UK Post Office re-introduce saving stamps
The Post Office will revive saving stamps in the latest sign of its determination to cut losses by revamping its product range and expanding in the financial services market.
The stamps can be used to pay bills and buy Post Office services and are aimed at low income customers including students, single parents and pensioners.
Saving stamps were widely used as a way of saving and budgeting in the past, but were withdrawn in 1976 as customers embraced modern retail banking. The Post Office said that many customers remembered the stamps fondly and had recently been calling for their return.
The new stamps will work the same way as the old scheme, the Post Office said. Each stamp is bought for Pounds 5 and stuck in a savings book, to be used for bill payments or to buy any Post Office product or service. To encourage saving, the stamps cannot be converted back to cash, but they can be used to buy foreign currency.
More than 20m people struggle to meet regular household bills, according to Post Office research.
Utilities companies are in favour of the scheme as a way to cut late and non-payments. “We think this is an excellent development to help customers manage their household bills,” said John Gunter, customer services director at Powergen, the gas and electricity company.
The Post Office already sells personal loans and car insurance through its joint venture with Bank of Ireland. In October it will launch branded home insurance, followed by Isas next February and a credit card in April.
