Customer files complaint with state over change in account with “guaranteed” 6 percent interest rate
A Northwest Bank customer is afraid he will be rooked by his longtime bank, but a bank official said customers can rest assured their interest rates will not decrease.
T. Lyle Ferderber of Middlesex Township said his wife invested in a Celebration Passbook Savings account at Northwest Bank in the 1990s.
The passbook savings account promotion guaranteed an interest rate of 6% for the life of the account.
However, the Ferderbers received a letter from the bank’s headquarters in Warren stating that all Celebration Passbook Savings accounts would be converted to certificates of deposit (CD).
The Ferderbers said they called the manager of their Northwest branch in Middlesex Township, who told them the rate would not change.
But a bank official at the corporate office in Warren, Pa., told the Ferderbers that the 6% rate will no longer be guaranteed once the passbook account is converted to a CD.
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