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F ed er a l Re s e r v e Ba n k DALLAS, TEXA S of D allas 75222 Circular No. 79-148 August 29, 1979 REGULATION Q— INTEREST ON DEPOSITS Announcement of Rate for Four-year Money Market Certificates of Deposit TO ALL MEMBER BANKS AND OTHERS CONCERNED IN THE ELEVENTH FEDERAL RESERVE DISTRICT: Beginning July 1, 1979, member banks were permitted to offer a non negotiable time deposit with a m aturity of four years or more at a rate tied to the average fo u r-y e a r yield on United States T reasu ry securities. The rate is fixed for the maturity of each fo u r-year deposit, but the ceiling itself varies from month to month. Member banks are permitted to compound and compute interest on this deposit in accordance with any of the methods authorized by Section 217.3 of Regulation Q . For the month of September 1979, the ceiling rate of 7.95 percent is authorized for commercial banks. This rate is the maximum which banks should pay for the fo u r-year money market certificates sold during the month. Questions regarding Regulation Q should be directed to the Consumer A ffairs Section of our Bank Supervision and Regulations Department, Ext. 6171. Sincerely yours, Robert H . Boykin First Vice President Banks and others are encouraged to use the following incoming WATS numbers in contacting this Bank: 1-800-442-7140 (intrastate) and 1-800-527-9200 (interstate). For calls placed locally, please use 651 plus the extension referred to above. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
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