A PENSIONER who found a long-forgotten National Savings bank book under his stairs says he is happy, even though the Post Office dashed any hopes of a big pay out.

Les Littlefield, 84, was clearing out some old papers at his home in Lake House Road, Wanstead.

While the retired printing engineer was rummaging through a dusty suitcase he had stashed under his stairs, he found a yellowing Post Office National Savings Book.

He said: “As you get older you get forgetful and it was only when I saw the book that I remembered the account at all.

“I opened it with a £3 gift which was sent to me by the printing company I was working for back in 1945.

“I put another £3 in 1946 and again in 1947, by which time I had earned one and six in interest.”

By 1961 Mr Littlefield had £66 three shillings and tuppence in the account, which is when he forgot about it.

He said: “I was telling a friend about it and he said I should do something because it might have earned a fair bit of interest since 1961.”

Mr Littlefield sent his book off to the Post Office and received a letter back a few weeks later with the old savings book and a cheque for £229.31p enclosed.

He said: “Apparently the type of account I had closed a while ago.

“It baffles me how they came up with the amount they did.

“I read the letter they sent me, but I couldn’t really make head nor tail of it and I just threw it away.”

Accounting for inflation, Mr Littlefield’s cash would now be worth £1,200.77p.

Deputy Editor of Shares magazine, Simon Keane told the Guardian that Mr Littlefield's money would be worth £14,339.97 if he’d invested it in the FTSE All Share Index when it came into existence in 1962 and reinvested the dividends.

He added: "It may be notorious for losing letters but on this occasion the Post Office appears to have totally lost the purchasing power of Mr Littlefield's hard-earned savings."

Mr Littlefield could also have achieved an instant return in 1961, if he’d fancied a flutter, by putting his money on that year's derby winner Psidium, which at odds of 66/1 would have netted him £4,356.

But he says is not disappointed.

And he added: “I’m very happy with the cheque really.

“I have transferred it to premium bonds because I fancy a bit of a gamble.”

The Guardian has asked the Post Office to explain their calculations.