Section 10
SEC. 10. Interest at two and one-half per centum per annum shall be allowed on all deposits in the Postal Savings Bank until practical experience shall demonstrate that a higher rate can safely be guaranteed, subject to the following limitations: In the reckoning of interest, the clay upon which the deposit was entered to the credit of the depositor upon the books of the chief of the postal savings bank division shall be considered as the date of the deposit. Money to the credit of any depositor in excess of one thousand pesos shall not "bear interest, except in the case of deposits made by charitable and benevolent societies as provided in paragraph (c) in section three, in which case deposits in excess of two thousand pesos shall not bear interest. Interest shall be computed upon the lowest monthly balance to the credit of the account during each month of the fiscal year and shall be placed to the depositor's credit at the end of each fiscal year: Provided, That if the account is closed during the fiscal year the interest shall be added at the time the account is closed. No interest shall be allowed upon fractions of a peso or for the fractional part of a calendar month. The Philippine Government reserves the right to alter the rate of interest at the end of each fiscal year. At the end of each fiscal year the chief of the postal savings bank division shall send a statement of the interest accrued on each deposit to every depositor, and a duplicate statement of the same to the postmaster of the postal savings bank most convenient to the residence of said depositors, respectively, and said postmasters shall, upon presentation of the deposit books by the respective depositors, together with the above-mentioned statement, enter the amount as a deposit in the deposit book of said depositor in the manner provided in section eight of this Act. Any postal savings bank account upon which there has not been made, for a period of ten years, any deposit, withdrawal, or other operation made on demand of the depositor, or his legal representatives or assignees, shall cease to be productive of interest and shall be reimbursable at the amount existing to the credit of said depositor upon the thirtieth of June following the date upon which said ten-year period shall have expired: Provided, That in the case of deposits made by one person or society to the credit of another person or society under the stipulation that the latter person or society shall not have the disposal of said funds until after a fixed period of time, the said period of ten years shall date from the expiration of the period so fixed.