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F ederal R eserv e Bank
DALLAS. T E X A S

of

Dallas

7S222

Circular No. 80-7
January 16, 1980

SUPPLEMENT TO REGULATION Q
TO ALL MEMBER BANKS
AND OTHERS CONCERNED IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
Enclosed is a copy of the Supplement to Regulation Q effective
January 1, 1980. Member banks and others who maintain Regulations
Binders should file the supplement in your binders. The supplement
dated August 1979 should be removed from your binders and destroyed.
Any questions concerning Regulation Q should be directed to
the Consumer Affairs division of our Bank Supervision and Regulations
Department, Ext. 6171.
Additional copies of this supplement will be provided upon
request to the Secretary's Office of this Bank, Ext. 6266.
Sincerely yours,
Robert H. Boykin
First Vice President
Enclosure

Banks and others are encouraged to use the following incoming W A TS 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)

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

SUPPLEMENT TO REGULATION Q f
As amended e f iv January 1 1980
f ect e
,
SECTION 217.7— M A X I M U M RATES OF
INTEREST PAYABLE BY M E M B E R BANKS O N
TIME A N D SAVINGS DEPOSITS

ber bank s a l pay i t r s a a r t i excess of 5
hl
neet t ae n
per cent on any savings deposit t a i subject t
ht s
o
negotiable orders of withdrawal, the issuance of
which i authorized by Federal law.
s
Pursuant t th provisions of Section 19 of t e
o e
h
( ) Governmental unit time deposits of l s
d
es
Federal Reserve Act and § 217.3 of t i P r , t e
hs at h
than $100,000. Except a provided i paragraphs
s
n
Board of Governors of the Federal Reserve System
( ) ( ) and ( ) no member bank s a l pay i t r s
a , f,
g,
hl
neet
hereby prescribes t following maximum r t s of
he
ae'
on any time deposit which co ist of funds depos­
ns s
i t r s per annum payable by member banks of t e
neet
h
i e t t c e i o . or i which t e e t r benefi­
t d o he r d t f
n
h nie
Federal Reserve System on time and savings de­
c a i t r s i held by. th United S a e , any S a e
il neet s
e
tts
tt
pst:
ois
of t e United S a e , or any county, municipality or
h
tts
( ) Time deposits of $100,000 or more. There
a
p l t c l subdivision t
oiia
hereof, t e D s r c of Co­
h itit
i no maximum r t of i t r s presently prescribed
s
ae
neet
lumbia. the Commonwealth of Puerto Rico, th
e
on any time deposit of S 100.000 or more.
Virgin I l n s American Samoa. Guam, or p l t c
sad.
oii­
( ) Fixed ceiling time deposits of l s than
b
es
a subdivision t e e f a a r t i excess of 8 per
l
h r o , t ae n
$100,000. Except a provided i paragraphs ( )
s
n
a,
cent.!
( ) ( ) ( ) and ( ) no member bank s a l pay
d . e . f,
g.
hl
( ) Individual Retirement Account and Keogh
e
i t r s on any time deposit a a r t i excess of
neet
t
ae n
(H.R. 10) Plan deposits of l s than $100,000.
es
t e applicable r t under the following schedule:
h
ae
Except as provided i paragraphs ( ) and ( ) a
n
a
g.
member bank may pay i t r s on any time deposit
neet
Maturity
M a x i m u m per cent
with a maturity of t re years or more than c n i t
h e
osss
30 days or more but l s
es
5'A
of funds deposited t t e c e i o . or i which t e
o h rdt f
n
h
than 90 days
e t r b n f c a i t r s i held by. an i di du
nie e e i i l neet s
n vi al
pursuant to an Individual Retirement Account
5-i
V
90 days or more but l s
es
agreement or Keogh (H.R. 1 ) Plan established
0
than 1 year
pursuant t 26 U.S.C. (I.R.C. 1954) §§ 408. 401.
o
1 year or more but l s
es
6
a a r t not i excess of 3 per cent.2
t ae
n
than 2Vi years
(0 26*week money market time deposits of
m
2'/i years or more but
l s than $100,000. Except a provided i para­
es
s
n
l s than 4 years
es
graphs ( ) ( ) and ( ) a member bank may pay
a, b
d.
4 years or more but
7'A
interest on any nonnegotiable time deposit of
l s than 6 years
es
S10.000 or more, with a maturity of 26 weeks, a a
t
r t not t exceed th r t established (
ae
o
e ae
auction aver­
6 years or more but l s
es
Vh
age on a discount b s s f United S a e Treasury
a i ) or
tts
than 3 years
b l s with m tu ti of 26 weeks issued on or im­
il
a ri es
VU
8 years or more
mediately p io t t e date of d p it Rounding
r r o h
e os .
such r t t the next higher r t i not permitted. A
ae o
ae s
neet
( ) Savings deposits. No member bank s a l pay member bank may not compound i t r s during
c
hl
th term of t i d p s t A member bank may o f r
e
hs e o i .
fe
i t r s a a r t i excess of 5V per cent on any
neet t
ae n
i
t i category of time deposit t a l depositors.
hs
o l
savings d p s t Provided, however, t a no memeoi.
ht
However, a member bank may pay i t r s on any
neet
1 The limitation on rates o f interest payable by m em ber
banks ot' 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 the States o f the United States and
the District ot' Columbia.

