Tweet
Do you have a savings account? Is it making next to nothing in interest? Do you have a cd? Is it making only a few pennies more than that?
Guess what. That is the world we live in. Bank deposit rates = zilch.
Sure, you can find a few specials. All designed to get you in the door and into additional products that actually make the bank money. Because savings accounts and cd's cost the bank money. They pay you to deposit the money so they can use your money on things like loans. But right now, there is a competitor for giving money to the banks. The federal reserve rates are next to nothing. If banks can borrow all the money they need for loans at next to nothing, why would they pay you more?
Is that my fault? Do I have any control over it whatsoever? I guarantee to you that I do not. And your threats to take your money elsewhere mean nothing to me. Actually, they probably mean nothing to the bank. I repeat, deposits *cost* the bank money. We can buy the money elsewhere. The only reason we even take your money is because we HAVE lowered rates to the point where your money is, again, cheaper than the government's money. That and the opportunity to sell you other services that do make us money.
And yet again and again and again, I have customer after customer asking for specials on their cd rates. Why aren't rates higher? When are we going to raise rates? Can't we offer anything higher just for *them* special snowflake that they are?
Know what that question triggers in my training? An attempt to sell you over to our investment services (otherwise known as products that make money for the bank).
Had a guy the other day that tried to argue that his 5-year cd rate should be raised because our 5-year auto loan rates are higher. Um. Yeah they are. That's called the first and foremost way that banks traditionally make money. And I don't work for some mega-bank making record profits. To compete and try to keep up local loyalty, we offer lower fees and MUCH better car loan and credit card rates. That cuts into our margins, and means we really *can't* afford to pay better than market rates for your deposits.
But of course, you don't want to hear that. You just want to complain your way into a better rate. Well, complain away, because I get paid the same either way. And frankly, my job security is built off of my bank staying solvent, something a LOT of small local banks have been failing at. So personally, I'm glad our deposit rates are low.
Especially when, at the end of the day, you went and bought the cd anyway. Because you know as well as I do that rates out there stink. So WHY must you waste my time arguing against the tide when I have absolutely no control over it?
Side note:
And if ONE more person asks if they can just keep the 5% APY that they had before their cd came due.... NO. NO you cannot. When a CD comes due, that great rate from 5 years ago is gone. That's why it was called a 5-year cd. Should have bought more of them 5 years ago when that's what we were recommending that you do.
*bleh* It's not that I don't understand the frustration, especially for people scared of the markets and who are trying to live partially off their savings. It just gets old, is all, and I really can't do a thing to change it.
Guess what. That is the world we live in. Bank deposit rates = zilch.
Sure, you can find a few specials. All designed to get you in the door and into additional products that actually make the bank money. Because savings accounts and cd's cost the bank money. They pay you to deposit the money so they can use your money on things like loans. But right now, there is a competitor for giving money to the banks. The federal reserve rates are next to nothing. If banks can borrow all the money they need for loans at next to nothing, why would they pay you more?
Is that my fault? Do I have any control over it whatsoever? I guarantee to you that I do not. And your threats to take your money elsewhere mean nothing to me. Actually, they probably mean nothing to the bank. I repeat, deposits *cost* the bank money. We can buy the money elsewhere. The only reason we even take your money is because we HAVE lowered rates to the point where your money is, again, cheaper than the government's money. That and the opportunity to sell you other services that do make us money.
And yet again and again and again, I have customer after customer asking for specials on their cd rates. Why aren't rates higher? When are we going to raise rates? Can't we offer anything higher just for *them* special snowflake that they are?
Know what that question triggers in my training? An attempt to sell you over to our investment services (otherwise known as products that make money for the bank).
Had a guy the other day that tried to argue that his 5-year cd rate should be raised because our 5-year auto loan rates are higher. Um. Yeah they are. That's called the first and foremost way that banks traditionally make money. And I don't work for some mega-bank making record profits. To compete and try to keep up local loyalty, we offer lower fees and MUCH better car loan and credit card rates. That cuts into our margins, and means we really *can't* afford to pay better than market rates for your deposits.
But of course, you don't want to hear that. You just want to complain your way into a better rate. Well, complain away, because I get paid the same either way. And frankly, my job security is built off of my bank staying solvent, something a LOT of small local banks have been failing at. So personally, I'm glad our deposit rates are low.
Especially when, at the end of the day, you went and bought the cd anyway. Because you know as well as I do that rates out there stink. So WHY must you waste my time arguing against the tide when I have absolutely no control over it?
Side note:
And if ONE more person asks if they can just keep the 5% APY that they had before their cd came due.... NO. NO you cannot. When a CD comes due, that great rate from 5 years ago is gone. That's why it was called a 5-year cd. Should have bought more of them 5 years ago when that's what we were recommending that you do.
*bleh* It's not that I don't understand the frustration, especially for people scared of the markets and who are trying to live partially off their savings. It just gets old, is all, and I really can't do a thing to change it.
Comment