<dsimons96[at]gmail.com> wrote:
- quote -

Same reason all the internet accounts offer higher rates: less
overhead.

Here's an old article about it.

http://money.cnn.com/2005/08/09/news...nline_savings/

--
Steven O'Neill steveo[at]panix.com
Brooklyn, NY

SD wrote:
- quote -

Isn't Emigrantdirect just the online offshoot of Emigrant Savings Bank?
So why does EmigrantDirect offer pretty good and flexible rates when
the physical bank branches don't offer anything comparable?


- quote -

Hmm, that was something I was concerned about. Has this ever happened
to anybody - at Emigrant or elsewhere? Has anyone ever opened up an
account at a high rate only to have it rollover into a low rate?

dsimons96[at]gmail.com wrote:
- quote -

Why not try emigrantdirect.com? It is run by emigrant and offers a decent rate.
Just get the six month CD as long as rates are rising and longer terms if rates
start dropping.

--
Manage your book collection online at The Internet Book Database
http://www.ibookdb.net/

the bank basically said that they try to focus on good rates for terms
that their competitors don't focus on. but my concern is that if I sign
up for a promotional-rate CD that somehow - say if I forget - my money
will be rolled over into a CD with one of their VERY low rates. has
this ever happened to anyone? and i'm still curious if anyone has an
explanation for why Emigrant wouldn't even try to offer competitive
rates for terms such as 12 months?


704set wrote:
- quote -

dsimons96[at]gmail.com wrote:
- quote -

I really don't get the point of these CDs or why anybody with Internet access
would even bother with them when you can get > 5% interest on online savings
accounts.

There are even stranger if not as strange CD options - example Emigrantdirect
has a fixed rate of 5.35% on all CDs regardless of the term. ING also 5.25% on
all terms > = 12 months.

- quote -

These are for strange periods of time because at the time of renewal they
probably will not have the same attractive rates. Maybe they conducted some
studies and found that it is statistically better for the bank because fewer
people forget not to renew after the 11 month term than the 12 month term.

--
Manage your book collection online at The Internet Book Database
http://www.ibookdb.net/

What did the bank say?

704set


<dsimons96[at]gmail.com> wrote in message
news:1153342267.277415.106950[at]75g2000cwc.googlegroups.com...
- quote -

dsimons96[at]gmail.com wrote:
- quote -

Many banks have promotional/special CDs that are higher than the
regular rates. If you take out the 2 odd ones, then the rates line up
in order.

Wells Fargo has a 7 and 23 month CD that is over 2% higher than their
regular CDs.
https://www.wellsfargo.com/wf/savings_cds/cdrates

- quote -

Yeah, that's a little puzzling. Even Bank of America, which pretty much
has the lowest interest rates of all banks, ranges from 1-3%.

I recently went in to an Emigrant Savings Bank branch to investigate
opening up a CD because I'd heard they had pretty good rates. When I
was there, I got a rate sheet unlike anything I'd seen before:

Term Rate
3 Months .51
6 Months .60
7 Months .8
9 Months 1.09
11 Months 4.40
1 Year 1.14
15 Months 3.92
18 Months 1.83

Can anyone explain why these rates are so all over the place? Aren't a
lot of them very below the current competitive rates? And why are the
ones that are seemingly competitve for such strange periods of time?