HC Deb 20 April 1920 vol 128 cc219-20
51. Mr. R. YOUNG

asked the Chancellor of the Exchequer whether he will favourably consider, for the purpose of encouraging thrift among weekly wage earners, increasing the amount that can be deposited in the Post Office Savings Bank, and also, for the same purpose, an increase in the rate of interest now paid to depositors or an increase in the rate of interest on any amount over £20?

The CHANCELLOR of the EXCHEQUER (Mr. Chamberlain)

There is at present no limit on the amount which may be deposited in the Post Office Savings Bank, and in the Savings Banks Bill recently introduced power is being sought to continue the waiver of the limit. With regard to the last part of the question, I would refer to the answer given by my hon. Friend the Financial Secretary on 15th April to my hon. Friend the Member for Oxford.

Sir F. HALL

Does my right hon. Friend recognise the fact that a number of depositors place their money in the Savings Bank because they have not, or do not know of, any other facilities? Does he not think the time has arrived when these depositors should receive a more adequate return on their savings?

Mr. CHAMBERLAIN

No, Sir. It raises a question which the right hon. Gentleman answered the other day to which I referred a moment ago. There is less reason I think than ever there was before for increasing the rate allowed on deposits in the Post Office Savings Bank, because there are now other forms of investment convenient for and open to the small investor which he can adopt if he wish, and which would give him a higher rate of interest. It must be remembered that money deposited in the Post Office Savings Bank is money at call.

Sir F. HALL

But does my right hon. Friend not recognise the fact that many of these people are saving up their shillings, and should be encouraged in their thrift, and on what grounds do the Government justify their action in declining to give reasonable interest to those people who save up their money in this small way?

Mr. CHAMBERLAIN

The people to whom my hon. and gallant Friend refers can put their shillings in War Savings Certificates, and obtain 5 per cent. Under those circumstances, I see no reason to change the rate of interest on deposits in the Post Office Savings Bank.

Sir F. HALL

But does the right hon. Gentleman recognise that they cannot get their money out at call?

Mr. CHAMBERLAIN

They can.