J.P. MORGAN CHASE BANK-2016 - Laserfiche WebLink

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managed rate helps to maintain pricing flexibility while helping to protect clients from the short -term rate volatility that could result from using an indexed rate. In calculating the earnings credit rate (ECR), J.P. Morgan currently does not deduct the reserve requirement from the available balance. Since October 1, 2008, the Federal Reserve has paid interest on reserves held at the Federal Reserve by member banks. J.P. Morgan passes this benefit to clients by basing the earnings credit on 100% of the eligible balance of non- interest bearing demand deposit accounts. Any cash remaining uninvested in a non - interest bearing demand deposit account at the end of the day (as well as cash held in a Hybrid demand deposit account that is at or below the designated peg balance) is used to determine an earnings credit value on account balances. This credit is calculated by J.P. Morgan, and the total credit accrued for the month is reflected on the monthly account analysis statement and is applied to reduce the invoiced amount due for banking service fees. J.P. Morgan uses the following formula to calculate the monthly earnings credit allowance: (Average Positive Collected Balance x ECR x Actual Number Of Days in Month) Actual Number of Days in Year 3. List the Bank's actual ECR for the past twelve months. The bank's ECR for the past twelve months is shown in the chart below. Standard/Premium ECR for October, 2015 the most recent twelve 0.20 %/0.30% months April, 2o16 0.25 %/0.35% November, 2015 0.20 %/0.30% May, 2o16 0.25 %/0.35% December, 2015 0.20 % /0.30% June, 2016 0.25% /0.35% January, 2o16 0.25 %/0.35% July, 2o16 0.25 %/0.35% February, 2o16 0.25 %/0.35% August, 2016 0.25 %/0.35% March, 2016 0.25 %/0.35% September, 2or6 0.25 %/0,35% 4. Explain in detail how and when you charge the FDZC assessment. J.P. Morgan charges a Premium Assessment Fee (PAF) on all Demand Deposit Accounts (DDAs) including Hybrid DDA's that exclusively receive ECR. The PAF is a monthly administrative fee assessed to address various regulatory and other charges affecting J.P. Morgan. The current Premium Assessment Fee is 0.13 %.