BANK INTEREST

Hokitika Guardian, 9 May 1927, Page 1

BANK INTEREST

INCREASE IN DEPOSIT RATES

[by TELE3BJPH PER PRES 3 ASSOCUTKiN.]

WELLINGTON, May 7,

Banks trading in New Zealand have decided as from May sftfi. to increase the rate of- interest allowed on fixed deposits lfy It per cent. The following new rates will operate as from Monday for fixed periods. Between threo and six months’ 3J per cent; six and twelve months I per cent; twelve and twenty-four months 4} per cent; twenty-four months 5 per cent.

This step has been taken for the reason that the adverse course of trade of tho Dominion necessitates tho attraction of a larger volume'of deposits. The ratio to lie fixed on Monday next will bring New Zealand hanks into lino with the Australian where for some years past tho fixed deposit rates have been -1 J- per cent, for twelve months and 5 per cent, for twenty-four months.

For the convenience of depositors, money will bo received by ilie Banks for odd periods, fixed for broken periods between three and six mouths, at rates ruling for three months deposits, and similarly hetwon other periods with an advance in deposit rates. There will necessarily be an advance in rates on overdrafts, which were 6} per cent-, hub will, as from Monday, rule at 7 per cent, for the best of accounts.

As from Monday also, rates for transfers of money to London will lie increased by 7s Gd per cent, with a corresponding decrease in the Bill buying rate. Bates will he as follows: Buying demand, 12s Gd discount; three days’ right, 14s Gd discount: thirty days, 22s Gd discount; sixty days. 32s Gd discount; ninety days, 42s Gd discount.

Selling rate telegraphic transfers, 12s Gd premium; demand 2s Gd premium; thirty days, 5s discount; sixty days, 12* Gd discount; ninety days, 20s discount.