Offering High Rate Savings Account in Affluent Area

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Question:

We are thinking of offering new high rate savings accounts at only one of our branches. The branch is in a more affluent area than our other branches. Do you see any discrimination issues with this?

Answer:

I have read about an Ohio bank that did a selective mailing to high net worth people offering a special CD rate with a minimum of $10,000 and as far as I know, they did not get into trouble. The potential back lash could come from some of your other customers who learn of this and ask why you didn't offer it to them. Why not make your offer limited in amount, time and place to respond?

First published on BankersOnline.com 9/08/08