The thing that I find unsettling about this Bloomberg article is how industry insiders appear to hold contempt against the banks offering the high rates. Here are some examples with my own highlights:
"You have a whole raft of smaller banks out there, some of which are in difficulty, who are paying rates that are bordering on insanity," James Wells, chief executive officer of SunTrust Banks Inc., said in a conference call with investors Nov. 13.
WaMu and Wachovia were paying unusually high rates, pressuring competitors, Bank of America Chief Executive Officer Kenneth Lewis told analysts last month. Wells Fargo is "a very rational pricer," he said.
"A key reason regulators pushed Wachovia to sell was that they were screwing up deposit costs up and down the Eastern Seaboard," said Tony Plath, a finance professor at the University of North Carolina at Charlotte. "A lot of hot money was moving into Wachovia and other banks that weren't matching Wachovia were getting clobbered."
I'm thankful that we have banks and credit unions that are willing to offer some decent rates rather than the tiny rates that are usually offered at Wells Fargo and Bank of America. With inflation and taxes, it's hard enough for savers to stay ahead. We don't want 1% interest rates. I hope these banks that are offering the high rates can stay in business and continue to challenge these mega banks.
Thanks to the reader who emailed me this article.