@mistercheap said in Question about banking:
@zerenia said in Question about banking:
@orthros I agree with your premise, but how often do you need those services? @studentsavings probably won’t need those services and if he does, he can open an account or join a credit union. Maybe even check credit unions for savings or interest-checking rates?
FWIW, as long as the bank is FDIC insured, the risk is relatively low. The bigger trend, though, is that the online banks offer teaser rates for a fixed period of time and then drops the bottom out of the interest the account pays. To keep the returns up, you have to keep switching banks.
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@zerenia Ally and Marcus have never offered teaser rates on their money market accounts to simply drop the bottom out on them. the rates plummeted this year due to the pandemic and the Fed offering 0% interest and US Treasury bonds paying next to nothing. You can’t expect the banks to pay out interest higher than the going rates on borrowing money. ( mortgage rates are 2% or less). Sorry but your advice is lacking here totally and you obviously don’t understand market dynamics with interest rates where Money Market Accounts are concerned.
Sir - I’m not going to make any assumptions about your knowledge of this particular topic. I would point out that my response was primarily regarding whether or not the extra services were worth keeping an account with a B&M bank. I would also suggest that your two examples of banks that have not used teaser rates are eclipsed by the dozens or more that have done so. Two examples is not a trend, sir.
My other point was that a credit union might offer a better return than an online account and still, perhaps, provide the services of a B&M institution.
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