INTEREST ON DEPOSITS

Hawke's Bay Herald-Tribune, Issue 13, 30 January 1937, Page 9

INTEREST ON DEPOSITS

Prime Minister Explains Regulations WELLINGTON, Last Night. j An explanatiou of the new xegula- | tions fixing the maximum rates of [interest payable in respeet of the period i after Mareh 31, on deposits made with •Building and Investment Societies and jwith trading companies, was given toJday by the Prime Minister as aetingj Minister of Finance. Begulations were gazetted this week, ;Mr Savage said, uttder the National Expenditure Adjustment Act, 1932, whereby the Govemor-General-in-Ooun-cil was empowered t.o flx the maximum rate of interest that might be paid by , Building and Investment Societies and by trading companies on moneys deposited with any such secieties or companies. It was, however, provided by that Act as amended by the Finance Act, 1934, that no Order-in-Couneil should apply for any period commeneing after March 31, 1937. From time to time successive Orders-in-Council have been xssued fixing the maximum rates of interest on such d8posits, each such order applyixtg only to new deposits mad® after the issue of ,the order and to renewals made after that date, of deposits made before such date. The last Order-in-Couneil (applicable to deposits made on or after August, 1934) fixed the rates as follows aecoTding to the terms of such deposits: — At eall or for any period less thah three months, Investment and Buildixig Societies, 2 per cent. p8r annum, trading companies 2J per cent. per ann&ny from three months to six months, 2| ah'd 34 respectively; from six months to one year, 3 and 3|j from ohe year to two years, 34 and 4; from two years to three years, 3| and 44} three years or over, 4 and 42. As stated above, existlng Orders-in-Council have no application to any period after March 31, 1937. This limitation was removed by Section 46 of the Finance Act of last session thus permitting the Governor-General-in-Council to fix the maximum rates of interest without any limitation of time. The Prime Minister stated that it is considered necessarv in the interest of the 'Dominion, that the Gbvernment , should still retain control of the rates of interest that may be paid on deposits. with trading companies and Building and Investment Societies and accordingly Orders-in-Council were issued on the 21st insfant, continuing for a period. aftgr March 31 next, the. same maximuxn intierest rates that are at present in force in respeet of deposits made with , trading companies and Building and Investment Societies.