[Rich]

I’m drawing a blank on this one…

Is there any consumer regulation that controls the interest rates we pay on savings accounts and CD’s?

We have one large depositor that gets a better rate than everyone else. Is this a violation of anything?

Thanks!

Topic

[rcooper]

There is not a regulation that controls the interest rate you will pay on a deposit account. Some banks negotiate rates for certain (usually high dollar) customers. Also, there isn’t a regulation that would mirror fair lending, but I would argue that you need to apply the same principles and negotiate rates on an equitable basis, regardless of a prohibited basis, due to reputational risk.

There are prohibitions on preferential rates being paid to a director, officer, attorney, or employee. (https://www.law.cornell.edu/uscode/text/12/376).

[Author]

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