BANK OVERDRAFT

Auckland Star, Volume LXIV, Issue 98, 28 April 1933, Page 8

BANK OVERDRAFT

REDUCED INTEREST. OPERATION ON MONDAY. A XX ACCOUNTS BENEFIT. Confirmatory advice has now been received by the trading banks in Auckland of the operation as from Monday next of the reduction from 6 per cent to 5 per cent in the minimum overdraft rate on best accounts. The alteration, as pointed out earlier this week, is in accordaneo with the agreement arrived at between the banks and the Government at the beginning of the year; but it is not generally known that all accounts, inclusive of "best" accounts, will benefit by the actfon of the banks. All will be afforded some relief, although the measure of it will vary according to the character of the account and in accordance with concessions made since September, 1932. It is authoritatively announced that the basis of the assistance to borrowers will be an all-round reduction of 1 per cent, inclusive of the concessions granted since the date mentioned. In other words, on all accounts at. present carrying a rate of interest higher than the "best" rate, a reduction of 1 per cent will be made on the rates current immediately prior to September 1, 1932 (the date on which the minimum overdraft rate was reduced to 6 per cent), in order that, inclusive of any reductions made since that date, there will be an all-round reduction of 1 per cent.