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Southern Community Bank & Trust Cuts Reward Checking Rate From 2.25% To 1.15%

Wednesday, February 2, 2011 - 7:35 AMSouthern Community Bank & Trust
Just one month after the last big rate cut, they did another one. This time the top reward checking yield has fallen from 2.25% to 1.15% APY. The balance cap remains at $25K. This is called the Maximum Earnings Banking account, and this rate is shown on the bank's rates page (click on details link).

You have to wonder what's going on at Southern Community Bank & Trust. Last month they also slashed the rate on their online savings account at Ready Saver. The yield fell from 1.35% to 0.90% APY. That savings account rate is just under the FDIC rate cap for "less than well capitalized" banks. However, the interest rate checking rate cap is 0.85%. The bank's health rating has gone down, but it's still not that bad. Also, there are no public enforcement actions against the bank.
2
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634
1. Thursday, February 3, 2011 - 4:12 AM
They cut their rate previously just as I was opening a new rewards account with them...

So until now, I had just kept the account as a placeholder, figuring their rates might improve again (or at least become market competitive) at some point in the future...

But now, that seems pretty unlikely... Seems like a good time to close out the account... Bye bye SCBT.
2
moneysavermoneysaver29 posts since
Jan 8, 2011
Rep Points: 258
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