Two-Year Investment Account In Use

Press, Volume CX, Issue 32392, 3 September 1970, Page 15

Two-Year Investment Account In Use

(N.Z. Press Association) WELLINGTON, Sept. 2. The Post Office Savings Bank, trustee Savings banks, and private savings banks are now operating the two-year-investment account announced in the Budget. The Minister of Finance Mr Muldoon) said yesterday that this provides an important new avenue of savings.

The new account is aimed at those who wish to invest $2OO or more which is not required for two years. Interest will be paid on investments in these new accounts at .the end of each two-year term at 5 per cent per annum, compounded over the two years.

Should deposits in this new account need to be withdrawn before the expiry of a two-year term then the interest rates that will be paid are:— On deposits for any period not exceeding 30 days, nil; on deposits for any period exceeding 30 days but less than 12 months, 2i per cent per annum; on deposits for any period of not less than 12 months but less than 24 months, 3 per cent per annum; on deposits for any period of 24 months and each subsequent period of 24

! months or less, 5 per cent per annum in respect of the first and each subsequent 24-monthly period of deposit, and 3 per cent per annum in respect of money withdrawn before the expiration of the second or any subsequent 24-monthly period of deposit The trustee savings banks will introduce the new account at interest-bearing limit of $4OOO. The Post Office Savings Bank and the private savings banks can offer a $6OOO interest-bearing limit on the new account

“It is the Government's intention as soon as possible to pass legislation which will raise the interest-bearing limit for trustee savings banks from $4OOO to $6OOO for the new investment account, and also for the existing one-year investment account ordinary accounts, thrift club accounts, and home lay-by accounts with the trustee savings banks,” Mr Muldoon said. “The banks are ready to implement these proposals in spite of Labour Party statements to the contrary, and the Government must now consider how and when a new bill to provide the trustee banks with $6OOO account limits can be passed through the House.”