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Out of curiosity, why don't big banks compete on interest rates? Not worth it to them? I only see them offering 0.01% rates, but if any of them did a higher amount, as paltry as even 0.25% I'd sign up. Is it really not worth it to them?

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Likely because their current supply of capital on hand exceeds the supply of investable opportunities as adjusted to their risk appetite.

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Probably because of all the physical branch locations they have. Ally has none and is able to offer better rates and they say it's because of that.

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MrSamsung said:   if any of them did a higher amount, as paltry as even 0.25% I'd sign up. 
  Why would anyone sign up for 0.25% when many banks have accounts over 1%?

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Big bank customers are more interested in convenience (ATMs, bank locations, and fancy apps) than a paltry interest rate on what little balance they have in the account.

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MrSamsung said:   Out of curiosity, why don't big banks compete on interest rates? Not worth it to them? I only see them offering 0.01% rates, but if any of them did a higher amount, as paltry as even 0.25% I'd sign up. Is it really not worth it to them?
at 50k .25 would equal $10.41 a month
at 50k .1 would equal $4.16
No one cares to switch bank accounts for 6 dollars

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Luniz97 said:   
MrSamsung said:   Out of curiosity, why don't big banks compete on interest rates? Not worth it to them? I only see them offering 0.01% rates, but if any of them did a higher amount, as paltry as even 0.25% I'd sign up. Is it really not worth it to them?
at 50k .25 would equal $10.41 a month
at 50k .1 would equal $4.16
No one cares to switch bank accounts for 6 dollars

  and at 500 average daily balance, which is what most of their customers probably have:
.25 would be .10 a month
.10 would be .04 a month
less, of course, the $5-20 a month service fee and a couple of $35 overdrafts.
 

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This is why we are more likely to see a 5% rate with heavy restrictions, rather than a major bank giving even an extra .1%. The 5% is really a new account bonus embedded in a higher rate.

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Luniz97 said:   
MrSamsung said:   Out of curiosity, why don't big banks compete on interest rates? Not worth it to them? I only see them offering 0.01% rates, but if any of them did a higher amount, as paltry as even 0.25% I'd sign up. Is it really not worth it to them?
at 50k .25 would equal $10.41 a month
at 50k .1 would equal $4.16
No one cares to switch bank accounts for 6 dollars

  This is fatwallet, you should know better.

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atikovi said:   
Luniz97 said:   
MrSamsung said:   Out of curiosity, why don't big banks compete on interest rates? Not worth it to them? I only see them offering 0.01% rates, but if any of them did a higher amount, as paltry as even 0.25% I'd sign up. Is it really not worth it to them?
at 50k .25 would equal $10.41 a month
at 50k .1 would equal $4.16
No one cares to switch bank accounts for 6 dollars

  This is fatwallet, you should know better.

  Yes, at Fatwallet, it takes a minimum of ~$200-300 for me to switch bank accounts.

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An extra $6 a month equals a dozen fast food meals a year. That would appeal to many folks.

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atikovi said:   An extra $6 a month equals a dozen fast food meals a year. That would appeal to many folks.
  Interest on consumer debt dwarfs any interest earnings for the average American household. FWF'ers aren't representative.

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Luniz97 said:   at 50k .25 would equal $10.41 a month
at 50k .1 would equal $4.16
No one cares to switch bank accounts for 6 dollars
 

This might not really change your conclusion, but note that OP said 0.01%, not 0.1%.  So it's $10 per month difference, not $6.

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Well, for argument's sake, I leave in 5k in my checking account and 10k in the savings just in case a car deal or something else similar comes up. I leave my money with BofA now, but if say, Wells Fargo offered 0.25% on savings I'd leave my short term account with them instead (assuming the other benefits are similar).

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MrSamsung said:   Well, for argument's sake, I leave in 5k in my checking account and 10k in the savings just in case a car deal or something else similar comes up. I leave my money with BofA now, but if say, Wells Fargo offered 0.25% on savings I'd leave my short term account with them instead (assuming the other benefits are similar).
  Aren't there large B&M banks in your area that offer more than a lousy .25%? My savings account at Capital One pays 1%. Granted its a promo rate for 12 months, but their regular savings is still .5%.

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I haven't seen anything..the closest would be a CU (Alliant), but my wife wants something closer.

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Because that business is currently not relevant

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