Vol. 476 No. 5
65 Mr. N. Ahern asked the Minister for Finance the reason An Post does not contact the holders of savings certificates on maturity; the reason certificates are treated differently to savings bonds or national instalment savings; the amounts uncashed since the foundation of the State, divided into ten year periods; and if he will make a statement on the matter. [7598/97]
Savings certificates are a long established product, first introduced in 1923. Since then, it has not been the practice to notify customers when certificates mature. Nonetheless, customers could, at any time, request the current value and the extension rates to next maturity either by post or by personal enquiry at the 650 largest "Service Plus" Post Offices nationwide. Consequently, there has been no customer demand for the issue of maturity notifications. However, having reviewed current custom and practice in other financial institutions, the NTMA and An Post agree that the introduction of maturity notifications for savings certificates would be beneficial to their customers. Preparations to effect their introduction are now being put in train and the notifications will be introduced when the necessary changes have been made to the relevant computer systems. The notifications will be introduced on a phased basis in line with the data capture and computerisation of the various issues of certificates.
National instalment savings and savings bonds were introduced in 1970 and 1975 respectively. Because these were then new products with terms and conditions significantly different from the product with which customers were than familiar, namely savings certificates, it was decided from the outset to notify investors on maturity.
The balance outstanding in savings certificates at 31 December, 1996 is estimated at £2,064.6 million, broken down into 10 year periods, based on dates of issue, as follows:
|
Invested Between |
£m |
|
1923-1936 (14 years) |
0.1 |
|
1937-1946 |
0.1 |
|
1947-1956 |
0.4 |
|
1957-1966 |
1.5 |
|
1967-1976 |
9.9 |
|
1977-1986 |
274.1 |
|
1987-1996 |
1,778.5 |
|
Total: |
2,064.6 |
