First Security Bank & Trust Of Iowa Cuts Reward Checking Rate

The table below might give a little perspective on how First Security Bank & Trust’s rate compares with others.  As you'll see, 2.83% is still a premium rate by far when compared to other liquid accounts, and even outperforms most that don't provide much access to their investment.  In fact, a customer would need to extend their maturity nearly 5 years in order to get a similar or better rate. 

These rates are accurate as of 11:45 this morning.

 

 

Institution	Product	Rate	Term	Features
Bankrate.com	Money Market	0.78%	1 day	$10,000 minimum balance
Discover Bank	Savings	1.35%	1 day
Ally Bank	Savings	1.25%	1 day
FSB&T	Reward	2.83%	1 day	Free Debit Card, ATM Refunds
U.S. Government	Treasury	0.13%	3 months
Bankrate.com	CD	0.79%	6 months
Bankrate.com	CD	1.12%	12 months
Charles Schwab	CD	0.85%	18 months
Ally Bank	CD	1.75%	24 months
Discover Bank	CD	2.90%	60 months
U.S. Government	Treasury	2.67%	120 months	Zero Risk
U.S. Government	Treasury	3.74%	360 months	Zero Risk

 

Respecfully,

 

Penny Gray

VP/Marketing Manager

First Security Bank & Trust Co.

pgray@1stsecuritybank.com

 

 

It's nice that a bank VP is actually following this forum.  However, when making her comparisons, Penny neglected to point out that all the other institutions used for comparison are available to anyone living anywhere in the country, while FSB&T's rewards checking account is currently available only to residents of IA and MN.

She also neglected to compare her rewards checking account with others that are available nationally and offer a higher rate of return.  As a prime example, Danversbank's rewards checking account is nationally available and offers an APY of 4.01% compared to FSB&T's 2.83%.

Yes, it is not apples-to-apples comparison since the RCA requires debit transactions/ACH/paperless statement.

The important take-away point here is that banks nowadays are also viewers for sites like this one.  Thus we all should exercise caution and sensitivity when we post, if we desire a good rate to continue for a while; if you know what I mean:-)

Kudos to Penny for standing up for her bank. However, the flaws in her retorte have already been pointed out by others.

 

And yes 51hh, I always cringe when some dimwit brags on here how s/he circumvents the 'intended' RCA requirements by making many tiny charges in a short amount of time at the same retailer (or online). I sure hope that if bank executives who read this such as Penny and come to the conclusion that something needs to be done about it, don't treat all their customers the same and/or punish them with more stringent requirements or lowering APRs or caps. Rather I hope that they do it in a surgical manner and weed out those cut-throat abusers of the system and let us cooperating customers continue to benefit to the fullest possible extent.

Comments from PGray show just how this low interest environment has impacted ALL banks, large and small, and their treatment of depositors. All I know is that if a bank wants to raise capital through a nationwide online reward checking program and then slash interest rates and limit qualifying depositors, they should be a lot more honest about it upfront. Instead, First Security Bank and Trust required above and beyond the normal paperwork to open the account for this out of state depositor. They do a hard pull on your credit, leaving that big ding to impact future credit checks, and then in just a few weeks they decide they have raised enough capital so they slash interest rates, limit new accounts to local only, and they close out of state accounts, referencing a statement in their disclosure to close accounts for any reason at any time.  I used to have a better opinion of smaller and regional banks compared to the big boys, but after this experience with First Security Bank and Trust, I have no respect for any bank or banker. Buyer beware. Saver be damned.