Big Rate Cuts On Kasasa Cash & Saver At Transpecos Banks

A reader just forwarded me a scan of a letter he received from his bank, TransPecos in Texas. The letter informed him that on 10/15/2011 the following rate cuts take effect:

NEW rates and caps

Kasasa Cash (reward checking)

• 2.50% APY up to $10,000
• 1.01% APY above $10,000
• 0.05% base rate

Kasasa Saver

• 1.01% APY on all balances
• 0.05% base rate

OLD rates and caps

Kasasa Cash

• 3.33% APY up to $25,000
• 1.33% APY above $25,000
• 0.05% base rate

Kasasa Saver

• 1.75% APY up to $249,998
• 1.15% APY above $249,998
• 0.05% base rate

I'm afraid the $10K balance cap is growing in popularity. This account used to be a great one for large balances. That will no longer be the case. If you have a $100K balance in both accounts, you will earn $986 less per year after these cuts take effect.