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Another Wtdirect Rate Drop

Thursday, July 28, 2011 - 9:42 PMWTDirect - Details
WTDirect dropped its' savings account APY
from .76% to .25% today.
13
cumuluscumulus297 posts since
Jan 16, 2010
Rep Points: 1,370
1. Friday, July 29, 2011 - 8:08 AM
Another good banking product poisoned by M & T Bank (now, officially, Wilmington Trust -- odd, isn't it, that the acquiring company changed its name to that of the acquired? Is it that M & T Bank has reasons to distance itself from its own name?). Is this at all a surprise? I've been predicting this for some time, only I didn't think they would act quite so soon. My Dad transferred most of his money earlier this week, the rest will come out on Monday.
4
WilWil242 posts since
Feb 26, 2010
Rep Points: 1,281
2. Friday, July 29, 2011 - 8:20 AM
Between this and the $3 charge per ACH transfer starting in late August,  WTDirect  is joining the ranks of "Good bank gone wrong after acquisition".  ING appears to be the charter member of this group of rather dubious distinction after its acquisition by Capital One. 
4
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
3. Friday, July 29, 2011 - 10:03 AM
Matches the rate at the other M & T online bank, OnBank.  At least they dropped the 10k minimum.
3
larkinlarkin62 posts since
Jun 18, 2010
Rep Points: 274
4. Saturday, July 30, 2011 - 2:53 PM
So the M&T "welcome" packet arrived this week, and the interest rate is already down to 0.25%.  BTW, the rate drops before you see it on your account.  When I saw the previous lower rate on the main web page, but the rate shown on the account was still over 1%, I called and was told that there is a lag between the rate change and when it is displayed on your account.
2
CapitalClimateCapitalClimate4 posts since
Jul 30, 2011
Rep Points: 17
5. Monday, August 1, 2011 - 12:04 PM
Matches the rate at the other M & T online bank, OnBank.  At least they dropped the 10k minimum.
Apparently the 10K minimum is still in effect.  For accounts open more than 60 days, the rate is 0.15 under 10K.
2
CapitalClimateCapitalClimate4 posts since
Jul 30, 2011
Rep Points: 17
6. Monday, August 1, 2011 - 6:59 PM
1
ekatekat74 posts since
Jan 22, 2010
Rep Points: 238
7. Monday, August 1, 2011 - 7:00 PM
1
ekatekat74 posts since
Jan 22, 2010
Rep Points: 238
8. Monday, August 1, 2011 - 7:24 PM
M&T's rates drop faster than they can update - the lag from 1.0 to .76 finally updated on my account, but it's already outdated.  This last rate drop to .25% clearly shows them chasing out wtd clients.

CSR said iinterest posts 8/2, so that's a good day to close the account, which should be done by sending a bank mail after transferring all the funds out.  If an account is emptied prior to interest posting, then they advise not officially closing it until after any remaining interest posts, so you can transfer it out first.  If you close it before getting any pending interest, then it takes longer to receive.

 
4
ekatekat74 posts since
Jan 22, 2010
Rep Points: 238
9. Monday, August 1, 2011 - 8:23 PM
What was the point of the buyout if they don't want the customers?  Do they think WTD customers are so unsophisticated or lazy that they will just let their balances rot?
3
CapitalClimateCapitalClimate4 posts since
Jul 30, 2011
Rep Points: 17
10. Monday, August 1, 2011 - 8:34 PM
Do they think WTD customers are so unsophisticated or lazy that they will just let their balances rot?

EXACTLY!!! They think WTD customers will be slow to notice, and in the meanwhile, they have use, at least for awhile, of their customers' deposits without having to pay much in interest. I imagine that they have also calculated that many customers will be passive enough to leave their balances just where they are. We know about the rate drops only because we have been vigilant enough to pay attention to what they are doing. Indeed, we have expected it! But how many WTD customers read DepositAccounts.com?

3
WilWil242 posts since
Feb 26, 2010
Rep Points: 1,281
11. Wednesday, August 3, 2011 - 8:20 AM
Interest posted indeed on 8/2, and not a moment later, I put in a request to transfer all funds out.  I'll close it as soon as the $0 balance shows.

What a joke M&T is... ruining a perfectly good product.  On top of the theories mentioned above (on if M&T thinks we're lazy), they probably think there are probably some people out there who think "Well, I like getting the goblets/glasses every year, and it's still more than my local bank gives, so I'm fine!"

Thanks for the many years of business WTD!
4
SchomsSchoms1 posts since
Aug 3, 2011
Rep Points: 4
12. Wednesday, August 3, 2011 - 9:20 PM
Interest posted indeed on 8/2, and not a moment later, I put in a request to transfer all funds out.  I'll close it as soon as the $0 balance shows.  One wonders why the interest wasn't posted on 8/1? Anyway, I advised my Dad to transfer his remaining funds out as soon the interest posted. I guess tomorrow he'll contact them to close the account.

What a joke M&T is... ruining a perfectly good product.  Agreed!!! All I have left with them is a CD at OnBank (earning 5.18% APY), which matures in 2013. BTW, they can be a hassle to deal with over the phone.

On top of the theories mentioned above (on if M&T thinks we're lazy), they probably think there are probably some people out there who think "Well, I like getting the goblets/glasses every year, and it's still more than my local bank gives, so I'm fine!"  You may be right so far as people who have accounts with the megabanks (Chase, BOA, Wells Fargo, Citibank, et al.), but from my persepective, savings accounts at many brick-and-mortar community banks are still better than WTD's new 0.25%.





3
WilWil242 posts since
Feb 26, 2010
Rep Points: 1,281
13. Tuesday, November 1, 2011 - 6:59 PM
Boys and Girls - there is a reason WT sold out: shareholders don't receive a return on their investment when the bank pays rates in the top 5% of the industry. The only reason to be in business is to make money. This is not a charity formed for the benefit of you and your fellow posters. You can't stay in business if you don't provide a return to your shareholders that is greater than the rates you pay to your customers. Shareholders will invest their funds elsewhere, just like you have.
3
mbmb1 posts since
Nov 1, 2011
Rep Points: 3
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