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Are You Ready for a Cashless Society?Deposit Power Program Ends
POSTED ON BY Ken Tumin
BestCashCow folks gave it a good effort but they weren't able to get a worthwhile deal on a 6-month CD in their Deposit Power Program. Here's what they said:
There were a total of 29 pledges for a total of about $2.9M. According to a BestCashCow spokesperson, some banks stated that an offer above 4.36% (the currenty best 6-month CD rate) would require a greater and broader pool of pledged money. So a successful pledge drive would likely require not only a total pledge of much more than $2.9M but also many more pledges than 29. One of the pledges was for $1M and another was for $700K. These two pledges made up 59% of the pledges. Without these two pledges, the total would have only been $1.2M. I guess it takes a lot of cash and customers to get the attention of banks these days.
Even though their bar was at 4.36%, there's currently a publicly available 5-month CD with a rate of 4.65% APY at Affinity Bank. To get excited about a program like this, I would expect rates at least 0.5% higher than the best 6-month CD.
we have now determined that participation in the program's initial trial was simply too low to generate an offer of a six-month CD rate which would have been meaningfully better than the best rates which are now available on the open market.
There were a total of 29 pledges for a total of about $2.9M. According to a BestCashCow spokesperson, some banks stated that an offer above 4.36% (the currenty best 6-month CD rate) would require a greater and broader pool of pledged money. So a successful pledge drive would likely require not only a total pledge of much more than $2.9M but also many more pledges than 29. One of the pledges was for $1M and another was for $700K. These two pledges made up 59% of the pledges. Without these two pledges, the total would have only been $1.2M. I guess it takes a lot of cash and customers to get the attention of banks these days.
Even though their bar was at 4.36%, there's currently a publicly available 5-month CD with a rate of 4.65% APY at Affinity Bank. To get excited about a program like this, I would expect rates at least 0.5% higher than the best 6-month CD.
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