POST OFFICE SAVINGS BANK.

Manawatu Herald, Volume XLIX, Issue 3774, 31 March 1928, Page 2

POST OFFICE SAVINGS BANK.

.NO INTEREST ON DEPOSITS OVER £2OOO.

Wellington, March 30

A formal notification appears in this week’s Gazette of a reduction in the maximum amount of deposits with r the Post Office Savings Bank on which interest will be paid. The change is to operate from the Ist of April. In commenting on the Gazette notice Mr. \Vt Dpwnie Stewart (thu Minister of Finance) explained that there is no change so far as individual deposits up to £2OOO are concerned and such deposits will continue to receive 4 per cent, interest up to £SOO and per cent, interest on amounts in excess of £SOO so long as the aggregate deposits do not exceed £2OOO.

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Office account on the 31st of March shall continue to receivt interest at 31 per cent, as at present until the same are withdrawn; that is to say, if a man has, say £4OOO in his account on the 31st of March he will continue to receive interest on that sum as heretofore so long as it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 the Ist of April until the balance of the account has been reduced below £2OOO and then only in respect of deposits up to £2OOO. The Minister said that the Post Office and Treasury had long been of opinion that the maximum ought to be reduced as it is quite obvious the Savings Bank was being used for purposes for which it was never intended —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 is considered that the time is 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.