DEPOSITS TO EARN MORE AT 2 BANKS

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, February 26, 1992                   TAG: 9202260045
SECTION: BUSINESS                    PAGE: A7   EDITION: METRO 
SOURCE: Mag Poff
DATELINE:                                 LENGTH: Short
DEPOSITS TO EARN MORE AT 2 BANKS
A change in the amount of money that banks are required to hold in reserve against losses will mean higher earnings paid to interest checking customers at two major statewide institutions.
Dominion Bank and NationsBank said Tuesday that beginning April 2 they will pay interest on 90 percent of checking deposits, up from 88 percent. That means the customers of those banks will earn money on $90 instead of $88 for every $100 on deposit in interest checking accounts.
The change mirrors a change in regulations by the Federal Reserve Board, which this month lowered from 12 percent to 10 percent the amount of checking deposits that banks must hold in reserve accounts rather than investments. The Fed's action is effective in April.
Dominion, NationsBank and Central Fidelity Bank last year began paying interest only on interest checking deposits exceeding the required reserve. The banks said they no longer would pay interest on deposits that didn't earn interest for them.
Central Fidelity spokeswoman Peggy Cummings said the bank switched back to paying interest on the full deposits in interest checking accounts earlier this year. Other statewide banks, Crestar, First Virginia and Signet, have continued to pay on full deposits.
Money market savings and other types of savings deposits earn full interest at all of the banks.

by Bhavesh Jinadra by CNB