BANKING ACCOUNTS

Dominion, Volume 28, Issue 119, 13 February 1935, Page 10

BANKING ACCOUNTS

Reduction in Charge

The associated banks In New Zealand announce a reduction of the charge for keeping current accounts from 10/- to 5/- p<‘i half-year to come into effect after March 31. The chairman of the associated banks says this reduction is being made by them as an earnest of their endeavour to assist the commercial and farming community generally, although since October 1. 1-930, when the charge was increased from 5/- to 10/- per half-year, the banks have been subject to material reductions in their ordinary revenue through various causes, and the note tax is still payable upon all their notes in circulation.

It would be recalled that when the bank-note tax. still being paid by the banks, was increased from 3 per cent. t<o 4J per cent., on October 1. 1930. the associated banks announced that an increase in their charge for keeping accounts Would thereby be rendered necessary, and that as soon as the note tax was reduced the charge for keeping accounts would also be reduced. The note tax. however, had been neither reduced nor removed, but tdie note issue having recently been taken over bv the Reserve Bank had naturally brought about a steady decline in the volume of notes issued by the trading banks and still in circulation.