Ascension : Government Savings Bank Update
Submitted by The Islander (Nathan Prince) 26.02.2004 (Article Archived on 18.03.2004)

With effect from Monday, February 23rd the Savings Bank will be using the new computerised system which has been successfully operating on St Helena since May of last year.

 GOVERNMENT SAVINGS BANK, ASCENSION ISLAND

With effect from Monday, February 23^rd the Savings Bank will be using the new computerised system which has been successfully operating on St Helena since May of last year.

The new banking system is integral to the next phase of changes which will remove the Savings Bank from government control in order to create the new Bank of St Helena. Legislation covering the significant changes in the area of banking was passed in September 2003, and final FCO approval is now awaited, which will enable H.E. The Governor to enact the various bills, and to bring the Bank of St Helena into being effective April 1^st, 2004.

Even before the creation of the new bank, the upgrading of the computerised system has delivered numerous benefits to customers of the Savings Bank on St Helena, and these same benefits will now be available here on Ascension.

The most significant benefit will be the ability for transfers between bank accounts on the two islands to take place at either location, on the same day and without cost. For example, a customer on Ascension wishing to credit an account in St Helena would simply complete a form at the Ascension bank enabling the transfer to be made there and then. Furthermore, a customer visiting St Helena from Ascension would be able to withdraw money from the account in Ascension simply by visiting the bank in Jamestown, and vice versa.

Customers of the bank in St Helena are now using the facilities to settle accounts with merchants without the need to use cash. The monthly repayments of SHG housing loans can be handled in a similar way, and a standing order facility is also now available to simplify even further this process.

For the time being, the procedure whereby funds are remitted to and from the UK and elsewhere will remain the same. However, the Bank hopes to have its own relationship with LloydsTSB in place soon, and this will produce savings in terms of time and costs. News of developments in this area will be announced as soon as they become available.

The new computerised system has meant a change in the basis on which savings interest is calculated. With effect from May 24^th, 2003 interest will be calculated on the daily account balance as opposed to the minimum monthly balance. For the great majority of account holders, this will result in a significant increase in annual interest which will continue to be credited to the accounts on March 31^st each year.

The reduction in UK interest rates in the past two or three years has affected the bank’s investment portfolio to the extent that it will be necessary to reduce the current interest rate from 5% to 4%. This change will take place as soon as the Bank of St Helena comes into existence, and account holders will be officially advised by a separate media announcement.

It was evident from an early stage of the bank’s development on St Helena that customer confidentiality was an important issue. It is therefore appropriate at this time to provide to all customers the reassurance that their affairs will always be managed by staff of the bank both professionally and in confidence.

The bank staff on Ascension will be pleased to answer any questions customers may have on the new operation. Alternatively, I would be more than happy to speak personally with anybody who has concerns, or wishes to discuss in greater detail the role the bank intends to play.

Richard Winch

Manager

Government Savings Bank

(00) 290 2044