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F ederal Reserve Bank
DALLAS, T EX AS

of

Dallas

75222

Circular No. 79-214
December 27, 1979

REGULATION Q— INTEREST ON DEPOSITS
Announcement of Rate for Two and O ne-half Year
Money M arket Certificates of Deposit

TO ALL MEMBER BANKS AND
OTHERS CONCERNED IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
Beginning January 1, 1980, member banks are permitted to offer a non­
negotiable time deposit with a m aturity of two and one-half years or more at a rate
tied to the average two and one-half year yield on United States Treasury securities.
The rate is fixed for the m aturity of each two and one-half 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 January 1980, the ceiling rate of 10.15 percent is autho­
rized for commercial banks. This rate is the maximum which banks should pay for
the two and one-half year money market certificates sold during the month.
Questions regarding Regulation Q should be directed to the Consumer
Affairs Section of our Bank Supervision and Regulations Department, Ext. 6171.
Sincerely yours,
Robert H. Boykin
First Vice President

Banks and oth ers are encouraged to use the fo llo w in g incom ing WATS numbers in c o n ta ctin g th is Bank:
1-800-442-7140 (intrastate) and 1-800-527-9200 (interstate). For ca lls 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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