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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)