HC Deb 29 March 1889 vol 334 cc1164-5
MR. PATRICK O'BRIEN (Monaghan, N.)

asked the Chancellor of the Exchequer what was the rate per cent per annum for the cost of management, including cost of buildings, rent, salaries, postages, &c., of the Post Office Savings Bank; and whether, in consequence of the reduction of interest on Consols, the rate of interest allowed to depositors in Post Office Savings' Banks will be reduced from the 5th of April next; and, if so, to what extent?


From the last Return of the Postmaster General's Annual Report, it will be seen that the rate per cent for cost of management of the Post Office Savings' Bank is 10s. 8¼d. The annual cost of the interest is about £2 7s., so that £100 deposited in the Post Office Savings' Bank costs, everything included, about £2 18s. At present there is no loss, but rather a small gain to the State from this business; but the time will come when it will probably be necessary, in order to avoid loss, to make a slight reduction in the rate of interest. I do not, however, intend to propose such a reduction this year.