P.O. SAVINGS BANK.

Thames Star, Volume LXII, Issue 17390, 30 March 1928, Page 5

P.O. SAVINGS BANK.

REDUCTION IN AMOUNTS. ON WHICH INTEREST ACCRUES. UP TO £2OOO UNCHANGED. (By Telegraph.—Press Association.) WELLINGTON, March 30. Formal notification appears in the 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 notice, the Minister of Finance, Hon. W. Downie Stewart, said there was no change as far as individual deposits up to £2OOO were concerned, and such deposits would continue- to receive 4 per cent, interest up to £SOO, and 3J per cent, interest on amounts in excess of £SOO, as lopg as the aggregate deposits did not In regard to deposits in . excess of £2OOO, up to the present maximum of £SOOO, however, it is specially provided that, all such sums to the credit of any post'office account on March 31 shall continue to receive interest at 35 per cent., as at present, until the same are withdrawn. That is to say, if a man has, say, £4OOO in his account 'on March 31, he will continue to receive interest on that sum as heretofore, as long as it remains on deposit, but no interest will; be paid on fresh deposits as from April 1 uritil the balance of the account has been reduced below £2OOO, and then only in- respect of deposits up to £2OOO. ■ The Minister said the post office and the Treasury had long been of opinion that the 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, that was 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 of the policy then outlined it was considered the time was now opportune to effect a reduction in the maximum amount on which interest is payable, special provision being made for larger sums during the transition period.