click to close
help
edit

Forums ›
Finance

AARP savings rates: 4.5% to 4.75%

  • filter:
  • Email Topic
  • Text Only
  • Search this Topic »
  • switch to 'Classic' view
rated:
   posted: May. 3, 2008 @ 12:22p
alert mods    

AARP Financial's savings rates have been mentioned in other threads, but I'd like a discussion focused on just these accounts.

AARP Savings Rates

High yield savings pays 4.5% APY, and Jumbo Secure MMA pays 4.75%.

I am a AARP member already, but am wondering, what's the catch? How can they pay so much more than anyone else? If I go to the trouble of setting up an account, are they likely to drastically lower the rate next week? I am not normally a rate-chaser, but these rates are so much higher than anyone else, it makes you wonder.

Info, thoughts, comments?

Edited to add: I decided to try this out myself and opened an account online. Details and updates in the thread.

Message edited by: UncaMikey on 2008-05-04 15:14:59 CDT
   posted: May. 3, 2008 @ 12:22p

Q: How old do I have to be to join AARP as a full member?
A: We welcome all persons 50 years or over, retired or not. A full member is entitled to a membership card and all of our benefits and services.

Q: What if I am too young to join as a full member of AARP?
A: For those under 50 who support the association's goals and objectives, we offer an associate membership. Once an individual celebrates a 50th birthday, the associate member automatically becomes a full member, receives a membership card, and can take advantage of all of our benefits and services.

******
ABA Routing Number 083 914 265
shows as "First Bank of Mitchell" or "Affinity Financial"

For wire transfers, see this post

Message edited by: ThursdaysChild on 2008-05-16 11:42:38 CDT
rated:
   posted: May. 3, 2008 @ 12:44p
alert mods    

Thx for posting this gem. Not sure why the 5yr CD rates are lower than liquid savings:

5-Year (260-Week)
$500 $500-$19,999 3.93% 4.00%
$20,000 $20,000-$99,999 4.03% 4.11%
$100,000 $100,000+ 4.08% 4.16%

I think you're right to be suspicious about the high rates offered on the liquid end. It could very well be temporary and serve to draw in customers. However, because it doesn't say this is a promo, makes you wonder what the real reasons are behind the higher than industry average rates. Could it be distressed capital raising?? Since it is FDIC insured that should buffer any negative concerns about safety.

Also, I totally was not aware AARP had a "bank" arm. Was a member but let my membership lapse. Seems like AARP these days are operating as a quasi bank/insurance more than a senior advocate organization. However, given the demographic it targets, it is a no brainer that they would take the opportunity to peddle bank and insurance products the hardest. Quite a captive lucrative target group ripe for good pickings

Message edited by: tooshy on 2008-05-03 13:13:15 CDT
rated:
   posted: May. 3, 2008 @ 1:03p
alert mods    

Interesting:
Deposit processing services offered through this site are provided by The Huntington National Bank.

Aka ufbdirect

I wonder how the aarp savings rates have been over the past year so we can see if they are consistently higher

rated:
   posted: May. 3, 2008 @ 2:32p
alert mods    

I read that the products were offered via Huntington NB and UFB Direct, but why are the AARP rates so much higher than the equivalent products at those banks? Who in the world is managing a MM account that produces 4.75%?

rated:
   posted: May. 3, 2008 @ 3:14p
alert mods    

I filed the internet application this morning and was put on a hold for 1-2 business days. Probable hold is that today is Saturday and will process Monday.

Got an immediate e-mail response thanking me for the application.

This Savings rate sounds very nice for these times and thought it was worth an honest inquiry. The jumbo rate of 4.75% or regular rate 4.50%.

rated:
   posted: May. 3, 2008 @ 3:44p
alert mods    

UncaMikey said:...

I am a AARP member already, but am wondering, what's the catch? How can they pay so much more than anyone else? If I go to the trouble of setting up an account, are they likely to drastically lower the rate next week? I am not normally a rate-chaser, but these rates are so much higher than anyone else, it makes you wonder.
...

I'm not putting down seniors or older members, but how many people aged 50+ trust an internet bank (non-local bank), not already have their money tied up, or are even aware that the local 2.5% interest rates are bad?

rated:
   posted: May. 3, 2008 @ 4:30p
alert mods    

maybe this will get the ball rolling , banks competing against each other for our money. you have to figure Countrywide savings link will lose a ton of money switching over to AARP.

rated:
   posted: May. 3, 2008 @ 4:33p
alert mods    

poo said:I'm not putting down seniors or older members, but how many people aged 50+ trust an internet bank (non-local bank), not already have their money tied up, or are even aware that the local 2.5% interest rates are bad?

LOL, you're joking, right? I'm in my late 50s, and I'm on the internets all by myself right now, writing this FW post, and there's not a young whippersnapper here to help me out. Amazing, huh?

Seriously, you need to venture out of your age cohort, whatever it is. You may be surprised by what you find.

rated:
   posted: May. 3, 2008 @ 4:47p
alert mods    

UncaMikey said:poo said:I'm not putting down seniors or older members, but how many people aged 50+ trust an internet bank (non-local bank), not already have their money tied up, or are even aware that the local 2.5% interest rates are bad?

LOL, you're joking, right? I'm in my late 50s, and I'm on the internets all by myself right now, writing this FW post, and there's not a young whippersnapper here to help me out. Amazing, huh?

Let me help you across the information super highway gramps.

