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Danversbank's DBK Online Savings Account Rate Falls

Thursday, July 29, 2010 - 1:02 PMDanversbank
Danversbank reduced the rate of its DBK Online Savings Account from 1.00% to 0.75% APY. The 4-month online CD also had this same rate cut.

Danversbank used to keep this savings account rate very competitive. Now it's near the bottom for internet savings accounts.

The good news is that Danversbank's Free Reward Checking Account remains at 4.00% APY on balances up to $25K. I am a little worried about this rate. I don't see how they can keep this rate so much higher than their online savings account.
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634
1. Thursday, July 29, 2010 - 4:51 PM
If you look at their Institution Statistics on the Revviews and Ratings Health tab, you'll see that they have $300 million more in deposits than in loans.  They would probably be more profitable if they were able to reduce deposits, since banks are currently reluctant to make substantial loans in the current economic environment.

As one of only a couple of RCAs still offering at least 4% nationally, while at the same time several of the banks that used to offer 4% nationally have slashed their rates in recent weeks, they are going to start attracting even more people looking for a high rate of return.  I suspect in the not too distant future we'll see them limit new accounts to preople in Massachussetts (and maybe Vermont and New Hampshire), and drop their APY to around 3.5%.
dunkerdunker136 posts since
Jun 11, 2010
Rep Points: 413