Annual Reports - 1967
Despite the introduction, on January 1st 1967, of an Investment Account facility (also known as the No
3 Department), total Deposit balances fell during the year to £92,335,217. As detailed on page 8 of the Published Report, an Investment
Account was available to any depositor maintaining £100 in a No 1 Department account - withdrawals were subject to one month's notice;
the rate of interest was initially set at 5½%. After three months, 5,005 accounts have balances of £3,883,581 (average £776). Introduction
of the new deposit facility was only established after lengthy negotiations with the Treasury and the Registrar of Friendly Societies.
The Bank had first contemplated establishing this type of account in 1934. The Committee describe the introduction of the new account
as opportune at the time of a high Bank Rate. Reflecting the higher level of interest rates, the Bank's Mortgage Rate for
new loans is increased from 5% to 6%. For the eighth successive year, new loans have been approximately £1-million. As in recent years,
there was considerable activity in relation to branch premises. Due to a change in legislation, local authorities are no longer liable
to Income Tax on trading surpluses; the BMB benefits from this new arrangement and is able to transfer its Income Tax Reserve of £35,000
to General Reserve which now stands at £1,900,000.