Savers swamp National Savings

THOUSANDS of savers have swamped National Savings & Investments helplines because they are worried their accounts have been closed.

NS&I closed its Ordinary Account on 31 July. Despite widespread publicity, many of the 3 million Investment Account customers mistakenly believe that it is their accounts that are no longer earning interest.

Last weekend alone, NS&I received more than 1,000 calls from anxious savers.

'The Investment Account is not closing and customers with this account can continue to use it as before,' said NS&I today.

A spokesman added 'We had anticipated a degree of confusion, but we have now decided to write to all our Investment Account customers in the next two weeks.'

One possible reason for the confusion is that customers of both accounts have passbooks to be used at post offices.

The Ordinary Account passbook is dark blue. The account is no longer operational, but customers can still withdraw funds and close the account.

Most Investment Account passbooks are grey, but a design change means customers who opened accounts after 25 July, have mainly green passbooks.

Savers can withdraw sums at post offices after giving a month's notice.

The Investment Account pays 3.00% on balances under £500 and 3.90% on £50,000 and above.