Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

Can You Negotiate Savings Rates With Your Bank?

Sunday, June 23, 2013 - 9:09 AM
"They say everything in life is negotiable. So, with that in mind, I decided to see just how far I could get trying to negotiate a better rate at the bank."

Can You Negotiate With Your Bank? Part I - Savings Rates
ShorebreakShorebreak2,695 posts since
Apr 6, 2010
Rep Points: 14,614
1. Sunday, June 23, 2013 - 10:49 AM
In the "old days" (about 8-9 years ago, definitely prior to the financial crisis beginning in 2007), I frequently had some success negotiating CD rates with local institutions.  Just like in the article, before approaching banks, I used the sites available at the time to research the best online rates to serve as a benchmark and made a printout of the competing rates.  In my conversations with the bankers I also stressed the "building a relationship for future funds" aspect in anticipation of "what's in it for me" from the institution's perspective. 

The key was to always be friendly, pleasant, polite, prepared, and willing to thank them and walk away if we could not reach a satisfactory arrangement. 

Now thanks to Ken's work in bringing us this great site, I no longer have to negotiate savings rates with institutions.
pearlbrownpearlbrown1,487 posts since
Nov 2, 2010
Rep Points: 6,460
2. Sunday, June 23, 2013 - 10:57 AM
I am not surprised at all to read that the smaller Community Banks were more willing to negotiate than the larger banks.  This is why when I have a CD maturing, I go quickly to work looking up every Community Bank within 50 or so miles of my city.  These banks have helped keep me afloat since rates crashed.  They even have had better EWPs than the larger banks.  Recently when I was out of town to get a CD, there were two Community Banks across the street from each other.  One had a slightly higher rate than the other and I new both had good star ratings from my research.  Of course I went to the bank which was slightly higher.  Every little bit helps these days.
paoli2paoli21,406 posts since
Aug 10, 2011
Rep Points: 6,151
3. Sunday, June 23, 2013 - 4:23 PM
Even when interest rates were at much higher levels I never had much success at negotiating a better rate on a CD at a local financial institution. After excusing his/herself to consult with a manager, the customer service representative would soon return with the standard answer of  "I'm very sorry, that's the best rate we can offer."  I'd usually reply with "Oh really? Let me check with some other banks or credit unions and perhaps get back with you. Thank you very much for your time."

Of course, this was years ago. Then I discovered that newspapers and financial magazines started publishing higher nationally available CD yields. From that point on, the visits to local banks and credit unions to inquire about rates became more infrequent. Once the internet arrived on the scene, the floodgates opened. Nationally available rates, including those from internet-only banks, were instantly available for comparison.

The best source has become sites like Ken's, who has made researching the best rates available, nationally and within one's own state, an easy task.
ShorebreakShorebreak2,695 posts since
Apr 6, 2010
Rep Points: 14,614
4. Sunday, June 23, 2013 - 4:27 PM
Shopping around for the best rate/offer is usually sufficent.  Negotiation, as the name implies, usually involves some trade-offs that one is not willing to take (e.g., more fund/business for a single bank to trade for a higher rate). 

51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427