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federal Reserve bank of Dallas DALLAS, TEXAS 7 5 2 2 2 Circular No. 68-99 April 19,1968 AMENDMENT TO REGULATION Q SUPPLEMENT To All Member Banks in the Eleventh Federal Reserve District: Effective April 19, 1968, th e Board of Governors of th e Federal Reserve System has adopted a new schedule of m axim um ra te s of in te rest payable by m em ber banks on large denomination certificates of deposit. The change was to raise the m axim um r a te of in te rest a m em ber bank m ay pay on single m a tu rity tim e deposits of $100,000 or more, which heretofore has been 5 per cent, to 5% p er cent, 6 per cent, and 6% p e r cent for deposits w ith m atu ritie s of 60 to 89 days, 90 to 179 days, and 180 days or more, respectively. In announcing th e change, th e Board s ta te d th a t th e principal purpose of th e r a te increase was to guard a g a in st disruption of financial m ark ets th a t could occur in the event of an undue contraction of such deposits. A ttached is a copy of th e amended Supplem ent to Regulation Q, which becomes effective April 19, 1968. The revised Supplement should be inserted in th e rin g binder containing th e Regulations of th e Board of Governors and th e Bulletins of this Bank. The Sup plem ent effective Septem ber 26, 1966, should be destroyed. Yours very truly, P. E. Coldwell P resident Enclosure (1) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) SUPPLEMENT TO REGULATION Q S E C T IO N 217.6 M a x i m u m Rates of Interest Payable o n T i m e a n d Savings Deposits b y M e m b e r B a n k s I ssued by t h e B oard op E G overnors ff e c t iv e A of t h e p r il F ederal R eserve S ystem 19, 1968 Pursuant to the provisions of section 19 of the Federal Reserve Act and § 217.3, the Board of Governors of the Federal Reserve System hereby prescribes the following maximum rates1 of interest payable by member banks of the Federal Reserve System on time and savings deposits: (A) SINGLE MATURITY TIME DEPOSITS (1) Deposits of $100,000 or more. —■ No member bank shall pay interest on any single maturity time deposit of $100,000 or more at a rate in excess of the applicable rate under the following schedule: M ATURITY 30-59 days 60-89 days 90-179 days 180 days or more MAXIMUM PER CENT PER ANNUM 5% 5% 6 (2) Deposits of less than $100,000. — No member bank shall pay interest at a rate in excess of 5 per cent per annum on any single maturity time deposit of less than $100,000. (B ) MULTIPLE MATURITY TIME DEPOSITS (1) Deposits payable at intervals of at least 90 days. — No member bank shall pay interest at a rate inexcess of 5per cent perannum on a multiple maturity time depositthat is payable only90 days or moreafter the date of deposit, or 90 days or more after the last preceding date on which it might have been paid. (2) Deposits payable at intervals of less than 90 days. — No member bank shall pay interest at a rate in excess of 4 per cent per annum on a multiple maturity time deposit that is payable less than 90 days after the date of deposit, or less than 90 days (but at least 30 days) after the last preceding date on which it might have been paid. (C) SAVINGS DEPOSITS No member bank shall pay interest at a rate in excess of 4 per cent per annum on any savings deposit. In calculating the rate of interest paid, the effects of compounding of interest may be disregarded. A member bank that elects to compound interest — either at the maximum permissible rate or at a lower rate — shall state the basis of compounding (such as semiannually, quarterly, monthly, weekly, daily, or continuously) in every advertisement, announcement, solicitation, and agreement relating to the rate of interest paid on a deposit. 1 The maximum rates of interest payable by member banks of the Federal Reserve System on time and savings deposits as prescribed herein are not applicable to any deposit which is payable only at an office of a member bank located outside of the States of the United States and the District of Columbia.
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