SAVINGS BANKS, as to trustee savings banks, are regulated by the Trustee Savings Banks Acts, 1863 to 1891, and, as to the post-office savings banks, by the Post-Office Savings Banks Acts, 1861 to 1891.
Trustee savings law on this subject is much too extensive to be set out with any degree of detail in the liniits of such an article as this, and accordingly nothing more will be attempted than merely an indication of its principal features. Section 2 of the Act of 1863 affords a definition of a savings bank as an " institution in the nature of a bank to receive deposits of money for the benefit of the persons depositing the same, to accumulate the produce of so much thereof as shall not be required by the depositors, their executors, or administrators, at compound interest, and to return the whole or any part of such produce and the produce thereof to the depositors, their executors, or administrators (deducting out of such produce so much as shall be required for the necessary expenses attending the management of such institution), but deriving no benefit whatsoever from any such deposit or the produce thereof." Institutions which come within this definition are entitled to the privileges and benefits of the Acts, but they are required to conform to certain special rules and regulations for their management. A savings bank is bound to have trustees and managers, and it would seem that these officers alone constitute the institution as recognised by the law. But a trustee or manager does not incur any personal liability except—(1) for moneys actually received by him on account of or for the use of his bank, and not paid over and disposed of in the manner directed by the rules ; (2) for neglect or omission in complying with the rules and regula tions required to be adopted in the maintenance of checks, the audit and examination of accounts, the holding of meetings and keeping minutes of proceedings thereat ; and (3) for neglect or omission in taking security from the officers of the bank. A trustee savings bank is not allowed to describe itself in any manner importing that the Government is responsible or liable to depositors for money placed in the safe keeping of the bank ; nor may it bear any title other than that of " savings bank certified under the Act of 1863," with such additional local description, if any, as may be required for the sake of distinctiveness. Its funds must be invested in the of England or Ireland in the names of the commissioners for the reduction of the National Debt, but, subject to special regulations, this stipulation does not prevent the trustees from receiving money to be applied in any other manner. The interest accruing to depositors may be calculated yearly or twice a year, and carried to their credit as principal. Minors, married women, friendly and charitable societies, penny banks and trustees may be depositors. The following limitations to the amount of deposits are imposed by the Act of 1891 :—(1) No deposit can be received which makes the sum standing in the name of any depositor in the bank exceed a200; (2) interest is payable in full on the sum standing in the name of a depositor so long as it does not exceed ne200, but whenever the sum standing in the name of a depositor exceeds that amount, interest is not allowed on any sum in excess of £200 ; (3) notwithstanding any restriction on the amount to be deposited in any one year, a depositor may, not more than once in any savings bank year, deposit money to replace money previously withdrawn in one entire sum during that year. The expression " savings bank year " means the year ending the 20th November.
Post-Office Savings Bank.—There are more than 14,000 post-office savings banks open every week-day, not merely for the receipt of ordinary deposits and the payment of withdrawals, but also as agencies through which depositors may invest money in the funds, or insure their lives, with Government security, or buy life annuities to be paid to them by the Government through the post-office savings bank. Deposit book may be used at any post-office savings bank. —A person can only have one savings bank account at one time, but when he has opened an account and obtained a deposit book, he can use his book to deposit or withdraw at any post-office savings bank that may be convenient to him, and one book is sufficient for all purposes. Hon, to open an account with or
without attendance at a post person who wishes to become a depositor may call at a post-office savings bank and sign the usual declaration form to the effect that he has no savings bank account already open. His money will then be received, an account will be opened, and he will be supplied with a deposit book. If a person cannot conveniently call at the office himself, a friend can obtain the form for him from the Postmaster (who will explain how it should be signed), and can afterwards present the declaration together with the money to be deposited. The book will then be handed to the friend to be given to the depositor, whose signature should be obtained within it. This arrangement will be found very convenient where it is desired to open accounts for several persons without troubling them to go to a post office. Separate accounts for members of the same and wife may have separate accounts. Children over the age of seven years may also open accounts on their own behalf ; and the parents or friends of children under that age may open accounts for them. Trust accounts and joint person may open an account as trustee for another person, if the latter is not already a depositor ; and two or more persons who are not depositors may open an account in their joint names. In either of these cases if one of the parties should die, the money would be payable to the survivors or survivor. Ordinary deposits—to what extent they may be made.—Any sum from a shilling upwards, excluding pence, may be deposited at one time, and any number of deposits may be made in the course of a year (ending 31st December) up to a limit of £50. Beyond this a person can only make ordinary deposits if he has withdrawn money during the year and wants to put it back. In that case be is allowed to replace one such withdrawal during the year, and this he may do either in one sum or by instahnents. When a person has £200 on his deposit account he is not at liberty to make any further ordinary deposit until he has reduced the amount. Savings of less than a the assistance of children and others unable to save more than a few pence at a time, forms are provided to which stamps can be affixed, till they amount to a shilling in value, when they are accepted for deposit. Perforated stamps cannot be accepted. These forms may be obtained without charge at any post office. Special facilities for saving pence are afforded to children attending elementary schools. Interest on ordinary deposits is allowed at the rate of .V2, 10s. per cent. per annum on every complete pound up to £200. It is added every year while an account is open. If by such addition the balance is raised above £200, the excess, when it amounts to X5, is invested in Government stock for the depositor, unless lie directs otherwise. Hom to mithdrayv depositor can at any time withdraw part of his deposits, or he can withdraw the whole of them with interest to the end of the previous month. He has only to fill up and sign a notice of withdrawal, which he can obtain at any post-office savings bank, and forward it by post to the Controller, who will send him a warrant which lie can present for payment at the post office, together with his book ; or if he cannot himself attend there, he can authorise another person to receive the money for him. A form for this purpose can also be obtained at the post office free of charge. Deposits may be withdrawn by telegraph up to £10 in one day, the cost of the necessary telegrams to and from the Controller, Savings Bank, London, being paid by the depositors them selves ; and by "return of post " (that is on the day following the date of applica tion) at a less cost for telegraphing, up to £20 in one day. A return of post warrant is addressed to the depositor at the paying office "to be called for" unless other directions are given in the telegram of withdrawal. Application for withdrawal by telegraph should be made between the hours of 9 A.m. and 4 P.M. (Saturdays 9 a.m. and p.m.) at any post-office savings bank, which is also a telegraph office, but payment on the same day cannot be made at offices where telegraph business is restricted to the despatch of telegrams. No application to withdraw the whole or any portion of the amount of a deposit should be made until the acknowledgment of such deposit has been received.