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Savings Bank Deposits (Rate Of Interest)

Volume 236: debated on Tuesday 4 March 1930

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asked the Financial Secretary to the Treasury whether in view of the fact that the active Post Office Savings Bank accounts amount to over £225,000,000 and that the interest payable to depositors is only 2½ per cent., he will consider the introduction of legislation which will have as its object the payment of interest to all savings bank depositors at the same rate that is payable to persons who have deposit accounts with other banks in Great Britain?

I regret that I cannot adopt this proposal which would involve constant changes in the rate of interest and would, in my opinion, be inconvenient both to depositors and to the management of the bank. As my hon. Friend no doubt realises, the ordinary rate on deposits in other English banks is at present 2½ per cent., and falls below this whenever the bank rate falls below 4½.