SAVINGS BANK

Wanganui Chronicle, Volume 76, Issue 163, 13 July 1933, Page 6

SAVINGS BANK

INTEREST ON DEPOSITS REDUCTION ANNOUNCED ON LARGER AMOUNTS. WELLINGTON, July 12. the M uister of Finance (the Rt. lion. J. G. Coates) stated yesterday that pursuant to the Government’s policy of bringing about lower interest rates generally, and. following the conversion operation in respect of longterm 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 • ent. for ail deposits up to £2OOO operative from April 1 last. Prior to this change, it had always been tho practice to have two rates, the interest rate payable on he larger sums being slightly lower than on the smaller amounts. For instance, up to March 31 last, the rates were —on deposits up io £5OO, 3J per cent., and on larger amounts up to *£2ooo, per cent. It is now considered, continued Mr. Coates, fhat the time is opportune to revert to the former practice, and fix a rate lower than 3 per cent, for tae larger amounts. Accordingly, a notice will bo published in this week's Gazette fixing the rate of interest payable on deposits inexeess of £lOOO up lu the maximum of £2OOO at 2J per cent. This rate, which will be • operative from August 1 next, is considered 10 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 fate on the smaller deposits (up to £1000), which remains at 3 per «e nt. ’ J