Savings account

“ If you save ten cents a week you will have your first dollar in half the time, or in ten weeks.
If you are able to save twenty-five cents a week you will have your first dollar in one-fifth of the time, or in four weeks.
When you put this dollar in the savings bank you have started a bank account, which is something to be proud of.
If you save regularly it will not be long before you have another dollar to add to the one already in the bank.
Money is saved a little at a time.
A mile is walked one step at a time.
A house is built one brick at a time, one nail at a time. ”

“ At this point an old woman of the congregation stood up.
"Sir, I have no teeth."
"Madam," returned the preacher sternly, "teeth will be provided."
SAVING
SON—"Dad, what is a savings account?"
FATHER—"A savings account is that part of a man's income which the government takes after permitting him to pay for the necessities of life."
See also Economy; Thrift.
SCANDAL
"Yes, it cost me ten thousand dollars to have my family-tree looked up, and five thousand dollars more to have it hushed up."—Life. ”

“ A share account in a savings and loan association, on the other hand, is valued according to its 'paid-in value.' That this latter figure includes neither surplus nor undivided profits is obvious from an inspection of the tax return of a savings and loan institution and its financial statement. For example, the Industrial Savings and Loan Association's intangibles tax return for 1952 shows that its paid-in share value was $5,970,000. ”

“ The Savings Bank exacts from those persons who wish to transact business through its medium, a fixed monetary deposit of 100 florins, without relation therefore to the importance of the transactions which they can effect; it opens for them an account and delivers them, upon request, cheque books which serve to effect the payments which they desire to make. ”

“ So, also, when old-age pay, secured either by a deferred annuity or an endowment policy, becomes due, it is paid to the account of the purchaser; and, if it does not cause the sum standing to his credit to exceed the statutory limits, it can remain there earning interest, and be drawn out in such amounts as may be convenient from time to time. The purchaser has also the advantage of the ubiquity of the Post Office Savings Bank. He can make his deposits, and can draw out his old-age pay when it becomes due, at any one of the 13,000 odd post offices where savings bank business is transacted. ”

“ In 1970, 13.6 percent of the population's cash income was deposited in savings accounts, compared to 5.8 percent in 1960. More than 65 percent of the population's cash assets in 1970 were on deposit in savings accounts, as against 56.6 percent five years earlier. Under the economic plan for the 1971-75 period, savings deposits of the Savings and Loan Bank are scheduled to increase by 87 percent—the equivalent of an annual 13.4 percent growth rate. An important reason for the growth of savings has been a general shortage of consumer goods. ”

“ That all investments made for the benefit of the savings depositors of any national bank shall be held primarily and exclusively for the benefit of the depositors in the savings department; and in case of a bank failure, if the investments made for the benefit of the depositors in the savings department do not satisfy their claims in full, then the depositors of the savings bank shall be entitled to such a part of the capital, surplus, and capital liability as the savings deposits bear to all other deposits up to and until the savings accounts are paid in full. ”

“ President of the States' Committee.'
[Pg 58] "In consequence of this arrangement the Committee decided that £10,000 sterling of the total one pound notes in circulation on account of Fountain Street should be withdrawn as a Savings Bank loan at an interest of 3 per cent. per annum. Also that five thousand of those forming part of the old debt, called the Permanent Debt, should be withdrawn to be converted into obligations at 3 per cent. per annum." ”

“ The high price of consols, due in part to the magnitude of purchases on savings bank account, proved a serious embarrassment to the profitable working of the bank, which had shown a balance of earnings on each year's working until 1896, after paying its expenses and 2%% interest to its depositors. Economical working minimized, but did not remove the difficulty. The average cost of each transaction, originally nearly 7d., has been brought down to 5§ d. ”

“ In a half-century these workers have increased their per capita account as depositors in the savings banks from about $175 to about $400; the total deposits growing from something over forty millions to about twenty-five hundred millions. ”

“ Second, some Americans are concerned about whether their money is safe. So the Federal Deposit Insurance Corporation and the National Credit Union Administration have significantly expanded the amount of money insured in savings accounts and checking accounts and certificates of deposit. ”

“ With persons who deposit their hard-earned savings in the Post-office Savings Bank, there is sometimes observed a disposition, not to be wondered at in their case, to use more than ordinary care in keeping their savings secret,—which care, however, does not always secure the aim which they have in view, but results in quite a different fashion. ”

“ Depositors who have checking accounts might be allowed 2 per cent. on large balances, but out-and-out savings depositors, people who make no use of the check book, are certainly entitled to a 4-per-cent. rate in a country where investment capital is as fruitful as it is in Canada.
Strictly speaking, the savings departments of the chartered banks are not savings banks, for they do not pretend to devote [Pg 422] their time funds to long-time investments. The amount of securities held by the banks is never equal to the amount of time deposits. ”

“ The report of the Comptroller of the Currency shows that the average return on all the shares and bonds of all the corporations in the United States is 4.3 per cent. That doesn’t look unreasonable. It isn’t very much more than savings-bank interest. Of course, some corporations make very much more, but many must make nothing in order to bring the average down to 4.3 per cent. ”

“ He counts the money, makes a record of it for his own use, enters it on your book as a deposit, and hands the book back. That is all.
Whenever interest is due it is written down in the book as if it were a cash deposit.
The interest, if desired, will be paid in cash, but if allowed to remain, it begins at once to earn interest for itself.
Interest grows like a rolling snow ball. On such small beginnings great fortunes have been built.
Savings banks keep a reserve, made up of earnings in excess of interest and all expenses. ”

