Too good to be true?

MRGALT2U · 09-19-2005, 06:48 PM

Picked up my mail today, and what to my wondering eyes should appear? ..................seems the local credit union is having a 70th
anniversary. To celebrate, they are offering 7% APR for 70 days
with a minimum deposit of $7,000. I have not seen anything like this.
I have 100K I could dump in there and pick up $200 extra interest over the 70
days. What would you do?

JG

Patrick · 09-19-2005, 06:53 PM

What's the APR on day 71? Is there a minimum time you have to leave the money in the account?

MRGALT2U · 09-19-2005, 06:59 PM

Quote:

Originally Posted by Patrick

What's the APR on day 71?* Is there a minimum time you have to leave the money in the account?*

Re. question no. one................don't know and don't care. Figure I will
just move the money.

Re. question no. 2...................Their lit. says "early" account closing fee
is $20.00. Not sure if it applies but clearly not a deal breaker.

I also found 3.75% (vs. the 3.5% I am getting now). I was holding out for
4% before this CU deal appeared.

JG

JPatrick · 09-19-2005, 07:42 PM

Is early prior to 70 days or is it something longer??

azanon · 09-20-2005, 11:11 AM

I'm honestly ignorant as to how APR differs from just regulat interest rate, but assuming they're the same, the only thing good about a 7% interest rate would be to get that, not pay it. The current prime interest rate is 6.5%, so my understanding is loans tend to be slightly above prime, so that actually sounds about right.

I'm an aggressive enough investor to use the stock market heavily, but i draw the line at margin investing with the interest rate even resembles something that's high. I currently have both a car and student loan that i could pay off if i wanted to, but both are well below 4%.

Patrick · 09-20-2005, 11:27 AM

Quote:

Originally Posted by azanon

I'm honestly ignorant as to how APR differs from just regulat interest rate, but assuming they're the same, the only thing good about a 7% interest rate would be to get that, not pay it.* The current prime interest rate is 6.5%, so my understanding is loans tend to be slightly above prime, so that actually sounds about right.

I'm an aggressive enough investor to use the stock market heavily, but i draw the line at margin investing with the interest rate even resembles something that's high.* *I currently have both a car and student loan that i could pay off if i wanted to, but both are well below 4%.

He's talking about getting it on a deposit.

maddythebeagle · 09-20-2005, 11:27 AM

I am assuming that this is your 100k credit card balance transfer wad. *

Marshac · 09-20-2005, 12:26 PM

With $100k in balance transfer money, your credit utilization must be fairly high.... how many points has this dinged your FICO?

Ginger · 09-20-2005, 03:49 PM

The interest gained will cover that electric bill for the condo in Texas, and a nice dinner out.

MRGALT2U · 09-22-2005, 08:33 PM

Decided not to do it. It's a lot of money involved and right now it is FDIC
insured. The extra interest for 70 days just didn't seem worth it.
I am looking for a liquid 4% (yes I know some on-line banks
are offering this rate).

JG

09-19-2005, 06:48 PM	#1
MRGALT2U Thinks s/he gets paid by the post Join Date: Dec 2002 Posts: 3,877	Too good to be true? Picked up my mail today, and what to my wondering eyes should appear? ..................seems the local credit union is having a 70th anniversary. To celebrate, they are offering 7% APR for 70 days with a minimum deposit of $7,000. I have not seen anything like this. I have 100K I could dump in there and pick up $200 extra interest over the 70 days. What would you do? JG

09-19-2005, 06:53 PM	#2
Patrick Full time employment: Posting here. Join Date: Mar 2005 Posts: 876	Re: Too good to be true? What's the APR on day 71? Is there a minimum time you have to leave the money in the account? __________________ "Who among us is smart enough to learn from the mistakes of others?" - Voltaire

09-19-2005, 07:42 PM	#4
JPatrick Thinks s/he gets paid by the post Join Date: Jun 2005 Posts: 1,503	Re: Too good to be true? Is early prior to 70 days or is it something longer?? __________________ If you do what you've already done, you'll get what you've already got- - - -<

09-20-2005, 11:11 AM	#5
azanon Thinks s/he gets paid by the post Join Date: Jul 2004 Posts: 1,505	Re: Too good to be true? I'm honestly ignorant as to how APR differs from just regulat interest rate, but assuming they're the same, the only thing good about a 7% interest rate would be to get that, not pay it. The current prime interest rate is 6.5%, so my understanding is loans tend to be slightly above prime, so that actually sounds about right. I'm an aggressive enough investor to use the stock market heavily, but i draw the line at margin investing with the interest rate even resembles something that's high. I currently have both a car and student loan that i could pay off if i wanted to, but both are well below 4%.

09-20-2005, 11:27 AM	#7
maddythebeagle Thinks s/he gets paid by the post Join Date: Jun 2005 Posts: 2,440	Re: Too good to be true? I am assuming that this is your 100k credit card balance transfer wad. * __________________ - Hurry! to the cliffs of insanity!

09-20-2005, 12:26 PM	#8
Marshac Full time employment: Posting here. Join Date: Aug 2004 Posts: 904	Re: Too good to be true? With $100k in balance transfer money, your credit utilization must be fairly high.... how many points has this dinged your FICO?

09-20-2005, 03:49 PM	#9
Ginger Recycles dryer sheets Join Date: Mar 2005 Posts: 197	Re: Too good to be true? The interest gained will cover that electric bill for the condo in Texas, and a nice dinner out. __________________ Ginger

09-22-2005, 08:33 PM	#10
MRGALT2U Thinks s/he gets paid by the post Join Date: Dec 2002 Posts: 3,877	Re: Too good to be true? Decided not to do it. It's a lot of money involved and right now it is FDIC insured. The extra interest for 70 days just didn't seem worth it. I am looking for a liquid 4% (yes I know some on-line banks are offering this rate). JG

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Good Fortune,---Or a Ripoff?	Sundance Kid	Other topics	31	11-01-2006 11:16 AM
Hi everybody, looking for a good time here!	excellent	Hi, I am...	11	11-01-2006 06:51 AM
What is a (good) manager?	vvsonikvv	Young Dreamers	55	08-01-2006 10:26 PM
Is this rate as good as it looks?	KB	FIRE and Money	9	06-26-2006 06:37 PM
Getting Rid Of (Good) Stuff	yakers	Life after FIRE	62	07-05-2005 06:14 AM