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Post Office Savings Bank (Interest)

Volume 728: debated on Wednesday 18 May 1966

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asked the Postmaster-General from what date interest is payable on money deposited in the Post Office Savings Bank on the first day of any month.

The Post Office Savings Bank Act, 1954, provides that interest shall not commence until the first day of the calendar month next following the day of deposit.

Is the Minister aware that if a depositor withdraws his money the interest ceases on the first day of the month in which he draws it? Would he not agree that a depositor, depositing money on 1st January and withdrawing it on 31st December of the same year, ould lose two months' interest? Is he aware that these regulations were laid down in 1861 and will he now have another look at them?

It is unsatisfactory and it has been going on for a hundred years. It might be worth considering this if we were not just moving over to computer working, but, with manual record-taking, to make the change at this late stage would not be justified. When the records are on computers, much more sophisticated calculations of interest can be made and then we shall certainly look at this again.