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FED E R A L R ES ER V E BANK O F NEW YORK T Circular No. 6 5 0 2 1 L March 3, 1970 J AMENDED SUPPLEMENT TO REGULATION Q Maximum Rates Increased on Certain Multiple-Maturity Time Deposits To the Member Banks o f the Second Federal Reserve D istric t: Following is the text of a statem ent issued today by the Board of Governors of the F ederal Reserve System : The B oard of Governors of the F ederal Reserve System announced today an increase in the m axi mum interest rates member banks may pay on m ultiple-m aturity time deposits of one y ear or more, bringing them in line w ith new maximum rates on single-m aturity deposits of less th a n $100,000. The new maximum rates are 5^5 p er cent on m ultiple-m aturity tim e deposits payable a t intervals of one year to two years, and 5% per cent on such deposits payable at intervals of two years o r more. The previous m aximum rate was 5 per cent on both types of instrum ents. F o r m ultiple-m aturity time deposits m aturing in 90 days to one year the maximum rate rem ains a t 5 per cent. A m ultiple-m aturity time deposit means any tim e deposit th a t is payable a t the depositor’s option on more th an one date, for example, by autom atic renewal a t m atu rity if the depositor does not w ith draw his funds a t th a t time. On J a n u a ry 20, the B oard announced an increase in the maximum rates banks m ay pay on single m atu rity time deposits of one year or more, effective on Ja n u a ry 21. The action announced today— effective retroactively to J a n u a ry 21—was taken in view of the convenience to bank customers of the autom atic renewal feature and the practice followed by the F ederal Home Loan B ank B oard in p er m itting renewal of sim ilar deposits in savings and loan institutions. The F ederal Deposit Insurance C orporation is issuing sim ilar regulations covering insured State nonmember commercial and m utual savings banks and savings banks in M assachusetts not insured by the F D IC . Enclosed is a copy of the B oard’s Supplement to Regulation Q, effective Jan u a ry 21, 1970 (as amended F eb ru ary 26, 1970), reflecting the increase in the maximum in terest ra te s on m ultiple-m aturity time deposits of one year or more. A dditional copies of the enclosure will be furnished upon request. A lfred H ayes, President. B oard o f G o v e r n o r s o p t h e F e d e r a l R e s e r v e S y s t e m SUPPLEMENT TO REGULATION Q Effective January 21, 1970 (as am ended F ebruary 26, 1970) SEC T IO N 217.7—M AXIM UM R A T E S OF IN T E R E S T P A Y A B LE BY M EM B ER B ANKS ON TIM E AND SAYINGS D E P O S IT S P u rsu a n t to the provisions of section 19 of the F ederal Reserve A ct and § 217.3, the B oard of Governors of the F ederal Reserve System hereby prescribes the following maximum rate s1 of in te r est p er annum payable by member banks of the F ederal Reserve System on tim e and savings d ep o sits: (a) Single m aturity tim e deposits. (2) Deposits of less th an $100,000. No mem ber bank shall p ay interest on any single m aturity time deposit of less than $100,000 a t a rate in excess of the applicable rate under the following schedule: M aturity 30 days or more b ut less than 1 year 1 year or more but less than 2 years 2 years or more M axim um per cent 5 (1) Deposits of $100,000 or more. No mem 5V2 ber bank shall pay interest on any single m aturity 5% time deposit of $100,000 or more a t a ra te in excess of the applicable rate under the following (b) M ultiple m aturity tim e deposits. No member bank shall p ay interest on a multiple schedule: m aturity time deposit a t a rate in excess of the M aturity M axim um per cent applicable ra te under the following schedule: 30-59 days 6I/4 M a tu rity intervals M axim um per cent 60-89 days ey2 30 days or more but 63/4 90-179 days less than 90 days 4% 180 days or more but less 90 days or more but than 1 year 7 less than 1 year 1 year or more 7 y2 1 year or more but less th an 2 years sy 2 1 The lim itations on rates of in terest payable by 2 years or more 5% 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 a t an office of a member bank located outside the States of the U nited States and the D istrict of Columbia. (c) S av in g s d e p o s its. No member bank shall p ay in terest a t a rate in excess of 4 y2 p er cent on any savings deposit. M IN T E D IN N EW YORK
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