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Jeff Davis Bank Cap Lowered From $15K To $10K, Kasasa Saver Cap Lowered From 25K To 15K

Tuesday, February 22, 2011 - 7:27 PMJD Bank - Details
Received the following notice via Email this evening (emphasis mine):

Dear Kasasa Customer, 

We hope you have enjoyed receiving the benefits of having a Kasasa account with Jeff Davis Bank.  With the convenience of e-statements, UNLIMITED ATM fee reimbursement, and earning interest, Kasasa accounts have continued to be very popular among our customers.

We have held our Kasasa interest rates steady for a year, but we are faced with a situation in which we must change the structure of these accounts.  The interest rates will remain unchanged on both the Kasasa Cash and Saver accounts; however, we must lower the interest earning caps on both of those accounts.  The cap for maximum interest in the Kasasa Cash account will be lowered to $10,000 and the Kasasa Saver cap will be lowered to $15,000.  This change will take effect on your statement cycle beginning March 24, 2011. 

New Kasasa Cash structure

4.01% APY for balances at or below $10,000 that qualify

0.51% APY for balances above $10,000 that qualify

0.10% APY on all balances that do not qualify 

New Kasasa Saver structure

2.00% APY for balances at or below $15,000 that qualify

0.51% APY for balances above $15,000 that qualify

0.10% APY on all balances that do not qualify 

We wanted to notify you of the change ahead of time to minimize the questions you may have when you receive your e-statement near the end of April.  We would also like to remind you that the monthly requirements will remain unchanged and you can still qualify for UNLIMITED ATM refunds each month.

 Sincerely, 

Jeff Davis Bank
3
pearlbrownpearlbrown1,433 posts since
Nov 2, 2010
Rep Points: 6,255
1. Tuesday, February 22, 2011 - 7:40 PM
A quick calculation shows that for an accountholder who funded the RCA and Saver accounts fully would have received annual interest of approximately $1100.  Under this new structure, an accountholder who funded the same accounts fully would receive annual interest of approximately $701, a drop of 36%.  This is a very steep and painful drop for a highly rated institution and hopefully not a trend which others will follow. 
 

 

 

 
2
pearlbrownpearlbrown1,433 posts since
Nov 2, 2010
Rep Points: 6,255
2. Wednesday, February 23, 2011 - 10:52 AM
I'm not happy about the changes since I just opened the account last month after Ken's posting (thanks again Ken!). 

However, I appreciate that they notified accountholders of the change with a fair amount of advance notice.  Recently, other institutions have made changes retroactive (Pelican State CU), or have served notice to accountholders by posting the changes on their website merely a couple of days ahead of the change (Beacon) and that served as the only notification (acceptable according to T&C but hardly cricket). 
1
pearlbrownpearlbrown1,433 posts since
Nov 2, 2010
Rep Points: 6,255
3. Wednesday, February 23, 2011 - 3:55 PM
Just to be fair, Pelican gave a month advance notice on its cap change (from $30K to $20K); but gave a retroactive rate change notice on 14 February, effective 2/1/11.
2
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,426
4. Wednesday, February 23, 2011 - 4:18 PM
You are absolutely right.  I remember thinking at the time that at least Pelican had given accountholders some time to assess how this would impact their personal situation.

I only wish their communication on the rate change had been as timely.  The retroactive change was irritating and just added insult to injury, so to speak. 
1
pearlbrownpearlbrown1,433 posts since
Nov 2, 2010
Rep Points: 6,255
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