INTEREST ON DEPOSITS.

Pukekohe & Waiuku Times, Volume 1, Issue 48, 3 December 1912, Page 1

INTEREST ON DEPOSITS.

County Council Discussion. A Spare £250. in October the Franklin County Council ascertained that it would have about £250 on its hands fur a few mouths, and decided to place it in the bank, on fixed deposit f«r threj mouths. The position was that the Council was considering the purchase of roa '.-making machinery, and it was known tnat this would not be available for some time. The money had to be kept ''dry" for purchasing purposes, but it was thought to be good business to make itjearn a little interest msanwhile. At Wednesday's meeting of the Council the chairman reported that he had interviewed the bank man\ ager, who had declined to accept the deposit for three months, but would take it at six months, allowing two per cent, per annum. This, said the chairman, means that thty would get interest only if they left the money untouched for six months. Cr Henry thought that seeirg the market was so tight the bank should allow reasonable interest on such money as remained in the bank. If it were put in the Post Office Savings Bank they would get 4 per cent and coulddraw it at the end of the month. Cr Wilcox: It would be 31 per cent, in the Savings Bank for any monthly term; 2 per cent, for six months was ridiculous. Cr Flanagan; If you get an overdraft you don't get it for nothing Cr lit nail: Let u* spend the money and we will get better value for it Cr Henry said that seeing the account was not overdrawn and the business had been put in their way it was up to the bank to treat the Council more liberally. • Mr Motion said if tbey could fird a better investment the Council was entitled to draw the money out at any time. Cr Lyons thought the rate offered was unreasonable. Cr Flanagan said the three months had been fixed because they did not want the money just now; if six months had been mentioned the Council would r.ot have considered the maUir. The question arose as to whether the Council, having an o. en account in one bank, was entitled to Invent with an ther bank, and Cr Henry moved, That the County solicitor's advice be taken on this question, and if the Council can so invest the £250 that this be done. Cr Lyons seco: ded. Cr Renal) opposed on account of the limited amount at slake and the short period involved. They might wast a favour from the bank later and there was no need to give offence now. Cr Henry: I don't take an overdraft as a compliment from the bank at all. fly experience is that people can only get what they can pay for. ' Ths motion to refer the matter to the solicitor (Mr Hanna) was carried.