First National offering special gas lease CDs
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Attempting to extract its own deposits from the Marcellus Shale gas region, First National Bank of Pennsylvania is offering special premium rates on CDs to people leasing land to gas drillers.
Called Gas Lease certificates, customers must open the CDs with a check issued by a gas drilling company or present a gas lease agreement. They also must agree to meet with a private banking or wealth management representative to discuss investment options with the Hermitage-based bank.
Although the yields are higher than average, don't expect them to light a fire in the furnace.
FNB's 90-day gas lease certificate currently pays 0.4 percent and requires a $100,000 minimum deposit. The 12-month version pays 0.55 percent with a $10,000 minimum.
That compares with FNB's regular six-month CD that pays 0.1 percent and 12-month certificate that pays 0.2 percent. Both require a $500 minimum deposit.
Since the introduction of the special CDs in February 2011, the bank has had "modest success" with the program, said spokeswoman Kathy Hammons. It allows customers to earn a higher rate while deciding how to invest their money for the long term, she said.
FNB's offer isn't unique, but it is the only gas lease promotion among the top 10 banks in the Pittsburgh region. Ms. Hammons said she didn't know specifically how many other banks were offering CDs tied to gas leasing.
First Published November 29, 2012 12:00 am