Consumer guide to banking : staff report on commercial bank charges in the New York and Washington, D.C. areas

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Title:
Consumer guide to banking : staff report on commercial bank charges in the New York and Washington, D.C. areas
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v, 36 p. : 24 cm.
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United States -- Congress. -- Senate. -- Committee on Banking, Housing, and Urban Affairs
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Subjects / Keywords:
Banks and banking -- Service charges -- New York (N.Y.)   ( lcsh )
Banks and banking -- Service charges -- Washington (D.C.)   ( lcsh )
User charges -- Washington (D.C.)   ( lcsh )
Banks and banking -- Service charges -- New York (State) -- New York   ( lcsh )
Banks and banking -- Service charges -- Washington (D.C.)   ( lcsh )
User charges -- New York (State) -- New York   ( lcsh )
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non-fiction   ( marcgt )

Notes

General Note:
CIS Microfiche Accession Numbers: CIS 76 S242-3
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At head of title: 94th Congress, 2d session. Committee print.
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Reuse of record except for individual research requires license from LexisNexis Academic & Library Solutions.
General Note:
At head of title: 94th Congress, 2d session. Comittee print.
Statement of Responsibility:
Committee on Banking, Housing, and Urban Affairs, United States Senate, April 1976.

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University of Florida
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Table of Contents
    Front Cover
        Front Cover 1
        Front Cover 2
    Title Page
        Page i
        Page ii
    Foreword
        Page iii
        Page iv
    Table of Contents
        Page v
        Page vi
    Introduction and checking account services
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
    Open end consumer credit
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
    Installment consumer credit
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
    Mortgage loans
        Page 28
        Page 29
        Page 30
    Savings accounts
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
    Back Cover
        Back Cover 1
        Back Cover 2
Full Text



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iMPORT ON

B"'!C CHARGES, IN THE NEW YORK

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94th Congress COMMITTEE PRINT
2d Session J









CONSUMERS GUIDE TO BANKING


STAFF REPORT ON

COMMERCIAL BANK CHARGES IN THE NEW YORK

AND WASHINGTON, D.C. METROPOLITAN AREAS






COMMITTEE ON BANKING, HOUSING AND

URBAN AFFAIRS

UNITED STATES SENATE














APRIL 1976







Printed for the use of the Committee on Banking, Housing and Urban Affairs


U.S. GOVERNMENT PRINTING OFFICE 65-061 0 WASHINGTON : 1976


For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402 Price 70 cents
There is a minimum charge of $1.00 for each mail order






























COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS

WILLIAM PROXMIRE, Wisconsin, Chairman

JOHN SPARKMAN, Alabama JOHN TOWER, Texas
HARRISON A. WILLIAMS, JR., New Jersey EDWARD W. BROOKE, Massachusetts
THOMAS J. McINTYRE, New Hampshire BOB PACKWOOD, Oregon
ALAN CRANSTON, California JESSE HELMS, North Carolina
ADLAI E. STEVENSON, Illinois JAKE GARN, Utah
JOSEPH R. BIDEN, JR., Delaware ROBERT MORGAN, North Carolina

KENNETH A. MCLEAN, Staff Director ANTHONY T. CLUFF, Minority Staff Director ROBERT L. KUTTNER, Professional Staff Member ANNE B. MILLER, Staff Assistant
(II)









FOREWORD
(By Senator William Proxmire)
The free market works best when consumers are informed.
In recent years, Congress has passed several "Trutl in . ." laws, beginning with the landmark Truth in Lending Act. But in the area of banking, comparison shopping can be a frustrating task, even witi the help of disclosure legislation.
Different banks charge widely differing fees for the same service, and great savings are possible if consumers shop around. ''lie problem is that different banks often fail to speak a commo n langiiagre. For example, one bank may calculate checking account fees on the basis of the average monthly balance in your account, while the bank across the street might use the lowest balance.
On consumer loans and credit card charges, different banks not only charge different interest rates; thev use a variety of metho(Ids for calculating the interest due. While Truth in Lending helps consumers by requiring interest rates on most loans to be stated in thle common language of an annual percentage rate (eliminating misleading "discount" or "add-on" rates), other bank practices that are still legal make it necessary for the shrewd consumer to compare apples and oranges.
Nonetheless, comparisons are possible. Even if banks use different methods for calculating charges, some methods favor thle consumer while others favor the bank. A checking charge based on your average balance is obviously preferable to a charge based on the lowest balance you had on any day of the month. It is even more obvious that free checking, which many banks now offer, is the cheapest of all. Rates on auto loans may vary as much as 3 or 4 percent in the -ame coimmunity, which can mean a savings of several hundred dollars over the life of the loan. Surprisingly, even when simple comparisons would indicate obvious savings, many consumers do not make the effort to comparison shop for banking services.
The purpose of this report is to take some of the mystique out of banking and to encourage informed shopping around. It is based on surveys of major New York and Washington area banks. It indicates, in tabular form, the services, charges, and methods of (alcilation offered by the 43 banks which responded to the Banking Coummittee's questionnaire. It is divided into five sections: Checking Accounts, Credit Cards and Check Credit Plans, Installment Loans, o\ lort gage Loans, and Savings Accounts.
Each section also explains the different methods of fee computation, indicating which is preferable from the consumer's point of view. The charges, of course, are subject to change. They are current as of March 1, 1976. However, several studies bv consumer groups h,'ve indicated that as prices change, relative differences tend to persist. The best thing to do is inquire.
(III)




TV T

Some consumer groups recently have begun to publish local banking
i
t uides. Eventually, it would serve the public interest if guides to ranking services were available in every locality in the country. Government can help by setting the ground rules and providing some basic information. But in banking, as in other businesses, government can only do so much. It remains for consumers to get the most for their money by informed comparison shopping.














CONTENTS

Page
Foreword --------------------------------------------------------- iii
Introduction ------------------------------------------------------ I
Checking account services:
Minimum balance accounts ------------------------------------- I
Free checking ------------------------------------------------- 2
Special checking accounts --------------------------------------- 2
Regular checking accounts -------------------------------------- 2
Package plans ------------------------------------------------- 6
Overdraft accounts -------------------------------------------- 6
Checkbook costs ----------------------------------------------- 9
Stop payment charges -----------------------------------------Overdraft fees ------------------------------------------------- 9
Returned for insufficient funds ---------------------------------- 9
Deposited checks returned for insufficient funds ------------------- 9
Other services ------------------------------------------------- 12
Check clearing time -------------------------------------------- 13
Open end consumer credit:
Credit cards -------------------------------------------------- I I'D'
Cash loan with credit card -------------------------------------- 17
Check credit plans --------------------------------------------- 20
Installment consumer credit ---------------------------------------- 20
Mortgage loans ---------------------------------------------------- 28
Savings accounts:
Frequency of compounding ------------------------------------- 31
Method for determining balance --------------------------------- 32
Explanation of methods:
Low method balance --------------------------------------- 33
FIFO ---------------------------------------------------- 33
LIFO ------------------------------- --------------------- 33
Day of deposit-day of withdrawal -------------------------- 33
Frequency of crediting ------------------------------------- 33
Closing your account ------------------------------------------- 34
Other charges ------------------------------------------------- 34
(V)












Digitized by the Internet Archive






in 2013












http://archive.org/details/consu mb00u nit









CONSUMERS GUIDE TO BANKING

COMMERCIAL BANK CHARGES IN THE NEW YORK AND
WASHINGTON, D.C. METROPOLITAN AREAS
INTRODUCTION
Banks are a major provider of financial services to the public, but not the only provider. The preliminary report includes 40 large- and medium-sized banks in the New York and Washington metropolitan areas. It is based on voluntary surveys which were sent to banks with assets of at least $50,000,000. Excluded are small banks and banks which chose not to respond. The report also does not include so called "thrift institutions" savings banks, savings, and loan as,",ociation, and credit unions. By law, savings institutions may pay a higher interest rate on personal savings than commercial banks. The terms they offer on mortgage loans also tend to be quite competitive with commercial banks, and it is advisable to compare their rates with those of banks before deciding where to borrow.
Credit unions also offer many services which are comparable and often a better value than those offered by banks. Interest rates on loans are often lower; the dividends which credit unions pay, on savings are usually higher than interest paid on a passbook savings account (although credit unions may not be as liberal in their method of calculating interest, in order to discourage frequent withdrawals).
Also, many smaller banks which are not included in this survey may offer more attractive services and charges in order to compete with the larger, more established banks.

CHECKINGACCOUNT SERVICES
Banks offer a variety- of checking account plans. The "best" plan is the one that is most economical for v our particular needs. The survey indicates that charges for the same kind of plan are likely to vary between banks.
MINIMUM BALANCE ACCOUNTS
Minimum balance accounts offer unlimited checking at no charge per check or deposit as long as you maintain a specified balance. Generally, a service charge is added if the account falls below the specified balance in a certain month.
Two methods are used to determine whether or not the account has maintained the specified minimum balance. Under the minimum balance method, the service fee is based on the lowest balance on any day during the month. Even if you fall below the minimum amount for one day of the month, you will be charged the service charge. Under the average balance method, balances are computed daily, totaled at the end of the month, and divided by the number of business





2

days in that month. This method allows you to fall below the minimum temporarily, as long as your average balance remains within the specified minimum. The average balance method is better for the consumer, especially when the amount in deposit fluctuates widely during the month.
Minimum balance accounts are sometimes advertised as "Free". Although you do not directly pa-y' for the checking services, it is important to realize that you do pay for the service indirectly. If you must maintain a minimum balance in excess of the amount you would otherwise maintain, you lose the interest you could have earned if these funds were placed in a savings account. For example, if your required minimum balance is $400 and you would ordinarily maintain a minimum balance of only $50, you lost the interest you could have earned on the remaining $350. Figured at 5 percent, this would cost you $17.50 a year.
FREE CHECKING
Free checking with no minimum balance is the only checkinZ Dlan that can be labeled completely free. Only a few banks offer this service, usually the smaller banks who are trying to attract new customers.

