NEW INTEREST RATES
THE BANKS’ DECISION ONE HALF PER CENT. RISE (From Our Oven Correspondent.) WELLINGTON, Sunday. An increase of one-half per cent, on the rate of interest on fixed deposits has been decided upon by the banks trading in New* Zealand. The new rates, which will come into operation to-day, are as follow r Between three and six months, 32 per cent.: between six and twelve months, 4 per cent.; between 12 and 24 months. 44 per cent.; 24 months, 5 per cent. These rates will bring New Zealand banks into line ./ith those in Australia, where for some years past the fixed deposit rates have been 44 per cent, for 12 months and 5 per cent 3 for 24 months.
Reasons for the increase are that there has been a marked reduction in the returns from produce exported during 1926, as compared with returns from the same source for 1925. Again instead of the banks being indebted to the public by way of a substantial excess of money placed with them on fixed deposit and on current account the public is indebted to the banks as at March 31 by well over £5,250 000 being represented by the excess of advances for overdrafts over money lodged with the banks by* way of fixed deposit and current account.
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Bibliographic details
Sun (Auckland), Volume 1, Issue 39, 9 May 1927, Page 2
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219NEW INTEREST RATES Sun (Auckland), Volume 1, Issue 39, 9 May 1927, Page 2
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