Vol. 404 No. 4
129 Mr. R. Bruton asked the Minister for Finance if he will consider changing the legislation that requires that saving certificates in joint names can only be drawn down if the application is signed by both parties, in view of the fact that this restriction prevents these certificates being easily used by pensioners as an alternative to deposit accounts; and if he will make a statement on the matter.
Savings certificates are a medium term investment offering a tax free return of 40 per cent after five years, equivalent to 7 per cent compound interest. Savings certificates are not therefore deposit accounts, nor are they intended to be used as deposit accounts. A deposit account option already exists in post offices through the Post Office savings bank deposit account.
The requirement that the names of both the joint holders appear on withdrawal applications for savings certificates is a standard legal provision which has existed as a statutory regulation since 1926 and which, in the case of medium term investments such as savings certificates, is considered essential.
