After realizing the advantage of a potential bank switch, North Judson Town Council members will officially consider moving the town’s general account from First National Bank of Monterey to First Farmers Bank and Trust during a future meeting.
FFBT Representative Mike Pazin provided members with a presentation when they met last Monday. Pazin came to speak with the council at the request of Clerk-Treasurer Andrew Rowe after he received some intriguing news from Pazin while discussing interest rates.
Initially, when conversing with the Clerk-Treasurer about increasing community involvement and what the bank could provide to the town, Pazin presented a potential interest rate of about 1.22 percent. At the meeting, Pazin informed members that the rate had gone up and the bank was offering an even higher group interest rate of 1.34 percent for their public fund account.
Compared to the town’s current rate of .45 percent with First National Bank of Monterey, members recognized that a change would make for quite a substantial increase. Clerk-Treasurer Rowe noted that he did speak with those bank reps who said they could potentially raise the town’s rate to about .7 percent, which would still fall short of the offer from First Farmers.
Councilman John Rowe mentioned that it seemed like a pretty self-explanatory decision when you compare the percentages and other council members agreed. However, rather than taking action Tuesday night, members decided to hold off until First National Bank of Monterey could have a chance to respond.
After speaking with representatives at First National Bank of Monterey again on Friday, Rowe confirmed that the highest rate they could provide in this circumstance is .7 percent.
Clerk-Treasurer Rowe said the switch will officially be considered at the next town council meeting. He also mentioned that due to a State Board of Accounts recommendation to refrain from keeping all funds in one bank, the town’s Utility Clearance account will remain at First National Bank of Monterey.
