P.O. SAVINGS BANK

Taranaki Daily News, 18 July 1933, Page 7

P.O. SAVINGS BANK

INTEREST ON DEPOSITS. ADJUSTMENT IN RATE. Wellington, July 12. Adjustments in the interest rate payable on Post Office Savings Bank deposits were announced yesterday by the Minister of Finance, Rt. Hon. J. G. Coates. From the beginning of next month the rate on deposits in excess of £lOOO up to the maximum of £2OOO will be 2 J per cent. No change is being made in the interest rate on deposits up to £lOOO, which remains at 3 per cent. Mr. Coates said that pursuant to the Government’s policy of bringing about lower interest rates generally, and following the conversion operations in respect of long-term securities, further reductions were made in the deposit rates of banks, savings banks, and building securities, while maximum deposits were fixed for local bodies. As part of this arrangement, the rate of interest on deposits with the Post Office Savings Bank was fixed at 3 per cent, for all deposits up to £2OOO operative from April 1 last. Prior to this change it-had always been the practice to have two rates, the interest rate payable on the larger sums being slightly' lower than on the smaller amounts. For instance, up to March 31 last the rates were—on deposits up to £5OO, 3? per cent., and on larger amounts up to £2OOO, 3} per cent. “It is now considered,” said Mr. Coates, “that the time is opportune to revert to the former practice, and fix a rate ’pwer than 3 per cent, for the larger amounts. Accordingly a notice will be published in this week’s Gazette fixing the rate of interest payable on deposits in excess of £lOOO up to the maximum of £2OOO at 2-J per cent. This rate, which will be operative from August 1 -next, is considered to be fair and equitable to depositors having regard to the further reduction recently announced in bank deposit rates and the rate now paid by other institutions for deposits. “No change is being made in the interest rate on the smaller deposits (up to £1000). which remains at 3 per cent.” 1