The National Savings Movement was a British mass savings movement that operated between 1916 and 1978 and was used to finance the deficit of government spending over tax revenues . The movement was instrumental during World War II in raising funds to support the war effort . In peacetime the movement provided an easy and safe way for ordinary people to save small sums of money. The movement grew to around 7 million members before ceasing during the 1970s as more modern methods of saving took over. Savings products promoted by the movement typically offered a low level of return but the safety of a government guarantee.
62-761: The movement was created in March 1916 as the National Savings Committee and this was supplemented by volunteer local committees and paid civil servants. A number of different organisations were loosely affiliated to make up the movement, including the Trustees Savings Banks and National Savings (previously the Post Office Savings Bank). By 1946, the movement employed 1190 civil servants at an annual cost of £1.5 million, excluding unpaid volunteers. The amount raised by
124-551: A reverse takeover by TSB. Lloyds Bank was delisted from the London Stock Exchange and TSB Group was renamed Lloyds TSB Group in 1995, with former Lloyds Bank shareholders owning a 70% equity interest in the share capital, effected through a scheme of arrangement. The new bank commenced trading in 1999, after the statutory process of integration was completed. The original TSB Bank transferred engagements to Lloyds Bank which then changed its name to Lloyds TSB Bank; at
186-448: A 70% equity interest in the share capital, effected through a scheme of arrangement. The new bank commenced trading in 1999, after the statutory process of integration was completed. On 28 June, TSB Bank plc transferred engagements to Lloyds Bank plc which then changed its name to Lloyds TSB Bank plc; at the same time, TSB Bank Scotland plc absorbed Lloyds' three Scottish branches becoming Lloyds TSB Scotland plc. The combined business formed
248-465: A fourth week and it was revealed that TSB had rejected an offer of assistance from Lloyds Banking Group at the start of the migration crisis. The bank later announced it had hired IBM to help fix the problems. A former TSB board member was quoted by the BBC as saying "human error, pride and software failure" led to TSB's "dreadful" response. There were further problems affecting login to online services, and
310-510: A loose association, with £2,806 million in total assets. There was a wide variation in size: five of the banks each had over £100m in assets (together accounting for 25% of the total), 14 had between £50m and £100m (35%), 39 between £10m and £50m (38%) and 17 under £10m (2%). The largest trustee savings banks were based in London , Glasgow , Edinburgh and Belfast . Those based in the north of England accounted for 50% of total funds, while those in
372-487: A mandate to turn the savings banks from a quasi-government body into successful independent providers, but his salary of £17,000 per annum was well below those paid at similar posts at clearing banks. The amalgamation of individual TSBs into purposely created regional banks and the establishment of a central board in 1975 provided the resources to support the introduction of personal lending in 1977. However, attempts to diversify across retail bank markets failed. Together with
434-647: A part of its business under the TSB brand. The new TSB business consists of all Lloyds TSB Scotland branches, all Cheltenham and Gloucester branches, and some Lloyds TSB branches in England and Wales. After a provisional agreement to sell the Lloyds TSB Scotland business to Co-operative Banking Group fell through in early 2013, Lloyds decided to divest it through a stock market flotation. The new TSB Bank began operations on 9 September 2013, at which time
496-452: A portion of its business; TSB was divested. Post-divestment, TSB offered an initial public offering and was listed on the London Stock Exchange in June 2014. In 2015, it was acquired by Sabadell Group. The TSB name was previously used by Trustee Savings Bank prior to its merger with Lloyds Bank in 1995, resulting in the formation of Lloyds TSB in 1999. The merger was structured as
558-556: A separate business. The new TSB Bank began operations in September 2013 and was divested via an initial public offering in 2014, with the remainder of the business reverting to the Lloyds Bank name. From the outset, savings banks were retail finance institutions set up under democratic and philanthropic principles. They sought to create thrifty habits amongst small and medium-sized savers such as craftsmen, domestic servants or
