Old People Rates /Young People Rates- higher rates and specials based on age

While doing a little rate checking, I found an interesting phenomenon - higher rate cd's for people over 55. Below are a few examples:

South Carolina Federal Credit Union This credit union gives a .25% bump to members with Senior Service checking. A 5 year jumbo($50,000) cd would currently yield 5.51%apy, not to shabby.

Farmers Insurance Group Federal Credit Union This credit union offers rates .01% higher for every year you are over 55. The older you get, the hotter your rate(My 94 year old grandmother is psyched!). Their rates aren't as high as SCFCU currently, but you can get a 5 year jumbo($100,000) for 4.59%apy before the old timer's bonus.

Yes there are CU's that give a bonus on youth acounts as well. Kent County Credit Union gives higher rates on some cd's for youth club members 17 and under. Their youth club 3 year cd yields 4.65%apy vs 4.33%apy for their regular 3 year cd.

If you're 18 - 54, apparantly you are out of luck. No bonus rates for you.

Obviously you must be meet the field of membership to join any of these CU's and take advantage of their bonus offerings. Post any similar deals here!

edit: 9/6 Kent County CU's rates are now the same or lower for their youth accounts

Nifty idea. I like the idea of giving seniors an edge. Also think veterans deserve an edge. -Zer

Hibernia bank offers a "Celebration CD" an 18 month CD that pays 3.35 for three months, and 2+(your age*.01) so your age determines how hard they slap you in the face. On the plus side, if you manage to open an account for you manage to open an account for a rock that you can prove is 1 billion years hold you will have a an 18 month CD that pays a pretty decent rate. Hibernia is a regional bank based in New Orleans.

"The Celebration CD is an 18-month CD that celebrates Hibernia's age and the age of the individual opening the CD. The Celebration CD rate is the base rate (2.00%) plus Hibernia's age (1.35%) for the first three months. Then for the remaining 15 months, receive the base rate plus a bonus rate for the account owner's age (ie. if age 60 = .60% bonus)."

Zer92780 said: Nifty idea. I like the idea of giving seniors an edge. Also think veterans deserve an edge. -Zer

Let's just say, seniors and veterans need all the help they can get. Yes, charity you say but so is senior and military discounts which B&M are so fond of...

Chetco Federal Credit Union For accountholders between the ages of 8-17, 5.12apy 1,2,3,& 4 year cd's.

BCU.org 6.00% apy 12 month kids cd. Terms are:

Rate good as of September 1, 2005. Minimum balance of $50. Maximum of $2,500 for the12 Month Term. The APY is based on the assumption that dividends will remain in the account until maturity. Certificate must reside in child’s account. Limit per child capped at $2,500. Child must be under the age of eighteen when opening certificate. A penalty may be imposed for early withdrawal. Rewards rates do not apply. 12-Month Kid’s Certificate will renew upon maturity into a regular 12-Month Certificate.

MembersFirst CU MembersFirst 55 Plus program offers the following benefits:

Free standard size safe deposit box
Free American Express Traveler’s Checks
Free Money Orders
Preferred rates on loans and lines of credit (¼% discount

Plus

MembersFirst Plus Certificates

Not only do you enjoy preferred rates on loans but also on your Certificates of Deposit. Enjoy the following features:
Flexible maturities from three months to five years
Low minimum deposits
Competitive dividend rates
¼ % increase on certificates
A one time step-up rate on certificates with a term of 2 years or longer

Field of membership

Related topic for youth savers, at Grand Valley Co op CU KIDS LOVE THE PIG!. From their site:

What a great way to help kids save...give them a GVCCU piggy bank! Stop by any location of Grand Valley Co-Op Credit Union and pick up a free piggy bank. Once the piggy bank is full, have your child bring it into the credit union and we will match their savings deposit up to $5. Whether the deposit is made into an existing account or a new account is opened, this is a great deal for any child. Plus, the child will receive another piggy bank for future savings. Hurry in...quantities are limited!

Field of membership

XNAredsox said: I like the idea of disallowing 84 year-olds from driving an automobile. Or, at the very least, being required to pass a vision and reaction test, to the same level as 16 year-olds.
Most states already require all licensed drivers to take a vision test every so often. How would you administer a "reaction test" though?

I agree with RV that it's not illegal, but giving seniors higher cd rates based on age is ridiculous.
What's so ridiculous about it? It's a marketing trick designed to appeal to a certain demographic and is no different from other targeted marketing campaigns.

