businesses will have to pay up to $1,500 extra a year to deposit cash straight into the bank.

The charges are set to be introduced by the Bank of Butterfield and have caused ripples of discontent through some small businesses who bank cash every day.

They will now face charges of $5 each time they hand cash over to a teller in all Bank of Butterfield branches as of April 30.

Charles Gosling, the new president of the Chamber of Commerce, said some concern had been expressed by chamber members over the charges.

When asked if the chamber was going to act on the matter, he said: "It certainly is a concern of the small guys, and they are an important part of the Chamber, so we will be looking into it.'' The bank says the change will provide a more accurate and efficient service for deposits.

The bank wants to encourage businesses to deposit money either in canvas or plastic deposit bags which are dropped through a chute at a branch and later processed.

The bank promises to process to cash the same day if it is deposited before 2.30 p.m.

It will charge a fee of 35 cents per plastic deposit bag, which are sold in lots of 100 with no annual processing fee, or business customers can buy a $60 canvas bag and face a $80 annual processing fee.

One disgruntled small business owner said: "This is the first time I have heard of a bank charging you to put your money in the bank. It is ludicrous.

For my business it will mean about $1,500 extra a year, which I cannot afford.'' Another said: "We do not want to keep cash on the premises. It is a security risk and can be a danger to staff. They are just cost cutting, so they do not have to have as many tellers. It lets us know that we are just not valued as customers by the bank.'' Another shop owners said: "We already don't get interest on the money we have in the bank. Now we are going to be charged for putting it in.'' Many small businesses on the Island have been hit hard by the cost of implementing new pension legislation, the Employment Act and Cure regulations and have complained of the increased cost to their businesses as a result.

In a letter to its customers the bank said it was "streamlining its commercial deposit process in Hamilton.'' It added: "To provide more accurate and efficient service, we have constructed a new modern and secure commercial deposit facility at Rosebank Banking Centre. We will be processing all deposits for Hamilton businesses at this new facility, which opened for business on February 12.'' It added that many commercial customers were surveyed in December, 2000, to help develop new deposit options.

In a section entitled "Over the Counter Deposits'', the bank told its customers: "Over the counter commercial deposits will still be available, but all branches will implement a fee of $5 per deposit beginning April 30, 2001.''