NATIONAL SAVINGS

Wairarapa Times-Age, 23 October 1940, Page 2

NATIONAL SAVINGS

NEW ZEALAND’S WAR EFFORT MAIN ASPECTS OF SCHEME. INVESTMENT ACCOUNTS & BONDS The National Savings Scheme, which forms part of the Government's war finance campaign, offers a convenient means for everyone to assist in the country’s war effort. The potential saving capacity of the people of the Dominion is great and the war effort of the country will derive the maximum benefit from real savings under the National Savings Scheme. The scheme, which is designed principally for persons on medium and lower incomes, has two distinctive features, National Savings Investment Accounts and National Savings Bonds. A procedure similar to the Post Office Savings Bank system, which is familiar to all New Zealanders, is being adopted in connection with National Savings Investment accounts. Any person may open a National Savings Investment account by investing the sum of Is or any multiple l thereof at any money order office, of which there are nearly 1,000 throughout the Dominion. Further deposits of Is or any multiple thereof may be made from time to time in the investment account during the investment period up to June 30, 1941. Companies, clubs, societies and other corporate bodies are also eligible to open National Savings accounts. The maximum amount which a person may have in any investment account is £l,OOO. Moneys lodged to the credit'of an investment account until June 30, 1941 will bear interest at 3 per centum per annum on each complete £1 In the case of investment accounts with the Post Office, the accounts will be kept in Wellington and the money order offices throughout the country will simply be receiving depots. Deposits may be made at any money 1 order office and not necessarily at the money order office at which the account was opened. There will be no question of requiring a person to transfer his account from one town to another as it will be possible to make deposits at any money order office, no matter where the original or subsequent deposits have been made. Investments in these accounts will be for a fixed term and money deposited during the investment period to June 30, 1941, will be repayable on June 30, 1945, except in cases of hardship when permission may be granted by the Minister to authorise withdrawals. Interest on the accounts will be credited each June 30 and depositors may withdraw this interest at any time up to the following December 30. If the interest is not withdrawn by that date, it will be added to the capital sum and will bear interest as from the date of crediting. Provision is made in the Act whereby depositors may authorise payment to the War Expenses account of the whole or any portion of the interest that they are entitled to withdraw from their investment accounts.

NATIONAL SAVINGS BONDS. An alternative form of investment for persons who do not-desire to open a National Savings Investment Account or who prefer .to,have a negotiable security is provided for by the issue of National Savings bonds. The bonds are of three denominations £l, £lO and £lOO. They will be for a term of five years from the date of issue, payable to bearer and transferable by delivery. The purchase price of the b'onds will be 17s 6d, £8 15s and £B7UOs and these prices include National Security Tax and Social Security charge accruing on the income of a bond during its currency. It is not necessary, therefore, for holders to include the amount of interest accruing on these bonds in the return of income, for., the purposes of these two taxes, but the interest is subject to income tax and persons liable to that tax should include the appropriate amount of interest in their income tax return and, to enable this to be done, a statement is included on the back of each bond, showing the amount Of interest earned on the bond for income tax purposes.