Cash-Rich Banks Pay Nothing on Deposits, But You Can Fight Back

[bloomington-lib]

Source: abc

Banks have so much cash on hand and interest rates on deposits are so low that in some cases, you'd be ahead of the game if you stored your money in a mattress.

According to Bankrate.com, the national average on 1-year CDs is 0.36 percent. That's right, about one-third of a percent annually, or just $4 in interest on a $1,000 deposit at the end of a year. Money market checking accounts? Forget it, at the 0.10 percent typically paid, you'll have a buck to show for your $1,000 deposit.

The fact is, many banks really don't want your money. Consumers and businesses have moved money out of the falling stock and bond markets and parked it in bank accounts. In response, some banks are even passing along the cost of federal deposit insurance and imposing fees on accounts where piles of cash are moving in and out too much. The result is that you might pay the bank for the privilege of keeping your cash there.

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"We just don't need it anymore," said Don Sturm, the owner of American National Bank and Premier Bank, told the New York Times. "If you had more money than you knew what to do with, would you want more?"

Read more: http://abcnews.go.com/Business/banks-pay-interest-cds-invest/story?id=14812925

[No Elephants]

1. Is it soup yet?

[Courtesy Flush]

2. That quote was a doozie

"If you had more money than you knew what to do with, would you want more?"

I know what he meant, but in the context of our times, it's hilarious.

[sarcasmo]

3. Sums up the 1% in this country. They have more money than I would know what to do with yet they

still want more.

[Dover]

6. What banks want is to INVEST your money for you. They don't want it sitting around.

Of course they don't want to be regulated or held accountable for the risks they take with it.
Nor do they see any conflict of interest in being your bank and investment counselor and insurance agent...etc.
Get yourself a good independent investment advisor and compare the advice between the two.

[defendandprotect]

4. But this isn't a conspiracy by banks/CEO's...? ROFL Couldn't happen unless they owned Congress...!

Go try to borrow $1,000 from a bank!

And what are credit card rates -- !! 26% or is it more now?

Why bother with personal accounts when you can launder drug money or pick up

corporate accounts?

[kestrel91316]

5. I opened up a saving account (~$10k) earlier this year at Wells Fargo and

they are paying me 0.05% interest, IIRC. That's $5.00 per year on that $10k.

[julian09]

9. They are paying you 0.05%

but every dollar you deposit is lent out twenty times at a much higher rate.

[kestrel91316]

11. I am well aware of that. But it's my teensy inheritance, much needed, and

won't stay in the account long, lol, so they can steal from somebody else.

[Thor_MN]

17. A relative wanted me to co-sign a student loan at over 10% interest.

I loaned him the money myself. It wasn't that much, I can spare it, and would be responsible for the full amount if it wasn't paid back. It happened to be through the bank I use, that was paying me virtually nothing for it.

Screw them, I'm not going to let them charge 100 times what they are paying me to let that money go to mt nephew for a bit.

[Dover]

7. Hey they said it straight up. They don't want your money. So do them a favor and withdraw

from your accounts and move it to a community bank or credit union. Why not?

[Dawson Leery]

8. How much do they pay the Oakland PD?

[sybylla]

10. Of course you can make more by stuffing your savings in your mattress

You save the cost of 3.60/gallon to drive to the damn bank in the first place. That's going to add up to more than the .5% they want to give you for it.

[RebelOne]

13. I am thinking of doing that. n/t

[Dover]

12. Perhaps people have become risk averse because financial institutions are RISK ADDICTIVE.

If there were no real consequences for taking a risk as is the case for financial institutions then, hey,
I'd be IN!! As it is, we not only have to pay for the repercussions of any bad personal outcomes, but we also
have to pay for the banks/Wall St's bailout. I'm not a betting man, but if I were, even I can see that
this is not good odds....the game is rigged.

We may be slow learners, but we've become much better students of this game. Ya lurned us reeeeeeeel gud. :dunce:

[Massacure]

14. I'm glad I'm in a credit union.

I switched when a bank wouldn't give me a credit card because of "insufficient credit history". I got one from my local credit union with 9% interest. I'm also earning 0.55% interest on my money in a money market account.

[CountAllVotes]

15. 1-year CDs is 0.36 percent

You can get .99% from some online savings accounts. I can get a CD @ 2.75% right now.

To hell with these people.

My god they make the .1% I'm getting on a free checking account look good!

:argh:

As they rip-off America no one seems to notice except for those Occupy Wall Street folks; the true patriots among us. :patriot:

:dem: :kick:

[sarcasmo]

16. Kick!