Current CD I signed up one year ago at just over 5% will soon expire

[danno1]

The rate was actually 5.210% and I am getting a check every month for just under $400. The CD will expire in October I think. But this bank is opening a new branch right around that time. Can anyone recommend something? Like can I negotiate with the VP or whomever to agree to keep this money in if I can still get the same rate? Help, feedback, comments, constructive criticism appreciated.

[Spanky]

You can always try to negotiate with the bank but do not expect much unless you have a big deposit and have been with them for a long time. The best they can do is to match an offer from a competitor. Good luck in finding a CD that pays more than 5%.

[danno1]

Thanks Spany. Well, this was initially a CD I invested in almost a year ago and it was at a time when they were promoting "special rates" or whatever. This is 90 grand and I am wondering if I tell them I will keep it in there if they agree to continue on with the current 5.210 rate. Most of the CD's in this area I live (Upper Michigan) are all veerry loow....around 2 or 3 percent.

[danno1]

Btw Spanky, I wanted to post this current set of rates this particular bank is offering. The Jumbo CD alone is up to 4.00 this month, so see no reason why I cannot get them to agree to stay at the current 5.120 I currently get . . . especially with a fair amount invested. Here's the rates:CD Rates (updated 2008-08-07)DurationRateAPY*MinAPY* Change182 DAY**2.402.4150012 MONTH2.402.4250018 MONTH2.502.5250024 MONTH2.652.6850030 MONTH2.752.7850036MONTH3.213.2550048 MONTH3.213.2550060 MONTH3.553.6050018 MONTH (VAR IRA)2.502.52100CD Special Rates (updated 2008-08-07)DurationRateAPY*37 MONTH3.253.2961 MONTH3.944.007 MONTH JUMBO SPECIAL3.233.2513 MONTH JUMBO SPECIAL4.044.10Jumbo CD ($50,000 Rates and above)DurationRateAPY*

[2B]

I've had the same issue rolling over my fixed income allocation that is almost all in CDs. There are 5% CDs available through Etrade (brokered - not with Etrade Bank) if you are willing to go out 4 or more years. The highest I've seen is about 5.25%. I bought a 4.25% CD that will mature in Dec 09.

I want to keep my money with less than a 2 year maturity because I expect rates to go up next year. The premium for going long is also not very good so I can't justify the risk.

[bankaround]

Most of the time, if you have a large amount of money in the bank and the new rate is not much more than maybe 1% than your previous rate, you should be able to convince them to give it to you.

[danno1]

Hi 2B...it sounds like with so much floating, you have some hard decisions! Look at me, and I am thinking of simply taking bankarounds hard advice. I mean, this same bank is opening a huge new branch office....they are almost done with the new place and I think if I go to that new place, sit down with the person who initiated this CD with me, I "hope" I can continue it.
I do understand the dilemma of rates probably going up (especially after a new president comes in) people feel more optimistic etc. Who knows....but we are in the same boat. Thanks bankaround . . .

[bankaround]

danno1, another way you can try to convince them is to find a bank or two in your area and tell them, look, I can go here and here to get a higher rate but I really enjoy banking with you guys, etc... and if you can match what they can give me, I'll be more than happy to stay.

[danno1]

Good ploy bankaround . . . although most banks in this area are all down to the 2% and 3% rates for CD's. It's really ashame the downturn CD's have taken. I'm 51 so don't want to stick my cash in anything long term at the moment. iding the storm out so to speak . . .

[bankaround]

Do you have a WAMU in your area? You don't really even need one in your area as WAMU lets you open accounts online. I think they have a 12 month CD at 4.5% that you can try to use that as leverage?

[Oldbabe]

Quote:

Originally Posted by bankaround Do you have a WAMU in your area? You don't really even need one in your area as WAMU lets you open accounts online. I think they have a 12 month CD at 4.5% that you can try to use that as leverage?

Before you invest in WAMU I'd do some research on their solvency if I were you.

[OAG]

Quote:

Originally Posted by Oldbabe Before you invest in WAMU I'd do some research on their solvency if I were you.

Why, they are FDIC insured?

[Oldbabe]

Quote:

Originally Posted by OAG Why, they are FDIC insured?

From The Economist, Aug 14, 2008, writing about Option ARMs recasting:

Delinquencies are already rising fast. Write-offs for option ARMs at Washington Mutual, a stumbling thrift, have zoomed from 0.49% in the last quarter of 2007 to 3.91% in the second quarter.

American housing 2 | Ticking time bomb | Economist.com

National City is another bank under pressure. People invested their cash at Indy Mac because of their higher interest rates. There's a reason for those higher rates, more risk. Also, I wouldn't lock in 5.25% for four years. IMH, from what I've read, interest rates will be going up.

[Spanky]

Danno1, as I said earlier, the bank should give customers it cares the best rate that is available at the time of renewal. You do have bargaining power because of the large amount of deposition.

[bbbamI]

You could ask for a bump as well.

[OAG]

Banks do not have a conscience so I would forget that. Go on line Capital One, PENFED (you can join for $20 if not otherwise eligible), HSBC, ING, VyStar CU etc., look for 1 year specials, print the pages and take them with you to the local bank as it seems you would be more comfortable with the money being local. Good luck, and if you get the current bank to agree, let us know (it would surprise me a bit).

[danno1]

Another good suggestion OAG. I would hope I can emphasize to them I want to keep my money local. This particular bank's motto is "your hometown bank" and another is "we have roots where all others just have branches". I have heard of Wamu....I wondered about them too. With these online bank dealings, I am a bit hesitant in doing it that way...simply from the standpoint I am not one on one with somebody. Anyway, I think I will do that (print out rates of online places) to use as back up...good idea

[Goonie]

Quote:

Originally Posted by OAG Go on line Capital One, PENFED ....... HSBC, ING, VyStar CU etc., look for 1 year specials, print the pages and take them with you to the local bank as it seems you would be more comfortable with the money being local. Good luck, and if you get the current bank to agree, let us know (it would surprise me a bit).

We have one local bank that will match another local bank's CD rates, but none of the local banks here will match any online bank's rates. We had a CD come due about 2 months ago, and tried to get a decent rollover rate deal, but with no success at all. So we had them deposit it in our checking account, and when we got home I transfered it into an online CD account.

Quote:

Originally Posted by danno1 I would hope I can emphasize to them I want to keep my money local. This particular bank's motto is "your hometown bank" and another is "we have roots where all others just have branches".

Yeah, our banks have the same type mottoes.....but in reality they only really care about their bottom line, and don't give a hoot about there patrons. Like their savings accounts pay a whopping .75% interest, and if you keep over $10K in savings they'll give you an enormous 1.25% interest....big whoopy! Who wants to keep that much loot laying there earning that paltry amount of interest! I moved my savings account to ING a long time ago because they were far better than anywhere locally.......they're currently @ 3.0%......I know that there are other online joints paying more, but ING is OK for me (at this point anyway).

[cute fuzzy bunny]

CD Thread, Post The Best Rates You Can Find Here!

Lots of ~4.75-5.25% rates at different maturities.

[youbet]

Opened a brokered CD in my Schwab account yesterday. 5.1%, 5 yrs, paid semi-annually. FDIC insured. No commission. A few mouse clicks and a couple of minutes and it was done.