SPECIAL CHECKING ACCOUNTS
"Special Checking Accounts" are offered by most banks. These accounts are charged a fixed monthly service charge (usually 50 to $1 per month) plus a per check fee. This individual check fee is usually 100 each. Often the 100 will be charged for each transaction including deposits. This plan is best for the customer who writes relatively few checks (5-10 checks per month) and maintains a relatively low balance.
REGULAR CHECKING ACCOUNTS
A small number of banks offer absolutely free checking in which you pay only for the cost of printing the checks. This is the cheapest kind of checking. At most banks, however, a "regular" checking account usually incurs a figed monthly service fee if your balance falls below a certain amount, typically a few hundred dollars. Note that some banks calculate the average monthly balance; others use the lowest balance the account reaches during the month to determine whether a fee will be charged. The average balance method is fairer to the consumer. The bank normally allows a small number of free checks (or items which means deposits as well as checks). The number of free items usually varies with the balance. If you exceed the permissible number of free transactions, you are then charged a small fee per item, usually 50 or 100.
Depending on where you bank, and how many checks you write, checking can cost several dollars a month-or nothing. Even "free" checking that requires a minimum balance can cost you the interest you would have earned by keeping the funds in a savings account.
Table I compares checking account charges. The first two columns list charges for "special ch'e cking", which normally carries a basic monthly maintenance fee plus ten or fifteen cents for each check written.





3

Columns three, four, and five compare "regular" checking charges. Column three indicates the balance the consumer must keel) in the account in order to avoid a monthly service charge. The footnotes indicate that certain categories of consumers may qualify for absolutely free checking, for example "senior citizens" or customers of other bank services. Column four indicates whether there is any limit to the number of checks which may be written without extra charge.
Column five indicates what the charge will be if your balance drops below the amount required for "free" checking, and also the charge per check if your balance is too low (luring any particular month to qualify for "free" checking. Note that most banks assess it charge based on the number of "items", which means deposits as well as checks.





































65-061 0 76 2






4

TABLE I.-CHECKING ACCOUNT SERVICES
NEW YORK AREA

Special checking Regular checking

Monthly
Monthly Per balance Number of Charge for "excess" items
charge check for free free checks or low balance
checking

Amalgamated Bank ------------ Free Free M200 Unlimited -------- $2 charge if balance drops below
$200.
American Bank & Trust Co ----- -------- $0.10 M500 Unlimited -------- $2 charge if balance drops below
$500; 6 cents per deposit, 5 cents per check; 10 cents credit per $100 balance.
Atlantic Bank of New York------ $0.50 .10 A400 Unlimited -------- $2 if balance is $300 to $399- and
$3 if balance is under $360. Bank Leumi ------------------ NA NA Free Unlimited -------Barclays Bank of New York ----- .75 .10 M200 Unlimited -------- 75 cents per month plus 10 cents
per check if balance drops below $200.
Chase Mantattan Bank --------- .75 .15 M500 Unlimited -------- $1 if balance is $400 to $499;
$2 if balance is $300 to $399; $3 if balance is $200 to $299; and $4 if balance is under $200.
Chemical Bank ---------------- .75 .15 M500 Unlimited -------- $1 if balance is $400 to $499;
$2 if balance is $300 to $399; $3 if balance is $200 to $299 and $4 if balance is under $200'
European-American Bank and .75 .10 M800 ------------------ $1 if balance is under $800; 3
Trust Co. cents per deposit; 6 cents per
check; and 10 cents credit per $100 of balance.
First National City Bank -------- .75 .15 M500 Unlimited -------- $2 if balance is $300 to $500; and
$3 if balance is under $300.
Irving Trust Co ---------------- .75 .10 M500 Unlimited -------- $2 if balance is $300 to $500; and
$3 if balance is under $300.
Manufacturers Hanover Corp ---- .75 .15 M400 Unlimited -------- $3 if balance is under $400.
Marine-Midland Bank of N.Y ---- -------- -------- A200 Unlimited -------- $2 if balance is under $200.
Merchants Bank of New York -- -------- .10 M300 9 free. 3 per $100 $4 if balance is under $300.
balance.
Midlantic National Bank Citizens- .50 .10 3 M300 5 per $100 of $1 if balance is under $100; 50;
balance. ce nts i f ba la nce i s $100 to $199
25 cents if balance is $200 to $299.
Nanuet National Bank ---------- .50 .10 A250 Unlimited -------- 10 cents per check charge if
balance is under $250.
National Bank of Westchester- .75 .15 M500 Unlimited -------- $1 if balance is $400 to $499; $2
if balance is $300 to $399; $3 if balance is $200 to $299; and $4 if balance is under $200.
National Community Bank of N.J_ .50 .10 A600 ------------------ 50 cents fixed charge; 5 cents per
check; 3 cents per deposit; and 10 cents credit for each $100 of balance.
United Jersey Bank ------------ .75 .10 2 M100 ------------------ 50 cents fixed charge; $1 if
balance is under $100; and 5 cents per item with a 15 cents credit per $100 of balance.
Republic National Bank of N.Y__ .75 .10 A300 ------------------ $1 if balance is under $300; 6
cents per deposit; 5 cents per check; and 15 cents credit per $100 of balance.
Scarsdale National Bank & Trust .50 .10 4 M200 Unlimited -------- $3 if balance is under $200.
Trust Co.
See footnotes at end of table.






5

TABLE 1.-CHECKING ACCOUNT SERVICES-Continued
WASHINGTON AREA

Special checking Regular checking

Monthly
Monthly Per balance Number of Charge for "excess" items
charge check for free free checks or low balance
checking

Alexandria National Bank of .75 .10 2 A200 Unlimited -------- $1 if balance falls below $200
Northern Virginia. $1.25 for 0 to 5 items; $1.50 for
6 to 10 items; and 6 cents each
additional item.
American Security and Trust ---- 75 .10 ---------- ------------------ 50 cents fixed charge and 10 cents
per item, with a credit of 21
cents per $100 average
balance.
Arlington Trust Co ------------- .50 .10 2 3 5 M200 Unlimited -------- $1.25 plus 10 cents per check if
balance falls below $200.
Bank of Bethesda -------------- Free Free Free ----------------- ---------- ------------------Bank of Virginia-Potomac ------ NA NA M50 Unlimited -------- $1 if balance falls below $50.
Citizens Bank and Trust Co. of .50 .10 8 for each $100 of $1 fixed charge plus 5 cents per
Maryland. balance. excess item.
Citizens National Bank --------- .50 .10 A200 3 items per $100 5 cents per excess item plus $1.
balance.
Dominion National Bank -------- NA NA Free Unlimited -------First Virginia Bank ------------- NA NA 2 3 7 M300 Unlimited -------- $1 plus 10 cents per check.
Madison National Bank --------- NA NA Free Unlimited -------National Bank of Fairfax -------- NA NA Free Unlimited -------National Bank of Washington ---- 1.00 .10 2 M300 Unlimited -------- 15 cents per check if balance fails
below $300.
National Savings and Trust ----- 1.00 .10 300 Varies according to $1 if balance falls below $300.
balance.
Northern Virginia Bank --------- NA NA Free Unlimited -------Peoples National Bank of .50 .10 8 M200 10 at $200 balance; $1.50 fixed charge if balance falls
Maryland. 3 per additional below $200 and 5 cents per
$100 balance. excess item.
Riggs National Bank ----------- .50 .10 A301 10 at $301 balance $1 if average balance falls below
plus 2 per addi- $301 and 10 cents per excess tional $100 item.
balance.
Security National Bank --------- .50 10 M201 6 at $201 plus 5 per 5 cents per item (50 cents min.).
additional $100
balance.
Suburban Trust Co ------------- .50 .10 2 A200 6 at $200 plus 3 $1.50 plus 5 cents per item.
per additional
$100 balance.
Union First National Bank of the .75 .10 A300 Unlimited -------- $2.50 if average falls below $300.
District of Columbia.
United Virginia National Bank-- NA NA A100 Unlimited -------- $1 if average balance drops
below $100.
University National Bank (Md.)-- .50 .10 A200 9 free if under $1.50 if balance is under $200.
$200; 10 free if
under $300; 3
per additional
$100 balance.

Note: M means minimum monthly balance. A means average daily balance for month.
I In checking or savings. 6 Free 1st year of marriage.
2 Free to those who qualify for overdraft account. 7 Free to professionals.
3 Free to senior citizens. 8 Free if $1,000 in savings accounts.
4 Free-16 to 29; 62 and over. 9 Free if $200 in savings accounts.
5 Free to college students.





6

PACKAGE PLANS
"Package Plans" combine many different bank services into one package. The customer usually pays one flat fee each month. Package plans usually include unlimited checking along with many other services, such as safe deposit boxes, personal loan discounts, free travelers checks, overdraft credit, etc. It is important to evaluate your own needs before. opening a package account. Unless the consumer would normally use all of the services, it could be more expensive than other methods. Even if you use most of the services, normally, it may still be cheaper to shop around for them separately. For example, even with a one-half to 1% discount on a consumer loan, that loan might be obtained for less at another bank. Unlimited checking is offered in package accounts, but many banks now offer free checking without a minimum balance or at a much smaller charge than the $3-4 a month charged by the package plan.

