Depositors' Department
No 2 Department Passbook
Account Types
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.
Subsequently, Birmingham Corporation offered to set up a separate Department of the Bank paying to depositors interest at the rate of 2% per annum and passing the deposits to the National Debt Commissioners, provided that the Government were prepared to allow the Tax concession to depositors in such Department, the Bank to continue to operate under its existing Acts and Regulations with appropriate amendments. That new Department was named the No 2 Department, and a differently coloured passbook was introduced to distinguish it from the existing (and original) savings department - now to be known as the No 1 Department.
The new Department was opened on April 1st 1957, and an example of the passbook that was used is reproduced below.
The passbook shown here was used for an account at Smethwick branch. The account was originally numbered SK 2399 T, but when an all-number system was introduced, this number was amended to 55 - 2 - 2399.
The number was amended again on the computerisation of the Bank's accounts.
The inside front cover of the book has the words 'Continuation Book' noted to show that a previous book was issued for the account.
The next information page details the Interest Rates  and general conditions relating to the two Savings Departments.
Amendments to rates of interest required the insertion of a sticker - as per the example below.
Two pages of hand-entered transactions show monthly credits (marked 'Credit Advice'), withdrawals (marked 'REPAID' with a date stamp), and two payments made by Standing Order on November 10th 1970 (4. 12. 8 each).
The last page of transactions covers the date of Decimalisation and the conversion of the account balance is marked with an appropriate rubber stamp.
Inside rear cover -
one of the last information pages has a pre-printed 'Continuation Passbook Number', a security feature used to monitor and record the issue of replacement and continuation passbooks.
The procedure for replacement and continuation passbooks was specified to branches in Instruction Number 7.
Examples of the front covers of passbooks for accounts in the
No 2 Department
No 1 Department
Rear cover
(No 2 Department passbook obtained by Rob Wilden)
Sticker used when the Rate of Interest was increased
(No 1 Dept)
(No 3 Dept)
Head Office
See also: