Home >> Dictionary Of Banking >> Paying Banker to Transfer Of Shares >> Post Office Savings Banks

Post Office Savings Banks

bank, deposit and deposits

POST OFFICE SAVINGS BANKS. The Post Office Savings Banks were established by Act of Parliament in 1861, and every depositor has the direct security of the State for the repayment of his deposits.

No person may, for his own benefit, have two accounts in the Post Office Savings Bank at the same time, or have an account in a Trustee Savings Bank.

Money orders and cheques are received provided they are not crossed to a particular bank.

No more than -1;50 can be deposited in one year, and no deposit can be made which causes the balance due to a depositor, including interest, to exceed p200.

Deposits may be made by children seven years old and upwards ; and on behalf and in the names of children under seven years old. In this case the money is not repayable until the children attain the age of seven.

Deposits may be made, without limit, by a registered Friendly Society ; and by a Provident Society, Penny Bank, or similar Institution to the extent of 1100 in any one year and /300 in the whole, and if the consent of the National Debt Commissioners be obtained, without limit as to amount.

Every deposit must be entered in the depositor's book by the postmaster or person receiving it, who must affix his initials and the stamp of his office to each entry. An acknowledgment for every deposit of /5 and upwards, should be received by post from the Savings Bank Department in London.

Interest at the rate of ,/,2 Ills. per cent. per annum is allowed on every complete pound, and commences on the first day of the month next following the deposit.

When a depositor wishes to withdraw any part of the sum due to him, he must make application for the same on a printed form, called a notice of withdrawal.

Depositors may invest their deposits in various Government stocks.

A deposit book is not a proper security for money lent, and no claim by any person holding a deposit book in respect of a loan will be recognised by the Savings Bank Depart ment. Deposits in the Post Office Savings Bank are not liable to " attachment," or to its Scotch equivalent " arrestment."