Business: Increasing Interest

Responding to pleas from commercial banks, the Federal Reserve Board and Federal Deposit Insurance Corp. last week authorized their 13,100 member banks to increase their interest rate from 3% to 4% on savings and time deposits left for at least a year. The step was chiefly intended to help the commercial banks compete more successfully with mutual savings banks, whose rates run as high as 3¾%. and with savings and loan associations, whose rates run up to 4½%. A secondary purpose: to help the banks hold foreign deposits that might otherwise flee to higher interest havens abroad, thereby increasing the outflow...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!