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Liberty National Is Terminating Its Kasasa Checking Account...

Monday, July 25, 2011 - 10:10 PMLiberty National Bank (OK) - Details
(was (4.11%, $10K)) effective end of July or August, per Nymgiants of FWF.
5
51hh51hh1,460 posts since
Jan 16, 2010
Rep Points: 6,348
1. Wednesday, July 27, 2011 - 12:28 AM
That's bad news... One of the better, higher paying RCA accounts that was still out there...

FYI, in addition to their RCA previously having a higher earnings balance before it was cut to $10K, the account also was previously available in a broader area than just OK...

FWIW, as of this morning, they still have their Kasasa Cash web page up with the link to open a new account with them at the 4% interest rate.

Was there any mention of the source of the info about Liberty terminating their RCA?

Also, when you say "terminating," I assume that to mean they'll cease paying RCA benefits to existing account holders...

Do you mean that, or do you mean, they won't be offering the RCA account from now on to any NEW customers?
1
moneysavermoneysaver29 posts since
Jan 8, 2011
Rep Points: 236
2. Wednesday, July 27, 2011 - 7:05 AM
Quotes from the FWF member Nymgiants posted on 7/25:

"just received a letter from liberty national bank in which they state they have "discontinued the national Kasasa account campaign" it instructs me to send instructions to convert to a free checking account. if no instructions are received by August 15th they state they will close the account on 8/31 and mail me a check.

I am trying to determine if that means that I will not receive interest after July 31st if i keep my money in the account through august or not.

There is nothing listed on their website yet. and the letter is dated 7/31."
2
51hh51hh1,460 posts since
Jan 16, 2010
Rep Points: 6,348
3. Wednesday, July 27, 2011 - 10:25 AM
I also received that letter two days ago.

Maybe we should call them and ask.

Since the website still shows the regular rate, maybe they just decided to close the account to people outside of their local area while keeping the accounts and new accounts from local only....
2
LakerlifeLakerlife6 posts since
Jul 27, 2011
Rep Points: 8
4. Thursday, July 28, 2011 - 5:23 AM
I'm outside OK state and have the rewards account with them. I also know I have a letter from Liberty en route to me that I haven't seen yet, but am assuming it's the same variety mentioned above...

Based on the language of the letter quoted above about "national campaign" and the status of their web site, I'd presume it indeed means they're closing out their non-OK accounts. But I guess I should call and ask, since I won't receive their mailed letter for a bit...
1
moneysavermoneysaver29 posts since
Jan 8, 2011
Rep Points: 236
5. Thursday, July 28, 2011 - 7:36 PM
This is the worst bank as far as contact is concerned.  Nobody except Kim knows about Kasasa Checking; and Kim is always in disappaerance.
3
51hh51hh1,460 posts since
Jan 16, 2010
Rep Points: 6,348
6. Friday, July 29, 2011 - 12:53 AM
well, that is the "price" you pay for dealing with very small bank...

However, I hardly need to contact banks so I prefer to deal with small banks and get much better benefits than the too big to fail giant banks...
1
LakerlifeLakerlife6 posts since
Jul 27, 2011
Rep Points: 8
7. Friday, July 29, 2011 - 6:24 PM
Kasasa interest will be accrued till 8/31/11.
2
51hh51hh1,460 posts since
Jan 16, 2010
Rep Points: 6,348
8. Saturday, July 30, 2011 - 1:22 AM
Re the comments above...

Back when I did, my account opening process with Liberty was fine... not difficult, no unusual hassles... They set everything up properly and sent me what I needed. Since I've had the account, I've had no unusual problems or complications with them. So I can't say I've had any problem with their customer service...

As for the "price" associated with doing business with smaller banks, at least they offer these kinds of accounts and have for the past several years, allowing a lot of us to earn at least a modest interest income on our deposits -- unlike the maga U..S. banks that by and large pay virtually nothing.

I have another RCA with a likewise smaller bank that used to be national, but later changed to local after I already had my account. A year or so has passed and they've grandfathered all their prior out of state account holders. It's still paying 3% on up to $25K with 10 monthly POS...