“ The savings banks are prohibited from lending to any individual or firm more than 20% of the capital stock. All savings banks are required to make a quarterly statement to the auditor of the state, giving in detail the statement of condition upon a given day. ”

“ In my own judgment the highest function of the savings bank is to lead the workman back to the ownership of his tools, or since that is not literally possible, to a share in the ownership of the productive forces of society. ”

“ Though the savings banks are open to the objection that money is too easily withdrawn from them, and is not, therefore, always available at the time of greatest need, yet, after making every allowance for this, the savings banks remain one of the safest and best means of putting by small savings. ”

“ The bank also receives jewelry, plate, diamonds, and other not bulky valuables on deposit for safe keeping, the owner being required to make only a nominal loan of one dollar upon them, in order to bring it into the books of the institution. It also takes on deposit, in trust, from the courts, all moneys in dispute, and the proceeds of unsettled estates, and receives one or two per cent, per annum for ensuring its safety. It is contemplated also to found a savings-bank feature of the institution, and by putting the money at interest, aid the depositors to increase their funds without risk. ”

“ The savings bank is for the saver; its funds are invested permanently, while the business bank opens its doors to business men and loans rather than invests its funds, and for a short time only. The latter deals with borrowers rather than savers, and serves for hire. The one serves best by keeping—the other by lending. One aims at profit, while the other never makes (or should make) profit an end. The savings bank is the receiving reservoir for the little springs, the bank of discount is the distributing reservoir for accumulated capital. ”

“ As a matter of fact people who have studied such questions tell us that when payments are frequent less stuff is bought on credit and fewer bills are run. Savings banks find that, under certain conditions, men who are paid daily or weekly will put by more money than those who have a monthly pay day. ”

“ The man who expends £50 in the furnishing of his house, or in purchasing a share in some small business, or in fifty other ways of investment, is as good or better than his neighbour, who lets his money lie in the savings’ bank. ”

“ The amount deposited by the people of small means in the savings banks of the United States is at present something over $1,800,000,000, that invested in building associations about $800,000,000, in mutual benefit societies $365,000,000, and in life insurance many hundred millions more. ”

“ The interest payable on those loans is respectively 4-1/4 and 4-3/4 per cent., according to whether the borrowers have been supplied with bonds bearing interest at the rate of 4 or 4-1/2 per cent. per annum; and 3 per cent. of the capital is repayable per annum until the extinction of the debt over a period of thirty years.
There is a third public source available to the landed proprietors for loans on mortgages and on bonds or bills, namely the Savings Banks. In 1884, the savings-banks, in rural districts alone, held in 'mortgage bonds' and in 'bonds and bills' a sum of about 3,553,000l. ”

“ The societies for carrying on various businesses, such as working men’s clubs, loan and banking organizations, registered under the 1893 act, numbered 286, with total receipts £2,020,569. These are not rapidly increasing, but they must be included as one exhibition of the savings of the people, and they are practically used as savings banks. The land and building societies under the act of 1893 are not the same as those above referred to, though their action as regards savings is similar. ”

“ I can hardly comprehend what a million is. But I want to tell you that in four and a half years the postal savings system of the United States has become custodian of sixty-eight million dollars, in cash, of the people's savings. Let me lay emphasis on the cash, because big figures do not always mean cash. Sixty-five million dollars of this money is on deposit in six thousand banks scattered throughout the country. In other words, practically all of the money we have collected has been released through the banks to channels of trade in the very localities where it originated. ”

“ The Boroughmongers owe some people annuities at three pounds for a hundred; some at four pounds for a hundred; some at five pounds for a hundred; and these annuities, or debts they call their funds. And, Jack, if the Savings Bank people lend them a good parcel of money, they will have that money in these debts or funds. They will be owners of some of those debts which never will and never can be paid. ”

“ The opportunity, the place, is the savings-bank, to be found in the smallest town or village, and in multiplied form in every city of any rank. Such banks generally pay from 31⁄2 to 41⁄2 per cent. interest per annum, and while this seems small, it is surprising how it will foot up in a short season, as any young person may ascertain, and as innumerable young persons have already ascertained. ”

“ We are not pessimistic when we say that no man ever became wealthy through the savings bank plan of putting away a certain amount each week. We will say, however, that there is no better training for the employe than this one thing of saving. Saving a part of your weekly income and putting it away, if carried on for a number of years becomes a habit and it means that you will keep your expenses within your income. It is the saving habit that makes the benefit, for later on when you are in business the habit stands you in good stead and teaches you the value of having a reserve. ”

“ The Savings Bank is under the direction of a committee of the principal people of the Island, most of them members of the States, and is on a safe foundation, the whole capital being vested in the public funds. When the name and occupation of a depositor is entered, he receives 3 per cent for his money. ”

“ The balance, if any, is assessed as money under § 835. The bonds and stocks and personal and real property are assessed separately in the ordinary way. But in the case of savings banks no specific property is taxed separately except real property. ”

“ The admirable process of small monthly payments not only educates the borrowers into habits of saving, but in a few years reduces the loan, so that the old-fashioned savings banks with their immense capital can take 125up at lower rates these loans, when they are reduced to the statute limit of 60 per cent of the value of the estate. ”

“ Savings banks having no capital are not included in that provision; nor are they included in the next succeeding clause, which imposes a duty of one-twelfth of one per cent. each month upon the average amount of circulation issued by any bank, association, corporation, company, or person, including as circulation, all certified checks, and all notes and other obligations calculated or intended to circulate or to be used as money. ”