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GGD-79-36 1 (1979-04-02)

handle is hein.gao/gaobabbnl0001 and id is 1 raw text is: 'R EASED * LE RESTRICTED - Not to be reŽea outse the Generan Accounting Office exqepto the basis of specific approval by the Office of Congressional Relations. COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D.C. 20548 B-i14831 B-118535 B-168904 B-114827 APR 2 1979 The Honorable Benjamin S. Rosenthal Chairman, Subcommittee on Commerce, Consumer and Monetary Affairs Committee on Government Operations House of Representatives III111111111 II11111111 114369 -0! Dear Mr. Chairman: By letters dated December 14, 1978, and December 22, 1978, you requested that we demonstrate whether the automatic savings-to-checking transfer service and negotiable orders-of- withdrawal plans offer more advantages for depositors than other checking and savings account alternatives. Using nine simulated depositors (see enc. I), we analyzed the service charges and interest incomes associated with such plans offered by banks and savings and loan associations in six cities. We believe that the levels at which banking institu- tions establish their minimum balance requirements are the key factors depositors should consider when deciding whether to use a transfer service or continue with a regular checking and savings account program. Based on what we reviewed, we believe consumers would find it difficult to compare the vari- ous transfer plans offered with one another or with regular checking and savings accounts using only the current advertised information or printed information available from banking institutions. INSTITUTIONS SELECTED We used information provided by the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, and Federal Home Loan Bank Board to select the banks and savings and loan associations. We selected three institutions in each of the following cities: Boston, Chicago, Dallas, Los Angeles, New York, and Washington, D.C. The institutions agreed to participate in our study knowing they might be identified in this report as you requested. However, based GGD-79-36 (23002) IIL^ 4-9