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#1638080 - 12/12/11 06:19 PM Earnings Credit Rate- for business accounts only
Chocaholic Offline
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Joined: Aug 2005
Posts: 443
Northwest
Typically, this is tied to some index, US T-bill or other... but is it required to be based on a published index? As long as we tell businesses what it will be, can we determine our own rate?

2nd question, can we offer different rates to different types of customers... say based on the variety of services they offer or some other consideration..

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#1638086 - 12/12/11 06:45 PM Re: Earnings Credit Rate- for business accounts only Chocaholic
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
The establishment of such a rate is a contractual issue between the bank and its customers.
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#1638096 - 12/12/11 06:41 PM Re: Earnings Credit Rate- for business accounts only rlcarey
Chocaholic Offline
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Joined: Aug 2005
Posts: 443
Northwest
Thank you,
So if I am understanding your response correctly, as long as we negotiate the rate with each business customer,and it is part of their contract, we are free to pay as much or as little as we would like based on our internal rate setting policies.
Last edited by Chocaholic; 12/12/11 06:41 PM.
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#1638118 - 12/12/11 07:35 PM Re: Earnings Credit Rate- for business accounts only Chocaholic
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
You can simply disclose that the rate is set by bank management and subject to change at any time at the discretion of the bank.
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