When the depositor files a withdrawal notice he presents his pass book. He is handed back the book and with it a ticket which states on what day the money may be got.

Which they are authorized to charge against first deposits made by me and entered in their deposit book

Receipt to be signed by savings depositor when he makes a

withdrawal.

To obtain that, or any amount for which no notice is required, the depositor presents his pass book, together with a receipt (secured at the writing desk) signed by him exactly as his name appears on the signature card, for the amount withdrawn. The signature on the receipt is compared with the signature on file as a means of identification. The teller, or an entry clerk, enters the amount withdrawn in the "withdrawn" column of the pass book.

If the depositor cannot withdraw in person he can write an order upon a blank provided by the bank, and send both it and the pass book by another. Such an order with a pass book attached is as good as a bank check and is so handled. Some banks require that this order be signed

KINDS OF ACCOUNTS

49

by a witness. The customer can also upon a special form appoint an attorney to transact his savings business for

Withdrawal order used by savings depositor of a bank that permits withdrawals by this method.

The accounts of minors and married women are payable only to them, or their order.

may be

44. Kinds of accounts. Savings accounts opened with two people so that either of them, or the survivor, may withdraw any or all of the deposits. Such accounts are convenient and widely used by husband and wife, or other members of the same family. It saves expense and trouble in case of death (see 47). A bank in a wage-earning section may have nine-tenths of its accounts of this character. Accounts may be opened requiring two or more persons to join in all withdrawals. One person may open an account in trust for another, directing the bank to pay all amounts deposited to such person at the death of the depositor, but reserving the right to revoke the gift by withdrawing part or all of the funds at any time (see 47). Trustees or agents in accordance with the authority vested in them may open and operate accounts for their principals, as may the proper officers of

any society or association. The bank, however, requires evidence of the authority which one claims to act for

Signature card for an individual who wishes to open an account in trust for some beneficiary. The back of the card may read "I give all moneys herewith, or hereafter, deposited in the within account to.... reserving the right from time to time to revoke the trust by withdrawing all or part of said deposits."

another and for its own safety must have it, especially when it pays out funds.

45. Banking by mail. A person can bank safely and profitably no matter where he lives, and he has a wide choice of the best banks. One bank advertises that it has depositors living in 44 out of 48 states of the Union, as well as in many foreign countries, for example: England, Ireland, Scotland, Germany, France, Hungary, Norway, Austria, Italy, Roumania, Japan, Siam, Burma, South Africa, and South America. The account may be opened and deposits and withdrawals made, all by mail. Any bank will supply the proper blanks and give directions. The depositor pays the postage, or other charges, but he saves time and expense while he sits at home. Money may be forwarded by any method, but if a personal check, or bank draft, is used, it must be made payable on its face to the bank, unless the bank already knows the depositor and his signature.

ASSIGNMENT OF ACCOUNT

51

46. Assignment of account. A savings bank pass book is not negotiable, but it may be assigned, that is the holder can transfer to another his property interest in it. This is necessary whenever a loan is made with the pass book as security. The bank may require notice of assignment. Such notice is necessary when the account is sold. The lender, or purchaser, should see that he is properly protected by notice to the bank.

47. Effect of death. Upon the death of a depositor the account becomes payable, unless otherwise provided, to his legal representative. A trust account upon the death of a trustee is paid to the one for whom it was held in trust. In every case certain formalities must be met by the heir, or beneficiary, in order that the bank may be protected. The estate tax law of the United States provides that where there is no executor or administrator to whom a bank may turn over the property of a decedent, the bank must make a return to the Collector of Internal Revenue and be liable for any tax that may be due until the property is released by the Collector. In cases where an executor or administrator qualifies, the bank may surrender the property or handle it as for any other customer. The inheritance tax laws of a state may be more restrictive. In Ohio the money, stock, bonds, or other property of a person who dies cannot be turned over to the heirs or legal representative, unless either a ten days' notice has been given to the State Tax Commission and the County Auditor and a sufficient part of the property has been retained to pay any possible tax that may be due, or the State Tax Commission upon application to it has granted a waiver of the tax and a release of the property. This requirement also applies to a joint account which is payable to the survivor, since the share of the deceased person in such an account has been held to be taxable. If the deceased has a safe deposit box it is sealed by the bank until its

contents can be examined by a committee consisting of a representative of the estate, a representative of the bank, and a representative of the State Tax Commission. This committee makes an inventory of the contents. If there is a will it is removed, but, if the estate requires administration, the box is not released until a legal representative of the estate is appointed.

48. Banks that take savings. - Practically all banks accept savings accounts. The rate of interest varies. Most banks now pay 4%. The average rate for the entire United States is a little under 4 per cent. It would seem that the saver could get a greater return from a mutual bank, where all the assets are owned by the depositors, and no dividends are to be paid upon stock as in all other banks; but the stock banks manage to guarantee the interest which the mutual bank expects to pay, and have outgrown the latter in the West.