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Did a search for tiaa and nothing found.

go to

http://www.tiaadirect.com/banking/bank/savings/index.html

$25.00 initial deposit, no minimum balance, no monthly fee

All balances from $25.00 to $50,000+ get same rates. 1.25% APY

FDIC insured and free debit card.

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Anyone know the routing number for initiating a ACH pull?

zimaman (May. 14, 2013 @ 1:21p) |

081086700

CheapFish (May. 14, 2013 @ 1:56p) |

Are there any early account closure fees?

ss315 (May. 14, 2013 @ 8:04p) |

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Looks good. Haven't seen more than 1% for 50k+ recently. Thanks op.

Vanil said:   Did a search for tiaa and nothing found.

go to

http://www.tiaadirect.com/banking/bank/savings/index.html

$25.00 initial deposit, no minimum balance, no monthly fee

All balances from $25.00 to $50,000+ get same rates. 1.25% APY

FDIC insured and free debit card.


This TIAA-CREF rate is already covered @ "Best Nationally Available High APY Liquid Accounts" thread. No need to create a subset of topic unless you are asking for quality of TIAA Bank service...or try to take a credit for somebody else's work.

anyone dealt with this bank before? i've never heard of it. please give some thoughts on this bank. thanks in advance.

njguy646 said:   anyone dealt with this bank before? i've never heard of it. please give some thoughts on this bank. thanks in advance.

I don't know them as a bank...but I know them as a retirement broker...they have one of the lowest fees on their mutual funds...supposedly non-profit organization for the retirement component.

I, for one, didn't realize it had been posted, and I'd much rather have my money with TIAA-CREF than with some other financial institution I've never heard of. And so I'm quite happy that this rate was brought to my attention--I'll be opening an account.

As I said I did a search for TIAA and found nothing about this savings account.

I don't want credit for another post so go ahead and delete.

I apologize for anything I did wrong.

Vanil said:   As I said I did a search for TIAA and found nothing about this savings account.

I don't want credit for another post so go ahead and delete.

I apologize for anything I did wrong.


No need to apologize. You didn't look hard enough. All you had to was put "TIAA" in the Forum Search and pick "Message Body" and you find the "Best National APY" thread.

I didn't have a problem if you were asking for the extensive review of their service quality, but you reported the rate/APY only. The very first responder should get the credit for finding this outrageous 1.25% since a lot of other banks are offering <0.9% APY.

I didn't know about TIAA until I read the "Best National APY" about a day ago now.

TIAA-CREF is a financial institution based in NYC and has been around for a long time.

With that in mind, the savings account has an inactivity fee if you don't use it. It also doesn't have cash deposits available at its ATM's or physical branches.

Sure its 1.25% APY right now but if they sharply reduce rate after a month, and you want to switch you need to actually cancel the account because otherwise you will get hit with inactivity fees. A lot of people will not realize they will get hit with these. One needs to read the account application to see when they hit. Sure one could work around it but it isn't worth the time.

I went with .80% instead with ATM access for deposit and withdrawl of checks and cash and linked billpayment.

The way the market is, there is always a different top rate runner if you average out over a year.

6 months 0.35% 0.35%
1 Year 0.90% 0.90%
2 Years 1.05% 1.06%

These are TIAA-CREF's CD rates which are guaranteed. As you can see the rates are nothing spectacular.

I used to do the rate swapping thing. But its the same deal. Bank promises a super high interest rate to lure you in then drops it. TIAA-CREF although non profit still has to pay overhead and expenses. Non profit, credit union or bank status really is meaningless in regards to how rates hold up.

Unless there was a multiple percentage spread, shopping over fractional percentages is useless.

I personally like to bank with firms which have physical branches where I live and their own ATM's here.

TIAA-CREF really should stay with its investment based products and shouldn't have gotten involved in the banking business unless it planned to enter via an acquisition of an existing bank.

I don't see how TIAA-CREF's FDIC insured bank will survive on its own. Players like NetBank, X.COM which merged with Wingspan and so many other players have gotten into the game and wound up being failed banks with the FDIC.

Even Ally failed the financial stress test which offers a decent rate on its savings account.

TIAA-Cref is making a bad mistake here and I wonder who's idea in the management chain actually thought this idea out. The account as is is not a game changer, just a temporarily higher teaser rate.

Would I bank with TIAA-CREF in these initial stages? No. I like more established players who have a solid track history and local branches.