OVERDRAFT ACCOUNTS
"Overdraft accounts" are offered by many banks to customers who can supply satisfactory credit ratings. The bank will automatically lend the customer money when his balance falls below zero. Instead of refusing payment on the checks, the bank will lend the customer a certain amount and deposit that amount in his account. Most plans lend a minimum of $100, and only in multiples of $100. However, a few banks have lower multiples or will actually lend you the exact amount of the overdraft Assuming that the interest rate is the same, a plan which allows you to borrow the exact amount of the overdraft is preferable so that you will only have to pay interest on that amount. Otherwise, you could only overdraw $10, for example, yet-have to pay interest on $ 100. Interest generally ranges from 1 IY2 to 12 percent
A few banks will automatically deduct payments from this overdraft service from future deposits into the account. However, most banks require that you make a special deposit indicating that it is to pay off the loan. If this is the case, it is important to pay the loan as soon as you can. Otherwise, you might be charged for several months interest before you realize that automatic deductions are not made.
Some banks will autocratically deduct a part of the loan, for example, 1/20th of the total every month. Unless you specifically pay the entire amount earlier, your payments will be stretched over 20 months, and the interest you will have to pay will be much higher. To save these interest charges, pay all loans as soon as you can.
If you are overdrawing an account to purchase merchandise, it might be cheaper to 'Charge it to a credit card. Unlike overdraft services, credit cards enable the customer to borrow the exact amount of the purchase and often have a 30 day grace period before interest is charged. Also, credit card plans do not generally impose transaction fees. On the other hand, credit card plans generally charge interest at a rate of IS percent a year compared to 12 percent for most overdraft plans.





7

TABLE 2.-OVERDRAFT CHECKING ACCOUNTS NEW YORK AREA

Automatic
Interest on Maximum Typical Multiple of deductions
overdraft line of line of loan to Other fees from
loans 1 credit credit customer future
deposits?

Amalgamated Bank ------------ N/A ------------------- ------------ ------------ ----American Bank & Trust Co ------- 12 percent_~ $3, 000 $2, 000 $100------..No -------- Can be.
Atlantic Bank of New York-----12 percent- 5, 000 2,200 of credit No -------- Yes.
line.
Bank Leumi ----------------- 18 percent-- 5,000 2,500 $100------- No -------- No.
Barclays Bank of New York ------ 82 percent- 2,500 500 Exact------- No -------- Yes.
Chase Manhattan Bank---------- 12 percent--. 5, 000 1, 400 Exact ------ No -------- Yes.
Chemical Bank--------------- 12 percent--. 5, 000 500 $100------- No -------- Yes.
European-American Bank & Trust 12 percent-- 10, 000 1,050 Exact ------ No -------- No.
Co.
Fi rst National City Bank---------12pret 10, 000 1, 300 Eat---aepy o
ment fees.No
Irving Trust Co--------------- 12.17 5, 000 2,000 $10------ No -------- No.
percent
Manufacturers Hanover Corp ----- 12.17 5, 000 N/1A Exact ------ $.25 service No.
percent charge.
Marine-Midland Bank of New 12 percent-. 5, 000 1, 500 Exact ------ No -------- No.

Merchants Bank of New York---- N/A------------------- ------------ ------------ ----Midlantic National Bank-Citizens- 12 percent--. 5, 500 1, 000 $1002 ------- No --------(Q).
Nanuet National Bank ---------- N/A ---- -----National Bank of Westchester--12.17 5, 000 1,500 $100------- No -------- No.
percent.
National Community Bank of New 12 percent--. 5, 500 1, 000 Exact ------ No -------- Yes.
Jersey.
United Jersey Bank ------------ 12 percent--. 5, 500 960 Exact ------ No--------- No.
Republic National Bank of New N/A ------------------ --------------York.



See footnotes at end of table.






8

TABLE 2.-OVERDRAFT CHECKING ACCOUNTS-Continued WASHINGTON AREA

Automatic
Interest on Maximum Typical Multiple of deductions
overdraft line of line of loan to Other fees from
loans I credit credit customer future
deposits?

Alexandria Nabonal Bank of 12 percent-- $10,000 2,500 $100 ------- No --------- No.
Northern Virginia.
American Security & Trust ------- 11.5 6,000 1,400 $100 ------- No --------- No.
percent.
Arlington Trust Co -------------- 12 percent-- 5,000 1,350 $100 ------- No --------- Yes.4
Bank of Bethesda --------------- NA -------- ------------ ------------ ------------ -----------Bank of Virginia-Potomac ------- 12 percent-- NA 1,000 $50 -------- Yes -------- No.
Citizens Bank & Trust Co. of 12 percent-- 10,000 3,000 Exact ------ No --------- No.
Maryland.
Citizens National Bank ----------- NA -------- ------------ ------------ ------------ -----------Dominion National Bank --------- 18 percent-- 9,999 600 $50 -------- No --------- No.
First Virginia Bank -------------- 12 percent-- 10,000 $300-$9, 000 $100 ------- 2 percent No.
of
amount
ad
vanced.
Madison National Bank ---------- NA -------- ------------ ------------ ------------ -----------National Bank of Fairfax --------- 12 percent-- 5,000 1,500 $100 ------- No --------- No.
National Bank of Washington ----- 11.5 per- 5,000 1,500 $100 ------- No --------cent.
National Savings and Trust ------- NA -------- ------------ ------------ ------------ -----------Northern Virginia Bank ---------- 13.44 per- 5,000 1,000 $50 -------- No --------- No.
cent.
Peoples National Bank of Mary- 12 percent-- 2,500 500 $100 ------- No --------- No.
land.
Riggs National Bank ------------- 11.5 per- 5,000 1,500 Exact ------ No --------- No.
cent.
Security National Bank ---------- NA -------- ------------ ------------ ------------ -----------Suburban Trust Co -------------- 12 percent_ 5,000 500 $10D ------- No --------- No.
Union First National Bank of the 11.5 per- NA 2,200 $100 ------- No --------- No.
District of Columbia. cent.
United Virginia Bank-National--- 12 percent-- 1,500 300-1,500 $100 ------- No --------- No.
University National Bank --------- 12 percent-- 5,000 1,560 $100 ------- No --------- No.

One-twentieth of outstanding balance automatically deducted monthly.
2 If loan is requested, for exact amount of request.
3 One-thirty-sixth of outstanding balance automatically deducted, minimum $15 per month.
4 Monthly payment is automatically taken from checking account on 25th of month; may repay any of or entire balance with no prepayment penalty.
Note: All interest rates are expressed as annual percentage rates.





9

CHECKBOOK COSTS
Almost all banks responding to this survey indicated that they have stock checks available. These are free blank checks that (1o not include any personal information such as name or address.
Most banks do not charge for 200 "personalized" checks, which only have your name printed. A few banks do charge for tlis, normally around $3 for 200 checks. Adding address and phone number sometimes carries an extra charge, although many banks include this in the original price. Such charges range up to $5 depending on the checks yo u order.
STOP PAYMENT CHARGES
If you want your bank to stop payment of a check which has not vet been cashed, it will cost anywhere from $2-5. This information is seldom volunteered by the bank to new customers. It may be useful to inquire what your bank charges.

OVERDRAFT FEES
If you write a check for more than your balance, many banks will pay the check anyway while charging you an overdraft fee of as much as $10. By carefully keeping track of all checks written, there is no reason to overdraw an account. However, if you must, it is much wiser to have an overdraft protection plan (even with its high interest rate) than to pay the stiff penalty of up to $10 each time you overdraw your account.
RETURNED FOR INSUFFICIENT FUNDS
If you write a check on your account in excess of your balance, the bank may refuse to pay it. Instead, the checks will be returned to you along with a charge ranging from $5-10 for each check. Some banks will attempt to notify the customer before "bouncing" a check so that the customer may deposit enough to cover the check. This is an important service, and is often available only if you request it in advance, and then usually to established customers or those who usually maintain a substantial balance. This service will not only save you money, but it can insure that your credit rating will not be damaged because of one or two bounced checks. However, banks normally reserve the right to discontinue this service if it is used too often.
DEPOSITED CHECKS RETURNED FOR INSUFFICIENT FUNDS
A few banks will charge your account when other people's checks you deposit in your account bounce because they have insufficient funds. Although only one bank in the Washington area charges for this "service", almost all in the New York area charge. This charge ranges from 500 to $1.50.









10













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12


OTHER SERVICES

Other services that banks offer include travelers checks, certified checks, cashiers checks, and money orders. All banks responding to this survey offer travelers checks, costing 1 % of the face value of the checks, and insured by the bank against loss or theft. Prices for certified checks, cashiers checks, and money orders vary greatly and are listed in Table 4.
TABLE 4.-MISCELLANEOUS FEES
NEW YORK AREA

Certified check Cashiers check Money order Travelers fee fee fee check

Amalgamated Bank-------------------- $0.50---------- Not available..... $0.25----------1I percent,
American
Express;
others f re e.

