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FEDERAL RESERVE BANK A T C IR C U L A R NO.
OF NEW YORK
___—
July 23, 1979
TELEPHONE MESSAGE SERVICE FOR INFORMATION ON
MAXIMUM RATES OF INTEREST PERMITTED TO BE PAID ON h-YEAR
VARIABLE CEILING CERTIFICATES AND 26-WEEK MONEY MARKET CERTIFICATES
To A ll Member Banka in the Second Federal Reserve District:
On Wednesday, July 25, 1979, this Bank will implement a recorded telephone
message service to provide member banks with the latest information on the maxi
mum rates of interest that may be paid on four-year fixed-rate variable-ceiling
time deposits and on 26-week money market certificates.
The telephone number
for the recorded message is 212-791-5927*
Member banks are permitted to offer the four-year fixed-rate variable-ceiling
certificate and the 26-week money market certificate pursuant to amendments,
effective July 1, 1979 and June 1, 1978, respectively, to Regulation Q ("Interest
on Deposits") of the Board of Governors of the Federal Reserve System.
The ceil
ing rates for these certificates are tied, respectively, to the average four-year
yield on U.S. Treasury securities and to the discount rate (auction average) on
the most recently issued six-month Treasury bills.
Through the recorded message service, the information on rates will be available
twenty-four hours a day, seven days a week.
Changes in the interest rate ceiling
relating to the four-year certificate will be reflected in the recorded message
three business days prior to the start of each month.
Information regarding the
maximum rate established for the 26-week certificate will be updated on Tuesday
of each week.
Any specific questions regarding this service or other matters relating to
Regulation Q may be directed to our Consumer Affairs and Bank Regulations Department
(Tel. No. 212-791-5923).
P a u l A. V olcker ,
President.
@FedFRASER