Connecticut-based bank replaces TD as state bank
The State of Vermont has reached an agreement with People’s United Bank to provide the state with banking services, Vermont State Treasurer Beth Pearce announced last week.
Pearce said the contract was signed after a request-for-proposals process and was the “best value for Vermont taxpayers.” Banking services were previously provided by TD Bank. “The treasurer’s office maintains a complex cash management system to process short-term investments, revenue streams and expenditures,” Pearce said.
“After an exhaustive review, we determined that People’s United Bank provided the best value and lowest cost service to the state.” In fiscal year 2017, the state had an average daily cash balance of $346.6 million, according to a press release announcing the deal.
People’s United Bank will be responsible for handling that balance, as well as the approximately 1.9 million disbursements and $400,000 deposit transactions annually that the treasurer’s office oversees. The bank is based in Connecticut.
“We are extremely pleased and proud to have been chosen as the new banking partner for the State of Vermont,” said Michael Seaver, president of People’s United Bank in Vermont.
“The award reflects our significant commitment to providing high-level banking products and services to organizations and individuals in Vermont, which in turn helps to support economic growth in the greater Vermont community.”
The state’s deposits and accounts will be move to People’s United Bank over the next few months, Pearce said. TD Bank will continue to provide merchant and lockbox services to the treasurer’s office.