Money: Battle of Interest

Rarely in recent years had there been such a rush by banks and savings and loan associations to lure deposits from the public. From New York to Los Angeles, financial institutions splurged with big-sized ads offering the average saver a return of 4½%, 4.85%, even 51% . This growing struggle for savings is the most vivid result to date of the Federal Reserve Board's month-old boost in the discount rate and its simultaneous increase (from 4½% to 5½%) in the maximum interest that banks may pay on time deposits of 30 days or more. Some of the combatants...