OXFORD – The town plans to seek bids for its banking business.
The decision came after Oxford Bank & Trust raised the town’s minimum balance requirement from $25,000 to $100,000.
The increase upset some selectmen, who asked Oxford Bank officials to attend Thursday’s meeting and explain the change.
Marge Barker, of Oxford Bank’s parent company, Peoples Heritage Bank, said lower interest rates have made it harder for the bank to absorb costs.
Currently the town doesn’t have to pay service charges as long as it maintains a $25,000 minimum balance.
But faced with competition from a bidding process, Barker said the bank has agreed to drop the target balance back to $25,000. “We’re not trying to gouge anybody,” she said.
Barker said the town may well find target balances of $100,000 or even double that when they receive bids from other banks.
Town Manager Mike Huston said it has been three years since the town has shopped around for banking services, and it is good accounting practice to seek bids every three years.
“This doesn’t reflect any rift (with Oxford Bank) or dissatisfaction,” Huston said.
Comments are no longer available on this story