P.O. Investment Accounts

Press, Volume CVI, Issue 31304, 25 February 1967, Page 12

P.O. Investment Accounts

Sir,—lnvestments before June, 1966—and some dating from the inception of the scheme —earn only 4 per cent interest up to June, 1967, while those investments from June, 1966, earn 4) per cent. Should not all investments receive this increase from June, 1966? The gross absurdity and injustice can be shown thus: an investor near the end of May, 1966, receives only 4 per cent; an investor two or three days later at the beginning of June receives 4) per cent. Again a person could have withdrawn all his Investments on May 31,1966, and reinvested them on June 1, thereby securing 4) per cent All invested money should received the Increased rate of interest. Perhaps a Post Office official could give some valid reason for the differential rates. 1 think investors before June, 1966, have a real grievance, and I am considering asking the Ombudsman to investi-

gate whether these differences conform to basic justice.—Yours, etc.

February 13, 1967. [The Director-General of the Post Office, Wellington, replies: “The rate of interest for investment accounts is fixed by Government, and it applies equally to accounts with the Post Office, trustee, and private savings banks. In the Budget announcement of June 16, 1966, the interest payable on new investment deposits in Post Office, trustee, and private savings banks was raised from 4 to 4J per cent per annum as from the following day, June 17. It was also stated that the increased rate would apply to existing investment deposits as they fell due for renewal. The Post Office Savings Bank, along with other savings banks, is required to observe these conditions in regard to interest paid on investment accounts.”]