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

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.