Reward for Thrift

A kilowatt saved is a kilowatt earned, and energy thrift should not have to be its own reward. So believe officers of the Seattle Trust & Savings Bank, who are now offering reduced-cost loans to customers who open new checking accounts and buy well-insulated homes, upgrade existing ones or purchase fuel-saving cars or boats. The buyer of a house that scores at least 15 points on an energy-saving rating system devised by the bank (five points for an efficient furnace, another five for ceiling insulation), can qualify for a 30-year mortgage at 8.5%, about a point below the going rate. On a $40,000 loan, that translates into monthly payments of 5 $307.57, v. $336.35 on a higher-interest mortgage. The buyer of a car rated by the Environmental Protection Agency at 25 miles per gallon or more on the highway qualifies for a four-year loan at 8.75%; the buyer of a gas guzzler pays 9.5% or more. Ten-year, 8.75% loans are available on fuel-saving craft such as sailboats.

Seattle Trust President J.C. Baillargeon says that there are some "crassly commercial" aspects to the plan. In view of rising fuel costs, says he, "we are thinking about what homes without adequate insulation and efficient heating systems are going to be worth in two or three years" if the bank has to foreclose on them. Besides, the offer is bringing in a lot of new business. Just how much, Seattle Trust will not say. But during the first few days, the bank's main office and 25 branches were swamped by more than 3,000 telephone calls.

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