If TIAA-CREF after awhile did something to change the market dynamics then possibly it could have something up its sleeve but just a regular FDIC insured banking product with inactivity fees and a high temporary teaser rate which will get downgraded isn't attractive in any way shape or form.

It obviously is aggressively marketting its product because of its teaser rate and during this phase is using the 1.25% rate to gain marketshare and there will always be people going for the highest rate without reading terms and moving money around. But I won't be one of those.

FDIC data later this year will show just how successful or not TIAA-CREF was in gaining deposits but I really do not see TIAA-CREF turning into a mainstream bank with huge clout and I think it will get itself into trouble by offering this by taking on something they really are getting in over their head.

I like firms with long track records and histories, not financial firms like TIAA-Cref which all of a sudden decide to come out with banking products which they have never been in before.

Grex talks a lot.

where see charge inactivity fee?

UnicornSnake said:   Grex talks a lot.

Who?

does anyone know if they do a hard pull? thanks!

I've had, thus far, a pretty pleasant experience using TIAA with a high yield savings account. Fast ACH pulls, my balance reflect the new transfer the next business day, accruing interest immediately. Doesn't appear to have daily/transfer limits, either.

Phone customer service available on the weekend, which is convenient, as despite their secure messaging feature online, they can never seem to discuss anything in them, always referring me to call in, instead. Also convenient: you can find your account and routing numbers right on the website, unlike, say, Chase, who makes the process more challenging due to privacy concerns.

Mobile deposit app available, but iPhone only at the moment -- CSR said Android is on the way. One annoyance is Mint (and Yodlee?) doesn't currently support their banking accounts at the moment, just retirement accounts, but maybe there's another aggregator out there that does

The inactivity fee of $2 only hits after 12 months of dormancy. Easily avoidable, in my opinion. Frankly I don't expect the 1.25% to last especially long, at which point we'll be off rate chasing at another firm.

There's a blog post about the accounts and users' experiences here: http://www.depositaccounts.com/blog/2012/02/tiaacref-launches-ne...

It's sad that you need to chase a 1.25% taxable return in an environment with 3% inflation. I thought about signing up but I'm not sure I can be bothered going for this over my current 0.75% account, as even with a 50k balance it's only $20/mo.

http://www.tiaadirect.com/banking/bank/savings/index.html This is for anyone, but it started out this way:

Teachers Insurance and Annuity Association – College Retirement Equities Fund (TIAA–CREF) is a Fortune 100 financial services organization that is the leading retirement provider for people who work in the academic, research, medical and cultural fields. TIAA–CREF serves 3.7 million active and retired employees participating at more than 15,000 institutions and has $453 billion in combined assets under management.(as of December 31, 2010)

I worked in a Hospital, and still have a tax deferred 403b.

.......Marv

I've had this account and it works fine. I don't recall whether the ACH in took 1 or 2 days, but I recently did an ACH out and it took 2 days to show up in my other account. I haven't yet tried to push or pull from another account but I assume there would be no issues.

The inactivity fee kicks in after 12 months for the money market account, or after 24 months in the savings account. Only difference I could see between the two accounts is the ability to write a limited number of checks from the money market account (though you are still restricted by the regulation-D limit of 6 withdrawals per month, so don't treat it like a checking account).

My biggest complaint about the account is that I wish they would somehow link it from the main TIAA website (or if it's there, I can never find it). As it is, you need to know the actual website, and can't get there directly from tiaa-cref.org

I have had an account there for about a month, and so far I am quite pleased. They are a bit screwed not realizing that they should withdraw the test deposits they make to your linked accounts (instead they are just throwing away their own money). They also sent out notices to verify the test deposits before they are actually made. And you will spend at least 10 minutes searching their site to try to find the spot to verify those deposits. (An email to tell you where to go would have been nice.)

They send out ATM cards, not MC/Visa debit cards with this account. They are part of the SUM network, which is a big surcharge free ATM system in New England... so that is a good thing. I haven't tried it at the ATM yet, and wonder if it will work at a shared deposit ATM (probably not).

I am guessing that the 1.25% will stay longer than most here expect since they are a new bank, and it will take time to attract customers.

Edgar

See as I said some people don't read the terms and conditions of the account they agree to and didn't know about the activity fee.

