Herald & Lantern 19 October''83

First Savings Still High

business

37

Firms Cut Interest, Rate Link to Treasury Bill

By JOSEPH R. ZELNIK stitutions tied their insured Eight of Cape May money market account inCounty’s 15 financial in- terest rates to the 91-day

CHAMBER HONOR — Larry E. Newbold. left, receives Member of Year award from Ted Roman, president of County Chamber of Commerce, for years of service*as a director and chairman of chamber's beautification program. Roman Installed To Head Chamber

WILDWOOD - Theodore Roman was installed as president of the Cape May County Chamber of Commerce for the 1983-84 year by New Jersey Sen. James Hurley. Roman is manager of Sears Court House store. Members and guests attended the annual meeting and banquet at the Beach Terrace Motor Inn. Hurley also installed Richard Guiliano as first vice president, Guiliano is owner of Guiliano Marine, Burleigh, and a resident of Dennis Township. Patricia Nagel, owner of the Flying Dutchman Motel, North Wildwood, was installed as second vice president. Carlton Owen, WCMC and WNBR radio executive, was installed as secretary’ of chamber, while Robert Smith, president of the Ocean City Home Savings and Loan, was installed as treasurer. Smith is a resident of Rio Grande. DIRECTORS installed for a new term were: Thomas Amenhauser, 1st

Jersey National Bank South; Joseph Brophy, Whitebrier Inn; A. H. Childs, County Industrial and Economic Development Commission; Nicholas Ganaway, AT & T Co.; Warren Garretson, Coastline Advertising; Richard Haefner, Mister Donut; William Kiser, N.J. Natural Gas; Donald Laricks, A.W. Laricks Agency; Bud Moffitt, Sears Service Center; Edward Rosenfeld, WWOC Stereo 94; Matthew Tomlin, County Vocational Technical Center; Ernest Yarborough, Cape Insurance Center; Michael Zuckerman, Mid-Atlantic Center for the Arts. Larry Newbold, County Extension Service Agent, a Court House resident, was presented with the “Member of the Year" Award by Roman. Newbold was cited by the Chamber, for his many years.of service as chairman of the chambers’ beautification committee and member of the board of directors.

REPEAT PERFORMANCE — Ted Roman, right, receives gavel from Dennis Curley, chairman of board of County Chamber of Commerce, as he is installed for second term as chamber president.

U.S. Treasury Bill when those accounts were created last December. But as T-bill rates slowly climbed, more and more severed that link. Citing federal “deregulation” of Oct. 1, two more institutions — First Savings & Loan of Sea Isle City and Crest Savings & Loan of Wildwood Crest — have gone to “.management decision.” That left Sturdy Savings & Loan of Stone Harbor the only one still matching the T-Bill, which was 8.83 percent last week. Sturdy Assistant Treasurer Mrs. Patricia Reichard said its board is staying with the T-bill “for the time being.” FIRST SAVINGS continued to pay the highest insured money market interest rate in the county, 9.1 per cent last week. “There’s not a set formula anymore," said Linda Brown, president. "We look Al the T-bill and do a little rounding. But if the Tbill goes crazy, were not

going to match it at all.” A similar response came from Lucy Walker, president of Crest Savings, which last week set a rate of 8.85 percent. “We look at the whole money market picture,” she said. “This week we rounded off the T-bill.”

ALTHOUGH the officials gave federal “deregulation" as justification for their new methods, that simply removed interst rate ceilings from time deposit accounts. The institutions actually have been free to set any interest rate ever since the insured money imarket saving ac-' counts were created last December. Most change their rates weekly and customers can learn what they are only by calling or inquiring. Although most of the institutions must now set their interest rates by management decision based on competitive factors, Ocean City Savings & Loan still pegs its rate to the

local Federal Funds Rate, the fee banks charge each other for overnight reserve lending. And Marine National Bank bases its interest rate on. the Donoghue Money Fund Report which averages money market mutual fund interest rates. The Donaghue was 8.79 percent last week and so was Marine. THE INSURED money market accounts were created specifically to combat those mutual fund accounts and have drained some $67 billion from them, nationwide, since December. But the money market mutuals have been climbing and last week’s Donoghue average was The following list in alphabetical order of the 15 financial institutions in the county gives last week’s insured money market account interest rate followed by the interest rate being paid on the so-called Super Now, an insured money market with unlimited checking.

Anchor Savings & Loan, 8.55, 7.55. Cape May County Savings 4c Loan, 8.65, 6.5. Citizens United Bank, 8.25, 6.75. Collective Federal Savings & Loan, 8.7, 8.5. Crest Savings & Loan, 8.85, 7.85. First Jersey National Bank, South, 8.3,6.05. First National State Bank of South Jersey, 8.3, 6.85. First Savings 4c Loan, 9, 8.35. Guarantee Bank, 8.25, no Super Now, but a computer “sweeps" checking accounts daily and puts anything above a designated amount in the insured money market account. Heritage Bank, 8.05,6.85. Marine National Bank, 8.79, 7. Ocean City Home Savings 4c Loan, 8 75, 7.83. Security Savings 4c Loan, 8.4,7.15 Sturdy Savings 4c Loan, 8.83, no Super Now. |I Union Trust Co. of "Wildwood, 8.6, 7.

You’re Never Too Young To Start An I.R.A.!

The sooner you start your I.R.A.. the more money you'll have when you retire — and the more money you'll save on taxes! Sturdy's I.R.A.s pay.TOP INTEREST. And now our I.R.A. program has more high-yield certificates than ever. One of our four I.R.A. savings plans is sure to suit you. (You can start your I.R.A. at Sturdy with as little as $100!) Don't pay more taxes than you have to — open a tax-sheltered Sturdy I.RA An individual can contribute $2000 a year — up to $2250 with a non-working spouse. And couples who both work can put $2000 EACH in I.R.A. accounts every year. Here’s how an I.R.A. works for you: • Your annual I.R.A. contribution is fully TAX DEDUCTIBLE. If you're in the 32% tax bracket and save $2000. you'll reduce your current tax payment by $6401 • Your I.R.A. also works for you. earning TAX-DEFERRED INTEREST. You pay no taxes on interest until you retire. Your interest is COMPOUNDED, too. so your I.R A. generates MORE dollars for your retirement.

• Don't wait to start — you can open your I.R.A. with as little as $100. You can ma^e weekly or monthly contributions to your I.R.A Save what's.comfortable. but get started so you'll start earning interest Come in soon and plan your I R.A with our I.R.A. Coordinator. Paul- Bisulca. He can help you choose the right Sturtly I.R.A. plan for you. Visit our I.R.A. Headquarters in our’Cape May Court House office or call Paul today.

S1MIY SAVINGS art IIAN ASSICIATMM Slone Harbor • Avalon • Oennisville North Cape May • Cape May Court House

renr

t=r

Call Our IRA Hotline 465-3704