WOODLAND, Maine — Last month, the Town of Woodland heard an offer from Machias Savings Bank, whose representatives pitched “aggressive” interest rates and a variety of products available to municipalities.
Selectman Carl Grant said town officials later informed the community’s current bank, Katahdin Trust Co., about the offer. This prompted three officials from Katahdin Trust to make an appearance at the town’s Oct. 17 selectmen meeting to make a pitch of their own.
Patty Hersey, vice president and business development officer for Katahdin Trust, informed the selectmen that the bank could increase the interest rate on Woodland’s account and waive a number of fees and service charges.
Hersey added that, in a “full relationship” between the bank and town, Woodland could use a “deposit scanner” which lets the town scan and deposit checks into its account from the office without having to pay any scanner or licensing fees, which add up to roughly $700 per year.
Craig Staples, vice president and commercial services officer, added that any scans made up until 6 p.m. would be credited to the account that day.
“You don’t have to go to the bank to deposit your checks, and you can have several accounts,” Staples said. “I have customers with over 70 accounts who use the scanner, and they find it very useful. We have over 100 scanners in place right now.”
Staples said the bank also could offer some leeway with municipal credit cards.
“The limit is about $1,000,” Staples said, “and if you want we can increase the limit or let you have a couple different cards. If someone needs to order a part online [for town-owned vehicles or machinery], they could use a credit card and we could temporarily increase the limit, allowing them to order the part and then bring it back down once it’s paid off.”
Grant told the bank officials and members of the public in attendance that Katahdin’s offer was a result of the town receiving an offer from another bank.
“That is totally understandable,” Staples said. “You guys are a good relationship to have, and I understand why a lot of banks are knocking on your door. We’d do the same thing.”
Grant said the selectmen “thought it would be appropriate to invite the ones serving us to see if they had anything to add, and they can match rates from other banks.”
Citing difficulties in switching accounts to another bank and the benefits offered by Staples and Hersey, the selectmen decided to stay with Katahdin Trust.
“I think we’re gonna get a better deal from the same bank,” said Selectman Tom Drew.
