 |
09-19-2005, 05:48 PM
|
#1
|
|
Thinks s/he gets paid by the post
Join Date: Dec 2002
Posts: 3,875
|
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
|
|
|
 |
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
|
09-19-2005, 05:53 PM
|
#2
|
|
Full time employment: Posting here.
Join Date: Mar 2005
Location: Northern, Florida
Posts: 925
|
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? 
__________________
Retired in 2006 at age 49.
"Who among us is smart enough to learn from the mistakes of others?" - Voltaire
|
|
|
|
|
09-19-2005, 05:59 PM
|
#3
|
|
Thinks s/he gets paid by the post
Join Date: Dec 2002
Posts: 3,875
|
Re: Too good to be true?
 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
|
|
|
|
|
09-19-2005, 06:42 PM
|
#4
|
|
Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,610
|
Re: Too good to be true?
Is early prior to 70 days or is it something longer??
|
|
|
|
|
09-20-2005, 10:11 AM
|
#5
|
|
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, 10:27 AM
|
#6
|
|
Full time employment: Posting here.
Join Date: Mar 2005
Location: Northern, Florida
Posts: 925
|
Re: Too good to be true?
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.
__________________
Retired in 2006 at age 49.
"Who among us is smart enough to learn from the mistakes of others?" - Voltaire
|
|
|
|
|
09-20-2005, 10:27 AM
|
#7
|
|
Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,450
|
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, 11:26 AM
|
#8
|
|
Full time employment: Posting here.
Join Date: Aug 2004
Posts: 911
|
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, 02:49 PM
|
#9
|
|
Recycles dryer sheets
Join Date: Mar 2005
Posts: 199
|
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, 07:33 PM
|
#10
|
|
Thinks s/he gets paid by the post
Join Date: Dec 2002
Posts: 3,875
|
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)
|
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|
Linear Mode
