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Fe d er a l Reser v e bank of Dallas DALLAS, TEXAS December 6, 1965 SUPPLEMENT TO REGULATION Q To AH Member Banks in the Eleventh Federal Reserve District: Effective December 6, 1965, the Board of Governors of the Federal Reserve System increased the maximum rates that member banks are permitted to pay to 5V2 per cent on all time deposits and certificates of deposit having a maturity of 30 days or more. Pre viously, the maximum rates payable were 4 per cent for time deposits and certificates of 30 to 90 days, and 4% per cent on those of 90 days or more. No change was made in the 4 per cent maximum rate pay able on savings deposits. The changes were effected by revision of the Supplement to the Board’s Regulation Q. A copy of the revised Supplement is attached. Member banks are requested to insert the new Supplement in their ring binders containing the Regulations of the Board of Gov ernors and the Bulletins of this bank. The Supplement effective November 24, 1964, should be destroyed. Yours very truly, Watrous H. Irons President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) SUPPLEMENT TO REGULATION Q SECTION 217.6 Maximum Rates of Interest Payable on Time and Savings Deposits by Member Banks I ssued by t h e B oard oe G overnors of t h e F ederae R eserve S y s t e m E ffe c t iv e D ec em b er 6, 196S Pursuant to the provisions of section 19 of the Federal Reserve Act and § 217.3, the Board of Governors of the Federal Reserve System hereby prescribes the following maximum rates1 of interest payable by member banks of the Federal Reserve System on time and savings deposits: (a) M axim um rate of Sl/ 2 percent. — No member bank shall pay interest accruing at a rate in excess of 5j4 per cent per annum, com pounded quarterly,2 regardless of the basis upon which such interest may be computed, on any time deposit. (b) M axim um rate of 4 per cent. — No member bank shall pay interest accruing at a rate in excess of 4 per cent per annum, compounded quarterly,2 regardless of the basis upon which such interest may be computed, on any savings deposit. xThe maximum rates of interest payable by member banks of 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 of the States of the United States and the District of Columbia. 2This limitation is not to be interpreted as preventing the compounding of interest at other than quarterly intervals, provided that the aggregate amount of such interest so com pounded does not exceed the aggregate amount of interest at the rate above prescribed when compounded quarterly.
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