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First Michigan Bank Reduces Rates On Existing CD's

Monday, June 14, 2010 - 10:02 PMTalmer Bank and Trust - Details
First Michigan Bank has exercised its option to lower CD rates on
accounts it acquired via the (4-30-10) closing of Citizens First
  Old 22 month CD rate was 3.11% (APY 3.15%)
  New 22 month CD rate  is 0.75% or 1.35% (APY 0.75% or 1.36%)
                              depending on the termination date.

Here's the letter from First Michigan I received in today's mail
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June 2,2010

Subject: Your Certificate of Deposit # nnnnnn  at First Michigan Bank

As a depositor with First Michigan Bank, we are writing to discuss what we know may be a sensitive topic. First and foremost, we want to thank you for your continued support over the last few weeks as we continue to make the transitions required following the transfer of your accounts to First Michigan Bank.

In accordance with the FDIC Notice to Depositors mailed to you on April 30, 2010 the interest rate on your existing CD has been modified to 0.75%. (The APY will vary based on the terms of your Certificate of Deposit.) This rate change was effective as of June 1, 2010 and will remain in effect until the next maturity date of your CD. We do value your past support and loyalty and, as such, this new rate reflects a premium over the average rates that are offered by other financial institutions in our market area.

If this does not meet with your interest rate earnings objectives, we hope you will consider transferring your funds into one of our longer term certificates of deposit. Today's APY on 48 month and 60 month CD's are 1.61 % and 1.91 %, respectively. As we have mentioned in the past, you may withdraw all or part of your existing deposit without penalty unless the deposit has been pledged as collateral for a loan.

Lastly, you may have received more than one letter regarding this matter and we apologize for some duplication, however, we felt it was important for you to have a separate letter for each individual Certificate of Deposit that was affected.

As always, your Branch Manager, and his or her staff, will be happy to assist you in anyway regarding any questions or banking needs you may have. We have enclosed a copy of our branch locations and contact information to further assist you. We look forward to continuing to serve your financial needs.


David T. Provost
Chairman, President and CEO
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cumuluscumulus359 posts since
Jan 16, 2010
Rep Points: 1,678
1. Monday, June 14, 2010 - 10:42 PM
Me again.  In addition to First Michigan's rate reductions to not honor the original CDs, they make a couple of additional unfriendly moves:

 1) The rate revisions took effect 6-1-10; the letter I received today, 6-14, had a 6-2 date on the header.  The earliest I could possibly implement a close is 6-14.  It would certainly have been more customer friendly to have the effective date of the rate change be AFTER customers receive the notification letter, say 7-1. This would offer customers the option to close BEFORE their rates are reduced.

 2) Additionally First Michigan charges a $5.00 ''processing fee'' for mailing you an account closing check.  (The only other option is to pay $20 for a wire transfer --- suppose if you live in Michigan you could visit a branch and have them hand you cash.)  In my years of dealing with financial institutions I have never been charged a "processing fee" for closing an account!

cumuluscumulus359 posts since
Jan 16, 2010
Rep Points: 1,678