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Community Bank Of Pickens County Slashes Reward Checking Rate

Thursday, July 29, 2010 - 6:09 AMCommunity Bank of Pickens County
Two readers have reported that Community Bank of Pickens County in Georgia has slashed its reward checking rate. It appears the FDIC may have required the bank to keep its deposit rates below the FDIC rate caps. The bank has not replied to my email questions, so I have not been able to confirm this. Here's an excerpt from one of the readers' email:
The feds came in and apparently ordered the bank to drop it's rates. It now pays 0.87 %. You can verify this with the bank, but the account you reference is no longer at 5.01%.
2
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
1. Thursday, July 29, 2010 - 9:48 AM
Confirmed via CSR (0.86% APY), due to "regulator action", since 7/22/10.
3
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,426
2. Saturday, July 31, 2010 - 4:17 PM
This bank is on the unofficial problem bank list (by Calculated Risk) as of 7/30/10, FYI.  The "consent order" was issued on 6 11/10.
2
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,426
3. Saturday, July 31, 2010 - 5:04 PM
Good catch. That definitely proves that the FDIC rate caps took effect again on a reward checking account. The FDIC really needs a separate category for reward checking.

One bank that had its C&D order terminated was Libertad Bank which used to offer a nationwide reward checking account before they were forced to end the high yields. Hope they bring back the high yield.
1
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
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