asked the Minister for Finance if, in line with increases in other interest rates, he will now increase the rate of interest paid on post office savings accounts to ensure a fair return to investors and to avoid the flow of funds from post office saving to other investments.
Ceisteanna—Questions. Oral Answers. - Post Office Savings Accounts.
32.
The present rate of interest—3½ per cent—on deposits in the Post Office and Trustee Savings banks was fixed by the Appropriation Act, 1966. I consider that it gives a satisfactory return for money virtually repayable on demand. Depositors have an assurance of a settled rate of interest which will not be affected by market variations but which will persist through periods of both cheap and dear money. I do not propose, therefore, to introduce legislation to increase the rate.
The Parliamentary Secretary does not see any danger of a flow from the funds of the Post Office Savings Bank?
Obviously, as the Minister's reply says, he does not see any reason to introduce legislation to change the present arrangement.
He does not anticipate a flow?
No.
These are the savings of the poor. They will not flow.
The Parliamentary Secretary to the Minister for Finance does not see any danger of a flow of funds from the Post Office to the banks?
As I have already said, the Minister has considered all the implications of the question and he does not see any reason why legislation should be introduced to change the present situation.
We just cannot get a straight answer.
The answer is "No".