Explanatory note

These regulations amend the National Savings Bank Regulations 1972 so as to introduce a new category of individual savings account (“ISA”) known as a TESSA only account. Provision for the introduction of ISAs was made by the Individual Savings Account Regulations 1998 and the National Savings Bank introduced its own ISA on 6th April 1999 pursuant to the National Savings Bank (Amendment) Regulations 1999 which amended the National Savings Bank Regulations 1972. References to particular regulations in the rest of this note are to the 1972 Regulations as amended by these Regulations.

Regulation 29L(5) is amended to provide that as an exception an investor may in one financial year open both a TESSA only account and a mini-account. A mini-account being another category of ISA.

Wording in Regulation 42 is reinstated to make it clear that interest which is calculated to 31st December is added to and becomes part of the principal.