NATIONAL Savings & Investments is ceasing operations with Guernsey Post. From 1 February 2007, customers will no longer be able to carry out transactions at local post offices.

Guernsey Post head of retail services Jason Baker said it was not a decision that it had made but was due to changes made by NS&I.

‘It is regrettable that NS&I customers will be inconvenienced, but unfortunately it is out of our hands,’ he said.

‘NS&I are updating their electronic links with UK post offices and at this time are unable to extend this facility to the Bailiwick of Guernsey, or indeed Jersey or the Isle of Man.’

When the changes are introduced next year, customers will have to post cheque deposits to NS&I in the UK.

‘NS&I will send money by crossed warrant, which can be paid into your bank or building society account,’ said Mr Baker.

A spokesman for NS&I said that the new automated payment system that the UK post office used was not compatible with those of Jersey and Guernsey.

‘It was a decision we had to take to improve customer services for most customers and it’s unfortunate that does exclude Channel Island clients – it’s not something that will last forever.

‘The new system is not compatible with the technology of the systems in use in the UK and we are currently looking to find a system that is compatible. We are aware though that there are groups of customers who are inconvenienced and in this case, the decision we took will place a temporary disadvantage for customers in the CI.’

Monthly deposits can still be made by standing order as well as the cheque deposits.