Retrovirus said: As for age discrimination: From a legal perspective, age discrimination applies only to employment law, and only if you are 40 years or older. The courts have struck down the idea of "reverse age discrimination".
I hate to get this thread off track but the statement above is incorrect. The US Supreme Court held in General Dynamics Land Systems, Inc. v. Cline that the Age Discrimination in Employment Act (ADEA), a federal statute, was not intended to prevent an employer from favoring an older employee over a younger one. This does not, however, mean that reverse discrimination cannot be actionable under state laws. There is a distinct possibility that at least some reverse age discrimination claims are cognizable under statutes such as the New York State Human Rights Law (for instance, I believe that NY's Division of Human Rights has ruled that restaurants could not deny server positions to individuals between 18 and 21 to avoid potential problems with the age 21 drinking law), the Michigan Elliott-Larsen Civil Rights Act, the Minnesota Human Rights Act (see, for instance, Ace Electrical Contracts v. IBEW, which was decided 2 months ago), etc...

Cardinal Bank pays 5%apy on their Cardinal's Kids Club savings accounts up to $1,000. Link Amounts over $1,000 earn the regular statement savings rate, currently .5%.

Boeing Helicopters Credit Union is offering a 6.14%apy 6 year cd for any members up to age 18.

Field of membership is limited.

Yeah, it sounds exclusionary, but it does make sense for banks & credit unions in the short and long terms. Seniors tend to hoard cash rather than play the stock market, not only because they tend to be less familiar with stocks but also because they need the liquidity and safety of cash/CDs. Since they're more likely to buy CDs than the rest of us, they're a little more sensitive to the rates. (In some sense, you could argue that since young and middle-aged adults have the time horizon to take risk premiums on stocks, we don't need that 0.3% bump on CD rates.)

Kids and teens should get some kind of reward for building good money management skills; my dad's credit union (ncsecu.org) pays a 0.25% interest premium on children's savings accounts, and I duly took advantage of that back then.

It is really no different than Senior Discount Tuesdays or Kids Eat Free deals, so as long as it's not more than a 10-15% spread, it doesn't strike me as some grand scheme of discrimination.
.pc

"I agree with RV that it's not illegal, but giving seniors higher cd rates based on age is ridiculous."

I think a little compassion for the elderly is not such a bad thing.
Everyone has their own views on socities responsibility to the very
old, the young and the poor.
Just keep in mind, older folks who HAVE money to put into cd's are not a burden on society as they have saved and are not eligible for public
assistance such as medicaid, food stamps and section 8 housing as any
amount over $2500. would disqualify you.
Also, during the peak earning years of the oldest retirees, there were
no IRA's or 401k's. The money they saved was taxed when they earned it
and taxed yearly on the interest it earned at tax rates much higher than what we pay today. Many had pensions that went away when the companies
went bankrupt, through no fault of their own.
When a lot of these older people pass away they have and will continue to leave huge amounts of assets to their ungrateful children. And some will
have no heirs, so it will go to charities or to the state.
I myself am 57. I don't mind paying extra for medical insurance at work that covers childbirth. Spreading the cost with the group rather than charging only the people who NEED it , but can least afford it, is a good thing for younger families and I am all for it. I don't mind that 80% of my property tax goes to schools, even though I have no kids in school anymore. I am happy that some of my tax money goes to breaks for young families child care expenses and earned income credits,every little bit helps.
I am sorry for the rant, but I think a lousy .5% for some old folks isn't the end of the world. If we are lucky and hang in there, we may be fortunate enough to collect that huge windfall ourselves someday.

Keypoint Credit Union offers a $10 gift card to either Toy's R Us or Barnes&Noble when you open a kids account with an initial deposit of $100 and subsequent automatic monthly deposits of $25/month. Field of membership

Here's an interesting local offer. USE Credit Union offers a $10 gift card for every 10 deposits with a Penny Penguin Kid's Club savings account. Gift cards are good at McDonald's, Blockbuster, Toys "R" Us and more plus there is no limit on how many gift cards you can earn. Maximum 1 deposit a day. Seems like an in branch deal. Must meet the field of membership.

As advertised in the Courier News, Somerset Valley Bank is offering 5.00% Youth Saver Custodial Savings Accounts. One account per child and the 5.00% rate is only good up to $5,000. Call 1-800-991-4248 for more details.

Central One Federal Credit Union is offering 6% apy on a 3 year Senior Sense Certificate and 6.2% apy on a 5 year Senior Sense Certificate. To qualify for these rates, you must have direct deposit of Social Security or a pension into a Central One Share Draft account. The minimum deposit for these certificates is $10,000. Field of membership for Central One FCU primarily includes those who live work, worship, go to school in, and business and legal entities in a number of Massachusetts counties.