620-549: A single central organisation that no longer had a unique corporate status but was incorporated under the Companies Act 1985 . The purported aim was to give the TSB Group plc, as it was called, a more effective operating structure and also to establish clear ground rules on ownership and accountability, neither of which was clear under former legislation. Airdrie Savings Bank refused to join the single entity, and remained
682-484: A year after it rejoined the stock market through Lloyds Banking Group 's sale of 50% of its holding. TSB agreed to the takeover on 20 March 2015 which was completed on 8 July 2015. After the acquisition, a new board of directors was formed, including Tomás Varela and Miguel Montes Güell. In October 2015, Sabadell Group outlined its plans for TSB to continue as a competitor in the UK banking sector, by further expanding into
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#1732780801462744-689: Is a member of the Financial Ombudsman Service and the Financial Services Compensation Scheme , and subscribes to the Lending Code . The bank has an agreement with Visa Inc. to issue Visa Debit cards to its current account customers. The bank uses the following series of sorting codes :— Whistletree is a trading division of TSB Bank plc which was established to administer mortgage and other loans acquired by TSB from other lenders. It
806-470: Is served by a standalone website and separate contact centre, with TSB branch staff have no access to Whistletree accounts. The division's name refers to the blue tree branding used by TSB Bank and the whistling that features in its television advertising. Whistletree was formed in 2015 to administer the £3.3 billion in mortgages assets that TSB purchased in November 2015 from the nationalised NRAM plc ,
868-593: The National Giro Bank and the Co-operative Bank , the efforts of the TSBs to penetrate retail finance from scratch in 1971 resulted in only £200m in direct consumer loans in 1979, which accounted for less than 3% of total consumer lending that year. In 1984, the government published a white paper and a new TSB Bill, in which the quasi-federal decentralised structure was abandoned in favour of
930-811: The TSB Trust Company was established in 1967 and a year later the first unit trust issue was offered. Regulatory innovations which allowed the TSBs to diversify their business threatened to erode the deposit base of the clearing banks. But this potential diversification was limited by the restrictive central control of the Exchequer, the National Debt Commissioners and the Trustee Savings Bank Inspection Committee. This type of central control had been designed both to guarantee depositors that
992-517: The stock market but, unlike mutually held building societies , depositors had no voting rights; nor did they have the power to direct the financial and managerial goals of the organisation. Directors were appointed as trustees (hence the name) on a voluntary basis. The first trustee savings bank was established by Rev. Henry Duncan of Ruthwell in Dumfriesshire for his poorest parishioners in 1810, with its sole purpose being to serve
1054-541: The 1817 Act all money received by trustee savings banks, other than that needed to deal with everyday transactions, was held by the Bank of England to the credit of the National Debt Commissioners . The Act specified duties of the treasurers, managers and trustees of the savings banks, none of whom was to derive any benefit from their office. This feature was to dominate the management of the TSBs until
1116-496: The 1970s. Savings banks paying interest on deposits (at a rate ranging from 3% to 5%) proliferated. The number of successful institutions in the UK grew until there were 645 in 1861. Their business remained in collecting low-volume deposits, as early attempts at market diversification had been curtailed by the Savings Bank Act 1891 . By the inter-war years it had become clear that trustee savings banks could compete in
1178-448: The 50th anniversary of the founding of the movement, which was attended by Queen Elizabeth II. On 30 July 1976, the government announced that all 580 civil servants who supported the otherwise voluntary movement would be withdrawn over two years as part of public spending cuts. Without this administrative support the movement was unable to function, and its National Committee met for the last time on 16 February 1978. Attempts to restructure
1240-800: The Lloyds Banking Group. In January 2009 Lloyds TSB Group bought HBOS , the company formed from the merger of Halifax plc and the Bank of Scotland , and renamed itself Lloyds Banking Group . In 2009, following the UK bank rescue package , the Government of the United Kingdom took a 43.4% stake in Lloyds Banking Group, which later announced that it would sell a standalone retail banking business of 632 branches and most accounts held at those branches in order to comply with European Commission state aid requirements. Codenamed "Verde",
