NS&I closes cash ISA

National Savings & Investments (NS&I) is closing its cash ISA to new customers, and making its direct ISA more accessible.

From 6 April customers will no longer be able to open a new NS&I cash ISA, and current customers will no longer be able to deposit into their cash ISA at post office branches or by bank giro.

Meanwhile, on 1 February the minimum opening deposit for an NS&I direct ISA will be dropped from £1,000 to £100. Minimum withdrawals will be reduced from £250 to £50.

NS&I’s direct ISA, launched three years ago, is so popular that it has now outgrown the decade old cash ISA, attracting 65% more customers.

Peter Cornish, NS&I director of customer offers, said: “Our direct ISA is now much more popular with our customers than our cash ISA.

“We still have a wide range of savings products available through the Post Office and existing customers who still want to invest with NS&I over the counter will continue to have a choice in a wide range of investments.”

He added that there will be no changes to the ways customers can withdraw money from their accounts.

The company said the decision to withdraw the cash ISA is part of a five year strategy to simplify business practices and reduce product duplication.

NS&I, established in 1861, is financially backed by the treasury. It used to be called the Post Office Savings Bank.

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