HOME LAY-BY ACCOUNTS

Press, Volume XCV, Issue 28179, 18 January 1957, Page 7

HOME LAY-BY ACCOUNTS

Inaugural Date

Not Yet Fixed

A few inquiries have been made at the Christchurch Post Office Savings Bank about home lay-by accounts, but so far no official date has been set for the inauguration of the scheme. Provision for the accounts was made in the Post and Telegraph Amendment Act passed in the House of Representatives in October. Special forms and passbooks have to be printed. It is expected that the inaugural date will be the subject of a national announcement and advertising. It should not be long before such an announcement. because the Government earlier said it hoped that accounts would be opened early this year. The scheme provides for a subsidy of £5 for every complete £lOO deposited to be credited to every account, up to a limit of £5O. Not more than £250 in each year will earn the subsidy, but there is no limit on the amount deposited. Withdrawals When a withdrawal is made to build or buv a house, the subsidy, known as the suspensory free deposit. for the time being accumulated in an account will be paid to the depositor.

If a withdrawal is made from a home lay-by account to purchase land on which to build a house, the suspensory free deposits will not be payable, but will be included in the amount remaining to the credit of the home lay-by account for use when money is withdrawn to build on the land.

A man and a woman may both open a lay-by account and both draw suspensory free deposits for the same house if it is for their joint occupancy.

Withdrawals for other purposes mean that the amount of the suspensory free deposit will be automatically reduced to accord with the sum remaining in the account.

Suspensory free deposits will not carry interest, nor will they be treated as income when paid. Deposits in a home lay-by account will otherwise be treated as an ordinary Post Office Savings Bank account and earn interest.