Fed Finds Few Banks Lifted Time-Deposit Rate
A Federal Reserve Board survey indicated yesterday that banks made relatively little immediate use of the authority given them in early December to raise interest rates on time deposits.</br></br>Less than one-fourth of all banks which belong to the Federal Reserve System, the Board said, raised rates on any type of time or savings deposit immediately after early December or said they had plans to do so.</br></br>In a move toward tighter money, the Board on Dec. 3 had raised the discount rateÛÓ the fee banks must pay the Federal Reserve to borrow moneyÛÓand authorized an increase in the interest rate on time deposits to 5.5 per cent.</br></br>Tlie previous rate was 4 per cent on time deposits of 30-89 days and 4.5 per cent on deposits of 90 or more days. The maximum 4 per cent interest rate on passbook savings accounts remained unchanged.</br></br>In its survey, the Board asked member banks to report interest rates as of Dec. 3 and any changes made after that date. Reports were received, from 6192 of the 6221 [member banks, the Board I said.