Comments For: The FDIC's Weekly National Rates and Rate Caps

The FDIC has started posting average deposit rates and rate caps. Here's the link to their rate tables. It doesn't look pretty. The rate cap for a 12-month CD is only 2.02%.These rate tables are associated with the FDIC's new rule on "Interest Rate...
 
 
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CA

CA - #1, Sunday, May 31, 2009 - 8:04 PM

Can't the banks get around this by just offering periodic cash bonuses for opening accounts/making deposits/using ATM cards/using Billpay/attaining tier level minimums? If I was a bank officer, I would just laugh, and institute a monthly cash bonus equal to the amount of 5+% APR with daily compounded interest rates based on daily account balances. Who needs interest rates anyway when the customer can be rewarded and/or compensated via different/unregulated means?


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Anonymous

Anonymous - #2, Sunday, May 31, 2009 - 9:24 PM

.

National Rate? Ha!

Missing are 1) reward checking 2) installment savings 3) bump-up CDs

FDIC is out to screw savers.

Maybe the banks will/should create some hybrid products so as comply with the letter of the "final rule" but rape the spirit of the "final rule" anyways.


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Anonymous

Anonymous - #3, Monday, June 1, 2009 - 5:32 AM

Is there a posted list somewhere showing the current roster of "less than well capitalized banks" in the FDIC's eyes???

That would help people know if an institution where they have an account, or are considering one, is subject to these new rules...


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Angelo_Frank

Angelo_Frank - #4, Monday, June 1, 2009 - 6:32 AM

Thus, according to the National Rate Table, Ally Bank would be restricted to offering .97% interest rate on it's savings account? Although this is scheduled to go in effect Jan 2010, I can see the pressure on Ally, and others, to start lowering their rates very soon.


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Anonygal

Anonygal - #5, Monday, June 1, 2009 - 12:12 PM

What a joke! The FDIC rep told me the list is confidential to prevent a run on the banks! After many calls and emails I finally got someone to mail me a page of urls I could use to try to figure out for myself how they come to their criteria for who is and isn't a well-capitalized bank!

I told them they were making decisions on our savings rates and we taxpayers should have a right to know how they come to these decisons. But it's the government and it seems only the "certain few" get to know what is going on.


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Anonymous

Anonymous - #6, Monday, June 1, 2009 - 1:43 PM

The national interest rate is always lower than real inflation rate. By limiting the max interest rate a bank can offer, it's forcing people to put money into stock market, or other investment. Everybody knows stock market is risky, especially for people close to or in retirement. If all money goes to stock market, all the executives can started to get good bonus again, and when it crash, it's normal people who get screwed.

What ABA did is taking away the freedom and eliminating competitions.

Today Alliant CU lowered their interest rate by another .25 points, other Credit Unions are lowering interest rate too. Soon the national rate will be 1%, or .5%, who knows.

We should all write emails or letters to FDIC and our congress man to strongly oppose to this regulation. if they really want it, let people to decide, to vote on it.


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Anonymous

Anonymous - #7, Tuesday, June 2, 2009 - 1:08 PM

FDIC is sticking the finger where there is no business of theirs.
Since when FDIC decides the interest rates paid by the banks.


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