Will County Treasurer Steve Weber announced today that his office has awarded seven (7) of the county’s checking accounts to MB Financial Bank (NASDAQ: MBFI). The checking accounts have a collective balance of $9.6-million and were previously held at BMO Harris Bank (NYSE: BMO).
This is the first formal review of bank accounts held by the Treasurer’s Office in approximately 10 years.
“Banks are charging higher fees to make up for lost income since fewer people are borrowing money,” said Steve Weber, “The fees we paid on these accounts increased 110% in one year. We understand banks have to make money, but the fees they charge shouldn’t eat away at core deposits.”
“I believe it’s a good idea to step back and review your account every few years,” added Weber, “This is true even for personal checking accounts. Make sure you aren’t losing money on what you have on deposit.”
Under the two-year agreement, MB Financial Bank will pay an interest rate that is nearly twice what the county received on its deposits during 2010. The higher interest yield represents $10-thousand in additional (but unearned) interest when compared to actual interest earned on 2010 balances.
MB also will deploy Remote Deposit Capture technology that will improve deposit accuracy. Finally, the agreement includes armored car service throughout the year, a service currently provided at taxpayer expense by the Will County Sheriff’s Police for bank deposits at other financial institutions.
“We believe our agreement with MB Financial Bank will benefit tax payers by lowering the cost of government and the services we receive,” said Weber, “In the end, it saves taxpayers money.”
The seven (7) accounts are for a variety of governmental services related to tax collection, escrows, and court-ordered payments.