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South Division Credit Union Fropped Rate Big Time!

Thursday, October 7, 2010 - 6:14 PMSouth Division Credit Union - Details
Credit to: Waterd53; but highlight it here:

South Division Credit Union dropped rate drastically from 4.01% to 2% (same cap of $25,000) -- already shown in their website.

It seems to be the beginning of the end of Reward Checking, with so many banks dropping rate in a significantly manner. 
6
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
1. Thursday, October 7, 2010 - 6:39 PM
I was worried about this credit union. I didn't think they wanted nationwide attention.

For reward checking, I think we're going to have to settle for around 3% for up to $25K. There are still a lot of institutions offering at least 3%. Hopefully, that will be able to last.
2
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
2. Thursday, October 7, 2010 - 7:07 PM
I don't see this drop on their web site.

http://www.sdcu.org/checkingAccounts.asp
1
dkdk6 posts since
Oct 7, 2010
Rep Points: 12
3. Thursday, October 7, 2010 - 7:21 PM
I had to refresh my browser cache for the new image with the 2% apy to be shown.
2
Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
4. Friday, October 8, 2010 - 7:23 AM
I agree with Ken tha the norm for Reward Checking is 3%; we have to get used to it.  First 6%, then 5%, 4% not long ago; now 3%... not a good trend!
4
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
5. Friday, October 8, 2010 - 12:28 PM
I was worried about this credit union. I didn't think they wanted nationwide attention.

Which brings up the Catch 22 question.  By being featured on this site in articles such as "The 5 Best Reward Checking Accounts Available Nationwide", is that bringing unwanted attention and a resulting flood of applications to small community banks or credit unions unable or unwilling the handle the increase in business?  And is this precipitating either a reduction of availability to the local area, a dropping of the rate and or cap, or all of them?  Or would this happen anyway as a natural reaction by financial institutions to the reduction of interest rates nationally across the board?

We all appreciate the work Ken does to keep us abreast of the best deals in rewards checking, but as the universe of high yield RCAs continues to shrink both in terms of numbers and yield, is this attention actually helping, or is it accelerating the decline in availability of nationally available high yield RCAs?  Over the last year, how many small community banks with good yields were featured on this site as being available nationwide, were inundated with applications from across the country, and then within a matter of days (even hours in the most extreme cases) dropped their nationwide availability.

We now know that executives of financial institutions are following this site, and is it a good thing when posters explain how they split their utility bills or grocery purchases in order to meet their qualification requirements?

I don't have answers to these questions and I'm sure that they're not all the same yes or no answers.  But I thought I would bring this up as food for thought and maybe some discussion.
3
dunkerdunker136 posts since
Jun 11, 2010
Rep Points: 414
6. Friday, October 8, 2010 - 2:01 PM
I think that some of the information on this blog is very useful and helpful. Knowing where rates are higher is a good thing. But perhaps Ken should try something a bit different and only post the bank rates for those banks that have been upfront and said that they anticipate them lasting more than a few weeks, days, or even hours.  If a bank can't be upfront about that, then a HUGE disclaimer should be included in any posting for the bank or credit union rate, so that the readers are able to make a more educated desicion about whether to pursue a deal or pass it over. I believe that Randolph Bank was honest in their communication with customers because they thought the 4.75% APY for their reward checking would last through the end of the year, and, it has not changed as of this date.  If you don't hold the banks accountable for their commuications and actions, then you are opening the door to abuse. I am not saying the banks don't have the right to cut their ratesl But this nonsense of advertising a 4.01%APY one day and then chopping the rate in half the next day, all the while being touted as one of the best nationwide reward checking accounts, is purely rediculous. BUYER BEWARE. Good luck savers. You are going to need it.
1
CandyCaneCandyCane13 posts since
Sep 29, 2010
Rep Points: 76
7. Friday, October 8, 2010 - 2:04 PM
#5:

There is a direct trade-off between sharing RCA information and the survival of that RCA.  In general, RCA comes and goes; their rates goes up and down; according to bank's view of profitability (in terms of earning as well as attractng worthwhile customers) of RCA.  However, over-publicizing a certain RCA is definitely detrimental to the life of that RCA. 

Where is the balance?  A routine publication of RCAs is both useful and necessary.  Ken contributes the up-to-date RCA list (and new RCAs) that is extremely informative and unique.  Some standard RCA questions can be answered online as RCA 101.

Any other information and comments should be minimized, IMHO.  FWF has a smaller group that exchanges sensitive information, but one has to be proven smart financially (i.e, not so stupid to utilize a deal to the degree of killing it) and has to contribute some sweet deals oneself.  It is by invitation only.  In such a way, good financial deals can be exchanged and used prudently and, most importantly, in a long-lasting manner. 

I agree with Dunker that RCA information should only stay at the "FYI" and "apply at your own risk/wisdom" level.  Human nature makes it an impossible task, however. 
3
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
8. Friday, October 8, 2010 - 3:30 PM
Any other information and comments should be minimized, IMHO.  FWF has a smaller group that exchanges sensitive information, but one has to be proven smart financially (i.e, not so stupid to utilize a deal to the degree of killing it) and has to contribute some sweet deals oneself.  It is by invitation only.  In such a way, good financial deals can be exchanged and used prudently and, most importantly, in a long-lasting manner.

OH HELL NO !!!!!      

WE dont need some "SECRET SOCIETY" like the "FRAGILE DEALS" cr@p on Fat Wallet Fianance.

2
RicochetRicochet135 posts since
Jan 19, 2010
Rep Points: 367
9. Friday, October 8, 2010 - 3:48 PM
#8:

OK,, I was iinvited at one point but never joined the FD club.  So I do not know the details of how well it operates.

My point was only to provide an example of a smaller community for exchange "sensitive" information:  This group should be prudent enough not to exploit any offers.  If people here are all mature enough to do that, then we do not need a smaller group. 

So far, I do feel this group (from depositaccounts.com) do seem more reasonable and rational (maybe more senior, too:-)  Then it is ok to exchange more detailed information.  However, I think that we already witnessed several situations that RCAs got ruined due to the publicity here.  Thus the FWF effects do seem to apply here as well.

Please do not make this thread into a "FD" or not debate because FD is not the point of discussions here, just the fundamental spirit behind it (to save and prolong some good deals/RCAs).   
3
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
10. Friday, October 8, 2010 - 7:07 PM
Im not making this thread into anything.FD is what it is! and you 're the one suggesting.

 

When this site was Bank Deals, it was a wonderful cross reference to FWF. I think better, as we didnt have to put up with Hookers  & Blow solutions to simple ?'s.

As much as I like Ken and his desire not to have his site go down, he messed up (not moneywise cause the place is littered with Logo's).            Featured... Latest Threads....and Latest Posts are virtually identical, a waste of space.

Then as soon as the  site went Publicly Nationwide we had the Blog Slopers start posting. Thankfully that seems to have calmed down.          OK baby we're going NationWide!!!       BUT I do think people should have to SEARCH for deals. Not served with a silver spoon on the front page.

 
2
RicochetRicochet135 posts since
Jan 19, 2010
Rep Points: 367
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