Rebate Category

Description

Volume of transactions

If the number of transactions fall below a specified minimum level, then a repayment occurs for each transaction below the level. The number of transactions carried out via the Post Office in relation to Ordinary and Investment Accounts are not included in the count for the purposes of calculating any rebate due

New Product Development

The monthly fee includes allowance for a set number of new NS&I products - four in years 1 and 2, two thereafter. If NS&I chooses not to take up the full allocation of new NS&I products then a full rebate of the funds for the unused product(s) becomes due. Similarly if the total costs incurred in developing the products is less than the budgeted allocation for the number of products developed then NS&I get fifty per cent of the savings versus budget

SBS Profit Margin

If the SBS profit margin percentage exceeds the amount specified in the contract then fifty per cent of the excess is returned to NS&I

Accommodation

If SBS makes savings against the agreed accommodation costs then NS&I shares in fifty per cent of the saving. Also, if SBS are able to let surplus space to third parties then NS&I receives 50 per cent of the rent receipts less SBS's letting expenses. In addition if the said rent covers space already charged as part of the fee to NS&I then the proportion of the fee covering the space let by SBS is returned in full

Third party business

For third party business profit that is related to the NS&I activities a proportion (percentage to be agreed at the time) will be shared with NS&I

Severance costs

The agreement specifies target severance numbers and associated costs. NS&I shares 70 per cent of any savings SBS make against the expected total over the first three contract years. This was only assessed at the end of the third contract year and as SBS had not saved any money, NS&I did not receive a rebate