I am familiar with TIAA-CREF although I bet many aren't because of someone I know of. TIAA-CREF is an excellent organization as a whole. The only point I was making is in regards to the addition of FDIC insured banking products where there is a boatload of competitive products.

Investment banks started adding FDIC Insured banks, and now TIAA-CREF also decided to make the move.

And as I said there will always be customers who see the highest rate in the market and don't read the terms carefully and will always push their funds around.

A lot of banks started doing the online savings accounts for awhile now and some have filled their coffers heavily, then as they reach their funding limits they wind up pulling the rate back.

A higher rate means a bank actively looking for new deposits. As someone who analyzes the market and knows that TIAA-CREF is well run with outstanding teams from the main business side, I have seen that TIAA-CREF is a 5 star institutions with all the best credentials and one that is in tip top financial shape based on all banking and financial ratios. I don't doubt this. Stability of deposits is quite good.

However the downside is this: The customer service teams for TIAA-CREF aren't the same on the banking side and TIAA-CREF isn't really known for dealing directly with the public. It is a whole different division and different department altogether. TIAA-CREF is top notch when it comes to non banking products and a stellar reputation with really bright teams. I know this. But dealing with the consumer side for banking products is a whole different ball of wax and a lot harder than just creating a basic website copying some of the design and other methods of gaining access to ATM networks and ACH and federal reserve products and so on and so forth.

So while TIAA-Direct promises a high rate right now and overall I know TIAA-CREF is a top firm, it will have to cut rates to below that of non FDIC insured GE Interest Plus which is a triple A rated institution which offered a multitiered rate starting at 1%. TIAA-Cref has to deal with the FDIC for the first time ever even though the bank is regulated by the OCC.

I had to check the FDIC application for TIAA-Cref out myself and it turns out its a separate branch office located at 211 North Broadway, Suite 1000, St. Louis, Missouri.

While I don't think TIAA-Cref will get shut down by the FDIC and as of now meets all top funding credentials
, I do believe it is quite likely that TIAA-Cref will face more difficult challenges and I think there is a good chance they will wind up shutting down the consumer banking side in the future or selling their deposits over to another bank. Obviously they can not sustain a 1.25% rate and keep top requirements because their cost of obtaining money is greater than that of a firm like GE Interest Plus which is non FDIC insured but Triple A rated with Corporate notes which gives 1% and up depending on tiers. FDIC insurance costs money. It is not free. However you do get peace of mind with this and some consumers do like it.

But my point here is that I do indeed expect a major rate reduction as they can not sustain 1.25% on all the accounts it can get.

I do note: The location of this branch office is right next to the ST Louis branch of the Federal reserve.

But remember also TIAA-Cref is coming into the game late and with the Dodd-Frank Act in effect.

http://www.fdic.gov/regulations/laws/bankdecisions/DepIns/TIAA-C...

http://www.consumerismcommentary.com/tiaa-direct-high-yield-savi...

grex23 said:   GE Interest Plus which is a triple A rated institution
Last time I checked GE was rated AA+, not AAA.

http://www.ge.com/pdf/investors/investing/fixed_income/ge_LongTe...

monto888 said:   I've had, thus far, a pretty pleasant experience using TIAA with a high yield savings account. Fast ACH pulls, my balance reflect the new transfer the next business day, accruing interest immediately. Doesn't appear to have daily/transfer limits, either.

Phone customer service available on the weekend, which is convenient, as despite their secure messaging feature online, they can never seem to discuss anything in them, always referring me to call in, instead. Also convenient: you can find your account and routing numbers right on the website, unlike, say, Chase, who makes the process more challenging due to privacy concerns.

Mobile deposit app available, but iPhone only at the moment -- CSR said Android is on the way. One annoyance is Mint (and Yodlee?) doesn't currently support their banking accounts at the moment, just retirement accounts, but maybe there's another aggregator out there that does

The inactivity fee of $2 only hits after 12 months of dormancy. Easily avoidable, in my opinion. Frankly I don't expect the 1.25% to last especially long, at which point we'll be off rate chasing at another firm.

There's a blog post about the accounts and users' experiences here: http://www.depositaccounts.com/blog/2012/02/tiaacref-launches-ne...