1302-571: The Lloyds TSB business was rebranded back to the Lloyds Bank name. Lloyds Banking Group reached a heads-of-terms agreement in July 2012 to sell the Verde branches to the Co-operative Bank for £750 million. The final transfer of TSB Bank to the new owner was planned to be completed by late 2013. In February 2013, it was reported that Lloyds Banking Group was considering a stock market flotation of
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#17327808014621364-494: The Midland Bank in 1992) by market capitalisation. In 2009, following its acquisition of HBOS , Lloyds TSB Group was renamed Lloyds Banking Group , although the TSB initials initially survived in the names of its principal retail subsidiaries, Lloyds TSB Bank and Lloyds TSB Scotland. In July 2012 however, it was announced that the TSB brand would be resurrected by Lloyds Banking Group for the 632 branches it would divest as
1426-478: The National Debt Commissioners to allow withdrawals by cheque (as originally proposed in 1926 by W. A. Barclay of the Perth Savings Bank). In 1965 a review of retail credit markets led to the trustee savings banks being allowed to issue current accounts (with cheque withdrawals but no overdraft facilities), undertake the payment of utility bills, and safeguard securities and valuables. Accordingly,
1488-600: The Page Committee recommended that the TSBs be freed from government control, allowed to develop their service range, and thus become a third force in banking. These recommendations were high on the agenda of the newly elected government of Harold Wilson . But the pace of change was to be slow. Officials at the Bank of England , with the support of Sir Athelstan Caröe , then chairman of the Trustee Savings Banks Association , called for
1550-667: The Right to be Free", "Save your way to Victory" and "War Savings are Warships". One of the early symbols of the movement was the swastika , but this was replaced with an image of St. George slaying the dragon before the start of the Second World War after the swastika was adopted by Nazi Germany . Archives of local savings committees may sometimes be found in local county archives, including in Wales, Essex, Walsall and others. A wide range of printed and other ephemera exist for
1612-434: The TSB business as an alternative, should the transfer not be completed, and they would make a final decision by the end of July. The Co-operative Banking Group blamed current economic conditions for delays in completing the deal and had sold its life insurance assets for £200 million in an effort to secure £1 billion needed to complete the deal. In April 2013, The Co-operative Group announced that it would not proceed with
1674-402: The UK was that depositors should have a guarantee of the nominal value of their savings, so that these could be withdrawn at their full value with interest no matter how long the deposit. Funds would be under control of voluntary managers or trustees , hence the roots of the name. This guarantee could not be achieved unless funds were held in securities with a similar guarantee. As a result of
1736-520: The ability to transfer money on 3 September. On 4 September 2018, Pester resigned due to the IT failure, and Richard Meddings , the non-executive chairman, became executive chairman until a new CEO could be found. In November 2018 TSB announced Debbie Crosbie as new CEO. In 2019 TSB returned to profit. In November 2019, TSB was struck by "new IT glitch". TSB closed 82 branches in 2020 to cut down expenses. Further branch closures in 2021 and 2022 brought
1798-401: The areas where the savings banks had little presence. While savings banks and government were considering the movement's future organisational structure and functions as well as those of individual TSBs, the TSBs remained restricted in what services they could offer: they could not give loans to their customers, and there were still limits on how funds could be invested. At this critical stage,
1860-469: The clearing banks, but it also required that, in the space of one year, the number of independent TSBs was reduced from 73 to 19, under the central co-ordinating authority of the TSB Central Board . The 19 banks were: This organisational framework for savings banks was in place between 1976 and 1984, a period during which TSB management undertook a series of fundamental changes while pursuing
1922-504: The creation of independent and profitable financial services group. Tom Bryans, general manager of the Northern Ireland Trustee Savings Bank , was the first chief executive of the newly amalgamated trustee savings banks. He was in his mid-50s, and had spent all his working life at the TSB movement, becoming a manager in 1956 and then becoming an expert in computerised banking. Bryans took the helm with
