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Account Types
Savings, Investment & Cheque Accounts
 
Depositors' Department
 
At the commencement of the Bank on September 1st 1919, customers placing their deposits had no choice as to what type of account would hold their cash. There was only one Account Type: a simple, passbook-based, interest-bearing savings account.

Funds in these original accounts were classified as being in the General Savings Department. The provision by the Bank of only one savings facility continued unchanged until April 1st 1957, when a second savings department was introduced.

In his budget speech in the House of Commons on April 17th 1956, the Chancellor of the Exchequer (Harold MacMillan) proposed to exempt from Income Tax the first 15 of income accruing to an individual from deposits in the Post Office Savings Bank and the Ordinary Department of the Trustee Savings Banks.

How this development for the Post Office and the Trustee Savings Banks led to the Bank's second savings product is detailed at Introduction of the No 2 Department.
 
The choice to depositors of a third department became available in 1967, as the following extract from the Bank's Annual Report and Accounts for March 31st 1967 illustrates:
During the Bank Year under review the necessity to offset the adverse balance of trade and to strengthen sterling resulted in the introduction of measures to control prices and wages. At the same time a high Bank rate has resulted in extremely competitive conditions in the field of savings. It was, therefore, opportune that after prolonged negotiations with HM Treasury the No 3 Investment Department was opened as at the 1st January 1967 and thereby another milestone passed in the history of the Bank.
 
In the three months January 1st to March 31st 1967, the sum of 3,883,581 was deposited in Investment Department No 3. For subsequent total year end balances: click here
 
All three of these account types were passbook based. Later in 1967, a cheque book facility was introduced with the opening of the Current Accounts Department in July.
 
On October 1st 1969, the Government introduces a Contractual Savings Scheme (known as the Save As You Earn Scheme or SAYE), but the Bank acted only as an agent for this scheme, and balances were not held on its Balance Sheet. Details at SAYE
 
On January 1st 1974, a second Interest Tier was added to the No 3 Department - the 1st Tier paying 8% on deposits subject to one month's notice of withdrawal; the 2nd Tier paying 9% on deposits subject to six month's notice of withdrawal.
 
Term Deposits were introduced in 1976 - fixed sums deposited for a fixed term, at a fixed rate of interest. At this time the BMB had become the Birmingham Municipal Trustee Savings Bank, and from November 20th 1976, a new Department was formed by the merger of the No 1 (Savings), No 3 (Investment), and Current Account Departments - known as the New Department, while the No 2 Department became the Ordinary Department.
 
The growth of balances is detailed in the following sections:
 
    Total Deposit Balances
 
    Departmental Balances
 
Further details relating to Deposit Accounts:
 
    Account Conditions
           Details of the limits governing Deposits and Withdrawals etc
 
    Interest Rates
           Record of Interest Rates Paid