MAXIMUM REDUCED

Wanganui Chronicle, Volume LXXXIII, Issue 20110, 31 March 1928, Page 8

MAXIMUM REDUCED

SAVINGS BANK DEPOSITS NEW POLICY TO BE PURSUED. [ Per Press Association, j WELLINGTON, March 30. Formal notification of the appointment of Air Joseph Snell as the de-puty-commissioner of the Rural intermediate Credit is gazettod to-night. Formal notification appears in this week’s gazette at the reduction in the maximum amount ot 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 Slewart, Minister of Finance, explained there is no change so far as individual deposits up to £'.’oo«J ?re concerned, and such deposits will continue to receive 4 per ce.i r . interest up to £5OO and 3} per cent, interest on amounts in excess of £5OO, so 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of any post office account on March 31 shall continue to receive interest at 3J per cent, as at present until same are withdrawn.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, so long as it remains on deposit, but no interest will be paid on fresh deposits as from April 1 until the balance of the account has been reduced to below £2OOO, and. then only in respect of deposits up to £2OOO.

The Minister said the Post Office and Treasury had long been of the opinion that the maximum ought to be reduced, as it was quite obvious the Savings Bank was being used for the purposes for which it was never intended to obtain interest on a 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 is considered that the time is now opportune to effect the reduction in the maximum amount, of which interest is payable. Special provision is being made for larger sums during the transition period. The supplementary gazette issued to-night contains the regulations uniTor the Explosives and Dangerous Goods Act and the appointment of Air George Thomas Booth of Christchurch, who is to succeed Air William Scott (resigned), for a residue term as employers’ representative on the Arbitration Court was gazetted to-night.