Press Cuttings
relating to the Bank's Rate of Interest Paid on its Savings Account
Press Cuttings
Birmingham Post: June 7th 1924
As detailed in the above correspondence, the Bank paid a competitive 3% on its savings account from its commencement on September 1st 1919. The rate was not reduced until December 1st 1932, when it dropped to 3%. During this period, Bank Rate varied between 2% and 7% - see Interest Rates
The Advantages over the Post Office article (right) reports an example of an anomaly that existed in law in the Bank's early days that was referred to by J P Hilton in his 1927 book Britain's First Municipal Savings Bank:
It is strange to the lay mind, that a High Court Judge can direct, and has directed, that moneys awarded to children of a deceased workman should be paid into the Bank, but a County Court Judge, who deals with many cases of compensation, has, apparently, no such authority. Solicitors have made application in open Court for the privilege, but without success.