CHAMBERS'S INFORMATION FOR THE PEOPLE. 



all funds deposited in the savings-bank must 

 be paid into the Bank of England on account 

 of government, the money so invested bearing 

 interest at the rate of 3 per cent per annum, 

 whatever may be the fluctuations in the value 

 of the public funds during the term of invest- 

 ment. Depositors are thus afforded the best 

 of all securities namely, that of the whole 

 British nation ; at the same time, the savings- 

 banks are enabled, after paying all charges upon 

 their establishments, to give a considerably higher 

 rate of interest than most ordinary banks, or even 

 the greater part of private savings-banks, allow on 

 deposits. Since 1880 the highest interest which 

 the law allows the savings-banks under its con- 

 trol to pay to depositors is 2, 1 53. per cent, per 

 annum ; the difference between this and the rate 

 allowed on the money invested by them in govern- 

 ment securities being reserved as a fund for the 

 payment of the officials of the banks and other 

 necessary expenses. The rate of interest which 

 is at present paid by these banks varies with the 

 locality, but the average rate over the United 

 Kingdom (in 1887) was -2, HS- Sd. ; and whatever 

 remains, after defraying all charges, is allowed to 

 accumulate as a surplus fund. 



Deposits of from one shilling to thirty pounds 



may be received by these banks ; but no indi- 

 vidual depositor is allowed to lodge more than 

 ,y> in any one year, ending on the 2oth Novem- 

 ber, nor more than 150 on the whole : when the 

 sum amounts to .200, no interest is payable. 

 Charitable and provident institutions and Penny 

 Banks, with the sanction of the National Debt 

 Commissioners, may deposit to any amount ; 

 without such sanction they are limited to .100 

 in a single year, or ^300 in all, principal and 

 interest included ; and friendly societies whose 

 rules have been duly certified by the acts of 

 parliament relating thereto, are permitted to 

 deposit the whole of their funds, whatever may 

 be their amount. Compound interest is given 

 on the sums lodged, the interest being added 

 to the principal at the end of each year in 

 some banks, and the end of each half-year in 

 others, and interest afterwards allowed on the 

 whole. Any depositor may receive on demand 

 the money lodged by him. 



The wisest and most effectual provisions are 

 made for insuring the proper management of the 

 affairs of these banks. Each must have a certain 

 number of trustees and managers, whose services 

 are performed gratuitously ; then a treasurer, 

 actuary, cashier, clerks, &c. all of whom must 



INTEREST TABLE, AT $ PER CENT. 



give security, by bond, to such amount as the 

 directors of the establishment may judge suffi- 

 cient No portion of the funds invested in 

 government security can be withdrawn, except on 

 the authority of an order signed by several of 

 the trustees and managers. Detailed reports of 

 the transaction^ of each bank must be periodically 

 forwarded to the Commissioners for the Reduc- 

 tion of the National Debt, and also exhibited to 

 the depositors at the bank-office. Of course, 



5H 



government can only be responsible for ths 

 amount actually deposited in the Bank of Eng- 

 land ; but the respectability of the local managers 

 is sufficient guarantee for the safety of the funds 

 in their passage between the depositor and the 

 national exchequer. 



Under both the old and new systems, savings- 

 banks have been highly successful in their object, 

 and the money deposited in them reaches an 

 amount which no one who regarded the habits of 



