Asbury Park Press from Asbury Park, New Jersey • Page 67

Asbury Park PressTuesday, June 17, 1986 Dll Penalty no longer required, but CADILLAC SPECIAL Qa My individual retirement account is in a two-year bank certificate of deposit, due to mature Jan. 18, 1987. By federal law, CDs and savings accounts were deregulated, effective April 1, 1986. If I redeem my IRA CD before its maturity date, how much of a penalty will I have to Investors' Guide Bin DOYLE OLDSMOBILE WMw1m pay for early withdrawal? A If you're 59'2 or older, there is not now nor has there ever been a federal regulation that you must pay an early withdrawal penalty for cashing an IRA CD before its maturity. that no such penalty should apply to the survivor of a jointly owned CD, I inquired at our A vice president there said, "That's a relatively new rule.

It didn't apply when you cashed your CD." Can you tell me exactly when that rule was promulgated? Aa August 2, 1979.That rule, laid down by the Federal Home Loan Bank Board, clearly states, "No early withdrawal penalty shall be applied to withdrawals after the death of an account owner, if the withdrawal is made by any other owner of the account or by the authorized representative of the decedent's estate." That VP either doesn't know his business or is giving you the brush-off. Go back and demand a refund of that penalty you should not have paid. Bill Doyle's column appears in The Press Monday through Friday. 1983, and April 1, 1986, federal regulations set minimum early withdrawal penalties at the loss of three months' interest. Here's another big BUT.

That was a minimum. Banks and were allowed to set penalties larger than that minimum. Many did. Because of the end of federal regulation, banks and are not required to levy early withdrawal penalties on CDs opened after this past April 1. However, that doesn't mean they are prohibited from doing so.

When my husband passed away in 1982, most of our money was in joint certificates of deposit, in his name and mine. To pay for his funeral and other expenses, I had to cash a $10,000 CD. Our savings and loan association charged a large early withdrawal penalty. After reading in your column IF. NEW 1986 CADILLAC CIMARRON With standard air PS.

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630 Vln. 514808. Excludes tax A tees 3 16. 128. HI 14,439 Although early withdrawal penal ALSO AVAILABLE TO LEASE But, and this is a mighty big BUT, banks and have never been required to waive that penalty.

It's up to each bank and to establish its own policy. Some hard-nosed bankers insist on extracting that penalty. The April 1 deregulation of bank and deposits does not change the early withdrawal penalties on CDs opened before that date. If you're hit with such a charge, it will be the penalty set at the time you purchased your CD. For CDs with maturities of more than one year opened between Oct.

1, 251 Broadway at 4th Long Branch 222-1234 ties apply to most CDs, banks and savings and loan associations covered by federal deposit insurance have always been allowed to waive those penalties when IRA CDs are cashed before maturity by anyone who is at least 59'2 years of age or is permanently disabled. Market lower in light trading The Associated Press NEW YORK The stock market closed out a quiet, drifting session yesieraay wun some spouy losses. mmM The Dow Jones average of 30 lnuusuiaib, wuh.ii nau uiinucu jo.uo points on rnaay, slipped Pack LAL to 1,871.77. Volume on the New York Stock Exchange slowed to 112.12 million Why you should consider owning municipal securities: shares from 141.20 million Fndav. dent that it will have a record year in 1986, because its commercial businesses haven't lived up to its hopes so far.

Skyline Corp. dropped to 147s. The company reported a quarterly earnings increase that evidently fell short of investors' expectations. Declining issues slightly outnumbered those advancing in the daily tally on the Big Board. The exchange's composite index of all its listed common stocks gained .17 to 141.17.

Nationwide turnover in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 131.02 million shares. Standard Poor's index of 400 industrials rose .13 to 275.58, and 500-stock composite index was up .40 at 246.13. The NASDAQ composite index for the over-the-counter market dropped 1.05 to 398.54. At the American Stock Exchange, the market value index closed at 281.75, down .88. Lower interest rates reduce the appeal of bonds and other interest-bearing investments in comparison to stocks.

In addition, the presumption is an eventual revival of business activity and corporate profits can be strong and long-lasting if it starts from a low level of interest rates. Among the blue chips, Sears Roebuck rose 'A to 47Vi; American Telephone Telegraph added to 25, and General Electric was up at 82'. But International Business Machines lost l's to 148'2 in a generally weak technology sector. Among semiconductor issues, Motorola fell 2Va to 40'4; Texas Instruments 33i to 126'4, and National Semiconductor 'A to 1234. Selling in computer and semiconductor stocks was attributed to concern that the delay in the hoped-for pickup in the economy would mean continuing earnings disappointments in those businesses.

fell l58 to 34li. The company said it was growing less confi Analysts said a recent spate of data i signaling continuing weakness in me economy nas revived nopes ior lower interest rates. Rates fell sharply in the credit TAX EXEMPTION The interest received from municipal securities is exempt from Federal income tax and generally free from taxes of the state in which they are issued. HIGH YIELD The tax-exempt feature of municipal securities means a high return on your investment. For example: if you are in the 42 Federal tax bracket, a 71z yield on a tax-free security is equivalent to a 1 2.93 taxable return.

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markets Fndav. In vesterdavs activ ity, long-term rates moved lower sun i i as onces 01 ireasurv oonas Dosxea gains ranging iron, jd xo more xnan $10 for every $1,000 in face value. The weaker the economy at pre sent, the reasoning goes, the greater the incentive tor the Federal Reserve to relax its credit dohcv turtner. United Counties' full-service Dealer Bond Department is active in all phases of the tax-exempt municipal market and can help you achieve your investment goals. For further information, call 931-6777 or mail in the coupon.

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