POST OFFICE SAVINGS BANK.

Otago Witness, Issue 3864, 3 April 1928, Page 72

POST OFFICE SAVINGS BANK.

REDUCTION OF MAXIMUM DEPOSITS. WELLINGTON, March 29. Formal notification appears in thia week's Gazette of a reduction in the maximum amount of deposits with the Post Office Savings Bank on which interest will be paid. The change is to operate from April 1. In commenting on the Gazette notice Mr Downie Stewart (Minister of Finance) explained that there is no change so far as individual deposits up to £2OOO are concerned, and such deposits will continue to receive 4 per cent, interest up to £5OO, and per cent, interest on amounts in excess of £5OO as long as the aggregate deposits do not exceed £2OOO. In regard to deposits in excess of £2OOO up to the present maximum of £5OOO, however, it is specially provided that all such sums to the credit of any Post Office account on INlarch 31 shall continue to receive interest at per cent, as at present until they are withdrawn. That is to sav, if ®, man has, say. £4OOO in his account on •March 31 he will continue to receive interest on that sum as heretofore so long a 3 * ema ’ ns on deposit; but no interest will be paid on “fresh deposits as from April 1 until the balance of the account has been reduced below £2OOO, and then only in respect of deposits up in £/000. The. Minister said that the Post Office and Treasury had long been of opinion that tho maximum ought to be reduced as it was quite obvious that the Savings Bank was being used for purposes for which it was never intended—to obtain interest on current account. This matter was referred to in the House last session when the Post and Telegraph Amendment Act was under discussion, and in pursuance pf the -policy then outlined it is considered that the time is now opportune to effect a reduction in the maximum amount on which interest is payable. Special provision is being made for laro-er sums during the transition period.