Post Office Savings Bank Service

Press, Volume CIII, Issue 30563, 5 October 1964, Page 13

Post Office Savings Bank Service

Take any 13 New Zealanders, and if they are a typical cross-section of the community, you will find that 10 of them are depositors in the Post Office Savings Bank.

There are 1080 branches of the Post Office Savings Bank throughout the country. An account holder at one can invest or withdraw at any other branch. Identification of signature is all that is required to withdraw up to £2O a week. By forwarding signatures to places a person wishes to visit up to £lOO a week can be withdrawn. This means that travellers need not worry about taking large sums of loose cash. The average account has a credit balance of £lBl. This figure may not seem large, but when multiplied by more than two million investors, it represents high finance. The Post Office Savings Bank is more than a repository for personal savings—it is a major factor in the national economy. As such, each investor has a stake in the country’s progress. On March 31. 1964, the Post Office Sav-

ings Bank had millions invested in Government projects. The majority of Post Office Savings Bank investment is in Government stock, in which it has £237 million. Investments to the extent of £169 million are held in State Advances Corporation stock while a further £2| million is held as securities in London. Government Works Government works require a vast amount of financemore even than it could afford if it had to rely solely on capital resources. In other words, the Post Office Savings Bank is the means by which the Government is able to maintain its programme of providing schools, roads, housing, etc. Without the Post Office Savings Bank and other similar savings institutions, the standard of living in the country would take a downward swing.

It takes more than patriotism to make the man in the

street put his savings to work for the country. Like the wealthiest businessmen, he is keen to see a return on his investment

The Post Office Savings Bank is aware of this and offers an interest rate of 3 per cent on savings up to £lO,OOO. The 3 per cent is compound, so that if it is not immediately withdrawn, it too earns interest. Thrift Clubs The need for regular savings is the key to advancement for the small investor. It is possible to have an account with the Post Office Savings Bank without visiting the Post Office. The thrift club account ,is the best way to save regularly and painlessly. At most businesses, pay clerks hold thrift club books. An authority to deduct a set amount from the pay packet before receiving it, is all that is required. Thrift club accounts also earn 3 per cent interest.

Home ownership is a field in which the bank plays an important role. For people saving singly or jointly towards a home, the Post Office Savings Bank provides home lay-by accounts. In addition to the usual 3 per cent interest a bonus of £5 is paid for every £lOO saved towards building or buying a new home with a maximum bonus of £5O.

Special purpose accounts cover a wide range to include national savings, school savings, and college thrift club. A popular account is the Post Office Savings Bank investment account. This is particularly attractive for short-term or smaller investors, although deposits will be accepted up to £lO,OOO. For each completed year, private persons, businesses, clubs or societies can earn 4 per cent. The minimum investment is £lOO. Money is “on call” at any time, making such an account a sound proposition. Deposits not withdrawn are re-invested automatically. This eliminates the need to keep track. of maturing investments.