The City of Plymouth stands to bring in more money by reducing the number of banks it uses, according to Clerk-Treasurer Jeanine Xaver.
She says that for decades, the city kept money in four different banks: 1st Source, Lake City, First Federal, and Teachers Credit Union. “Probably 10 years ago, the bank account at Teachers Credit Union was closed,” Xaver explains, “and then in December, I closed the account at First Federal because they were only paying us 0.15 percent, so one-and-a-half of one percent in interest on our savings there. And then earlier this month, I closed the accounts at Lake City for the same reason. They were only paying one-tenth of one percent in interest.”
On the other hand, Xaver says 1st Source Bank is now offering the city an interest rate of over two percent, with no fees. “I could not in good conscience keep money at the other bank, when the taxpayers and the utility rate payers are the ones losing that interest, basically,” she says.
She expects the city will earn about $175,000 more in interest in one year alone, by switching banks for the water and sewer funds. Xaver says she explained her decision to the city council Monday.