American Bank & Trust Co-------------- $0.50---------- $0.50---------- $0.50---------- Various.
Atlantic Bank of New York-------------- $1 ------------ Not available.-.-.. $0.25---------- $1 per $100.
Bank Leumi ------------------------- 0------------ 0------------ $0.50---------- As per issue.
Barclays Bank of New York -------------- $0.50---------- $0.50---------- $0 50 bank None
MA6; $0.35,
personal M.O.
Chase Manhattan Bank ----------------- $1.50---------- $1.50---------- $0.35 to $0.50..--..I percent.
Chemical Bank ----------------------- $1.50---------- $0.50---------- $0.50----------1I percent.
European-American Bank & Trust Co------- $1 ------------ Not available... $0.50 to $1-----_$1 per $100;
minimum
charge $0.50.
First National City Bank ---------------- $2.50---------- $2.50---------- $0.40 to $0.60 1 percent.
Irving Trust Co ----------------------- $0.25---------- $0.50---------- $0.35---------- $1 per $100.
Manufacturers Hanover Corp------------- $1, special ac- $0.50---------- $0.40---------- $1 per $100.
count; no
charge, regular account.
Marine-Midland Bank of New York--------- $1 ------------ $0.75---------- $0.50----------1I percent.
Merchants Bank cf New York------------ $0.50---------- $0.50---------- $0.25---------- $1 per $100.
Midlantic National Bank-Citizens ---------- 0------------ $0.50---------- $0.50---------- $1 per $100.
Nanuet National bank ----------------- $1 ------------ Not available...__ $0.50----------1I percent.
Naticnal Bank of Westchester------------ $1 ------------ $1 ------------ $0.50----------1I percent.
National Community Bank of New Jersey.----. $1 ------------ Not available..---- $0.30 to $2 ----- $1 per $100.
United Jersey Bank-------------------- $0.50---------- $0.75---------- $0.75----------1I percent.
Republic Naticnal Bank of New York ------- Not available..--.. Not available..---. $0.35 ---------$1 per $100.
Scarsdale National Bank & Trust Co -------- $0.50---------- $0.50---------- $0.40----------1I percent.






13

TABLE 4.-MISCELLANEOUS FEES-Continued
WASHINGTON AREA

Cashfied check Certifiers check Money order Travelers fee fee fee check

Alexandria National Bank of Northern Vir- $1, customers; $0.75, cus- $0.50 ---------$1 per $100.
gin~a. $1.50, non- tomers; $1.50
customer. non-customer.1
American Security & Trust--------------0 ------------- 1/10 of 1 per- $0.40---------- 1 percent.
cent, $25
maximum.
Arlington Trust Co--------------------------- $0.50, cus- $0.50---------- $1 per $100;
$0.50 ---------- tomers; $1 minimum
noncustomer. $0.50.
Bank of Bethesda--------------------- $1.00---------- $1.00---------- $0.50------- $1 per $100.
Bank cf Virginia, Potomac--------------- $2 ------------ $1 ------------ $0.45 to $1------1I percent.
Citizens Bank & Trust Co. of Maryland------0 ------------ $0.50---------- $0.25 ---------- $1 per $100.
Citizens National Bank ----------------- $0.50---------- $0.50---------- $0.25---------- $1 per $100.
Dominion National Bank---------------- $0.75 ---------- $0.75---------- $0.50 customers; $1 per $100.
$1, ocs
tomer.
First Virginia Bank-------------------- $1 ------------ $1 ------------ $1 ------------1I percent.
Madison National Bank--------------$------- ---- $1---------- $0.45---------- $1 per $100.
National Bank of Fairfax ---------------$--- --------$11----$---------- 1 percent.
National Bank of Washington ------------- $1 ------------ 1/10 of 1 per- $0.50 ------ 1 pret
cent; $0.25, pret
minimum;
$25, maximum.
National Savings & Trust--------------- $1 ------------ $0.75, custom- $0.50---------- $1 per $100.
ers; $1.50,
no ncustom
ers.
Northern Virginia Bank--------------$------- ---- $1---------- $05 o$-----$pe$10
Peoples National Bank of Maryland --------$1.50 --------$0.50 ---------$0.50 ---------1 percent.
Riggs National Bank--------------$-----------$1$0.75---------- $0.50---------- 1 percent of
sale, $0.50
minimum.

Security National Bank -----------------0 ------------ $0.50---------- $0.35---------- $1 per $100.
Surburban Trust Co-------------------- $1 ------------ $1---------- $0.25---------- $1 per $100.
Union First National Bank of the District of $1 ------------ $1 ------------ $0.50---------- $1 per $100.
Columbia.
United Virginia Bank, National---------$----- ------1------- ---- $05--------- 1 percent.
University National Bank --------------- $1 ------------ $0.50---------- $0.40---------- 1 percent.



CHECK CLEARIN-\G TIMIE

When you deposit a check drawn on another bank, -your bank may hold that check for a periodic of several days to give the check time to "clear." This means that you cannot draw on these funds until A-our bank is paid by the bank on which the check is drawn.
Table 5 shows the length of time normally required to clear a check drawn on another bank. The days indicated are the number of business days after the deposit. Note that some, banks will give credit as sooni as the check actually clears, which is likely to be sooner than the fixed number of days specified by several other banks.






14


In practice, however, most banks do have procedures for giving established customers immediate credit on checks drawn on other banks. Some banks require approval by an officer, others leave it to the discretion of the teller handling the transaction. Of ten, established bank customers routinely receive immediate credit. Sometimes it is necessary to request that the check be cashed and the cash deposited in order to receive immediate credit.
It is important to understand your bank's particular procedures for granting immediate credit. Otherwise, you may unintentionally overdraw your account by writing checks on deposits that the bau has not yet credited.
If you are not sure whether a particular deposit will be credited immediately, ask the teller or an officer if your bank has a simple procedure for permitting you to draw immediately on most checks you deposit.
TABLE 5.-LENGTH OF TIME FOR CHECK CLEARING NEW YORK AREA

Possible
Same Outside for known
Local Federal Federal customers
bank Reserve Reserve to receive
(days) District District immediate
(days) (days) credit?

Amalgamated Bank ------------------------------- When check When check When check Yes.
clears clears clears
American Bank & Trust Co ------------------------ 3 7 7 Yes.
Atlantic Bank of New York ------------------------ 3 7 7 Yes.
Bank Leumi ------------------------------------- 4 4 7-10 Yes.
Barclays Bank of New York ------------------------ 3 7 7 Yes.
Chase Manhattan Bank ---------------------------- 3 3 3-10 Yes.
Chemical Bank ----------------------------------- 1 1 2 Yes.
European-American Bank & Trust Co --------------- 3 3 3 Yes.
First National City Bank --------------------------- When check When check When check Yes.
clears clears clears
Irving Trust Co ----------------------------------- 3 3 Varies Yes.
Manufacturers Hanover Corp ----------------7------- 3 (1) (1) Yes.
Marine-Midland Bank of New York ----------------- 3 3 5-10 Yes.
Merchants Bank of New York ---------------------- 2 5 5 Yes.
Midlantic National Bank, Citizens ------------------- 3 6 6-9 Yes.
Nanuet National Bank ---------------------------- When check When check When check Yes.
clears clears clears
National Bank of Westchester ---------------------- 3 3 3 Yes.
National Community Bank of New Jersey ------------ 2 2 3 Yes.
United Jersey Bank ------------------------------- 1 1 2 Yes.
Republic National Bank of New York ---------------- 3 3 -------------- Yes.
Scarsdale National Bank & Trust Co ---------------- Immediately Immediately Immediately Yes.






15

TABLE 5.-LENGTH OF TIME FOR CHECK CLEAR I NG-Conti nued WASHINGTON AREA

Possible
Same Outside for known
Local Federal Federal customers
bank Reserve Reserve to receive
(days) District District immediate
(days) (days) credit?

Alexandria National Bank of Northern Virginia ------- 4 7 7-15 Yes.
American Security & Trust ------------------------ When check When check When check Yes.
clears clears clears
Arlington Trust Co -------------------------------- 5 5 5-10 Yes.
Bank of Bethesda -------------------------------- 2-4 3-6 4-10 Yes.
Bank of Virginia, Potomac ------------------------- 5 7 10 Yes.
Citizens Bank & rrust Co. of Maryland -------------- When check When check When check Yes.
clears clears clears
Citizens National Bank ---------------------------- 3 3 6-9 Yes.
Dominion National Bank -------------------------- 3-4 3-7 5-9 Yes.
First Virginia Bank ------------------------------- (1) (2) (2) Yes.
Madison National Bank --------------------------- 3 5 7 Yes.
National Bank of Fairfax --- ---------------------- 4-6 5-7 10-14 Yes.
National Bank of Washington ---------------------- 3 3 5-10 Yes.
National Savings & Trust -------------------------- Immediately 2 2 Yes.
Northern Virginia Bank ---------------------------- 5 5 10 Yes.
Peoples National Bank of Maryland ----------------- Immediately 3 5-10 Yes.
Riggs National Bank ------------------------------ 3 3 3 Yes.
Security National Bank ---------------------------- 3-5 5 5-10 Yes.
Suburban Trust Co ------------------------------- 3 5 7-9 Yes.
Union First National Bank of the District of Columbia- 3 4-7 4-10 Yes.
United Virginia Bank, National --------------------- When check 2 2 Yes.
clears
University National Bank -------------------------- 3 7 10 Yes.

Depends on average experience with city of the bank involved.
2 At teller's discretion; in most cases immediate.

OPENED CONSUNIER CREDIT

CREDIT CARDS

Credit cards are one of the most widely used methods of open end consumer credit. A credit card "lends" the customer the amount of the purchase charged. The loan continues to accrue interest until it is paid off. These cards enable the consumer to make purchases tip to a specified credit limit each month. If the monthly bill is paid within a specified time (usually by the end of the next billing period) there will be no interest charged. However, every month that the bill is delayed or partially paid, interest rates (varying from 11.5% to 18%) are levied on the unpaid balance.





