asked the Minister for Finance if he will state what is the present rate of interest allowed to depositors by the (1) Post Office Savings Bank; (2) by the Trustee Savings Banks; and whether in view of the recent advance in the official bank rate and the probability that higher rates will continue for a substantial period, he has considered the advisability of introducing proposals for legislation to enable him to allow a higher rate of interest to depositors in the Post Office Savings Bank.
Ceisteanna—Questions. Oral Answers. - Rates of Interest for P.O. Depositors.
The present rate of interest allowed to depositors by the Post Office Savings Bank is 2½ per cent. per annum. The same rate is allowed by the Trustee Savings Banks. In view of the fact that each transaction on a Post Office Savings Bank Account costs a considerable amount proportionately, and in view of the necessity of building up reserves for the safeguarding of the interests of depositors, it is not intended to introduce proposals for legislation to enable a higher rate of interest to be allowed to depositors in the Post Office Savings Bank.