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1984-545: The end of 2017. A planned migration of customer records from the Lloyds Banking Group platform to the Sabadell Proteo platform commencing on 20 April 2018 resulted in the loss of internet and mobile banking services for many customers for at least a week. Additionally, some customers reported seeing detailed account information of other customers, including balances of accounts other than their own. On 26 April 2018, Paul Pester , then chief executive, stated that TSB
2046-759: The establishment of a strong central authority to assume many of the control powers vested in the government, bearing in mind the need to build up adequate capital reserves virtually from scratch. For the government, there was an advantage in widening the TSBs' investment powers only slowly, not least the threat of competition to its own newly created bank, National Girobank . TSBs actively computerised their administration. Two companies were set up in 1972 in preparation for future change: TSB Computer Services Ltd., co-ordinated all computer systems and related developments, and Central Trustee Savings Bank Ltd. dealt with volume transactions. The Trustee Savings Banks Act 1976 allowed TSBs to offer services equivalent to those of
2108-492: The first UK bank to do so. Some other savings banks still worked with leather-bound ledgers, and others used passbooks; either way handwritten record cards piled up in thousands and even the most basic management information and accounting (such as the annual balance sheet) was a huge task to compile, requiring a lot of overtime. The savings banks' administration was thus antiquated and time-consuming. They needed modernization and streamlining. In 1970 there were 75 savings banks in
2170-401: The former Trustee Savings Bank and consists of three interlocking circles in varying shades of blue bearing the name of the bank. Since its launch in 2013, TSB has used the slogan "Local banking for Britain" rather than "The bank that likes to say yes" slogan used by the former Trustee Savings Bank. TSB's launch advertising campaign featured a short film about the bank's founder Henry Duncan and
2232-509: The four main London clearing banks . There was little competition between the various trustee savings banks. Each individual trustee savings bank served a separate geographic area, although other organisations competed with them, and this competition grew stronger after 1945. In 1955, inter-savings-bank clearing was extended to the whole country. Such a system had been in operation in Surrey in
2294-431: The group's divestment plan identified 632 branches which were transferred to a new business. Customers with accounts held by the branches and staff employed within them were also transferred. A number of Lloyds TSB branches in England and Wales, together with all branches of Lloyds TSB Scotland and Cheltenham & Gloucester, were brought together to form the new business, which operates under the TSB brand. The remainder of
2356-493: The growing proletariat, who were outside the well-to-do market that the commercial banks served. In the first half of the 19th century, bank runs or bank collapses were common, so savings banks had no safe outlet for their own deposits. To create trust among potential depositors, the Savings Bank (England) Act 1817 required funds to be invested in government bonds or deposited at the Bank of England . This requirement
2418-504: The largest bank in the UK by market share and the second-largest to Midland Bank (now HSBC ) by market capitalisation. Following its acquisition of HBOS in January 2009, Lloyds TSB Group was renamed Lloyds Banking Group . In 2009, following the UK bank rescue package , HM Government took a 43.4% stake in Lloyds Banking Group, which later announced that, in order to comply with European Union state aid requirements, it would spin off
2480-408: The local people in the community. Between 1970 and 1985, the various trustee savings banks in the United Kingdom were amalgamated into a single institution named TSB Group plc , which was floated on the London Stock Exchange . In 1995, the TSB merged with Lloyds Bank to form Lloyds TSB , at that point the largest bank in the UK by market share and the second-largest (to HSBC , which had taken over
2542-489: The movement at that time was £105,000 per week compared with £5 million in 1943. According to a parliamentary answer, in 1950 there were about 185,000 local National Savings groups with a membership of about 7,000,000. The amount of small savings invested was over £6,100 million. The Trustee Savings Banks funds had reached £1,000 million. On 30 March 1966, a ceremony was held at the London Guildhall to celebrate
