HIGHER INTEREST.

Auckland Star, Volume LVIII, Issue 107, 9 May 1927, Page 9

HIGHER INTEREST.

FIXED DEPOSITS IN BANKS.

7 PER CENT FOR OVERDRAFTS

CHANGES FROM MONDAY.

(By Telegraph.—Press Association.)

WELLINGTON, this day.

The banks trading in New Zealand have decided as from May 6 to increase the rate of interest allowed on fixed deposits by J per cent. The following new nttes mil operate as from Monday: For fixed periods between three and six months, 3$ percent.? v, !? * Between six and twelve months, 4 per cent. ' }%■ ■" "vv

Between 12 and 24 months, 4J per cent.

Twenty-four months, 5 per cent. This step has been taken for the reason that the adverse course of trade of the Dominion necessitates the attraction of a larger volume of deposits. The ratio to be fixed on Monday next will bring New Zealand banks into line with those in Australia, where for some years past the fixed deposit rates have been 4J per cent for 12 months and 5 per cent for 24 months.

".Ear.,? the convenience of depositors, money will be received by bfcnks for odd periods, fixed fnr broken periods between three and .« the rates ruling for thm months' deposits, and similarly between the other periods.

With the addvanee in the deposit rates there •will necessarily be an addvanee in the rates on overdrafts, which were 6J per cent but will be as from Monday rule at per cent for the best of accounts.

As from Monday also the r7ates for transfers of money to London will be increased by 7/6 per cent, with corresponding decreases in the bill baying rate. The rates will be as follows: Buying: Demand 12/6 per cent discount threee days' sight, 14/6 discount, 30 days, 22/6 discount, 60 days, 32/6 discount, 00 days 42/6 discount; selling: Telegraphic transfers 12/6 premium, demand 2/6 premium, 30 days 5/ discount, 60 days 12/6 discount, 90 days 25/ discount.