Just need to find a way to get us young whippersnapper in on the deal, maybe piggyback in with my parents.

rated:
   posted: May. 3, 2008 @ 5:42p
alert mods    

poo said:UncaMikey said:...

I am a AARP member already, but am wondering, what's the catch? How can they pay so much more than anyone else? If I go to the trouble of setting up an account, are they likely to drastically lower the rate next week? I am not normally a rate-chaser, but these rates are so much higher than anyone else, it makes you wonder.
...

I'm not putting down seniors or older members, but how many people aged 50+ trust an internet bank (non-local bank), not already have their money tied up, or are even aware that the local 2.5% interest rates are bad?

Why do you need to be 50+? Hell there was tons of people on this board who claimed to be teachers just to get a slightly higher rate from BOA even tho they were not teachers. Do you think they are going to care and not lie about there age? The difference between this savings account and next highest savings is almost 200 bps currently which was a much larger margin than 100 bps for 60 days that the NEA account gave over the AAA account.

rated:
   posted: May. 3, 2008 @ 6:09p
alert mods    

poo said:

I'm not putting down seniors or older members, but how many people aged 50+ trust an internet bank (non-local bank), not already have their money tied up, or are even aware that the local 2.5% interest rates are bad?

--------------------------------------------------------------------------------
To poo: Poo!
Didn't you hear, 50 is the new 40! LOL.

All kidding aside, I think we all know 2.5% is Bad, "senior" member or not.

rated:
   posted: May. 3, 2008 @ 6:11p
alert mods    

poo said:

I'm not putting down seniors or older members, but how many people aged 50+ trust an internet bank (non-local bank), not already have their money tied up, or are even aware that the local 2.5% interest rates are bad?

Hey, we old guys invented the freakin' internet!

rated:
   posted: May. 3, 2008 @ 6:46p
alert mods    

As noted on Bank Deals, they may deposit funds in either Countrywide or Huntington. So if you already have funds at Countrywide or UFB Direct, beware the FDIC insurance limits. You can call to ask them to not deposit your funds at a particular bank.

By the way, AARP membership is $12.50/year, including a spouse. People under 50 can join as an associate member. I wonder if that would quality for this account?

rated:
   posted: May. 3, 2008 @ 6:55p
alert mods    

dolmar said:

Why do you need to be 50+? Hell there was tons of people on this board who claimed to be teachers just to get a slightly higher rate from BOA even tho they were not teachers. Do you think they are going to care and not lie about there age? The difference between this savings account and next highest savings is almost 200 bps currently which was a much larger margin than 100 bps for 60 days that the NEA account gave over the AAA account.

By 200 basis points do you mean 45-70 basis points?

rated:
   posted: May. 3, 2008 @ 7:05p
alert mods    

poo said:I'm not putting down seniors or older members, but how many people aged 50+ trust an internet bank (non-local bank), not already have their money tied up, or are even aware that the local 2.5% interest rates are bad?
Actually, you are slighting them. You'll probably grow out of it.

dolmar said:Do you think they are going to care and not lie about there age?
dolmar, lying about whether you are a teacher or, more likely, have a familial relationship to a teacher is much different than lying about your age. AFAIK, BoA never attempted to verify this information when applying for their NEA MM account. Some points to consider:

1. You need to be an AARP member to get this account. You cannot be a full member of AARP (which entitles you to benefits of membership like this) unless you're at least 50 years-old. I'm sure they verify this information. See the Quick Summary.

2. Regardless, I strongly advise against entering a false birth date on either your AARP application or, especially, on a financial application of any kind. It's just asking for trouble, and I doubt that anyone of minimal intelligence will do so.

Message edited by: glxpass on 2008-05-03 19:23:09 CDT
rated:
   posted: May. 3, 2008 @ 7:23p
alert mods    

verruckterBaum said:dolmar said:

Why do you need to be 50+? Hell there was tons of people on this board who claimed to be teachers just to get a slightly higher rate from BOA even tho they were not teachers. Do you think they are going to care and not lie about there age? The difference between this savings account and next highest savings is almost 200 bps currently which was a much larger margin than 100 bps for 60 days that the NEA account gave over the AAA account.

By 200 basis points do you mean 45-70 basis points?

Sorry I was not aware any place was paying rates as high 4% and was comparing to BOA/Chase/Citi/Wachovia/Wells Fargo and WAMU savings accounts.

rated:
   posted: May. 3, 2008 @ 9:16p
alert mods    

For the AARP for joint account holder it lets you put a aarp member id for the 2nd member but with both membership you can have two ids, anyone applied yet and do you get account number immediately?

rated:
   posted: May. 3, 2008 @ 9:39p
alert mods    

Anyone notice the official AARP website has no links to aarp savings?


http://www.aarp.org/aarp_benefits/offer_financial/


Could this be a scam?

rated:
   posted: May. 3, 2008 @ 10:03p
alert mods    

lefty331 said:Hey, we old guys invented the freakin' internet! Well, technically, one old guy invented the internet...wait for it...wait for it...Al "The Sky is Falling B/C It's TOO Damn Hot" Gore.

Message edited by: SpinControl on 2008-05-03 22:03:54 CDT
 Close

Sign Me In
Nickname: 
Password: 
Remember My Login Information:

Forget your login information?

Not Already A Member?
Sign Up Now!


Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.


  • © 1999-2008
  • Message Board Statistics RSS Feed Information