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Tuesday, February 22, 2011 - 12:09 PM
Rate Increase! UICCU's Reward Checking Yield To Rise From 4% To 4.25%
University of Iowa Community Credit Union (0 stars) - DetailsIt's nice to see a rate increase for a change (and without a balance cap reduction). A reader just emailed me this news:
Amazing news from the monthly newsletter:
"Good news for Rewards Checking account holders. While many financial institutions lower the rates they pay on their interest-bearing checking accounts, we will do the opposite. Effective March 1, the premium rate on Rewards Checking will rise to 4.25% APY on balances up to $25,000."
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4. Saturday, July 30, 2011 - 9:50 AM
Their (UICCU) rate increase news on 2/22/11:
"Good news for Rewards Checking account holders. While many financial institutions lower the rates they pay on their interest-bearing checking accounts, we will do the opposite. Effective March 1, the premium rate on Rewards Checking will rise to 4.25% APY on balances up to $25,000."
Guess they decided it was the wrong ("opposite") move, now it is backing down (going with the "flow"):D:
4% --> 4.25% (2/11) --> 3.75% (8/11) --> ??
"Good news for Rewards Checking account holders. While many financial institutions lower the rates they pay on their interest-bearing checking accounts, we will do the opposite. Effective March 1, the premium rate on Rewards Checking will rise to 4.25% APY on balances up to $25,000."
Guess they decided it was the wrong ("opposite") move, now it is backing down (going with the "flow"):D:
4% --> 4.25% (2/11) --> 3.75% (8/11) --> ??
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5. Saturday, July 30, 2011 - 12:48 PM
@51hh It closely parallels the rate shuffle of Northstar Bank in Texas, which happened around the same time frame. Northstar: 3.51% 50K -> 4.01% 30K effective 3/17/11 --> 3.01% 30K effective 7/20/11
Most institutions have a lengthy approval process for changing rates. My guess is that some time in late December UICC and N* anticipated improved economic conditions in 2011 and decided to beat competitors to the punch with the Reward Checking account rate increases. When the improvements didn't materialize, they reversed course to match the economic outlook. UICCU's rate increase lasted a couple of months longer than Northstar's.
3.75% is still a good rate, though and so is the $25K cap.
Most institutions have a lengthy approval process for changing rates. My guess is that some time in late December UICC and N* anticipated improved economic conditions in 2011 and decided to beat competitors to the punch with the Reward Checking account rate increases. When the improvements didn't materialize, they reversed course to match the economic outlook. UICCU's rate increase lasted a couple of months longer than Northstar's.
3.75% is still a good rate, though and so is the $25K cap.
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6. Sunday, July 31, 2011 - 10:04 AM
You are correct pearl.
If the lack of leadership in Washington leads to our country's credit rating dropping from a AAA rating, and the stock markets take a dive, there could be a flight to quality. I'm not sure any financial institution wants to be leading the way in terms of yield. You may take on more deposits than you bargain for...or much more than you can lend out.
If the lack of leadership in Washington leads to our country's credit rating dropping from a AAA rating, and the stock markets take a dive, there could be a flight to quality. I'm not sure any financial institution wants to be leading the way in terms of yield. You may take on more deposits than you bargain for...or much more than you can lend out.
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