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2604-486: The movement including leaflets, membership certificates, posters in the popular styles of the period, savings stamps and enamel badges awarded to members for long service. Trustee Savings Bank The Trustee Savings Bank ( TSB ) was a British financial institution that operated between 1810 and 1995 when it was merged with Lloyds Bank . Trustee savings banks originated to accept savings deposits from those with moderate means. Their shares were not traded on
2666-511: The movement into a more general money management service had failed because of a lack of financial support from the government and the banking industry. The movement was particularly active during wartime, when government spending was heightened. During World War II a War Savings Campaign was set up by the War Office to support the war effort. Local savings weeks were held which were promoted with posters with titles such as "Lend to Defend
2728-673: The need to respond to changing customer needs. However some individual TSBs had grown faster than others. The assets of the Scottish TSBs, traditionally the strongest members of the TSB movement, had been growing more slowly than those in Lancashire , Yorkshire , the Midlands , Wales and the West Country , which had built up enviable reserves and were anxious to protect their territories. London and southern England remained
2790-492: The network down to 220 branches. In 2022, the bank was fined £48.65 million for the poor migration process. In 2023, the Prudential Regulation Authority personally fined Carlos Abarca £81,000 for his part in the debacle. He had been the chief information officer at the TSB at the time. The fine was reduced from £116,600 after he agreed to settle the matter. TSB's logo is similar to the logo of
2852-512: The only independent such bank in the UK until it announced its closure in 2017. In 1984, TSB adopted an advertising slogan by which it is still generally remembered today: "The Bank That Likes To Say Yes". In 1986, the Central Trustee Savings Bank Limited was renamed TSB England and Wales plc and Trustee Savings Bank plc was renamed TSB Scotland plc. In 1986, the shares of TSB Group plc were floated on
2914-578: The remainder of Lloyds TSB was renamed to Lloyds Bank. TSB Bank (United Kingdom) TSB Bank plc is a British retail and commercial bank based in Edinburgh , Scotland. It has been a subsidiary of Sabadell Group since 2015. As of 2022 , TSB Bank operates a network of 220 branches. TSB was launched on 9 September 2013. Its headquarters are located in Edinburgh , Scotland, and it has more than five million customers with over £37 billion of lending and £36 billion of customer deposits. The bank
2976-480: The retail bank market. By 1919 the sum of cash and assets held on deposit for all the TSBs reached £100 million, which rose to £162 million in 1929 and £292 million in 1939. From the 1970s the Irish trustee savings banks followed a similar path of amalgamation to their UK counterparts, becoming, in 1992, a single entity; this was purchased by Irish Life and Permanent in 2002. Together, the TSBs were as big as any of
3038-440: The same time, TSB Bank Scotland absorbed Lloyds' three Scottish branches becoming Lloyds TSB Scotland. In 1986, the legal entity, Trustee Savings Bank, was renamed TSB Scotland (and, in 1989, TSB Bank Scotland), before becoming Lloyds TSB Scotland in 1999. This company was re-registered under the name TSB Bank in 2013. The parent, TSB Banking Group, was registered in England in 2014 and later that year TSB Bank ceased to be part of
3100-520: The savings banks would remain a secure alternative for their deposits and, by standardising general interest rates and regulations, to make it possible for local trustees to work autonomously. By the early 1960s transactions at retail counters were increasing at around 5% per annum. In 1964 the London Trustee Savings Bank was the first to computerise standing orders, and all account records were put on computer by 1967 – this being
3162-404: The shares started on 25 June 2014. A further 11.5% of TSB Banking Group shares were sold by Lloyds Banking Group in September 2014, bringing its share holding down to 50%. According to Lloyds' chief executive, António Horta-Osório , the separation cost £1 billion more to perform than the new bank is worth. On 12 March 2015, TSB confirmed a takeover bid by Sabadell for £1.7 billion, less than
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#17327808014623224-426: The small business banking market, and introducing cardless emergency cash and mobile payments. Sabadell also confirmed that the TSB name would be retained, as the group felt it was a "very powerful" brand with "traction" in the UK, unlike the parent brand, which is "virtually unknown". TSB's banking platform, which had used that of Lloyds Banking Group, was migrated to a UK-based replica of Sabadell's Proteo platform by
