Former WaMu Savings Accounts Now Paying 0.10% at Chase
A reader emailed me about the interest rate he's getting on his former WaMu Online High-Yield Savings Account. The interest rate is now only 0.10% for a balance of $10K. That's only $10 of interest for a whole year.
I took a look at today's deposit rate sheet at Chase. The standard rate for the Chase Plus Savings Account is 0.10% for balances of $10K to $25K. It goes up to 0.50%, but you need a $1 million balance.
Even in this very low interest rate environment, these rates are too low. As a comparison, ING Direct's Orange Savings Account is currently paying 1.10% APY on all balances, and there continues to be a few savings accounts that pay over 1.50%.
You no longer have to depend on internet banks for high interest rates. Many small banks and credit unions are offering high-yield reward checking accounts that pay over 3.00% APY. These require debit card usage, and the balance that qualifies for the top rate is typically capped at $25K. Even if you don't meet the monthly requirements, most of these reward checking accounts are free of monthly fees, and the rates are still higher than what Chase is paying on its savings account.
For the first quarter of this year, Chase reported a profit of $3.33 billion. Most of the profits came from the bank's investing activities, but even in that area, this very low interest rate environment is helping them make these big profits.
Interest rates may be low everywhere, but a savings account paying only 0.10% is way too low. Don't settle for rates that low while the mega-banks are making billions in profits. Move your money to banks and credit unions that will pay you a respectable interest rate.
Hat tip to the reader who emailed me this info on his Chase savings account.
Searching for the Best Money Market & Checking Rates
Anonymous - #1, Friday, April 30, 2010 - 10:29 AM
How can they call that a savings account? I have a checking account with Chase, but I would not waste my time with their 0.10% APY savings account.
Anonymous - #2, Friday, April 30, 2010 - 10:36 AM
Much less a "High Yield" savings account. It's simple, fire them if you have an acct and move your money elsewhere.
Alan (anonymous) - #4, Friday, April 30, 2010 - 10:54 AM
The big banks count on the fact that the great majority of depositors are just that, depositors, not investors. Most people believe that an account paying 1.10% compared to one paying 0.10% is providing a 1% increase in income. They don't understand that it is actually providing a 10 fold (1000%) increase in income. Percentage increase/decrease is about the least understood (and most important) investing lesson. The good news, however, is that investors can find rates that do provide 1000% increases in income, while the depositors loan out their money for free.
It is these "depositors" who provide the cheap money for banks, allowing banks to offer teaser rates to the few "investors" out there.
Anonymous - #5, Friday, April 30, 2010 - 11:23 AM
Actually Chase outbound ACH is now free. For every 10K w. Chase you are losing about $100 - $150/year vs. alternative liquid savings accounts.
Anonymous - #7, Friday, April 30, 2010 - 12:53 PM
Nothing surprises me coming from Chase. I've always had the worst experience with them. I bought the 5% WaMu CD last September 2008 and the day after I did it, CHASE announced the buyout. I feared for a whole 13 month period. The day my CD matured I went to an office and took the check, so happy to be out!
JeffS (anonymous) - #8, Friday, April 30, 2010 - 1:38 PM
I live in the Houston area and there is a Capital One Bank right across the street from my Chase branch. After noting my old WAMU savings account was at 0.1%, I decided to walk into Capital One and found they have a savings account called Simple Savings that currently pays 1.30% APY for balances over $2,500. This was a no brainer for me. I went over to Chase, took out all of my money and deposited it at Captial One. I've only had the account for 3 weeks but so far, so good.
Anonymous - #9, Friday, April 30, 2010 - 7:05 PM
Hey, poster #3, for pete's sake, try writing a properly worded sentence. Sheesh, your post is impossible to comprehend.
Anonymous - #10, Sunday, May 2, 2010 - 10:00 AM
I now have Chase checking -- formerly Wamu. I am beginning to dislike them. We have an automatic health insurance premium which is due on 6th of each month. Since Chase has taken over the premium seems to be put on hold around the fourth of the month. I have a hunch they are doing this in the hope that we will overspend. This ticks me off. I can't believe they are offering a mere .50 to anyone with one million or more in a savings account - I find this somewhat insulting. I think I will look into moving my checking account over to a local credit union - it does mean changing SS direct deposit.
Anonymous - #12, Monday, May 3, 2010 - 2:09 AM
What happened to message post # 3 and # 6?
kow626 (anonymous) - #13, Thursday, May 27, 2010 - 5:30 PM
when chase took over wamu, i took all my money out of that cuz of the fees and low interest rates. i don't even use the savings account anymore for anything. i'm reluctant to close it cuz you never know when a spare bank account will come in handy. i do keep a bare minimum amount of money in it and after a few years, they haven't come at me with any inactivity fees or warnings so it's all good for now. chase might be a bigger bank but that doesn't equate to them being a better bank.
Mr. I Want My Money (anonymous) - #14, Sunday, February 26, 2012 - 12:16 PM
Chase Sucks. I've been with them for almost 2 years now and I keep a really high and steady flow of money coming in, but for some reason its not enough for them to up a Brothers Savings Account Interest Rate. I'm now on 3 pennies everytime they want to give me some interest and I have well over 10k in thr. The total amount given to me so far is about somewhere around 25 dollars a year. It seems lik they raise your rate by a pennie every 6 months or so which is killin me, no one in there right mind would call that a Rewarding Savings Plan. Anyways people I'm here to tell you about a life saver. Visit Bank Rate.Com, they have a current listing of all banks and there interest rates. I've switched from Chase Saving and took my business elsewhere where I actually get a lil something back for saving my money. Ps. HSBC was the Best when I choosing, gave you more for saving than the rest did. Hope your all about your money like I am and aint a picky Banker, its all about the High Interest Baby.
Add Your Comment
Post a Comment