AUCKLAND SAVINGS BANK

Auckland Star, Volume LXIII, Issue 137, 11 June 1932, Page 7

AUCKLAND SAVINGS BANK

NEW INTEREST RATE.

OPINION OF TRUSTEES. POSITION NOT YET CONSIDERED. When giving his personal opinion yesterday on the Government's action in fixing the rates of interest and overdraft for such institutions a3 the Auckland Savings Bank, Mr. H. E. Vaiie remarked that as lie was not in agreement with some of the other trustees on this question he could not speak as president. Other trustees, invited to express their opinion on the efl'ect of the reduction in the rate of interest payable to depositor* in savings, banks, were loath to criticise the remarks of Mr. Vaile, which,' although put forward as his own personal views, wore felt to be inseparable from the position of president. They said that the trustees of the bank, in response ! to a request for an expression of opinion from the authorities, suggested that 4 per cent would be an equitable rate for the payment'of interest to depositors. This was arrived at after taking into consideration the reduced earnings on investments brought about by the stamp duty payable upon Government and local body coupons, and the statutory reduction in.rates of interest on mortgages, which would approximately be £37,500. No announcement could be made regarding any reduction in the rate of interest payable to depositors until the Minister of Finance had come to a decision, and even now the trustees had not yet considered the altered position, but depositors in the Auckland Savings Bank would realise that no advantage could be gained by a transfer of funds to any other institution.