33. Captain SHAWasked the Chancellor of the Exchequer the approximate national liability in respect of War Savings Certificates as at 31st May last; and what is the approximate rate of interest being paid on national savings certificates?
Mr. CHAMBERLAINThe approximate amount of principal of savings certificates outstanding on the 31st May was £376,000,000. The amount of interest accrued but not yet paid cannot readily be calculated for an intermediate date in the year, but the figure for the 31st March last will in due course be published in the Finance Accounts. The rate of interest varies according to the period for which the certificate is held before being cashed; on the current series of certificates it is £4 2s. 9d. per cent. tax free if held for 10 years, but substantially less if encashment takes place before the 10 years' maturity.
§ Mr. THORNEIs it not a fact that the Government make a profit out of these certificates?