Herald & Lantern 15 February 'l First Savings Still

business

29

rst Savings Still Tops

Insured Money Markets: First Jersey's Got IOSEPH R. ZELNIK automatically “sweep” his Cape May County, as much '9.25,8.5. Ocean City Home Sav- ; always-confusing in-’ checking account daily and as $100 million is believed Heritage Bank, 8.2, 6 8. mgs i'Loan, 8.875, 7.87 . 9

Two

1 BY JOSEPH R. ZELNIK The always-confusing insured money market account situation in Cape May County has gotten a little more sq^Cs the result of a recent -bank merger and the arrival of new

bank.

Through it all, though, the top three interest payers for the accounts, which require a $2,500 minimum and permit a maximum of six transacanalysis Lions a month, remain the same: First Savings & Loan of Sea Isle City. Crest Savings & Loan of Wildwood, and Sturdy Savings & Loan of Stone Harbor, in that order. The merger — really the acquisition of Guarantee Bank by First Jersey National hu^ulted in two different «^-ed money market account^ at one bank. A First Jersey representative called that a “marketing strategy.” First Jersey has taken over and is offering what was Guarantee’s Money Market Account (GMMA) * which last week was paying 8.25 percent interest. FIRST JERSEY is no longer offering as a new account, but is continuing to service previous customers of its own Liquid Invest.ment Account (LIA). It was paying 8.2 percent interest last week. The First Jersey representative said that it went with GMMA rather than LIA because Guarantee “was more advanced electronically." The big angle with GMMA Ls'that the customer may combine his checking account with it and the bank will

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automatically “sweep” his checking account daily and move money above a designated amount from the lower-paying (5V« percent) checking account to the higher-paying money

market account.

“We can't standardize everything,” commented the First Jersey representative. “As long as we have customers willing to keep their money in an LIA, that’s fine. We’re not forcing them to close it and open a new account.” People with LIAs would do better to transfer them into a GMMA. There will be no loss of the accrued interest, according to First

Jersey.

THE COUNTY’S newest bank, First National of Toms River, is in the . former First Jersey building in Court House an is competing head-to-head with its First Jersey neighbor (they’re a block

apart).

First National of Toms River has a Money Market Savings Account that last week was paying the same 8.25 percent interest rate as First Jersey, but is not connecting with its checking accounts. That account, however, according to Yolanda Pollard of the bank, offers unlimited deposits and withdrawals. It doesn’t ‘‘sweep’’ money automatically from checking to savings, but it does have ‘overdraft protection” so that if you write a check for more than your checking balance, your savings account will keep you from a bounced check. First Jersey does have the so-called “Super Now” (same kind of account, only unlimited checking) and was paying 6.72 percent interest last week. First National of Toms River doesn’t have a Super Now yet, but should have “very soon,” according to

Pollard.

As with 13 of the 15 financial institutions in the county, those interest rates are the result of “management decision” based on "competitive factors." TWO FIRMS ARE TIED to exlfema! factors, which change weekly. Sturdy, matches the 91-day U.S. Treasury Bill rate and Ocean City Home Savings & Loan matches the local Federal Funds Rate, the fee banks charge each other for overnight reserve

lending

These insured money market savings accounts were created about 14 monts ago to compete with uninsured money makret mutal funds. The former drew about $67 billion out of the latter, nationally. In

Heads P.R. At Gas Co. FOLSOM — South Jersey Gas Company (Gas Company) has announced that. Joseph E. ly^Cullough has joined the firm as general manager, public relations. In this position, McCullough will be responsible for the company's public relations activities. McCullough resides in Holland, Pennsylvania, but plans to relocate his family to South Jersey.

Cape May County, as much as $100 million is believed to have been transferred into local financial

institutions.

The money market mutuals seem to be rebounding, however, with assets of $166 billion last week a 10-week high. And their seven-day yield last week .was 8.72 percent, which is higher than the rate being paid by .11 of the county’s 15 financial institutions. FOLLOWING LIST in alphabetical order pf the county’s 15 financial institutions gives last week’s insured money market interest rate followed by the Super Now interest rate: • Anchor Savings & Loan,

8.5, 7.5.

Cape May County Savings & Loan, 8.7, 6.5. Citizens United Bank, 8,

6.5. -

Coljective Federal Savings & Loan, 8.6, 7.9., Crest Savings & Loan, 9.15, 8.15. First Jersey National Bank, South, 8.25 and no Super Now for its GMMA, 8.2 and 6.72 for its LIA. First National Bank of Tom’s Rive*-, 8.25, no Super Now. First National State Bank of South Jersey, 8.25,

6.8

First Savings & Loan,

’9.25,8.5. Ocean City Home Sav- Sturdy Savings & Loan, Heritage Bank, 8.2, 6.8. ings &’Loan, 8.175, 7.87. 9.M, no Super Now. Marine National Bank, Security Savings & Loan, Union Trust Co. of 8.2,7. - 8.45,7. Wildwood, 8.2,7.

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This yean, put more in your own pocket, iess in Uncle Sam’s. OPEN AN IRA ACCOUNT

APRIL 16!

You still have time to give yourself a $2,000 tax deduction for 1983. Just open an Individual Retirement Account before you file your income tax return. Even if you’re already covered by a retirement plan, you can invest up to $2,000 of your 1983 wages. Up to $4,000 if you and your spouse " both work. And a total of $2,250 in separate accounts if your spouse isn't employed. Your investment is tax-free until you retire. So is the interest And it's sizeable! You have a choice of a fixed or floating rate and either way, you’ll

find the rate is highly competitive . The rates change every week, just as they do for savings certificates. But unlike savings certificates, you can deposit any amount into your account at any time. That flexibility makes your IRA account an investment your budget’s going to be comfortable with for a long, long timer And it's insured up to $100,000 by the FSLIC. So before you pay your taxes this year, pay yourself. Visit an IRA Specialist at Cape May County Savings and Loan today, and open an IRA Account. It’s deductible!

Wa'ra in the bueineae of making your money make money.

IRA Specialists E. Joan Schallangar Charlotte S. Groome 225 N Mam St. Cape May Court House. 465-5600

cape May County Sawings ft Loan Assocation

IRA { CoryNn M. Armour 40 £ Shore Rd Marmora. 396-4500

IRA Specialist Harold Roop 217 Jackson St. Cape May, 884-0900

IRAS Clifford 0. Patrick 3301 Atlantic Avenue Wildwood, 522-2447

1899 Bayshore Rd Villas, 886-2773

tfC L 301 Aabury A«e Ocean City. 398-7400