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Circular No. 70-19
January 26, 1970


To All Member Banks
in the Eleventh Federal Reserve District:
There is quoted below the text of a press release issued
January 23, 1970, by the Board of Governors of the Federal Reserve
System, relating to possible retroactive payments on passbook savings
at commercial banks.
The Board of Governors of the Federal Reserve
System said today that for accounting convenience, member
commercial banks which increase their interest rate on
passbook savings may, if they desire, compute interest at
the new rate from January 1, 1970, on savings deposits
held on January 20, the date the Board announced a new
structure of maximum interest rates payable on deposits.
The Board approved a maximum interest rate on
passbook savings, effective January 21, of ^.50 per cent,
compared with the previous maximum of ^ per cent. PerĀ­
mission for member banks to compute interest on passbook
savings at the new rate beginning January 1 was granted
to avoid additional complexities in making interest comĀ­
Yours very truly,
P. E. Coldwell

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