asked the Minister for Finance whether, in view of the recent changes in interest rates, he will consider introducing legislation to increase the rate applicable to Post Office Savings Bank deposits so as to encourage further thrift throughout the country and to raise capital for State projects.
Ceisteanna—Questions. Oral Answers. - Interest on Post Office Deposits.
The answer is in the negative.
While I am anxious to encourage thrift, I consider that the present rate represents a fair return for money withdrawable on demand. The present rate has been in force through periods of both cheap and dear money and I feel that in the long term it is to the advantage of the Post Office Savings Bank depositor to enjoy a rate of interest which remains unaffected by market variations in interest rates.
Would the Minister not agree that, in view of the recent changes in bank interest rates and his intention to raise a further loan at a rate of interest much greater than twice the interest rate payable on Post Office Savings Bank deposits, there is a good case for changing the rate of interest, and particularly so when the Post Office Savings Bank is the place where the small man puts his money?
No; I do not agree with the Deputy.
Would the Minister have convenient to his hand the dates on which this rate of interest changed in the past?
I am afraid I have not.
I thought it might be in the brief.
No, I would have to get notice of the question.