WSJ: article about recent hikes in interest rates Archived From: Finance |
Nothing really new that wasn't discussed already on FW Finance, but some might still find this article in the WSJ interesting:
Banks Dangle High Teaser Rates
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Good Post OP. Thanks.
interesting they predict more and more banks are going to do the "limited time promo rates" of 1-2% above market.
All this means for FWers is that we move accts 3-4x per year and get the best deals. "Normal" ppl who stay at one bank get screwed.
"banks are banking on the customer opening up the account and forgetting that it will expire,"
I CANT tell you how quick I will BOLT from ING if that is the case.
(I might leave them with 1 cent)
Depending if the promos will continue to be "new money" or switch to "new customer" , there could be an argument to CLOSE accts and reopen later instead of keeping open with min balance.
If retail banks are going to do this, I foresee them implementing more minimums and fees associated with it.
IF online banks are going to do it, like you said before, I see people switching around 3 -4x per year but the net upside is we could get long term CD rates but with full liquidity.
didYOUsearch said:Depending if the promos will continue to be "new money" or switch to "new customer" , there could be an argument to CLOSE accts and reopen later instead of keeping open with min balance.
I dont see the promo's continuing. Banks see the top of interest rates and want to attract folks to "stay put".
Fees and minimums are just going to have us CLOSE our accounts out rather than leaving them dormant with 1 cent in there.
I do think the cumulative effect of multiple high balance "rate chasers" is causing banks to rethink their strategy.
ING needs to realize that if when their rate drops back to whatever normal is at that time, many of us will be gone within DAYS. ESPECIALLY because of this "penalizing" those who actually left money in there when they werent competitive.
bhupeshm said:If retail banks are going to do this, I foresee them implementing more minimums and fees associated with it.
IF online banks are going to do it, like you said before, I see people switching around 3 -4x per year but the net upside is we could get long term CD rates but with full liquidity.
didYOUsearch said:Depending if the promos will continue to be "new money" or switch to "new customer" , there could be an argument to CLOSE accts and reopen later instead of keeping open with min balance.
Thanks for that article, Looks like regular people starting to figure out how to play the bank game like us at FW. The other game it seems banks are doing is changing the name of an account for better rates and hoping people with the old accounts don't notice. A good example is Salem 5. They recently started the "Star Money Market" at 4.25% while they have multiple other Money Markets paying far less. Below is today's rate sheet from them. I wonder how many people are in the Premium High Yield Deposit Account getting less than half of the best rate account offered? I have changed a couple times with them and all it involves is them renaming your account, No new numbers or checks needed.
Star Money Market
$10,000 - $25,000 4.25% 4.17%
$25,000 - $50,000 4.25% 4.17%
$50,000 - $75,000 4.25% 4.17%
$75,000 - $100,000 4.25% 4.17%
$100,000 & over 4.25% 4.17%
Advantage Money Market
$10,000 - $25,000 1.45% 1.44%
$25,000 - $50,000 1.50% 1.49%
$50,000 - $75,000 1.75% 1.74%
$75,000 - $100,000 2.25% 2.23%
$100,000 & over 2.25% 2.23%
High Yield Deposit Account
$10,000 to less than $25,000 1.70% 1.69%
$25,000 to less than $50,000 1.70% 1.69%
$50,000 to less than $75,000 1.70% 1.69%
$75,000 to less than $100,000 1.70% 1.69%
$100,000 and over 1.70% 1.69%
Premium High Yield Deposit Account
$10,000 to less than $25,000 1.80% 1.79%
$25,000 to less than $50,000 1.80% 1.79%
$50,000 to less than $75,000 1.80% 1.79%
$75,000 to less than $100,000 2.00% 1.98%
$100,000 and over 2.00% 1.98%
didYOUsearch said:Depending if the promos will continue to be "new money" or switch to "new customer" , there could be an argument to CLOSE accts and reopen later instead of keeping open with min balance.
Closing will not always work. We already have EverBank who offers their promotional rate as a one time only deal and have found they do check. Tried doing a joint account with my wife and they refused to open as my SS # was already in their system.
Thanks, OP. You are right that it is nothing new to FWers, but if I send the article to my folks they might actually listen, since it must be true if it is in the WSJ!
I thought several said everbank would give the teaser rate for extra time when asked.
Several people reported that.
Still, i havent tried them. Maybe after these 2 teaser deals by ING & HSBC.
scott1961 said:didYOUsearch said:Depending if the promos will continue to be "new money" or switch to "new customer" , there could be an argument to CLOSE accts and reopen later instead of keeping open with min balance.
Closing will not always work. We already have EverBank who offers their promotional rate as a one time only deal and have found they do check. Tried doing a joint account with my wife and they refused to open as my SS # was already in their system.
Does doing any of this affect your credit rating?
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