Update 2/25/12: Readers have reported they do a hard pull via Equifax. CSR claims they only do a soft pull for ID verification purposes (Note, CSRs are often wrong on this issue). I hate hard pulls... . Though money is FDIC insured, when these banks are taken over by FDIC guys, I think it's hassle to get your money back, also these banks have tendency to decrease interest rates, once they have attracted enough deposits.

soupcxan said:   grex23 said:   GE Interest Plus which is a triple A rated institution
Last time I checked GE was rated AA+, not AAA.

http://www.ge.com/pdf/investors/investing/fixed_income/ge_LongTe...


Credit ratings are subject to change and I admit to not working for Moody's and S+P. However I do believe GE Capital is envious of the best and I agree that it is just methodology as to why it isn't the best but I still trust GE Capital's financial ability.

http://online.wsj.com/article/SB10001424052702304724404577293610...

I stand corrected however in the official ratings which everyone can clearly see.

I wasn't really recommending GE Interest Plus by the way. Just pointing out how it is not FDIC insured and it is corporate notes so that fund tends to be higher than other bank accounts because it doesn't have to pay into the FDIC insurance fund and one must also entrust GE and monitor their financial shape.

mahaffeymj said:   where see charge inactivity fee?

the inactivity fee kicks in after TWO YEARS of no activity...this scares grex23 from considering opening an account....it's two years on their Savings and 1 year for the checking...
by the way, someone mentioned about getting an atm card...that is true if you just get savings....but of course if you get checking also, then you can get both accounts linked to
a mastercard debit card instead...

Oh, and of course, one can totally avoid the 2 year activity fee by doing say 1 ach in and out every 2 years...but for grex23 apparently, that would be a lot of "work"

the surcharge free "sum" and "moneypass" coverage is helpful, though it would be nice if they also added "allpoint" which would triple the coverage (they do have an allpoint agreement on their brokerage cash management card but not on the new online bank division (tiaadirect) at least not as of yet....not sure what their plans are on that...

i would say they would likely maintain a competitive rate since they know they are competing with other online banks like Ally, Alliant, AMEX, etc etc...

I used to transfer $1 every 6 months to maintain a free checking account with a bank and it was a pain in the neck. I finally was able to get rid of it and get an online only account with no minimum balance. You act like humans have infinite memory spans and want to deal with remembering or scheduling stuff, but they don't and inconveniences like that are designed to trip up users.

The fact is TIAA-CREF is likely to reduce the rate well before the 2 years and so you'll have a hard credit pull AND you'll wind up having to call up to close the account with someone who you would rather not have to talk to in the first place.

Rate swapping really doesn't pay and I stick to local firms which I have good relationships with. Once in a blue moon I will do a transfer between accounts because of special circumstances. But I do not open any new accounts anymore. They are just transfers between existing accounts.

I like long term relationships with firms which have treated me well over the years and I stay local to the local banks which are tried and true which have the highest rates in town with local branches by me.

I admit, I know people over at TIAA-CREF (the non bank) and if they had no inactivity fees + no hard credit pull and if actually the bank branch was not based in ST. Louis but rather in my area I may have used them. But its a whole different institution with a whole separate employee base located in another part of the country.

We shall see what the future holds for TIAA-CREF but I'll be sticking with my existing firms for life. I don't do the rate swapping thing anymore.

Savings accounts don't keep up with the pace of inflation anyways and are just really funds being parked before invested more appropriately.

They are flood gates, they post a high teaser rate to attract funds say at rediculously high rates they know they can't sustain and then reduce the rate so that while it starts at 1.25%, it likely will be even lower than existing bank offerings in the future even if rates increase or decrease or stay the same.

Its the same game over and over again with fractional reserve banking. Better to be a banker than be a depositor.

Always a different bank at the high rate of the chart.

lmeghanx said:   does anyone know if they do a hard pull? thanks!People at depositaccounts (see the link previously posted) reported hard pulls.

I had no credit pulls at all (neither hard nor soft). It might be because I already have a retirement account with them through my employer.

Edit: or it might have been because I opened the saving account rather than the money market account. Since the money market account can be used to write checks, they might be a little more cautious with that.

I'm not sure I'd call this a teaser rate. The 1.25% is high when it comes to standard high yield savings, but it's 1/5th of many of the reward checking accounts and only slightly higher than many of the high yield savings accounts.

kantscholar said:   I'm not sure I'd call this a teaser rate. The 1.25% is high when it comes to standard high yield savings, but it's 1/5th of many of the reward checking accounts and only slightly higher than many of the high yield savings accounts.
"1/5th of many of the reward checking accounts"? Please, do tell!

