asked the Minister for Finance whether as a method of stimulating savings he will take steps to increase the rate of interest on long-term deposits in the Post Office Savings Bank.
Ceisteanna—Questions. Oral Answers. - Interest on Post Office Savings.
9.
The payment of a higher rate of interest on long term deposits in the Post Office Savings Bank would not necessarily result in an increase in the general pool of savings but could merely result in a transfer of funds from one savings medium to another. I am, however, having the problem examined to see if a workable scheme on the lines suggested which would not have a very adverse effect on other media can be evolved.
Would the Minister not agree that it might prevent some of the money leaving this country for England?
I do not think so.
You would not think that would help?
If you gave a very high rate of interest, it would stop money going out, but the question is: who could afford to pay such a high rate?
The British Post Office are increasing the rate of interest on long-term deposits.
I think they have changed their system but in some respects our small savings media are more advantageous than the British.