Wednesday, november 1, 1978
daily nebraskan
page 7
Checking accounts lose bounce with savings transfers
By Lucy Bighia
How would you like to write a check for that darling
down ski-jacket-a real bargain at a mere $95.99
without worrying about your mere 99 cent checking ac
count balance?
No problem. When the check reaches your bank, $95 is
automatically transferred from your savings account to
your checking account.
Sound far-fetched? Barring last-minute legal hassles,
this handy system will soon be offered by Lincoln banks.
On Nov. 1 , the Federal Deposit Insurance Corporation
and the Federal Reserve System will authorize member
commercial banks to automatically transfer funds from
savings accounts to checking accounts, with the custo
mer's approval.
For banks, this will be the equivalent of interest-paying
checking accounts.
Such a transfer system could have a serious effect on
savings and loan associations, which aren't allowed
to offer any form of checking systems.
Fear dollar transfers
The U.S. Savings League is seeking to block the Nov. 1
Tour, shopping set
for K.C. expedition
An art gallery tour and shopping expedition to Kansas
City is being offered by the UNL Flights and Study Tours
Thursday for $18.
A few seats still are available for the trip.
Participants will have the opportunity to tour either
the Kansas City Art Institute and Gallery or the Richard
Estes Painting Exhibit at the Nelson Art Gallery.
In the afternoon, participants will be free to stay at the
are galleries or to shop at nearby Country Club Plaza.
Buses depart for Kansas City at 6.30 a.m. Thursday
from the south side of the Nebraska Union, and return to
Lincoln at 1 1 pjn.
Spaces may be reserved by calling 472-3265.
The $18 includes the charter bus to and from Kansas
City, and admittance and tour at Nelson Art Gallery or
Kansas City Art Institute.
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$1 .40 pitchers
30 draws
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(Lee' Levi's, Wrangler)
With the purchase of any pair
of boots by Justin, Tony Lama,
or Dan Post
12 ran
Buy any pair of Acme boots,
and purchase any pair of
jeans for half price.
1242 High St.
423-3932
Monday-Saturday
106
Thursday 'til 9
Free Parking
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start-up of automatic transfer through court action.
The league fears that commercial banks, by increasing
their number of offices and services, will attract many
savings and loan depositors to transfer their passbook ac
counts to banks, where they can receive what amounts to
"interest-earning checking accounts."
Savings and loans presently are allowed to pay a
quarter percent higher interest on savings accounts than
banks.
The president of First Federal Lincoln Savings and
Loan Company, Charles Thorne, said he felt such a system
would undoubtedly create added competition for savings
dollars.
His company still has a quarter percent interest advan
tage over banks, but "that doesn't amount to an awful lot
when you think in terms of $1,000 or 30 days," Thorne
said.
Grin and bear it
"Well have to try to combat this with added services
and conveniences," he said. "And I hope our people smile
a lot broader."
One such additional service is the bill paying by phone
service available to First Federal customers, he said.
Other than that, savings and loans are going to have
to accept the fact the average person is going to main
tain a checking account, Thorne said.
The executive vice-president of Commercial Federal
Savings and Loan, Kenny King, on the other hand, said
he is not worried about the new system.
"We don't think it's any competition for our 'cash
action' (phone-in bill paying) program," he said.
Several Lincoln banks have already announced plans
for their new transfer systems.
Some banks will operate on a "zero-balance" check
ing system, in which all of the customers' money will be
kept in savings, and just enough to cover each check will
be transferred.
Other banks require as much as a $500 minimum
balance in both savings and checking accounts.
Service charges for the transfers range from nothing to
SO cents for each transfer plus 10 cents for each check.
i f V
as
I
I
Wednesday, Nov. 29
8:00 P.M.
Kimball Auditorium
Tickets: $4.00 Students $5.00 General
Available at Nebraska Union & Kimball Aud.
Sponsored by UPC
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f ' ' ' ' '' Sale 97 ' ' " 'Ci
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if ,
STOREWIDE SALE
Lay Away for X-Mas
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Student Accounts Welcome The Atrium 1200 N St. 475-9709