Savers may miss out on the chance to buy Premium Bonds and other tax-free investments in an independent Scotland.
More than 1.6 million Scots hold Premium Bonds, ISAs and Bonds with the Treasury-backed National Savings and Investment (NS&I).
The UK Government has claimed a Yes vote would make NS&I products “more difficult to access or ultimately unavailable for consumers in Scotland”.
And last week’s White Paper revealed that creating a Scottish version of the savings body is “unlikely to be an early priority” for an independent Scotland.
This means that unless a deal was struck in any post-Yes vote negotiations, Scots could be unable to buy any more Premium Bonds and other savings products for the foreseeable future.
Existing NS&I products held by savers would be unaffected.
Labour MP Cathy Jamieson, Shadow Treasury Minister, said: “The millions of people in Scotland who take advantage of Premium Bonds value them dearly.
“This shows that leaving the UK would have an enormous impact on many aspects of our lives.
“With the nationalists only offering up a wish list as their justification for leaving the UK, why on earth would we take that risk?”
NS&I customers in Scotland have a total of £5.5 billion saved in its products, with the UK Government using the money people invest in the likes of Premium Bonds to help finance its borrowing needs.
The Sunday Post asked Scottish Government officials what would happen to NS&I in the event of a Yes vote.
Officials referred us to a section of the White Paper where it states: “Independent Scottish Governments would have the option of borrowing from Scottish citizens and others through a Scottish national savings and investment function.
“However, with the low rates of interest prevailing in the sovereign markets, this is unlikely to be an early priority.”
The paper goes on to say an independent Scottish Government would be able to meet its borrowing needs from other countries which issue sovereign bonds.
A UK Government paper points out NS&I is a UK Government department and its products can only be bought using a using a UK bank or building society account.
“NS&I are UK specific products that would either be more difficult to access or ultimately unavailable for consumers in Scotland in the event of independence,” the paper claims.
If there is a Yes vote and there is no rush to set up a replacement savings body north of the Border, SNP ministers would have to strike a deal with Westminster for customers to continue buying NS&I products.
However, this would see Scots money flowing out of the country with no benefit for a fledgling independent Scottish Government.
William George, a financial advisor with IFS Wealth Management, said: “The popularity of NS&I products increases during times of financial insecurity. People feel they are a safer bet as they are backed by the Government.
“We have a big problem with people not saving enough, so anything that would take savings choices away would be a bad thing.”
Meanwhile, top investment firm, Hargreaves Lansdown, has warned a Yes vote will put up the cost of privately-held pensions and ISAs.
Tom McPhail, head of pensions research at the firm, said: “Every bank, insurance company, financial adviser and investment manager north and south of the border will have to invest huge sums of money in running duplicate systems and training their employees to deal with two different regimes.
“If a customer wants to know what rate of pension tax relief they’re entitled to, the answer will depend on whether they live in Carlisle or up the road in Dumfries.”
“A Yes vote would mean poorer returns in the future on ISAs and pensions due to higher administration costs.”
Owen Kelly, Chief Executive of Scottish Financial Enterprise, added: “The important questions, on currency, EU membership, UK single market, regulation and transition remain, as answers depend on agreement of the UK, EU and others.”
Finance Secretary John Swinney insisted Scotland’s financial services industry would thrive, pointing to the world renowned expertise the sector has.
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