Ceiling Raiser

For 16 years, the top interest which New York banks were allowed to pay on savings deposits was 2%. But when all other interest rates edged up, savings banks began to clamor for an increase. Though their earnings were up, so were operating expenses, and a corporate federal income tax was imposed on them last year. Banks were also losing business to savings & loan associations, which generally pay 3% or more. Last week the State Banking Board permitted the banks to pay 2 1/2%. By week's end banks in New Jersey were raising rates too.

This file is automatically generated by a robot program, so reader's discretion is required.