67p savings from 1977

simpkins74

Hello all. I am new to these forums so I hope I have posted in the correct place.
My wife has recently found her TSB savings book showing that it still had 67p in its last entry and that was in 1977. Needless to say it was made dormant many years ago but she would like to close the account and withdraw the money. A letter from the bank said that they could not find any account details but as a good-will-gesture if she took the book into a branch they would pay her the 67p only. They said that no interest could be paid because it was less than a pound.
Being a little insulted by their "good will gesture" (that is the words they used), because afterall it is her money anyway, we looked into the value of the 67p. all we can find is a few online calculators showing the RPI makes 67p in 1977 the equivalent of £3.55 today. Can anyone advise when the £1 rule was introduced? I understand the rule now but it wouldn't have been back then would it!? can we at least expect interest payable upto the introduction date? I know it sounds petty but its principle!
thank-you in advance.

rb10

Savings accounts do not pay RPI.

As it is a long-since closed account, I expect that for a large chunk of the time since then it has been earning 0.1% or thereabouts.

At that rate, I make the interest around 2.25 pence.

I expect that the account was closed some time ago - but the closing transaction just wasn't printed in the passbook. That is what seems to happen most often with old passbooks that are found.

simpkins74 wrote: »

I know it sounds petty

Agreed.

Loughton_Monkey

I don't see why you are introduceing RPI into it?

Banks have no obligation to pay you RPI. Their only obligation is to pay you the 'correct' interest rate. Banks continually phase out their accounts as 'live' and as a matter of housekeeping reduce the interest to 0%.

I remember the 70's for a lot of things, not least the incredible "scam" of Banks/Building Societies who all offered Platinum/Gold/5-Star etc. accounts at fantastic headline rates. As soon as their quota was filled, up would go the printed sign in the branches informing of the new "Platinum Plus" paying 8½% (in HUGE type), but (8 point ype typically) Platinum is reduced from 8% down to 0.1%

As a matter of co-incidence, earlier today, I posted a response on another thread which included the fact that in 1955, my parents opened up a Post Office Savings account for me, and in 1972, I withdrew everything, apart from the 1 shilling minimum required to keep the account open. I do recall (even then) being told that no interest is paid on the minimum amount.

Here's my advice. Leave the book to your grandchildren. In 30 years time, they might be able to sell it in an auction as a rare document.

simpkins74

Thank-you for your quick reply. I didn't consider the fact that the book might not have been stamped on closure. Maybe their good will gesture is not so bad.

musehead

I'd say keep hold of it too, if it gets passed down for say 100 years i'll probably be worth quite a bit by then!

YorkshireBoy

Loughton_Monkey wrote: »

...in 1972, I withdrew everything, apart from the 1 shilling minimum

You're either a year out, or you left 5p in there.