16

It is important to read the monthly bill carefully. The bank often lists two different amounts due: (1) the total balance due; and, (2) the minimum balance due. If you elect to pay the minimum balance due, or fail to pay the full amount due you will be charged interest in the following month. Some banks will also add a late charge for not meeting their minimum monthly payment. This charge is usually 5% of the payment due, but most banks do not charge a late fee. Only a handful of banks charge an annual fee for use of the credit card, so there is no reason to have to pay for this "service."
Besides the interest rate, the method a bank uses for computing the balance against which the rate is assessed will affect your actual cost. Although two different banks might both claim their interest rate to be 181 ,O, if different methods of computation are used, one of the banks will be charging less.
There are four computation methods currently in use. Under all four methods, you pay no finance charge if you pay your total bill by the due date. However, if you make a partial payment, your finance charge will vary depending upon the bank's computation method.
In order to understand the differences between these methods, assume you have a bank credit card account with the following terms and that you make the following transactions:
(1) Shortly after the first of the month, you receive a statement with a total amount due of $100 for the billing period ending on the last day of the previous month;
(2) Payment is due by the 30th of the current month to avoid a finance charge;
(3) You make a new purchase of $100 on the first of the month. (This purchase will be billed on your next monthly statement.)
(4) You make a partial payment of $20 on the 15th of the month; (5) You are assessed a finance charge of 1Y21/0 against your "unpaid balance."
Here is how the bank will compute your "unpaid balance" based upon the four different computation methods in use:
(1) Adjusted balance method.-This finance charge is applied against the amount billed less any payments made prior to the due date. In the above example, this would be $SO. ($100 minus $20) The finance charge would be 1.5% times $80 or $1.20.
(2) Previous balance method.-The finance charge is applied against the original amount billed. On the above example this would be $100. The finance charge would be 1.5% times $100 or $1.50.
(3) Average daily balance method excluding current transactions.-The finance charge is applied against the average daily balance outstanding in your account over the current 30-day period, but not counting any new purchases made during this period. In the above example, this would be $90.(A $100 balance for 15 days and an $80 balance for 15 days averages to a $90 balance due for the 30-day period). The finance charge would be 1.5% times $90 or $1.35.
(4) Average daily balance method including current transactions.-The finance charge is applied against the average daily balance in your account over the current 30-day period, inclu ding any new purchases made during this period. In the above example, this would be $160.





17

(Your outstanding balance during the first 15 days is, $200; $100 is from the previous month as shown. on your billing statement find $100 is from the new purchase you madec on the first dJay of the current billing period. After your payment of $80 on the 15th of the month, your outstanding balance is $120 during the last 15 days of the billing period. Thlis averages out to $160 over the entire 30 (laty J)eriod). The finance charge would be 1.5%0 times $160 or $2.40.
This simple example shows that one bank can charge you twice as much as another bank for the same transactions even though both banks charge at the same rate of 1,2'% a month or' 18% a year. It obviously pays to examine closely the fine print in credit card plans. If you already have a bank credit card and don't like the bank's billing method, consider switching to another bank with a more favorable billing method. You don't have to keep your credit card account at the same bank where you have your checking account.
Also, do not assume that all banks who issue the same trade name credit card (e.g. BankAmericard or Mastercharge) have the same billing computation method. These nationwide credit card plans provide clearing services between banks. However, each participating bank is free to set its own interest charges and billing methods. Thus, if you pick up a BankAmericard or Mlastercharge application at a retail merchant's place of business, find out what bank will actually issue the card.
CASH LOAN WITH A CREDIT CARD
Many banks offering credit cards also offer immediate cash loans to credit card holders up to the holder's credit limit. The annual percentage rate is usually 12%. Some banks also add a "transaction fee" for every loan taken out, which can be as high as 2%c of the loan, These transaction fees can increase the annual percentage rate to 36%7 during the first month of the loan. Unlike credit card purchases, a cash advance begins accruing interest from the date of the advance. There is no 30 day grace period.






18

TABLE 6.-CREDIT CARDS
NEW YORK AREA

Merchandise Cash loan


I nte r- ~ ,-Method
Annual est- -Mini- Typical of cal- Transpercentage free a mum crdtcain arate grce o finance 0 .C limit inter- tion
period charge est' t ee
(days) 2W .E~


Amalgamated Bank-- N/A ------------------- -------- ------------- N/A------- -------- ------ 0
American Bank & 12 percent -----0 -----(s)--$10 ---- 0 D --- 12 $2,000 Not 0 0
Trust Co. shown.
Atlantic Bank of N/A ------------------- -------- ------------- N/A------- -------- ------ 0
New York.
Bank Leumi -------- N/A ------------------- -------- ------------- N/A------- -------- ------ 0
Barclays Bank of N/A ------------------- -------- ------------- N/A------- -------- ------ 0
New York.
Chase Manhattan 18 percent to 252____ 0.... -$0.50 2 C ---- 12 1,000 D ---$0.25 0
Bank. $500, 12 per- 0
cent over
$500.
Chemical Bank------ 18 percent to 25 ----- 4 per- $0.50-..- 0 D____. 12 500 D------.25 0
$500, 12 per- cent.2
cent over
$500.
European-American 18 percent to 25 ----- 0-----$0.50-- 0 D..---- 12 800 D ------ .25 0
Bank and Trust $500, 12 perCo. cent over
$500.
First National City 18 percent to 25--4 per- $0.50-- 0 D..----. 12 400-800--------- .25 0
Bank. $500, 12 per- cent.3 4
cent over.
Irving Trust Co------ N/A ------------ -------- -------- ------------- N/A------- -------- ------ 0
Manufacturers 18 percent to 25--( )-$0. 50- 0 D____. 12.17 1, 000-- D -------25 0
Hanover Corp. $500, 12 percent over
$500.
Marine-Midland 18 percent -----30--0 -----0 ------ 0 C__ 12 1,500 C -------0 0
Bank of New York.
Merchants Bank of N/A ------------------- -------- ------------- N/A------- -------- ------ 0
New York.
Midlantic National 15 percent -----25--0 -----0 ------ 0 D____ 12 1,000 D -----0.50 0
Bank-Citizens. per
month
Nanuet National N/A ----------- -------- -------- ------------- N/A------- -------- ------ 0
Bank.
National Bank of 18 percent -----25--0 -----$0.50-- 0 C____ 12 500 D ---- 0 0
Westchester.
National Community 15 percent -----25--0 -----0.25 -- 0 A----. 12 700 D ------ .25 0
Bank of New
Jersey.
United Jersey Bank--. 15 percent to 25--0 -----0 ------ 0 A---- 12.17 700 D ---- 0 0
$700, 12 percent over
$700.
Republic National 18 percent to 25 to 0 -----$0.50-- 0 C ---- 12 500- D ---- 0 0
Bank of New York. $500, 12 per- 30. 5,000
cent over
$500.
Scarsdale National N/A ------------------- -------- ------------- N/A------- -------- ------ 0
Bank & Trust Co.

See footnotes at end of table.






19

TABLE 6.-CREDIT CARDS-Continued
WASHINGTON AREA

Merchandise Cash loan


I nter- I5.. -Method
Annual est- ;= :: Mini- Typical of cal- Transpercentage free it CM. mum -credit culating acrate grace M 00> finance limit inter- tion
period charge oest1 fee
(days)


Alexandria National N/A ------------------- -------- -------------WA ---- ------Bank of Northern

American Spcurity NWA ------------------- -------- ------------- NA --------- --- 0
& Trust.v
Arlington Trust Co 12 ------------ 0------ 5 per- 0 ------ 0 D --- N A ------ -------- ------- 0
cent3
Bank of Bethesda--- N/A ------------ -------- -------- ------------- N;A-------------------~ 0
Bank of Virginia- 18 ------------ 25--0------ 0------ 0 D ---- 12 $800- D --- 2.0 0
170001
Potomac Citizens N/A ------------------- -------- -------------N/A ---------------Bank and Trust
Co. of Maryland.
Citizens National N/A ------------ -------- -------- ------------- NIA------- -------- ------ 0
BankI Dominion National 18 ------------ 25-___0------ 0------ 0 A ---- 18 600 A --- 0 25
Bank.
First Virginia Bank- 18 ------------ 30--- 0------ 0------ 0 D ---- 12 850 D------ 0 0
Madison National N/ A------------------- -------- ------------- NA------- -------- ------ 0
Bank.
National Bank of N/A ------------------- -------- ------------- N/A------- -------- ------ 0
Fairfax.
National Bank of N/A ------------------- -------- ------------- N /A------- -------- ------ 0
Washington.0 Nat onal Savings and N/A ------------------- -------- -------------N /A0
Trust.
No-thern Virginia 12----------- 0------ 5 per- 0 ------ 0 D..----. N /A------- -------- ------- 0
Bank. cent.
Peoples National N/A ------------------- -------- ------------- N/A ------------ ------ 0
Bank of Maryland.------------------------- -------0
Riggs National Bank- 18 percent to 30 --- 0-----0 ------ 0 C -- N/A ---- ------Bank. $500, 12 percent over
$500.
Secur7ty National N1A ------------------- -------- ------------- N/A------- -------- ------ 0
Bank.
Suburban Trust Co_ 18 ------------ 30--- 0------ 0------ 0 A..---- 12 500 D------ 0 0
Union First National 11.5---------- Varies-_ 0------ 0------ 20 D____ 11. 2, 000 D------ 0 0
Bank of the Dis--. trict of Columbia. 1
United Virginia 18 ------------ Within 0------ 1.5Sper- 0 C__ 1300- 1i1per- 0 0
Bank-National. billing cent. 1,500 cent
cycle, per
University National N/A ------- --------------NiA month-- .
Bank_

'A-Adjusted balance method, B-Previous balance method, C-Average balance excluding current transaction, D-Average balance including current transaction.
2 Less if authorized by law in particular State.
3 $5 maximum per payment.
4 $15 maximum per year.
5 $5 or 5 percent whichever is lower (up to $100).
0 4 percent of minimum monthly payment.





