Any amount may be invested in the above stocks and annuities through the medium of either a banker through his broker, or by a broker direct. The broker's charge for trans- acting in Consols is 25. 6d. (1/8) per cent. on the amount invested, but provincial bankers make a further small charge for guaranteeing the busi- ness, that is, they protect their customer from any loss that may arise owing to the failure of the broker to carry out the contract.
The dividends, interest, or annuity derivable from these investments, may be received by personal application of the holder at the Bank of England on certain fixed days, or on signing a printed form furnished on application by the Bank of England, per post, they will send from time to time without further notice a warrant or order for the amount due, which warrant or order may be paid into a bank account, or, on a proper introduction, cashed at any bank or post office. The simplest plan, however, may be to give your banker a Power of Attorney to receive the divi- dends from time to time and place the amount to the credit of your account.
Income tax is deducted from all dividends; but if a person is not liable to such tax, by reason of the total income coming within the Exemption Clause, the amount can be recovered through a surveyor of taxes, as to which the banker would give all the information required (*).
(*) Such information may also be found in detail in a little handy book, "Income Tax, and how to get it Refunded." 1s. 6d. Pub- lished by Messrs. Effingham, Wilson & Co.
The stock of the Bank of England, which may be purchased in any amount, the same as Consols, is a favourite investment with some, but the price is so high that the income to be derived therefrom is no more, and sometimes even less, than from the Funds.
AUTOMATIC RE-INVESTMENT OF DIVIDENDS.
Holders of stock in the Funds who are not desirous of receiving their dividends, but prefer to have them added half-yearly to the capital sum without further action on their part, are granted facilities by which this may be done automatically, on application to the Bank of England. The instructions apply to amounts of stock of less than £1,000 only. These facilities are also extended to holders of Metropolitan Consolidated Stocks, and to the India 3 per cent. and 3 1/2 per cent. stocks.
CHAPTER VI. GOVERNMENT ANNUITIES.
THE Commissioners for the Reduction of the National Debt, under the authority of Parlia- ment, grant annuities either on single lives, or on two lives and the life of the survivor, or on the joint continuance of two lives, such annui- ties to commence immediately. In the case of single lives, the annuity may be made to com- mence at a future period, and the consideration for it may be paid by the purchaser annually in sums of money not less than £5, but in case of default in keeping up the annual instalments, all the annual payments previously made are forfeited, and all right to the annuity is ex- tinguished.
Payment for an annuity is made by the transfer of 2 1/2 per cent. Consols, or money of equi- valent value, at the price of the stock on the day of the transaction.