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Peekskill staff says new bank underpaying promised interest; expects retroactive correction
Summary
Finance staff reported Orange Bank and Trust is currently paying about 0.5% instead of the promised 3% on deposited balances; the bank has agreed to correct the rate, and staff expects a resolution in days to weeks and says legacy accounts remain available as a fallback.
Abby, the agency staff member reporting on treasury matters, told the board that the new depository had not been crediting the promised 3% interest on balances; she said the account showed about 0.5% accrued interest instead. Staff contacted the bank, which acknowledged the discrepancy and is working through an approval process to apply the agreed 3% and correct past accruals retroactively to the date of transfer.
Abby said the bank is "working to fix that" and that staff had retained prior accounts with minimal balances should they need to move funds back. She said she spoke to the bank vice president and expects some form of resolution by the end of the week or early next week and will keep the board updated.