20

CHECK CREDIT PLANS
This is essentially the same service as a cash loan with a credit card, except that you write your own check for immediate credit rather than using a card.
In the Washington area, only three banks in this survey offer this service. They are, Dominion National Bank interest), Peoples
National Bank of Maryland (120Z interest and a $20 annual fee) and Riggs National Bank (11.517,0).
Eight banks in the New York area indicated that they offer the check credit plan, all charging 1267 annual interest. They are, At]antic Bank of New York, Chase Manhattan Bank, \Iarine-Midland Bank of New York, Nlidlantic National Bank Citizens, and National Community Bank of New Jersey.
I-NSTALLMENT CONSUMER CREDIT
Unlike credit card loans, installment loans have a fixed time limit within which equal installment payments are required. Most loans are made over a period of 1-3 years and are repayable monthly.
The interest rate is likely to vary with the type and amount of the loan, credit rating of the borrower, and of course the bank.
A ('secured" loan, which means a loan guaranteed by some form of collateral, usually costs less than a loan whose only guarantee is the general credit rating of the borrower. At most banks a passbook loan which is secured by the money in your savings account, tends to be the cheapest loan of all. The disadvantage of this kind of loan is that if you borrow a sum equal to most of your savings, you may not be

F ermitted to withdraw funds from your savings account until the lan is paid down. However, this is often the cheapest form of credit, because the security to the bank is absolute.
Other "secured" loans may be loans secured by stocks, bonds, or property. A personal loan secured by stock to buy a new car may carry a lower interest rate than a loan secured only by the car. A new car loan often is at a lower rate than a used car loan. A short term unsecured installment loan "on your signature" usually carries the highest interest rate of all. But paradoxically, a very short term loan which is paid off in oiie lump sum at the end of 90 or 120 days is often available at a much lower rate. If that form of loan suits your needs, a "90-day note" is worth looking into.
In the event that you pay off an installment loan early, you might incur extra charges depending on the formula your bank uses. A few banks charge a "pre-payment penalty"-a flat dollar amount or a percentage of the loan outstanding to compensate for the extra

E aperwork and the additional interest they would have earned if you ad paid off the loan according to schedule. Banks also use two methods for determining your unpaid balance on an installment loan if you decide to pay off the loan before it is due. One method is called the "actuarial method" and measures the exact amount of credit you had used computed at the annual percentage rate disclosed on your credit contract. The other method is called the "rule of 78's" or "sum of the digits" method and allows the lender to receive a higher effective rate and finance charge. The "rule






21


of 78's" method is obviously more favorable to the lender. I-ow much more favorable? Here are two examples:

TABLE 6-A.-2 METHODS FOR COMPUTING THE UNPAID BALANCE ON INSTALLMENT LOANS

Unpaid balance

Type o loanRule of 78's Actuarial Dfeec
method method

$4,000 auto loan repayable in 3 yr at an annual percentage rate of 12 percent. Loan repaid in full in I yr ---------------------------- $2, 835. 93 $2, 822. 34 $13. 59
$15,000 mobile home loan repayable in 15 yr at an annual percentage rate of 12 percent. Loan repaid in full in 5 yrs--------------------- 13, 846. 31 12, 547. 85 1, 298.46


As you can see, the bank receives, more money under the rule of 78's. In manyv cases, the difference is onl\y a few dollars. Ihowvever, the longer the loan, the more you will1 be penalized by the rule of 78's. On a mobile home loan paid early, the penalty can exceed $1,000.






22

TABLE 7.-INSTALLMENT CONSUMER CREDIT NEW YORK AREA

Annual percentage rate

Method for
36-month new Personal secured Late Mini- Prepay- computing
auto loan loa n charges mum ment the unpaid
-- ____ ____ -_____________ % finance penalty balance in
charge event of
Most Most prepayment
Low High corn- Low High common mon

Amalgamated Bank------- 10. 88 10. 88 10. 88 10. 88 10. 88 10. 88 **3 5 $10 0 Rule of 78's.
American Bank & Trust Co-. 12 13. 38 13. 38 12 13. 38 13. 38 *5 0 0 Rule of 78's.
Atlantic Bank of New York-. 10. 88 13. 38 13. 38 10. 88 13. 38 13. 38 *5 10 0 Rule ot 78's.
Bank Leumi ------------ 10.87 12.10 I-------- 10.87 12.10 ----- 35 0 0 Rule of 78's.
Barclays Bank of New 11.49 12. 11 12. 11 11.49 12. 11 12. 11 5 10 0 Rule of 78's.
Yor k.
Chase Manhattan Bank -- 13. 38 13. 38 13. 38 11. 58 13. 38 12. 59 (*)(4) 5 0 0 Rule of 78's.
Chemical Bank ---------- 13. 38 13. 38 13. 38 11. 58 13. 38 12. 59 *5 10 0 Rule of 78's.
European-American Bank 12.74 13.38 13.38 12.74 12.74 12.74 (*) (5) 5 0 0 Rule of 78's.
& Trust Co.
First National City Bank-.. 13.38 13. 38 13.38 13.38 13.38 13. 38 (4)(* 5 (1 5) 0 Rule of 78's.
Irving Trust Co ---------- 13.38 13.38 13.38 711. 58 813. 38 912. 59 5 10 0 Rule of 78's.
Manufacturers Hanover ------- ------- 812.74 11.08 12.24 12.02 (4)(*) 5 10 0 Rule of 78's.
Corp.I
Marine-Midland Bank of ------- ------- 12.83------ ------- 10.88 (4) (151) 0 Rule of 78's.
New York.
Merchants Bank of New 10.88 10.88 10.88 10.88 10.88 10.88 5 (4)(*) 10 0 Rule of 78's.
York.
Midlantic National Bank -------- ------- 11. 18------ ------- 11. 18 *5 0 0 Rule of 78's.
Citizens.
Nanuet National Bank..-- 10. 88 10. 88 10. 88 9. 63 12. 11 11. 45 5 10 0 Rule of 78's.
National Bank of 10.90 11.40 10.90 9.00 11.40 10.90 5 10 0 Rule of 78's.
Westchester.
National Community 10. 24 11. 18 10. 24 10. 24 11. 18 11. 18 5 0 0 Rule of 78's.
Bank of New Jersey.
United Jersey Bank------- 11. 18 11. 18 11. 18 11. 18 11. 18 11. 18 5 0 0 Rule of 78's.
Republic National Bank 13.38 13.38 13.38 11.58 13.38 13.38 5 (4)(* 10 0 Rule of 78's.
of New York.
Scarsdale National Bank 10. 88 10. 88 10. 88 9. 67 9. 67 9. 67 5 10 0 Rule of 78's.
& Trust Co.__ __

See footnotes at end of table.






23

TABLE 7.-INSTALLMENT CONSUMER CREDIT -Continued WASHINGTON AREA

Annual percentage rate
Method for
36-month new Personal secured Mini- Prepay- computing
auto loan loan Late mum ment the unpaid
______________________ ___________charges finance penalty balance in (j charge event of
Most Most prepayment
Low High corn- Low High common mon

Alexandria National Bank ------------- 10.5---------- --- 10.5 5 25 0 Rule of 78's.
of Northern Virginia.
American Security & Trust---------0-------1. 0 Rule of 78's.
Arlington Trust Co-------- 8.86 11.08 8. 86 8. 41 12.911 9.78 1 5 (15) 0 Rule of 78's.
Bank of Bethesda------ ------- ------- 10.5 ------------8 t*5 0 0 Rule of 78's.
Bank of Virginia- 9.3 NA 10.2 10.89 NA 11.79 5 0 -25 Rule of 78's.
Potomac.
Citizens Bank & Trust Co. 110 11 11 11 12 11 5 0 (1s) Acturarial.
of Maryland.
Citizens National Bank--- 10 10 10 8 12 (1)t 5 0 0 Rule of 78's.
Dominion National Bank.... 10.5 11.63 11.63 11.08 12.91 12.91 5 15 0 Rule of 78's.
First Virginia Bank ------- 10.2 110.2 10.2 12.1 13.98 ---- 5 50 0 Rule of 78's.
Madison National Bank--- 10 111.5 11.5 10 11.5 11.5 1 5 0 *5 Rule of 78's.
National Bank of Fairfax. 9.31 10.2 9. 31 9.31 12.83 9.31 5 0 0 Rule of 78's.
National Bank of Washing-- 10 10 10 10 10 10 05 0 0 Rule of 78's.
ton.
National Savings & Trus. 10----------- 11. 5 $5 0 Rule of 78's.
Northern Virginia Bank---b 9.31 11.08-------- 9.15 10.85 5i 0 0 Rule of 78's.
Peoples National Bank of 9 10 10 11 12 12 t*5 0 0 Actuarial.
Maryland.
Riggs National Bank ------ 10 10 10 11 11 11 5 1 0 0 Rule of 78's.
Security National Bank----.. 10.5 115 10.5 111.5 11.5 11.5 *5 5 0 Rueo78s
Suburban Trust Co ------110 10 10 8 8 8 t*5 1 0 0 Actuarial.
Union First National Bank 8.86 11.5 10 9 11. 5 I9.5 *5 0 0 Rule of 78's.
of the District of
Columbia.
United Virginia Bank- 10.2 11.96 10.2-------- ------- 12.91 5 25 0 Rule of 78's.
National.
University National Bank..- 10 112 ,11 8 8 8 t5 0 0 Actuarial.