There's a list of them on the main page.

http://www.fatwallet.com/forums/finance/775437/

There are caps, of course, but if you really wanted a nice return and bank diversification, you could just spread your money across the different accounts. The are a number of community backs with 4 and 5% APYs, you just have to play the debit card transaction game. But you're a regular on here, you know all of this.

With TIAA opening up the internet bank, you're probably right that it's a teaser rate. The question is just how long it takes for it to go down. I've been with TIAA-CREF for my retirement account for a while and all of my interactions with them have been very positive. My guess is that their rates will stay above places like AMEX and others. And as long as it's FDIC insured you're fine. None of us really know what any of these banks have on their books. So I'll take the better rate if I can get it.

Unless my math skils have failed me, if 1/5 of X = 1.25% APY, X = 6.25% APY. I haven't seen that APY in a long time. As far as 5% APY, there's only one RCA (reward checking account) at that rate, where the cap is $10K or more. 12 banks and CUs offer 4.0 - 4.25% APY with the same cap of $10K or more.

Only one of the FIs (financial institutions) mentioned above is available nationwide, Consumers Credit Union, at 4.09% APY for the first $10K.

Unfortunately, the RCA lanscape has changed greatly over the past few years, with falling rates, lower caps, and less choice in nationally available accounts with half-way decent APYs. You can see a list of RCAs here.

I don't recall opining that the 1.25% APY was a teaser rate. Whatever the intentions of TIAA, I wouldn't be surprised if the rate drops fairly quickly. As long as one is willing to accept that possibility, then I think it's fine to go with the account. Rate chasing sure isn't as fun as it used to be, though, not when the "scraps" we are fighting for keep getting smaller and smaller.

ETA: An RCA might still be the best way to go for those who don't mind meeting the requirements. It's just that, given the same amount of effort and funds, the differential in interest income between RCAs and non-RCAs is decreasing.

All the higher than 1.25% accounts are reward checking accounts with 10 debit requirements and people get booted quickly on those. For me Ive never done those accounts since it isn't suited for me. However for others it could be. But I don't like anything that involves things like 10 debit card transactions, inactivity fees and so on and so forth. I will take the slower but steady rate and just keep it in one place over the long haul.

TIAA-Direct however does bring new competition into the mix and consumers can do as they please since there are plenty of offerings for high rate accounts that people can choose from.

grex23 said:   All the higher than 1.25% accounts are reward checking accounts with 10 debit requirements and people get booted quickly on those.

This is not true. I've used these for 2 years now, and I've never been "booted." I switched banks once due to a drop in rate faster than market trend. That said, I understand why one would prefer the easy, guaranteed 1.25% to jumping through hoops to get 2-2.5%.

TIAA Direct may not know what they're doing. My brand new TIAA Direct account already has two $25 NSF fees in it from the deposit/withdrawal of two test deposits from my AMEX savings account, which I tried to link last week, because TIAA waited until today to post my initial funding from my checking account. I cannot believe that the deposit and withdrawal of $0.25 would generate a $25 fee (twice).

I called TIAA and they are going to "research" this and let me know in the next 72 hours but frankly this does not bode very well for them.

Edit: Ok TIAA reversed both NSF fees within 24 hours, so I'll give them some credit for that.

Do not do test deposits into your new TIAA account until you have an "available balance" which could take several days.

Does anyone know if this account can be used to purchase bonds through treasury direct?

My in-laws want to continue to purchase bonds for our kids and Vanguard doesn't allow for bond purchase(where their current accounts are), nor does our regular bank have free accounts for low holdings. Our own large checking account doesn't count. Each account must have a minimum for no fees. We already max 529's for each so we don't really want the in-laws to start new ones. Besides, they are fixated on bonds. My own parents give cash which is much easier.

deleted due to double post

ive had funds with tiaa cref before so was familiar with the name but unaware of the direct site. After having funds sitting dormant with ally for a while i decided to move them to tiaa direct.

TIAA has roots in teachers union... is not for profit, and moves quite slow. My guess, rates won't drop right away.

Thanks OP. I will try it out.

About a month ago I applied for an account and was rejected. This was a surprise, as it has never happened before.
So yesterday, I tried again. Today I got a call that my application was approved.
I lost a month of interest! In today's market 1.25% is really good.
So, I certainly hope they don't lower their interest as soon as I'm ready to start transferring money into tiaa direct.

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