Too good to be true?

[Mr._johngalt]

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]

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

 

[Mr._johngalt]

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]

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

 

[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%.

 

[Patrick]

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]

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

 

[Marshac]

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

 

[Ginger]

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

 

[Mr._johngalt]

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