*$5 maximum. a 36-month loan.
**10 days grace. 924-month loan.
t$2 minimum. 10 Only 1 rate for 36-month, auto.
1 15 days grace. 11 12 months.
2 Rarely enforced. 13 36 months.
3 $25 maximum per loan. 13 24 months.
4 Maximum of 2 percent or $25 per loan. 14 Negotiable.
5 $25 maximum per year. 15 1-month interest.
G $15 maximum. 16 Depends on collateral.
7 12-month loan.








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MORTGAGE LOANS
Since mortgage loans total tens of thousands of dollars and are made for up to 25 years or more, the slightest difference in annual interest rate can mean a great savings in the long run. Current rates on 25 year conventional mortgages range from 8.5 to 9.75 percent. Typical down payments required range from 20 to 30 percent of the purchase price. When shopping around for mortgage loans, it is advisable to ask several different banks to disclose all costs of the loan.
As with installment loans, penalties often exist for late payments or for prepayments of the entire outstanding balance. Those banks that have prepayment penalty clauses usually penalize the customer at least 1% of the total remaining mortgage. These prepayment penalty clauses are usually in effect for the first 3 to 5 years of the loan, although at least one bank has a prepayment penalty for the entire life of the loan. Late payment fees are usually 4-.5% of the payment due that month. Sometimes a grace period is allowed.
A few banks in the survey still require the buyer to make payments into an Escrow Account. These funds are collected by the lender to pay for property taxes and/or insurance. Only a few of the banks that require these accounts are willing to pay interest. Those that do, usually pay only 270. However, several banks in this survey indicated that they pay the normal savings rate on escrow accounts. Consumers often prefer to pay their insurance and taxes directly. The consumer. is able to earn interest by keeping the additional funds in a savings account.
One useful question in connection with a mortgage loan is whether the mortgage is assumable at the same rate by any subsequent buyer (assuming adequate financial capabilities). Many banks do not normally allow this. If you want to sell the house before the loan is paid, it is often easier to sell the house if the prospective buyer can assume yourloan.
You might also want to know whether or not your bank allows second mortgages to be taken out. Second mortgages can be a useful means of obtaining a cash loan for home improvements or other needs. According to this survey, only a handful of banks prohibit a second mortgage.- 4,
FHA Insured loans are especially good for low-income families. They normally require much smaller down payments (as low as .5%) and the Federal Government insures the loan against default.
In the Washington area, one of the banks in this survey indicated that they normally offer FHA insured loans. In the New York area, Chase Manhattan Bank, County Trust Company of New York, and Marine Midland Bank of New York indicated they offer FHA insured loans. However, savings and loan associations or mortgage companies can be an alternative source of FHA loans, and of mortgage loans generally.








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31

SAVINGS ACCOUNTS
The Federal Reserve Board and the F~ederal Deposit Insurance Corporation have established maximum interest rates that banks are permitted to pay on various savings plans. A savings and loan association which is federally insuredl is permitted to pay ?' of I % more than a commercial bank.
Banks offer a variety- of savings plans. Passbooks accounts pernmit the saver to withdraw funds at any time. Although the bank does have the option of requiring 30 (lays advance notice, in prIactice, this option is rarely enforced. Interest on bank passbook accounts is limited to 5%/,. In addition, most banks offer a variety of certificates of deposits (CD's). A CD requires the money be left with the bank for a specified period. Banks are permitted to pay higher rates on CD's but~ there is a penalty for early withdrawal.
Table 10 lists the current maximum permissible interest rates for banks on passbook accounts and CD's.
TABLE 10.-MAXIMUM INTEREST RATES PERMITTED BY LAW ON BANK SAVINGS ACCOUNTS AND CERTIFICATES OF DEPOSIT
Minimum Maximum
Duration deposit interest rate
(percent)
Passbook ------------------------------------------------------------ None 5
90 days tolIyear------------------------------------------------------ None 5.5
1ito 2)/2 years -------------------------------------------------------- None 6
2V years or more ----------------------------------------------------- None 6. 5
4 to 6years---------------------------------------------------------- $1,000 7.25
6 years or more------------------------------------------------------- 1,000 7.5

Some banks no longer offer regular passbook accounts; instead, they offer statement accounts. These usually pay the same interest rate as a passbook, but do not use the booklet which a passbook account employs. Instead, you receive a monthly or- quarterly- statement listing your transactions and the interest thie bank has paid on your savings. As on passbook accounts, the maximum interest rate which may be paid by a commercial bank on a statement account is currently

Federal regulations require a penalty in the event that y ou withdraw all or part of funds deposited in a certificate account prior to the maturity (late. The borrower forfeits three months interest at the passbook rate, and the interest on the deposit is reduced to the passbook rate. A passbook or statement account, even though the interest rate is lower may be preferable for consumers who require immediate e access to their savings.
The method which the bank uses to calculate interest is Just as important as the interest rate. Here ar'e the thing-; to look for- (or look, out for) in a passbook savings account or in a, certificate of deposit,.

FREQUENCY OF COMPOUNDING
The more frequently the bank compounds interest., the higher your effective yield at the end of the year. Here is how much interest you





32

would receive on a $1,000 deposit in a 51% passbook account depending on how frequently interest was compounded:
Annual
amount
of interest
Frequency: on $1,WO
No compounding --------------------------------------------- $50.00
Semiannual -------------------------------------------------- 50.62
Quarterly ---------------------------------------------------- 50.94
Monthly ---------------------------------------------------- 51.16
Weekly ----------------------------------------------------- 51.24
Daily ------------------------------------------------------- 51.26
Continuous -------------------------------------------------- 51.27

METHOD FOR DETERMINING BALANCE

If you keep your funds on deposit throughout an entire interest posting period without making any additional deposits or withdrawals, you will receive interest on your total balance. However, if you make deposits or withdrawals during the period, the interest you receive will vary from bank to bank depending on what method the bank used to compute your balance.
There are four principal methods in use. A simple example will serve to illustrate how these different methods work. Assume you have a passbook account at a bank that pays interest at the rate of 5% a year with interest compounded and credited quarterly. Assume further that you begin the year with a $5,000 balance, withdraw $4,000 on February 1, deposit $10,000 on March 1 and withdraw $1,000 on March 31. These transactions are listed on Table 10A.

TABLE 10A.-ILLUSTRATIVE EXAMPLE OF THE DIFFERENT INTEREST COMPUTATION METHODS FOR SAVINGS ACCOUNTS
HYPOTHETICAL SAVINGS ACCOUNT

Deposits Withdrawals Balance

Jan.1 --------------------------------------------------------------------------------------- $5,000
Feb. 1 ------------------------------------------------------------------------- 4,000 1,000
Mar. 1 ----------------------------------------------------------- 10,000 -------------- 11,000
Mar. 31 ------------------------------------------------------------------------ 1,000 10,000

Amount of
Computation method Interesl earned on account interest

Low balance ---------------------- $1,000 for 1 quarter (1,000X5%--4)= ------------------------- $12.50

FIFO ---------------------------- $10,000 fo r 1 m o n th (10,000 X 5% -- 12) = ----------------------- 41.66

LIFO ---------------------------- $1,000 for 1 quarter (1,00OX5% ------------------------- 12.50
$9,000 for 1 month (9,000X5%--12)= ------------------------- 37.50
Total ---------------------------------------------------------------------------------- 50.00

Day of deposit to day of withdrawal $5,000 for 1 month (5,000X5%--:-12)= ------------------------- 20.83
$1,000 for 1 month (1,00OX50/i -*12)- 4.16
$11,000 fo r 1 month (11,000 Xg%* + 45.83
Total ---------------------------------------------------------------------------------- 70.82





33

EXPLANATION OF METHODS
Low balance mnwthod
Under this method, you only receive interest on your lowest balance during the quarter. In the example given, this is $1,000. Thus, your interest for the quarter would be $1,000 times 5%/o divi(lded( by four or $12.50. This method is the most unfavorable for the saver and should be avoided.
FIFO
The term "FIFO" stands for "First In, First Out". Under this method each withdrawal is deducted from the balance at the beginning of the quarter and then from later deposits if the balance is insufficient. This method is also referred to as the "Day of Deposit to endl of Interest Period Method." By whatever name, it is the second most unfavorable method for the saver.
In the example given, your two withdrawals totaling $5,000 are deducted from your beginning balance of $5,000. As a result, no interest is earned on this amount. You only earn one month's interest on the $10,000 you deposited on March 1. This comes to $41.66. LIFO
This term "LIFO" stands for "Last In, First Out." Under this method, each withdrawal is deducte(l from the last deposit Your withdrawal of $4,000 on February 1 is deducted from your beginning balance of $5,000. This leaves $1,000. You earn interest on this $1,000 for one quarter. Your second withdrawal on March 31 is deducted from your most recent deposit of $10,000 on March 1. This leaves $9,000 on which you earn interest for one month. The combined interest on these balances comes to $50.00. This method is more favorable to the saver than FIFO.
Day of Deposit-Day of Withdrawal
This is the fairest and most favorable method for the saver. It is also referred to as "daily interest". Under this method, you earn interest on the exact amount in your account each d(lay. In the eXample given, you earn interest on your $5,000 balance during January, on your $1,000 balance during February and on your $11,000 balance,during March. The combined interest on these balances comes to $70.82.
These computation have been simplified by assuming each month has exactly thirty days. In actual practice, the arithmetic is a bit more complicated. Nevertheless, this example does provide an insight into how the different computation methods work. This example shows that one bank can pay almost six times as much interest as another bank even though both banks advertise 50',. It, would be possible to come up with different examples to show different results. In all cases, however, the most favorable method from the saver's viewpoint is the Date of Deposit-Date of Withdrawal method. Frequency of crediting
Crediting of interest is the actual posting of interest earned in your passbook or on your statement. Almost all banks in thie survey credit interest quarterly although a few credit semni-annually. Semi-annual crediting can severely penalize savers if the bank also uses the low balance or FIFO system for computing interest. Under these systems, you can lose interest for an entire period if you make a late withdrawal.