Sometimes these things last... Sometimes, as with Liberty, they dont.
1
moneysavermoneysaver29 posts since
Jan 8, 2011
Rep Points: 236
9. Saturday, July 30, 2011 - 1:26 AM
Well you all can thank the crooks Frank and Dodd that killed this great product because they decided they need to protect the consumers by limiting debit card fees....

F Frank and Dodd.
2
LakerlifeLakerlife6 posts since
Jul 27, 2011
Rep Points: 8
10. Monday, August 1, 2011 - 3:30 PM
Hi, my name is Rafael Santos and I’m the Vice President/Branch Manager for Liberty National Bank. I wanted to clear up a bit of the confusion here. We did send out a letter about our Kasasa accounts, but we are only restricting where they are available, not ending them across the board. We are a community bank and want to keep our resources in Oklahoma to best benefit our community. For that reason, we are no longer allowing our Kasasa accounts to be opened outside of the state and will be transitioning current out-of-state accounts to non-Kasasa free checking.

Any current account holders who will be affected were sent a letter with instructions on switching their accounts. Unaffected account holders will continue to receive their Kasasa benefits as usual. If you are a current Liberty account holder with Kasasa and aren’t sure if your account will be discontinued, please call us directly at 1-855-351-2265 so we can check into it for you.

And if you are an out-of-state account holder who still wants the benefits of a high interest Kasasa account, we highly recommend visiting Kasasa.com to search for other community financial institutions offering Kasasa accounts in your area.
2
LibertyNationalLibertyNational1 posts since
Aug 1, 2011
Rep Points: 2
11. Monday, August 1, 2011 - 4:33 PM
LN: Thanks much for the helpful clarification.  It is both unventional and "uncool" to not grandfather the customers that are out-of-state, IMHO.
2
51hh51hh1,460 posts since
Jan 16, 2010
Rep Points: 6,348
12. Monday, August 1, 2011 - 11:51 PM
I agree with 51hh. You (liberty national) could simply stop offering the ability to open an account to outside the state but should have kept the customers that opened the account a while ago.

I have about 3 other accounts that i have opened with other financial institution and threse three have decided to restrict new accounts for outside the service area new customers. But still kept all existing out of area customers. aka grandfathered them.

So I agree, this action is "not nice"....
1
LakerlifeLakerlife6 posts since
Jul 27, 2011
Rep Points: 8
13. Tuesday, August 2, 2011 - 10:04 AM
I agree as well.  I also have accounts at other institutions which have since restricted the service area for new accounts but grandfathered existing customers.   Aside from being unconventional and uncool, I think this action reflects very poorly on Liberty National and would encourage the bank to reconsider its position.
1
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
14. Wednesday, August 3, 2011 - 1:38 PM
I'd third, fourth or fifth the above comments....

i've had any number of banks I deal with impose restrictions their accounts at some point to a narrower area... But until Liberty came along, I've yet to have one that essentially is kicking out its existing, and in some cases long term, account holders.

I think that kind of policy decision reflects very poorly on the bank.

If so many other banks handle such situations by applying such restrictions prospectively for new/future account holders, I'd like to know why Liberty feels compelled to anger and insult its existing account holders who opened their rewards accounts with Liberty when the account terms allowed them to do so.
1
moneysavermoneysaver29 posts since
Jan 8, 2011
Rep Points: 236
15. Wednesday, August 3, 2011 - 1:47 PM
Probably they have "too much" in deposit to make sense for them. Granted a bank would only make money if they can lend the money they get (with levarage)...Since they either don't want to lend (like most banks) or simply have no appetite from borroweres to borrow.

So they either had to cut the interest that they are paying from 4% down to 2% or something to everybody (like 99% of the other online banks), and thus make the account lose its benefit to most, or kick what is probably 80-90% of the money out (since they don't really need it), and stick with maybe 10% of the (local) money still paying the 4% on it.

