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Genesee Regional Bank in Rochester, NY, Dropping the Rate On Its Variable CDs Tomorrow

Monday, March 5, 2012 - 3:55 PMGenesee Regional Bank
A week ago, I posted about the rates on the bank's 24-month and 48-month Variable CDs, here.

They have just alerted me that today is the last day for those rates. Tomorrow they will be dropping them. 

They say they will "honor any inquiries and additional CD money that has been made up to this point." Your (the reader's) interpretation of that is as good as mine. But I have to conclude at least that if you have already asked to start the account opening process, you will get the rate in effect through today. What isn't clear to me in that language is that if you merely have inquired so far, will they honor that rate -- he wrote merely that any "inquiries" will be honored.

The new rate does not take effect until tomorrow. But I see they already have removed the Variable rate CDs from their rate page. Their alert to me was not that they were eliminating the variable rate CDs, only that they were dropping the rate.

I'm not sure if they close today at 5 p.m. or 6 p.m. Rochester, NY, time. But call right now, and you should be able to hold that rate. Or, try sending an e-mail about it if they have already closed -- maybe as long as that gets there today, they will honor today's rate after they open tomorrow.

I note, that rate was in effect since last Nov. 1. The notice here on DepositAccounts since last week has nothing to do with it changing now. In fact, as of this morning when I first heard a rate change was in the wind, I was told they had heard from only two people from this Website so far -- and two people is not going to bring a rate change.

The rate had been 1.63 APY for the 24-month Variable CD (set as 50% of the Prime Rate as published in the Wall Street Journal), and 2.11 APY for the 48-month Variable CD (set as 65% of the Prime Rate as published in the Wall Street Journal). But I'm afraid the new rates will not be very exciting, as they wrote to me:

"... as of tomorrow, Katy has been directed by myself and the CFO to quote the current rates which are significantly different ..."

Now, in a subsequent query from me asking what the new rates will be, I just got this word:

"It will be lesser percentage of prime rate. I will not know until tomorrow morning. I have been told it’s a drastic decrease. I would expect to see around 20% and 35% of prime, but can confirm tomorrow."
me1004me1004374 posts since
Jan 16, 2010
Rep Points: 2,604
1. Friday, March 9, 2012 - 9:54 AM
The new Variable CD rates are even slightly lower than they projected. The 24-month CD will be set at 20% of the Prime Rate, making it 0.65% now, and the 48-month CD will be set at 30% of the Prime Rate, making it 0.98% now.

Clearly, these are terrible rates, so these CDs are no longer worthwhile. Their only redeeming value is that they can go up as interest rates rise -- but that will require a LOT of redemption to get someplace worthwhile. 

Their locked-in rates are now actually a little better than these, but still nothing great.
me1004me1004374 posts since
Jan 16, 2010
Rep Points: 2,604