Finance Act, 1968

Investment accounts in trustee savings banks.

41.—(1) In this section—

“investment account” means an account in which a person deposits moneys with a trustee savings bank and which is opened by the bank in pursuance of a consent of the Minister under section 3 of the Trustee Savings Banks Act, 1965 ;

“the Minister” means the Minister for Finance.

(2) Notwithstanding anything contained in any other enactment, the rate of interest payable on a deposit paid into an investment account with a trustee savings bank shall be such rate as the Minister may from time to time determine.

(3) The trustees of every trustee savings bank shall pay into a special account in the name of the Minister all moneys received by them in respect of deposits in investment accounts less any moneys withdrawn from such accounts and any moneys retained by them (pursuant to authorisations in that behalf given from time to time by the Minister) to meet anticipated withdrawals from such accounts.

(4) The Minister may make provision for the opening of the said special account in his name and may make regulations for the payment of moneys into that special account in pursuance of this section and the withdrawal of moneys therefrom and for the investment of moneys to the credit of the said special account and generally for the management of the said special account.

(5) Regulations made by the Minister under the next preceding subsection of this section in relation to the special account mentioned in that subsection may provide that investments of moneys to the credit of the said special account may be made by way of deposit in the Post Office Savings Bank and if such regulations so provide they may further make such provisions as shall be requisite for the payment by the Post Office Savings Bank of interest on moneys so deposited at such rate and over such periods as may, in the opinion of the Minister, be necessary or expedient for the effective administration of the relevant provisions of this section and the regulations made thereunder.

(6) Provisions inserted under the next preceding subsection of this section in the regulations mentioned in that subsection shall have effect notwithstanding anything to the contrary or inconsistent there-with contained in any enactment applied by this Act to the Post Office Savings Bank.

(7) There shall be paid by the Minister to the trustees of every trustee savings bank interest at such rate as may be determined by the Minister from time to time on moneys paid into the special account opened pursuant to this section.

(8) The reference in section 337 (1) (b) of the Income Tax Act, 1967 , to the special account opened in pursuance of section 31 (3) of the Finance Act, 1940 , shall be construed as including a reference to the special account opened in pursuance of this section.

(9) The reference in section 344 of the Income Tax Act, 1967 , to deposits with a trustee savings bank shall be construed as not including a reference to a deposit in an investment account with a trustee savings bank.