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10 Day CD at my bank
Old 11-26-2011, 11:39 AM   #1
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10 Day CD at my bank

That's not a typo. I was at my local branch and they had a flyer advertising their new 10 day CD (with online renewal) at the rate of (..drum roll...) .5% with a minimum of $1000. Their savings account is currently paying .12% so this is over 4 times the regular interest rate.

I'm curious how many customers this is going to attract when you can get an online savings account at Discoverbank for 1%, ING is .9% and Emigrant is .6%.

Anyone else seeing things like 10 day CDs? The shortest I had seen before was 3 months. I guess if you are really optimistic you may not want to tie your money up for more than 10 days at a time.
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Old 11-26-2011, 11:42 AM   #2
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Like you, I have not seen shorter than 3 months duration. The longest I have seen is 10 years.
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Anyone else seeing things like 10 day CDs? The shortest I had seen before was 3 months.
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Old 11-26-2011, 12:01 PM   #3
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Very good rate for a non on-line bank. do they have a maximum ballance limit ?
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Old 11-26-2011, 12:26 PM   #4
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Would also be nice if these could automatically roll over at the same rate until you tell them to stop it...
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Old 11-26-2011, 02:52 PM   #5
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Quote:
Originally Posted by Sue J View Post
That's not a typo. I was at my local branch and they had a flyer advertising their new 10 day CD (with online renewal) at the rate of (..drum roll...) .5% with a minimum of $1000. Their savings account is currently paying .12% so this is over 4 times the regular interest rate.
For the sake of your bank (and my bailout tax dollars) I sure hope that's 0.5% APY and not 0.5% for 10 days.

But, yeah, I'd put about two years' expenses (8% of our ER portfolio) in that.
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Old 11-26-2011, 03:22 PM   #6
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Yes, that's .5% APY. Sorry if that wasn't clear.
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Old 11-26-2011, 03:33 PM   #7
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These teaser rates are common, although I haven't seen one this short yet. Smart though from the bank's perspective because they don't have to pay it for long and they hope that the customer will be too lazy to move the money to another bank after they drop the rate drops to .00??.
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Old 11-26-2011, 03:38 PM   #8
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These teaser rates are common, although I haven't seen one this short yet. Smart though from the bank's perspective because they don't have to pay it for long and they hope that the customer will be too lazy to move the money to another bank after they drop the rate drops to .00??.
Yep, hence my comment about automatic rollover. A lot of banks like to do that with longer-term CDs at "market" rates -- I don't suspect that could be done here...
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Old 11-26-2011, 10:20 PM   #9
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Yes, that's .5% APY. Sorry if that wasn't clear.
Well, it would've been one heckuva teaser rate!
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Old 11-29-2011, 12:40 PM   #10
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Quote:
Originally Posted by Sue J View Post
That's not a typo. I was at my local branch and they had a flyer advertising their new 10 day CD (with online renewal) at the rate of (..drum roll...) .5% with a minimum of $1000. Their savings account is currently paying .12% so this is over 4 times the regular interest rate.

I'm curious how many customers this is going to attract when you can get an online savings account at Discoverbank for 1%, ING is .9% and Emigrant is .6%.

Anyone else seeing things like 10 day CDs? The shortest I had seen before was 3 months. I guess if you are really optimistic you may not want to tie your money up for more than 10 days at a time.
Setting up an online e-bank account is not simple IMO, and therefore may be worth giving up some small return. Every time I think about switching from ING to Ameritrade, etc....I think of all the setup details and documents to read/sign...what a hassle....not to mention establishing the link to your local bank so you can do electronic transfers.
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