Further details about sectoral deposits and Divisia money data

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Availability

Data are available quarterly from 1977 Q1 and monthly from September 1997. With the exception of rates of return, all components are seasonally adjusted. Levels are non break-adjusted whereas flows are break-adjusted. 

We usually publish data on the twenty-first working day following the end of the reporting period in Sectoral deposits and Divisia money (Table A6.1). 

Non seasonally adjusted monthly data of the amounts outstanding and changes in the Divisia Money components are also available via the Database.

Sources

The sources for Divisia are the same as those for the ‘Sectoral analysis of M4 and M4 lending’: 

UK-resident banks

A sample of UK-resident banks report data directly to us on Form BE. Banks with private-sector holdings (Form BT items £2H and £3H or £29D) in excess of £1 billion report data on a monthly basis. All data are reported in sterling, with foreign currency data converted to sterling at the middle spot sterling exchange rate at 4pm on the last working day of the month.

UK-resident building societies

Since January 2008, data from building societies have been collected on the same basis as for UK-resident banks, on the Forms BT and BE on a monthly basis (see Statistics article ‘Transition of building society statistical reporting’). Before this, data for building societies were collected by the Financial Services Authority. These figures were based on a sample of societies, which were grossed up to achieve full coverage of the building society population in the published data.  

All data are subject to revision if and when new information becomes available. For more information on revisions practices see further details about revisions.

Definitions

Since February 2005, the data series for Divisia money have been calculated using a method described in the Statistics article ‘A new measure of Divisia money’.

In January 2010, the presentation of Divisia money series components split by banks and building societies was discontinued and changed to show the split by banks excluding mutuals (non-mutually owned monetary financial institutions) and mutuals (mutually owned monetary financial institutions). This was described in the article ‘Changes to the publication of bank and building societies’ statistics’.

Since December 2013, Divisia money series have been available for total monetary financial institutions (MFIs) following a change to the publication of data for mutually owned MFIs. This was described in the article ‘Changes to publication of data for mutually owned monetary financial institutions’. 

Definitions of the sectors can be found under definitions for 'Sectoral analysis of M4 and M4 lending’ (Table A4).

Notes and coin

This consists of sterling notes and coin in circulation outside the Bank of England. The sectoral holdings of sterling notes and coin in circulation are based on an estimated distribution of the known private sector holdings.

The Bank of England implemented a revised method of estimating Other Financial Corporations’ holdings of sterling notes and coins, which took effect from September 2019 data.

Non-interest-bearing deposit

Since January 2008, non-interest-bearing deposits at building societies have been included in this series. Previously, only non-interest-bearing deposits at banks were included.

This series consists of credit balances on customers’ accounts where interest is not payable

Interest-bearing sight deposits 

This series consists of credit balances on customers’ accounts where the entire balance is accessible without penalty, either on demand or by close of business on the day following that on which the deposit was made, and where interest is payable. 

Interest-bearing time deposits

Those deposits where part of the balance is not accessible without penalty, either on demand or by close of business on the day following that on which the deposit was made, and where interest is payable.

Interest-bearing building society deposits

From 1999 to December 2007 inclusive, building society household sector deposits were broken down into ‘instant access’ and ‘notice and term’ deposits. Before 1999, there was only one household sector deposits component.

Building society instant access deposits

Building society notice and term deposits

Building society notice accounts required a notice period of between 8 and 90 days to withdraw funds without penalty, or were accounts from which immediate withdrawals can be made at a penalty of at least one month’s interest. Term accounts were those accounts that required investment for a fixed term during which no withdrawals could be made, or from which withdrawals were only permitted by giving at least three months’ notice.

Tax-exempt special savings accounts (TESSAs)

Until April 2004, TESSAs were treated as a separate component of Divisia with its own rate of return. Bank time deposits and building society notice and term deposits held by the household sector were adjusted for the availability of TESSAs by subtracting the respective published levels of TESSAs from these components. Proceeds from maturing TESSAs deposited in TESSA-only ISAs (TOISAs) were captured within the ISAs component.

It has not possible to open new TESSA accounts since April 1999, though deposits continued to be made until these accounts matured five years after opening. Therefore, there have been no deposits recorded in TESSA accounts since April 2004.

Individual savings accounts (ISAs)

Since January 2008, time deposits held by the household sector at monetary and financial institutions have been adjusted for ISAs by subtracting the respective published levels of ISAs from these components.

Between the introduction of ISAs in 1999 Q2 and the end of 2007, bank time deposits and building societies’ instant-access deposits held by the household sector were adjusted for ISAs by subtracting the respective published levels of ISAs from these components.

Rates of return

Household sector

Since January 2008, rates of return on deposits held with all monetary financial institutions by the household sector are effective interest rates (For more information on Effective interest rates revisionspractices see further details about revisions). Before January 2008, this only applied to banks, as data for building societies were weighted averages of gross interest rates received by savers, derived from a monthly return of all building societies provided by the Financial Services Authority (FSA). Before January 1999, rates of return on deposits with banks were averages of quoted rates. Quarterly rates are calculated as averages of monthly rates. Interest rates for household sector time deposits exclude rates on tax-exempt special savings accounts (TESSAs) and cash ISAs.

Corporate sector

Since January 2008, rates of return on deposits held with all monetary financial institutions by the corporate sector have been effective interest rates (For more information on Effective interest rates revisionspractices see further details about revisions). Before January 2008, this only applied to banks, while rates of return on deposits by the corporate sector held with building societies are assumed to be similar to the rates on time deposits by the corporate sector held with banks. Before January 1999, rates of return on deposits with banks were averages of quoted rates. Quarterly rates are calculated as averages of monthly rates.

Cash ISA (and TESSA) rates

Since January 2011, rates of return on ISAs held with banks and building societies have been effective interest rates. For further details, see Statistics article ‘Amendments to Divisia money series’. Before January 2011, rates of return were averages of quoted rates.

Benchmark asset

The Divisia index uses an envelope approach, which assumes that, within the household sector and the corporate sector, the benchmark asset is the component of M4 that pays the highest interest rate after tax is taken into consideration.

For more details on the theory behind our Divisia money series, see Statistics articles ‘Divisia measures of money’ and ‘Divisia money’. 

Valuation and breaks

In constructing Divisia, the rates of return, except those on TESSAs and ISAs, are adjusted for tax using:

• the basic rate of income tax rate for interest-bearing household sector deposits
• the corporate tax rate for corporate interest-bearing deposits.

The indices are also adjusted for the changes in the population of the monetary financial institutions (For more information on Total lending to individuals revisionspractices see further details about revisions) by incorporating the relevant break-adjusted flows for sight and time deposits.

Adjustments are also made to take account of the reclassification of the Channel Islands and the Isle of Man as non-resident following the banking statistics review of September 1997. 

Before September 1997, sectoral data for a short period were reported monthly on the Q1(M) form. Before July 1996, sectoral data were reported to us on a quarterly basis only on the Q1 form.

Further information