BusyHomeowner
Member
I'm looking for a new bank. Any Suggestions?
BusyHomeowner said:I'm looking for a new bank. Any Suggestions?
BusyHomeowner said:Perspective -
Thanks for the suggestion.
It seems like many/most brick and mortar bank locations are paying absurdly low interest rates at the moment.
I dropped into a couple of bank branches earlier in the week and asked for a rate sheet.
The first bank was paying a "Relationship" rate/APY of .06% (that is not a typo) for balances of $250,000 to $10+ million. Their "Standard" rate/APY for balances of up to $999,000, however, was only .01%
The second bank had slightly higher rates. For example, their High Rate Money Market account was paying .10% for balances of $50,000 to $1+ million.
USCTrojanCPA said:What a joke...might as well buy short term treasuries. Or I can make 1 options trade and make 1% with basically no risk.
Perspective said:USCTrojanCPA said:What a joke...might as well buy short term treasuries. Or I can make 1 options trade and make 1% with basically no risk.
Do you hold $0 in cash at all times? Most conservative folks minimally hold 3+ months' expenses in cash. You can earn ten-times more interest on this cash in a net bank, than you will earn in a brick and mortar depository institution.
USCTrojanCPA said:What a joke...might as well buy short term treasuries. Or I can make 1 options trade and make 1% with basically no risk.
eyephone said:For me: I wouldn't settle just earning 1%.
Soylent Green Is People said:If your work offers a credit union, or if a family member can sponsor you into their CU, give them a try. Schools First FCU is terrific.
Local Banks and CU's will never offer healthy competitive returns. They are service centers only, and most CU's are better in that area than banks.
My .02c
SGIP
Soylent Green Is People said:Only word to the wise about Net Banks is their withdrawal speed. Net Banks are very good at opening accounts, but can be very, very slow when it comes to liquidation. I've had more than a few purchase closing held up because the customers net bank withdrawal was going to take 3-5 days instead of 3-5 minutes as a traditional bank can with a wire. If you're clear with the potential delay up front, and can plan around restricted access, then a Net Bank might work well.
My .02c
SGIP
BusyHomeowner said:eyephone said:For me: I wouldn't settle just earning 1%.
eyephone -
Are you proposing a better strategy?
Perspective said:USCTrojanCPA said:What a joke...might as well buy short term treasuries. Or I can make 1 options trade and make 1% with basically no risk.
Do you hold $0 in cash at all times? Most conservative folks minimally hold 3+ months' expenses in cash. You can earn ten-times more interest on this cash in a net bank, than you will earn in a brick and mortar depository institution.
BusyHomeowner said:USCTrojanCPA said:What a joke...might as well buy short term treasuries. Or I can make 1 options trade and make 1% with basically no risk.
USCTrojanCPA -
I have no free time at the moment... so options would probably not be a good strategy for me.
How much of a hassle are short-term Treasuries these days? (Hopefully, the current system is far more efficient than the Legacy system of yesteryear.)