CHRISTMAS MONEY

New Zealand Herald, Volume LXXV, Issue 23213, 6 December 1938, Page 12

CHRISTMAS MONEY

SAYINGS BANKS BUSY HOLIDAY WITHDRAWALS SEASONAL FLOW STARTING For savings banks tho busiest time of the year is now beginning. A largo section of the community obtains the money needed for Christmas presonts, holidays and tho numerous other expenses of this season of tho year from deposits which havo been accumulated for the purposo in tho savings banks, and from early in December a heavy tide of withdrawals sets in. Tho Auckland Savings Bank allows interest to the. seventh of each month, so that its usual expericuce is for deposits to gain over withdrawals up to Docembor 7. From then withdrawals grow steadily greater and by about December 14 deposits and withdrawals balance. Tho heaviest calls aro made in tho following week, however, so that by December 21 withdrawals aro each day far in excess of tho amount paid in. In addition to sums required by tho general public, school banks make calls on tho bank with tho closing of tho schools, whilo thrift clubs also make withdrawals for Christmas gifts and holidays. The last few days before Christmas usually see a slight recovery in deposits, ,and this movement continues steadily, although withdrawals generally remain heavier until after tho Now Year. The manager of tho bank, Mr. F. E. Sutherland, said yesterday that business was greater than at the same timo last year, but tho movement of money appeared so far to bo following tho normal course.

The Post Office Savings Bank allows interest to the first of each month, so that its period of heavy withdrawals sets in earlier than is the case with the Auckland Savings Bank. Many people withdraw money early in December to pay for railway bookings, and the fact that rail fares will be increased from next Sunday has encouraged tho movement this season. Tho rush of business is also increased by tho many depositors who apply for letters of credit as a safo and convenient means of carrying money for use whilo away oh holiday. Officers of the bank stressed yesterday that there is no question of any restriction on withdrawals. Any amount could be withdrawn without notice from ledger offices.