BANK RATES

Evening Star, Issue 19550, 7 May 1927, Page 9

BANK RATES

NEW RATIOS INTO OPERATION ON MONDAY. [Pea United Press Association.] WELLINGTON, May 7. The banks trading in New Zealand have decided, as from May 9, to increase the rate of interest allowed on fixed deposits by J per cent. The following new rates will operate as from Monday for fixed periods:—Between three and six months, 3J per cent,; six. and twelve months, 4 per cent.; twelve and twenty-four months, 4J per cent.; twenty-four months, 5 per cent. This step has been taken for the reason that the adverse course of trade of the dominion necessitates the attraction of a larger volume of deposits. The ratio to be fixed on Monday next will bring the New Zealand banks into line with Australian banks, where for some years past the fixed deposit rates •* have been 4-J per cent. for twelve months, and 5 per cent, for twenty-four months. For the convenience of depositors money will be received by the banks for broken periods between three and six months at the rates ruling for three months’ deposits, and similarly between other periods. With an advance in deposit rates there will necessarily be an advance in rates on overdrafts, which were 6J per cent., hut will as from Monday rule at 7 per cent, for the best of accounts. As from Monday, also, the rates for transfers of money to London will be increased by 7s 6d per cent, with corresponding decreases in the bill buying rate. The rates will be as follow:—Buying demand, 12s 6d discount; three days’ sight, 14s _6d discount; thirty days, 22s 6d discount; sixty days, 32s 6d discount, ninety days. 42s 6d discount; selling rate telegraphic transfers, 12s 6d, premium demand 2s 6d; premium thirty days, 5s discount; sixty days, 12s 6d discount; ninety days, 20s discount.