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-   -   Current CD I signed up one year ago at just over 5% will soon expire (https://www.early-retirement.org/forums/f28/current-cd-i-signed-up-one-year-ago-at-just-over-5-will-soon-expire-37952.html)

danno1 08-16-2008 06:53 AM

Current CD I signed up one year ago at just over 5% will soon expire
 
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 08-16-2008 07:11 AM

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 08-16-2008 07:16 AM

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 08-16-2008 07:34 AM

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 08-16-2008 07:37 AM

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 08-16-2008 07:41 AM

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 08-16-2008 07:57 AM

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 08-16-2008 08:11 AM

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 08-16-2008 08:15 AM

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 08-16-2008 08:19 AM

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?

Spanky 08-16-2008 08:19 AM

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 08-16-2008 08:24 AM

You could ask for a bump as well.

OAG 08-16-2008 11:57 AM

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 08-16-2008 12:25 PM

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

cute fuzzy bunny 08-16-2008 12:33 PM

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

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

youbet 08-16-2008 12:44 PM

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.

Goonie 08-16-2008 12:45 PM

Quote:

Originally Posted by OAG (Post 698948)
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 (Post 698964)
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).

danno1 08-16-2008 04:37 PM

I think ANY bank's bottom line is the dead prez, no doubt. I fully understand. I'll definitely report back here though, and let you know if I successfully negotiate a rollover deal...all the suggestions here are really helpful. Yeah pitiful (similar) rates here for basic savings. That stimulus check earlier in the year meant nothing. To make it sound worse, I heard a news report last week about US gov complaining big debts and rattled off many factors and then to top it off mentioned the "stimuls package" as part of why......we're living in some bizarre times.Oh, btw, can I mention a gas related web site I own here? It allows visitors to enter their local zip code to get results from various gas stations rates for a gallon of gas. I'll give the URL if that is acceptable. If not, I understand. I also just launched a hybrid car site...

Zoocat 08-16-2008 05:07 PM

Quote:

Originally Posted by bankaround (Post 698875)
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 08-16-2008 05:10 PM

What is wrong with Gas Buddy site? It will give you current reported prices (reported by people buying gas at the respective station). However, maybe yours is better. Not sure of the rules but we post url's all the time.


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