Canterbury Savings Bank

Press, Volume CIX, Issue 32119, 15 October 1969, Page 14

Canterbury Savings Bank

Sir,—ln an advertisement in your Monday edition the Canterbury Savings Bank states that the bank can compound interest on the 41 per cent investment account. This is not a statement of fact. All investment accounts are controlled by the Treasury, and the individual banks are in effect acting as agents only. The only way interest can be compounded in this type of account is by depositing the interest earned by the investment account into an ordinary savings account where the 3 per cent can be compounded. AU savings institutions are controlled by the same set of Treasury Instructions and there are no special conditions for the Canterbury Savings Bank.—Yours, etc., O. R. HADDOCK., j- October 7, 1969. j [The general manager of

the Canterbury Savings Bank (Mr F. Dickson) replies: “Your correspondent has taken the necessarily abbreviated caption of the advertisement too literally. He is not correct when he states that interest on an invest- < ment account can be compounded only in an ordinary 3 per cent account The effect of compound interest on an investment account is already achieved by many people who close their investment account when the interest is added each year and immediately open another, still in a multiple of $2O. Remaining interest, if any, from the invest-

ment account is then deposited in an ordinary account”]