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AmSouth invests in keeping rank and file
© St. Petersburg Times, The old "golden handcuffs" aren't just for executives these days. Companies long have used incentives to keep top brass and big producers from jumping ship. AmSouth Bank now has a deal aimed at the rank and file. The bank's new "5 for 5" loan program is a $5,000 interest-free second mortgage that never has to be repaid if employees stick around for at least five years. As the loan is forgiven -- at the rate of $1,000 a year -- AmSouth gives participating employees extra cash to cover the tax liability created. Of course, there are restrictions. The loans can be taken out only in conjunction with the purchase of a home financed by an AmSouth mortgage. And only employees with household incomes of $50,000 or less are eligible. Employees who leave the bank before the entire loan is forgiven will be required to make payments on the remaining balance, including interest at the current rates. Many banks give employees special mortgage deals to encourage home ownership, but AmSouth's package is among the most generous. Most plans involve fee waivers or shaving a fraction of a point off interest rates. Bank of America also has a gradual forgiveness program but expects employees to pay interest until the loan is paid off.
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From the Times Business report
From the AP
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