INTEREST RATES.

Press, Volume LXVIII, Issue 20647, 9 September 1932, Page 10

INTEREST RATES.

DEPOSITS WITH TBADING COMPANIES. MAXIMUM AMOUNTS FIXED. [THE PRESS Special B«Tie».l WELLINGTON, September 8. An Order-in-Council in to-day's Gazette fixes the following maximum rates of interest payable on deposits accepted by trading companies other than stock and station agents on or after October Ist next:— Per cent. At call or for less than three months . • • • • • »3 J Three months and up to six months 4 Six months and up to twelve months • • • • . • 4 J One year and up to two years .. 4 J Two yea?s and over .. .. o These rates apply only to moneys dcposited between October Ist next and March 31st, 1935, and to deposits renewed during this period. Interest on existing deposits is not affected in connexion with deposits renewed between October Ist and March 31st next. Trading companies, however, have the option of renewing at the appropriate rate shown above or at a rate one-half per cunt, per annum lower than that payable on such deposits before renewal. A trading company, as defined in Part 6 of the National Expenditure Adjustment Act, 1932, includes all persons, firms, and businesses holding moneys on deposit, but not building and investment societies and companies. Prime Minister's Comment, In commenting on the Order-in-Coun-cil, the Acting-Minister for Finance (Rt. Hon. G. W, Forbes) said that as part of the Government's programme for reducing fixed charges provision was made in Parts 5 and 6 of the National Expenditure Adjustment Act for fixing the maximum deposit rates for different institutions. The maximum rates of interest payable by building and investment societies and ,stock and station "agents were prescribed by Order-in-Council gazetted on June 9th, 1982, but as sufficient information i>3lating to deposits held by general trading companies was not then available further action was deferred until tho quarterly returns required in accordance with the provisions of the Aet had come to hand and were analysed. The maximum interest rates now prescribed for general trading companies are the same as those previously gazetted for stock and station agents," Mr Forbes said. "Both are one-half per cent, per annum higher than the maximum rates allowed on deposits with building and investment societies, and one per cent, more than the present, bank rates for fixed deposits.'' j