As you might expect, it's becoming more difficult to negotiate a higher rate in this current environment. The article claims the banks' spread has been cut in half so there isn't as much room to negotiate. The article also covers other issues that make banks less likely to negotiate.
I've covered this issue in this 2007 post. Here are a few tips to negotiate a better CD rate. If you have other tips or examples of successful negotiations, please leave a comment.
- It's unlikely that you can negotiate a rate increase of more than a quarter percent.
- Don't give up early. Request to speak with other representatives or managers. Branch managers often have authority to negotiate.
- The more money that you're going to deposit, the better chance of receiving a higher rate.
- Bring evidence of higher rates at the bank's competitor
- Successful negotiations are more likely at banks where you have a long term relationship that includes other deposit products, services or loans
- Banks are typically only willing to negotiate on their standard rates and not on their promotional rates.