34

With semi-annual crediting, this can mean a six month loss rather than a three month loss. Also, under the low balance method, you might have to wait for nearly six months before a new deposit would begin earning interest if your bank credits interest semi-annually.
Some banks who credit interest semi-annually confuse the saver by advertising that interest is compounded quarterly. However, the adverse effect of semi-annual crediting is in no way offset by quarterly compounding.
CLOSING YOUR ACCOUNT
Various penalties exist for closing a passbook account early. Although they may not advise you in advance, most banks in the survey require that you leave the account open for six months to one year. If the account is closed early, you might be charged a penalty of $1-$3.
There are some pitfalls to avoid when closing your account. Even if your account pays interest from the day of deposit to the day of withdrawal, you can still forfeit all of your interest if you close out your entire account before the end of the interest period. Some banks require you to have a minimum amount on deposit at the end of this period typically $10, before they will credit interest.
For example, suppose you had $10,000 on deposit in a passbook account on January 1 and withdrew it on March 25. Some banks would refuse to pay you any interest even though they had the use of your $10,000 for 85 days. Under these circumstances, you would be wise to leave $10 in your account until April 1 in order to receive the interest on your $10,000 for the 85 days.
OTHER CHARGES
Some banks allow unlimited number of withdrawals from savings accounts. However, a majority in this survey seemed to have limits often only allowing three free withdrawals every quarter. Charges for excess withdrawals range from 250 to $1 each. If you plan on making frequent withdrawals, be sure that your bank does not have such a limit or go to a savings and loan.
Although most banks in this survey have no minimum balance fee, several banks indicated 'that the customer would not earn interest unless he maintained a certain minimum balance. Many banks will charge a dormant account fee if the account is left inactive for anywhere from 1-5 years or more. The charge could be as much as $24 per year, although most are from $145 per year.
Another important factor to check before opening a savings account is the bank's policy towards interbank withdrawals. A few banks will not permit you to withdraw money from any branch office of their bank other than the one where the account is maintained. However, most will allow interbank withdrawals, usually insisting that signature cards be placed on file at the various other branches for positive identification.






35

TABLE 11.-SAVINGS ACCOUNTS
NEW YORK AREA

Does bank
pay I ; 0
maximum -)
interest rate 00 0) 02
perm itted ,_ E - 0 obylaw?d E, -. -0 -= V a) 7
0 0 V
D W 0 3(; a Co
0 ;- CG~~ ~

New York. I- inte re

Amalgamated Yes NA Yes Q Q DDDW 0 0 No 0 No No No No
Bank. withdrawal
for 30
days
American Bank Yes NA Yes Q Q DDDW 10 3 No 0 $1.00 $Iyr No No
& Trust Co.
Atlantic Bank of Yes NA Yes D Q DDDW 0 3 No 0 Loss of No No No
New York. interest
$1
Bank Leumi ----- Yes Yes Yes Q Q DOW 10 0 No 0 No No No Yes
Barclays Bank of Yes NA Yes D Q OODW 10 0 No 0No $2 yr No Yes
New York.II
Chase Manhat Yes NA Yes D Q DDDW 10 3 No 0 s After I No Yes
tan Bank. Q 3s yrs
Chemical Bank Yes Yes Yes D Q DDDW 10 3 No 0 $1.00 $1.00 No No
European Yes Yes Yes D M 2 DDDW3 10 3 No 0 No $1.00 ( e) No
American Q1 LB I
Bank & Trust
Co.
First National No Yes Yes Q Q DOIW 10 3 No 0 (7) $0.50 No Yes
City Bank. D2 per
quar
ter
below
$0.99
IrvingTrustCo_ Yes Yes Yes Q1Q I FIFO 1 510 3 No 0 $1.00 No No No
03 M3 DDDW3
Manufacturers Yes NA Yes Q Q DDDW 510 3 No 0 Loss of $1 a. Yes
Hanover Corp. 02 interest yearif
$1 balance
under

Marine-Midland Yes Yes Yes D Q LB0W 10 3 No 0 VNo $.5 N Yes
Bank of New mo
York.
Merchants Bank Yes NA Yes Q Q LB 1 10 3 No Varies No $0. 50 No No
of New York. DDDW2 quarter
Midatlantic Na- No Yes Yes 0 Q FIFO 10 0 No 0 $1yr $2 yr No Yes
tional Bank, DW
Citizens.
Nanuet National Yes NA Yes Q Q LIFO 1 10 3 Yes $0.25 $1.00 No No Yes
Bank. 000W 2 each
National Bank of Yes Yes Yes 0, 0, 000W 10 1 3 No 0 $1.00 $1.00 No Yes
Westchester. Q Q LB
National Coin Yes NA No Q Q LB 1 10 0 No 0 Varies No No Yes
munity Bank 000W3
of New Jersey.
United Jersey Yes Yes Yes D Q FIFO 1 5 10 0 No 0 No No No Yes
Bank. 000W 3
Republic Na- Yes NA Yes Var- Q 000W 0 0 No 0 $1.00 No No N o
tional Bank of ies
New York.
Scarsdale Na- Yes NA Yes 0 Q 000W 10 0 No 0 $5.00 No No Yes
tional Bank
& Trust Co.

See footnotes at end of table.







36

TABLE 11.-SAVINGS ACCOUNTS-WASHINGTON AREA

Does bank,
pay
maximum ,, 0 E 5
interest rate o0 .. T~
permitted a a 0
b aO0 COZ0 0 W0 = -<
O w-.
by law? "

CE EM~C00 E ~ 0~ o
0E 00~~-.



Alexandria Na- Yes Yes Yes D Q DDDW 10 0 3 per $1.00 $3.00 $7.00 No Yes
tonal Bank of tequarNorthern t !/ter
Virginia.
American Secur- NA No Yes Q Q DDDW 0 0 3 per .25 1.00 1.00 No Yes
ity and Trust, I quarter
Arlington Trust Yes NA Yes Q Q LB 10 0 1 per .25 1.00 5.00 (1i) Yes
Co. month
Bank of Bethesda NA Yes No S S LB 10 0 No ... 0 1.00 No Yes
Bank of Vir- NA Yes Yes D Q DDDW 0 0 (') () Loss of $24 per No Yes
ginia- inter- year
Potomac. est
Citizens Bank Yes Yes Yes Q Q LB 0 0 3 per 1.00 1.00 0 No Yes
and Trust Co. quarof Maryland. ter
Citizens National NA Yes Yes Q Q LB 10 0 3 per .25 1.00 0 No Yes
Bank. month
tional Bank. D: interest year
on a
Imount with
First Virginia No Yes Yes Q S' LB 10 0 (5) Re- 1.00 $1.50 No Yes
Bank. Q duced Mo
interest
rate
Madison Na- Yes Yes No Q Q LB 10 0 7 yr 1.50 1.00 1.50 No Yes
tional Bank.
National Bank of Yes NA Yes Q Q DDDW 0 0 No 0 0 1 Mo No Yes
Fairfax.
National Bank of NA No Yes Q Q DDDW 0 0 1 Mo .25 0 4.00 No Yes
Washington.
National Savings NA Yes Yes Q Q DDOW 0 0 No 0 1.00 5.00 No Yes
Trust.
Northern Vir- NA Yes Yes Q Q DDW 0 0 3 $1 for 0 $1 Mo No Yes
ginia Bank. quar- 4th;
ter $0.25
thereafter
Peoples National Yes Yes Yes 0 1 Q DDDW 10 0 3 1.001 Loss of 0 No Yes
Bank of Mary- Q2 LB quar- interland. ter est
Rigg:s National NA Yes Yes Q Q DDDW 0 0 No No 3.00 No Yes
Bank. 0 .50 $2.00 $3 No No
Security Na- Yes Yes Yes Q Q DDDW 0 0 6 .50 $2.0 $3 No
tonal Bank. quar- quarter ter
Suburban Trust NA No Yes Q Q LB 10 0 No $1.00 After No Yes
Co. 5 yr
Union First Na- NA Yes Yes Q Q DDW 0 0 No $2.00 $6 semi No Yes
tonal Bank. Un ted V rg na NA Yes Yes D Q DDW 10 0 3 $1.00 $2.00 $3 No Yes
Bank- quar- quarNat onal. ter ter
University Na- NA Yes Yes D Q DDDW NA NA Yes $1 per $2 No No Yes
tonal Bank. excess within
of 3 6 mos
per Q

SPassbook.
SCertificate accounts.
SStatement accounts.
4 If average balance is at least $100. There is no charge.
5 10 days at each calendar quarter.
SVaries.
$1 must remain in account at end of quarter for interest to be paid. S$5 must remain in account at end of quarter for interest to be paid. No interest on less than $25 balance per quarter. I Advertising on abandoned accounts.
i $1 on lost passoook.
Note: Q equals quarterly; M equals monthly: D equals daily; S equals semiannual; LB equals low balance method; IFO equals last in first out; FIFO equals first in first out; DDDW equals day of deposit to day of withdrawal.

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UNIVERSITY OF FLORIDA 3 1262 09112 4882