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People's Bank Drops Rate To 2.25% (Was 2.5%) No Courtesy Notice To Customers

Friday, January 27, 2012 - 10:32 PMPeople's United Bank - Details
Per bank rep on 27 Jan 2012:

Qualified reward accounts earn 2.25% APY with a 2.225% Interest Rate on balances up to $24,999.99.
5
waywardwayward49 posts since
Feb 17, 2011
Rep Points: 143
1. Saturday, January 28, 2012 - 1:47 AM
This is the second rate drop in two months. It looks like they're trying to drive out all the old Danversbank RCA customers. Well, they succeeded with me.
2
dunkerdunker135 posts since
Jun 11, 2010
Rep Points: 403
2. Saturday, January 28, 2012 - 6:30 AM
Since the bank is five-minutes from my home, I keep this account as a regular checking account for me (ATM, Billpay, etc.); thus the 2.25% APY is fine with me.
1
51hh51hh1,462 posts since
Jan 16, 2010
Rep Points: 6,352
3. Saturday, January 28, 2012 - 9:36 AM
That stinks. It's really poor service to not inform customers about the rate change.

I'm going to pull mine soon.

Does Peoples charge a fee to keep a zero balance RCA?
2
panomanpanoman3 posts since
Oct 30, 2011
Rep Points: 4
4. Saturday, January 28, 2012 - 1:41 PM
Since the bank is five-minutes from my home, I keep this account as a regular checking account for me (ATM, Billpay, etc.); thus the 2.25% APY is fine with me.
If I remember correctly, you had two $100K accounts with Danversbank, and when it was at 4% you were borrowing HELOC money to fund these accounts, profiting from the difference. I suspect you're not doing this any more. And with the drop to 2.25%, I doubt that you're keeping any more money in the account than you need for your regular checking needs. For your RCA income you're probably keeping your money in banks with rates above 3%.

Since this bank is 3000 miles from my home, 2.25% is not fine for me. In fact, for my regular checking needs, I have no problems using banks half-way across the country that earn more than 2.25%. Plus I haven't used an ATM in years. I actually use so little cash, that getting cash back when I go grocery shopping is a much easier way to satisfy my cash needs.
2
dunkerdunker135 posts since
Jun 11, 2010
Rep Points: 403
5. Saturday, January 28, 2012 - 1:54 PM
My $200K HELOC at 2.24% is still earning some income for me; APY being above 3.5% ("many" accounts at 4%).  DBK, now Peoples' Bank, is only for my small daily expenses (keeping only $20K in one account).  It was never for my HELOC fund.

I cannot wait for the days that all my RCAs go under 3%... so I can live a normal life:D
3
51hh51hh1,462 posts since
Jan 16, 2010
Rep Points: 6,352
6. Saturday, January 28, 2012 - 5:18 PM
That stinks. It's really poor service to not inform customers about the rate change.

I'm going to pull mine soon.

Does Peoples charge a fee to keep a zero balance RCA?

 

The typical approach if one wants to keep the RCA is to have a few dollars in the account (some banks close account with zero-balance automatically, then one may lose the interest for that month).  Watch out of inactivity fees as well.

For account closure, one needs to watch out for early account closure fee (typically for period shorter than 90 - 120 days). 

2
51hh51hh1,462 posts since
Jan 16, 2010
Rep Points: 6,352
7. Saturday, January 28, 2012 - 11:17 PM
Well...very interesting!..I just got my Statement from PU and it says 2.5%APY! I use the account as my main account, and I'm not rich, so I don't have 25K or 100K to put in a RCA. If this is true, then PU is lying about the 2.5% APY I'm supposed to be getting. Oh well! I was considering moving to Washington savings Bank in Lowell, MA to get their Kindle promo and 3.0% APY RCA, anyway. If not them, then I'd go to Consumers for their 4.09% APY. I just hate these guys not telling us what they're doing til AFTER they do it!
2
jep1960jep196017 posts since
Jun 14, 2011
Rep Points: 62
8. Monday, October 14, 2013 - 4:12 PM


I cannot wait for the days that all my RCAs go under 3%... so I can live a normal life:D
Saw last month that Peoples went to 1%, so even though I had the grandfathered $100k max I gave up and moved that money to a 30 month 2% CD. So this my first time in around 6 years I have no rewards account and it sure does make life more normal with no more running around putting $5 of gas in my car at a time
2
scottjscottj27 posts since
Jun 5, 2010
Rep Points: 727
9. Monday, October 14, 2013 - 4:32 PM
Congrats, Scott.

There are life events that are enjoyable: Taking kids to a movie, re-visiting place for the marriage proposal with 60-year-old wife, having the first child, taking the first job...

Living a normal life without RCAs... priceless!!!:-)
7
51hh51hh1,462 posts since
Jan 16, 2010
Rep Points: 6,352
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