! The ceiling rate on this category is the highest fixed
ceiling rate that may be paid on tim e deposits under
S 100.000 by any Federally insured com m ercial bank,
mutual savings b n , or savings and loan association.
ak

D E C E M B E R 1979
T Destroy Supplement dated August 1079.

nonnegotiable time deposit of S 10.000 or more with
a maturity of 26 weeks which c
onsists of funds de­
posited t the c e i o . or i which th e t r be­
o
rdt f
n
e nie
n f c a i t r s i held by:
eiil neet s
( ) the United S a e , any S a e of th United
1
tts
tt
e
S a e , or any county, municipality or p l t c l sub­
tts
oiia
division thereof, the District of Columbia, t
he
Commonwealth of Puerto Rico, t Virgin I l n s
he
sad.
American Samoa, Guam, or p l t c l subdivision
oiia
t e e f or
hro;
( ) an i
2
ndividual pursuant t an Individual Re­
o
tirement Account agreement or Keogh (H.R. 1 )
0
Plan established pursuant t 26 U.S.C. fl.R.C.
o
1954) §§ 408.401.
a a r t not t exceed t e c i i g r t payable on t e
t ae
o
h e l n ae
h
same category of deposit by any Federally insured
savings and loan association or mutual savings bank.
( ) Time deposits of l s than $100,000 with
g
es
maturities of 2Vi years or more. Except as pro­
vided i paragraphs l ) ( ) ( ) and < ) a member
n
a, b. d
e.
bank may pay i t r s on any nonnegotiable time
neet
deposit with a maturity of 2 / years or more t a i
'j
ht s
issued on or a t r t f r t day of each month a a
f e he i s
t
r t not t exceed t ee quarters of one per cent
ae
o
hr
below the average IVi year y ld f r United S a e
ie o
tts

Treasury s c r t e a determined and announced by
euiis s
th United St es Department of the Treasury t re
e
at
h e
business days p or t th f r t day of such month.
ri o e i s
The average V h year y ld w l be rounded by th
ie i l
e
United S te Department of th Treasury t t e
ta s
e
o h
nearest 5 b s s p i t . A member bank may o f r
ai ons
fe
t i category of time deposit t a l depositors.
hs
o l
However, a member bank may pay i t r s on any
neet
nonnegotiable time deposit with a maturity of 2 /
':
years or more which con st of funds deposited t
si s
o
t e c e i o . or i which th e t r b n f c a i ­
h rdt f
n
e nie eeiil n
t r s i held b :
eet s
y
( ) the United S a e , any State of t e United
1
tts
h
S a e , or any county, municipality or p l t c l sub­
tts
oiia
division thereof, the D s ic of Columbia, t
i tr t
he
Commonwealth of Puerto Rico, t e Virgin I l n s
h
sad.
American Samoa, Guam, or p l t c l subdivision
oiia
t e e f or
hro;
( ) an indi du pursuant t an I
2
vi al
o
ndividual Re­
tirement Account agreement or Keogh (H.R. 1 )
0
Plan established pursuant t 26 U.S.C. (I.R.C.
o
1954) §§ 408 .401.
a a r t not t exceed t e ce i g r t payable on t e
t ae
o
h il n a e
h
same category of deposit by any Federally insured
savings and loan association or mutual savings bank.