You have to understand that the issue is that they can't afford to pay the 4% mainly because of our politicians shoving their noses trying to "help" the people. The crooks Dodd and Frank...limiting debit card fees that was the major source of $$$ to pay the 4% rewards...

Still shame on you liberty national for kicking your (out of state) loyal customers!
1
LakerlifeLakerlife6 posts since
Jul 27, 2011
Rep Points: 8
16. Wednesday, August 3, 2011 - 3:04 PM
As Lakerlife indicated, this is a small community bank with $194 million in deposits and only $114 million in loans.  That leaves a lot of money sitting on their books earning nothing.  Why pay 4% to out-of-staters who are not their regular banking customers and earn them some money?

As moneysaver pointed out they used to have a higher cap than their current lowly $10K.  If previous patterns with other RCAs hold true, I bet that they drop their interest rate by at least a percentage point in the near future.  And when that happens, all those posters above who are complaining about not being grandfathered would have started pulling their $10K out of this bank in droves.
1
dunkerdunker135 posts since
Jun 11, 2010
Rep Points: 403
17. Wednesday, August 3, 2011 - 3:36 PM
Seems like many of the folks in this conversation have a different perspective on "loyalty". Is opening a rewards account and doing the minimal qualifying number of transactions (usually at minimumal amount) really considered loyal? Is having 3 or 4 different rewards accounts at 3 or 4 different institutions "loyal"? Now in the case above, if this person has multiple account relationships with the bank and you shut off their premium rate, I'd agree - bad move by the bank.  On the contrary, if they are a single service person from out of state, good move.

My perspective is that a person who uses the account truely as a checking account, and not a money market...and has their loan, CD and investment business with the financial institution is a "loyal" customer.

These Rewards Account yields are paid for by lending the money out AND the interchange income. Doing 10 or 15 $3 transactions and giving your loan business to the guy down the street does nothing to support this great product. My guess is that the more people game these accounts, and the more governement interferes with things like the Durbin Amendment, the less likely the rest of us will see rewards accounts exist in a year or two.

My 2 cents.
4
Yanks1b23Yanks1b233 posts since
Jul 31, 2011
Rep Points: 8
18. Wednesday, August 3, 2011 - 4:15 PM
Yanks1b23, I totally don't agree with you.

The qualifications are set such that if you meet them, you qualify. If you're the bank and you don't like having 12 min debit charges and that's it, then add qualifications such as having a mortgage, auto loan, other relation with the bank, etc. However, the qulifications are set, and once you meet them you're good. 

All that is a business decision by both the customer and the bank. The story of kicking the EXISTING customers that happen to be out of state is the same as having a party and inviting your family members and friends. Then at some point, you decide to kick out all the friends and only keep the family members in the party. All that not because they started causing problems or anything like that, but simply because you are running out of alcohol...you could limit the alcohol to everybody (slow down...) and close the door from new people to come in as the place is packed...But liberty decided to kick 80-90% of the people in the party, keep 10% of them and still feed them with enough alcohol.
1
LakerlifeLakerlife6 posts since
Jul 27, 2011
Rep Points: 8
19. Wednesday, August 3, 2011 - 4:33 PM
If people came to my party empty handed and raided my liquor cabinet for my best booze (before I could even offer it to my best friends)…I’d boot ‘em.  Or at least not invite them back for the next party.

Your point is taken though. My point was really to explain how these type of accounts will probably die; gamers and increased costs through regulation.

Unless banks and CUs come up with sophisticated enough dp systems to handle relationship pricing. Then they might servive.
2
Yanks1b23Yanks1b233 posts since
Jul 31, 2011
Rep Points: 8
20. Wednesday, August 3, 2011 - 7:50 PM
"This is the business we chose..." -- From Godfather (movie).

It is business on both sides (banks and customers).  Loyalty means nothing to me or to the banks.  It is just a slogan bankers came up with.

Banks try to make the most profit with efficient management and effective charging.  Customers try to choose the best product and earn the highest return within rules/regulations.

No parties and no gaming:-)
2
51hh51hh1,460 posts since
Jan 16, 2010
Rep Points: 6,348
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