3286-540: The south of England and Wales accounted for 27%, those in Scotland for 19% and those in Northern Ireland for less than 5%. Geographical location of the 1,655 trustee savings bank branches was also unevenly distributed, with branch density higher in parts of Scotland and the north of England. In 1978 there was one savings bank branch per 18,000 persons in Scotland, but only one per 75,000 persons in London. There
3348-522: The south of England for a short time, and it had been proven successful in helping to settle transactions between different savings banks and in improving the service to clients (particularly when on holiday within the UK). Also in 1955, increased competition for deposits (and most notably the growing popularity of hire purchase ) led to calls for the Trustee Savings Banks Association to ask the Exchequer and
3410-754: The stock market and the proceeds given to the bank, adding to the ownership equity – a process described by one commentator as "selling people a gold box in such a way that when they opened it they found the purchase price inside". The original holding company, Trustee Savings Banks (Holdings) Limited, continued to be registered at Companies House under that name until 2013. The newly formed TSB Group's retail banking operations were consolidated into TSB England and Wales, TSB Scotland, TSB Northern Ireland and TSB Channel Islands, each trading as TSB Bank. In 1989, TSB England and Wales officially became TSB Bank, with TSB Bank Scotland and TSB Bank Northern Ireland becoming its subsidiary undertakings. The Northern Irish business
3472-598: The transaction, citing the economic environment and increasing regulatory requirements in the financial sector. TSB Bank plc began operating as a separate business within Lloyds Banking Group on 9 September 2013, with the intention of selling it off through an initial public offering . Lloyds Banking Group announced that 25% of TSB's shares would be floated on 24 June 2014, but, with the offer being ten-times oversubscribed, 38.5% of shares in TSB Banking Group, were sold at 260p on 20 June. Unconditional trading in
3534-445: Was "on its knees" with the bank's computers continuing to have "a capacity issue" that was preventing about one million customers having access to online banking services. Two weeks after commencement of the migration, failures were still being reported with services such as the online banking application giving internal SQL database -related errors. Payment difficulties, particularly with business and mortgage accounts continued into
3596-555: Was a similar pattern for individual accounts, with two out of five persons in Scotland having an account at a trustee savings bank, one out of five in the north of England, but only one out of twenty in London and the Home Counties. In 1973 at the time of the report by the Page Committee , there were still 73 TSBs and 1,549 branch offices. Eight years had passed since the introduction of cheque accounts. The TSBs sensed
3658-410: Was extended to Scottish savings banks in 1835. From then on, regulation of savings banks in the UK was quite detailed, with several periods of "ill-health" and lack of trust in their capacity resulting in government intervention in most aspects of the operation and day-to-day management of savings banks, particularly the nature of their investment portfolios. An essential feature of a savings bank in
3720-544: Was formed from the existing business of Lloyds TSB Scotland plc, into which a number of Lloyds TSB branches in England and Wales and all branches of Cheltenham & Gloucester were transferred, and renamed TSB Bank plc. A European Commission ruling that the British government's 2009 purchase of a 43% stake in Lloyds Banking Group counted as state aid made it necessary for Lloyds Banking Group to sell
3782-516: Was sold to Allied Irish Banks in 1991 (trading as First Trust Bank until 2019) and the Channel Islands business was integrated into TSB Bank in 1992. TSB Group merged with Lloyds Bank in 1995 to form Lloyds TSB . The merger was structured as a reverse takeover by TSB; Lloyds Bank plc was delisted from the London Stock Exchange and TSB Group plc was renamed Lloyds TSB Group plc on 28 December, with former Lloyds Bank shareholders owning
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#17327808014623844-602: Was voiced by Patrick Stewart . On its formation in September 2013, TSB Bank plc had: The bank offers a full range of personal and business banking and financial services, including current accounts , mortgages , credit products, insurance, and savings products. TSB Bank is authorised by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority. It
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