Letter: Post Office savings discourage children

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The Independent Online
Sir: I couldn't agree more with the conclusion in Graham Don's letter regarding the Post Office Savings Bank, or National Savings Bank, to give it the correct name. Some years ago, we transferred our children's savings into National Savings investment accounts, from a building society, where at that time their interest was taxed.

In fact, I seem to recall that National Savings advertisements around that time made the point that, since they were allowed to pay interest gross to children and other non-taxpayers, those people should move their accounts out of building societies and into National Savings.

Recently, we decided that it was time for our children, now 11 and 12, to exercise some control over their own money, and encouraged them to deposit any unspent pocket money or cash gifts into their accounts. Like Dr Don we fell at the first hurdle, since we are now told that the minimum deposit is pounds 20 in these accounts.

I had always thought that National Savings, with its presence in many schools and operation through a readily accessible network of post offices and sub-post offices, was the ideal place for children to learn to save.

Perhaps people such as Dr Don and myself are out of step with the times and should be giving our children credit cards instead of teaching them thrift.

Yours faithfully,

T. H. GIBSON

Wootton Bassett,

Wiltshire

22 April

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