Federal Reserve Issues PCA Against First Banking Center

The Federal Reserve issued a Prompt Corrective Action (PCA) against First Banking Center of Burlington, Wisconsin. The 8/11/2010 PCA stated that the bank has been determined to be "significantly undercapitalized". The order also restricts the bank from offering deposit interest rates that "exceeds the prevailing effective rates on deposits of comparable amounts and maturities in the Bank’s market area."

First Banking Center offers a reward checking account that used to pay 6.01% APY. it's now paying a top rate of only 0.86%. This is the same as the FDIC's interest checking rate cap. That's one reason to stick with healthy banks when you're choosing a reward checking account.