A History of Banks for Savings in Great Britain and IrelandLewins, William
History
A History of Banks for Savings in Great Britain and Ireland
Lewins, William
Postal savings banks -- Great Britain; Savings banks -- Great Britain
This soreness has originated, to no little extent, from the
consideration of the inequality of the rate allowed in the ordinary
Savings Banks and the Post Office Banks; this feeling is kept up by
the consideration of the fact, that that inequality still exists and
is likely to exist. The old Savings Banks deposit their funds with
Government, and are allowed interest on their money at the rate of
3_l._ 5_s._ per cent.; the Post Office Banks, of course, deposit their
money with Government, and are allowed interest at the rate of 2_l._
10_s._ per cent. Out of the fifteen shillings per cent. difference
between the two rates, an average of half of it is given by the old
banks to their depositors. Now it is well known that the average cost
of each transaction in the Post Office Banks is little more than half
the average cost of a transaction in the ordinary Savings Banks. If
Government can still afford to pay the old Savings Banks the higher
rate of interest, it might afford, at the lowest computation, to give
ten shillings per cent. more to depositors in the Post Office Banks.
If Government _cannot_ afford to pay the higher rate, it ought to
discontinue its charity, which, like all other charitable doles,
excites discontent amongst those who think they have, _and really
have_, the right _de facto_, if not _de jure_, to share it. That the
rate should be equalized in one way or the other admits, we think, of
little question; but that the Government should pay no more than it
can pay without loss admits of less.
Public-domain text, read in full here on John Shaqi.
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