Banks To Pay Interest On Non-Profit Societies Accounts (New Zealand Press Association)

Press, Volume XCVIII, Issue 28820, 14 February 1959, Page 14

Banks To Pay Interest On Non-Profit Societies Accounts (New Zealand Press Association)

WELLINGTON, February 13. Trading banks and the Post Office Savings Bank from the beginning of next month will offer to pay interest for the first time on accounts held by non-com-mercia) organisations. The Postmaster-General (Mr Moohan) announced yesterday that the Post Office Savings Bank cheque account scheme for noncommercial organisations would come into force on March 2.

Today Mr R. D. Moore, chairman of the Associated Banks, announced that from March 1 trading banks would be allowing interest on monthly current account balances of certain nonprofit societies and organisations of a charitable nature.

The trading banks had been in close touch with the Post Office Savings Bank for some time over the scheme, said Mr Moore, when asked if there was any suggestion of a “war” between the trading banks and the Post Office Savings Bank.

Mr Moore said the accounts affected would be notified of the change before the end of the month. The rates of interest would be 3 per cent, up to £lOOO and 2J per cent, from £lOOl to

£7500. Accounts participating in this arrangement would from April 1 be exempted from the bank charge of 10s.

The Post Office scheme wilJ allow the organisations concerned to keep their money earning ordinary post office interest rates (3 per cent, on the first £ 1000 and 2} per cent, on the balance up to £7500) while at the same time benefiting from being able to operate on their accounts with a cheque book.