Lords Chamber

[Lord Sassoon]

My Lords, the NS&I is a commercial operation and it has to make sure that it delivers its products in the way that customers want to receive them. It distributes a significant number of products through the post office network, including premium bonds. Some products are just marketed while others are available over the counter. I understand that these days the most popular channel for NS&I’s products is over the internet, but there is a variety of ways of obtaining them. NS&I’s products are designed product by product to suit customer needs.

[Lord Brooke of Alverthorpe]

As we have a majority share in two major banks in the country, could the Minister not press them to implement the very interesting suggestions put forward by his noble colleague?

[Lord Sassoon]

My Lords, shareholdings in the banks in which the Government have a significant shareholding are managed on an arm’s-length basis through UKFI. We want a functioning and transparent market in which consumers are able to shop around. The OFT looked at this last year and indentified some areas of the market that needed working on in terms of switching times and some aspects of transparency. The banks are working on that. Very usefully prompted by my noble friend’s Question, I spoke to them today to confirm that their noses are being kept to the grindstone on this. That is important and is what we should require of them.