Cheque facilities urged

Press, Volume CXII, Issue 32848, 23 February 1972, Page 3

Cheque facilities urged

(N.Z. Press Association)

ROTORUA, Feb. 22

A claim that trustee savings banks should have the right to decide whether they offer cheque facilities was made at the annual conference of the Associated Trustee Savings Banks, in Rotorua this morning.

The president (Mr S. L. Moses) said research had showed beyond doubt that trustee savings bank depositors wanted this service. “It has also been established that this facility can be given by most banks without significantly detrimental effects on the cost structure,” said Mr Moses. “In the light of these facts and provided liquidity provisions are made i adequate, there appears to be

no reason any longer to deny this service to customers.” Mr Moses spoke about the implementation of other new and extended services within trustee savings banks. DEPOSIT LIMITS

“Almost two years ago the limit of interest-bearing deposits which trustee banks could accept was raised from $4OOO to $6lOO. This improve-

ment was gratefully, accepted, but there appears to be no justification for any limit at all. and certainly not for a limit lower than the Post Office Savings Bank’s $20,000.” said Mr Moses. : ' “If the trustee banks can attract larger sums than at present, what logic is there in preventing them from doing so? It is certainly no answer to sav they are unable to open multiple' accounts. These incur unnecessary additional administrative costs' for no real purpose.” The last Budget had

noted that the Government placed importance on increasing savings. TAX EXEMPTIONS “To provide meaningful in-j centives for trustee bank depositors, I strongly suggest that the first $3OO of savings bank interest should be tax free; “In addition to existing exemptions, sums invested in any account in a savings bank,-up to $lO,OOO in the aggregate, and having, been on deposit for at least one year, should rate as part of ah estate for death duty purposes. where the beneficiaries in the estate, insofar as the funds from the savings bank account are concerned, come within the definition of immediate familv. “To enable trustee banks further to assist their customers. thev should be authorised. with adequate safeguards. to operate a system of pass book loans,” said Mt Moses. j