B ANKS’ OFFER OF INTEREST

Press, Volume XCVIII, Issue 28823, 18 February 1959, Page 12

B ANKS’ OFFER OF INTEREST

' z ■ ' ' . ■ • Mr Nordmeyer’s Comment

(Now Zealand Press Association) NEW PLYMOUTH. February 17. The action ,of the trading banks in offering depositors the same rates of interest as the Post Office Savings Bank had created a most intriguing situation and one which might have interesting possibilities, the Minister of Finance (Mr Nordmeyer) said at the opening in New Plymouth today of' the annual conference of the Trustee Savings Banks' Association of New Zealand. “For some time the Post Office Savings , Bank has been making preparations for the introduction of a scheme giving to non-profit-making concerns, such as sports clubs and others, the right to make withdrawals by cheque,” Mr Nordmeyer said. “The existing system has many disadvantages, and a cheque system will, I think, be generally regarded as a substantial improvement in the method of . Withdrawing funds, particularly where the signatures of two persons are concerned.

.“I understand that the trading banks have indicated that if this policy is proceeded with the banks will offer to their depositors the same rates of interest as are paid in the Post Office Bank.

‘This ds an interesting development, and one which may have far-reaching-effects on the future of banking practice in this country. There will be many people who will ask the question: ’lf the trading banks can afford to pay interest on money which is at call to the clubs and organisations in question, is there any logical reason why they should not be required to pay for all the call money on which their banking business is based?’ “It is, of Course, too soon to make a final decision on a matter which, as I have said, is likely to have far-reaching effects on banking practice. I shall simply content myself with saying at this stage that the action of the banks has created a most intriguing situation, and one which may have interesting possibilities,” said the Minister.