BANK RATES

Gisborne Times, Volume LXV, Issue 10392, 9 May 1927, Page 4

BANK RATES

FIXED DEPOSITS INTEREST RATES INCREASED BY ONE HALF PER CENT. OVERDRAFTS ADVANCED TO 7 PER CENT. WELLINGTON, May 7. The banks in New Zealand have decided as from May 9 to increase tho rate of interest allowed on fixed deposits by \ per cent. The following new rates will operate as from Monday: For fixed periods between six and twelve months, 4 per cent., 12 to 24 months, 4| per cent; 24 months, 5 per cent. The step has Keen taken for the reason that the adverse course of the trade of the Dominion necessitates the attraction of a larger volume of deposits. The ratio to be fixed on Monday next will bring New Zealand hanks into line with the Australian, where for some years past fixed deposit rates have been 4j- per cent, for 12 months, and 5 per cent, for 24 months. For the convenience of depositors money will lie received by the banks for odd periods between three and six months, at the x-ates ruling for three months’ deposit, and similarly .between other periods. With the advance in deposit rates there will necessarily lie an advance in tho rates of overdrafts, which were 6”- per cent., but will, as from Monday, rule at 7 per cent, for the best of accounts. As from Monday also rates for transfers of moneys to London will be increased by 7s 6d per cent., with corresponding decreases in the bill Huying rate. Rates will be as follows : Buying demand, 12s 6d discount; three days sight, 14s 6d discount; 30 days, 22s 6d discount; GO days,. 32s 6d discount; 90 days, 42s 6d discount; selling rate on telegraphic transfers, 12s 6d premium; demand 2s 6d premium; 30 days 03 discount; 60 days, 12s 6d discount; 90 days 20s discount.