Explanatory note

The National Savings Bank Act 1971^f1 (“the 1971 Act”) and the National Debt Act 1972^f2 created the current statutory framework for the operation of the National Savings and Investment Bank and the Director of Savings. The Director of Savings, a statutory officeholder, carries on the business of the National Savings Bank under section 1 of the 1971 Act, principally providing a range of savings and investment accounts which are subject to the 1971 Act and the secondary legislation made under that Act, consolidated in the National Savings Regulations 2015^f3.

These Regulations establish a Remediation Scheme under which the Director of Savings may make payments to the personal representative of the estate of a deceased person in circumstances where the Director of Savings has retained, in error, deposits or other funds in the name of the deceased person and, as a result, losses have been incurred by the estate of that deceased person.

The Regulations allow the Director of Savings to pay to the personal representatives of estates affected by the error, the greater of either contractual interest, or the interest that would have accrued had the Bank of England Base rate plus 1 per cent been applied to the holdings. These regulations also allow the Director of Savings to determine and to pay further consequential loses.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sectors is foreseen.