36 Month Rate: 5.12% APY with auto transfer from linked Wilshire account 4.86% APY without auto transfer
Interest rate guaranteed as long as you keep making your installment contribution. Interest posted quarterly No Early Withdrawal Penalty (forfeit interest earned since last quarterly payment) FDIC insured
Target: $1k - $100k (>$20k may require phone call or branch visit) Hard pull: No (Chexsystems) $10 fee for each deposit over 3 in one quarter
I've gained so much from FWF, I'm glad I could finally post a deal.
EDIT: Rate Update 6/8/09: 4.34%
Message edited by: elektronic on 2009-06-19 08:13:25 CDT
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Routing # is 122038251
More info from mh83 mh83 said:This is the information I've gathered from the phone conversation I just had with a CSR:
- These types of accounts are nothing new and are commonplace at Korean banks. - All terms are still available. - Can be opened in-branch. - Maximum amount is 100K - the monthly payment amount will be five times the payment amount listed for the 20K. - No early withdrawal penalty. - Interest is posted quarterly. - If account is closed before interest is posted, you only lose that quarter's interest. You don't lose the interest that's already posted to the account. - No penalty if you miss a payment. If you miss three consecutive payments, they may close your account but you keep all earnings up to that point. - She couldn't offer a solution to the problem of the missing '36 month' deposit term on the online application.
Message edited by: BiomedGeek on 2009-04-23 09:44:54 CDT
Looks like a person can only save a maximum $20K with this savings account!! Excellent APY 5.12%, but how do you save more than $20K? Installment Savings could be ok, but not worth it for only $20K..
elektronic said:I didn't do the math yet to see if the interest is posted every month or only at the end of the term.That seems like a very important aspect, considering it also says on their site that "If you close account before interest is credited, you will not receive the accrued interest." But otherwise I find this a very appealing offer...
pattyb53 said:Looks like a person can only save a maximum $20K with this savings account!! Excellent APY 5.12%, but how do you save more than $20K? Installment Savings could be ok, but not worth it for only $20K..
Might be possible to double it with the spouse having separate accounts??
SUCKISSTAPLES said:Looks like "installment savings" is the next small bank gimmick after Rewards Checking
I called it somewhere.
It looks to me like the max is 100 K
So here is the catch for these types of account... you lose ALL the interest if you miss a deposit or withdraw early. Basically it's like a CD, except with a much higher, albeit UNGUARANTEED, APY. And basically once you are in, they got you by the shorthairs because you'd be hard pressed to leave if rates drop since you'd lose all the interest. I have a feeling that bank would keep the rates higher than nation cd and savings rates, but I wouldn't want to risk it.
This looks like a very profitable product for banks if it works. It cuts down on rate chasers, it is easy for a customer to miss a deposit and forfeit the proceeds, it encourages customers to use other bank products and direct deposit. I'd need at least 5 percent for term under a year to get me will to bite though.
Message edited by: VerbalK on 2009-04-10 08:05:00 CDT
Good saving account, 5.1% fixed for three years, guaranteed, what else can you ask for. Any saving or MM or CD out there that can do better? I don't see it. Make sure the money is not needed within the next three years. I'm in for one, .
Message edited by: internetle on 2009-04-10 08:26:31 CDT
Well, I can't claim to know what their intentions are, but they're clearly paying way above market rate and I don't see how it would be sustainable. I was recently burned by chasing a high yield only to see it dropped WEEKLY! Beware the Bait and Switch!
internetle said:Good saving account, 5.1% fixed for three years, guaranteed, what else can you ask for. Any saving or MM or CD out there that can do better? I don't see it. Make sure the money is not needed within the next three years. I'm in for one, .
Depending on your economic views, 5% interest 3 years from now might not be such a good rate, and then you face the dilemma of continuing to pump money into an under-market rate, or forfeiting anything you have earned up to that point.
Rewards checking is a lot more flexible and liquid, and IMHO, worth the minor hassles.
sethdallob said:internetle said:Good saving account, 5.1% fixed for three years, guaranteed, what else can you ask for. Any saving or MM or CD out there that can do better? I don't see it. Make sure the money is not needed within the next three years. I'm in for one, .
Depending on your economic views, 5% interest 3 years from now might not be such a good rate, and then you face the dilemma of continuing to pump money into an under-market rate, or forfeiting anything you have earned up to that point.
Rewards checking is a lot more flexible and liquid, and IMHO, worth the minor hassles. But they claim "No early withdrawal penalty", so in theory you should be able to withdraw and re-invest when the market starts offering better rates. So why not take the advantage until then? is there any thing else a cause of concern
sethdallob said:internetle said:Good saving account, 5.1% fixed for three years, guaranteed, what else can you ask for. Any saving or MM or CD out there that can do better? I don't see it. Make sure the money is not needed within the next three years. I'm in for one, .
Depending on your economic views, 5% interest 3 years from now might not be such a good rate, and then you face the dilemma of continuing to pump money into an under-market rate, or forfeiting anything you have earned up to that point.
Rewards checking is a lot more flexible and liquid, and IMHO, worth the minor hassles. Their 12 month APY is 4.6%. Not bad (better than most rewards checking which are getting to the 4% level) and does not lock you for the long term.
tsanju said:sethdallob said:internetle said:Good saving account, 5.1% fixed for three years, guaranteed, what else can you ask for. Any saving or MM or CD out there that can do better? I don't see it. Make sure the money is not needed within the next three years. I'm in for one, .
Depending on your economic views, 5% interest 3 years from now might not be such a good rate, and then you face the dilemma of continuing to pump money into an under-market rate, or forfeiting anything you have earned up to that point.
Rewards checking is a lot more flexible and liquid, and IMHO, worth the minor hassles. But they claim "No early withdrawal penalty", so in theory you should be able to withdraw and re-invest when the market starts offering better rates. So why not take the advantage until then? is there any thing else a cause of concern
You don't earn interest until the end of the term, so while it's not a penalty, if you withdraw early you only get your principle back.
DarwinsFinance said:Well, I can't claim to know what their intentions are, but they're clearly paying way above market rate and I don't see how it would be sustainable. I was recently burned by chasing a high yield only to see it dropped WEEKLY! Beware the Bait and Switch!
They can pay high rates because there is a very high likely hood that people will essentially "default" by missing a deposit or withdrawing early. That's pure profit for the bank, as they get your money then as an interest free loan.
5% for three years looks OK, but there is better than a chance that rates will get back to there in a couple years anyway.
If you are looking to buy a longterm CD now anyway, they this might be a good (albeit cumbersome) option. But for rate-chasers, I'm not so sure.
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Looks like a person can only save a maximum $20K with this savings account!!
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