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A Novel Approach To Higher Rates: Ask For It

styx
styx   |     |   20 posts since 2014

A friend of mine was a depositor at Whacovia Bank with a money market account of long standing. When the bank became Wells Fargo, he noticed the interest rate was slowly and surely being whittled away to the point where he became concerned and mentioned he would have to do something. We decided to do some research. I worked the east side of the county and he the west. Our focus was money market accounts and when completed we found that, yes indeed, the interest paid on his tiered account was, on average, sub-par to other similar tiered accounts. What To Do? He could have easily moved his money to another bank but thought it prudent to give WF at least one chance to retain his business. So fortified with the knowledge gained from recent comparisons; a legitimate concern and courteous manner, he met with the manager and wanted to know if something could be done. The manager reviewed his account and asked what he would like to see. The fellow told him and guess what? With a few taps on the keyboard, my friend was now enjoying an interest rate that predated the rates Wells Fargo was offering at the time! Have you had a similar experience and how did it work out?



Answers
paoli2
paoli2   |     |   2,148 posts since 2011
styx:  Congrats to you and your friend for being successful with the bank.  Years ago when banks really wanted our deposits and needed them, I was able to get a good rate at the bank I really preferred doing business with by being able to show their competition was offering what I needed.  However, it's been a long time since I have been successful since the banks don't seem to have the same need for our deposits.  Your friend must have had a very large deposit to be able to entice that manager to give him what he wanted.  Good going for him!
styx
styx   |     |   20 posts since 2014
paoli2: Thanks for reading and posting your experience. I don't think it hurts to ask, for the right reason at the right time with the right information. I'm sure my friend wasn't asking for the highest rate in the county, but he did ask for a rate that was right for him. He mentioned the account he had at this location was a small money market-i.e. not a top tier. Banks do want our deposits and were nervous a few years ago when the 'Move Your Money' campaign was underway. Today, I believe any of the big-box banks would offer higher rates if they expereriencd a significant loss of depositors due to the paltry rates they claim to be competitive. Customer complacency can be a banks best friend.
paoli2
paoli2   |     |   2,148 posts since 2011
styx:  The reason I posted what I did was because I have been on the phone talking to banks for the past two weeks to see if they would give me the paltry 2% rate I need but all I get is "you are soooo lucky to have found a bank to get THAT rate.  We could never match that!"  You would think I was asking for 5%!  Even my local Chase bank said the same thing to me today knowing I would be taking quite a large amount to another bank.  It's like they just don't care about getting or keeping even customers with large amounts to deposit.  It's the "don't slam the door behind you, when you leave" mentality.  So I won't and I will leave.  Again, you were very lucky to get a manager for whatever reason who was willing to accommodate you. 
bwk1954
bwk1954   |     |   9 posts since 2011
My experience after Wells Fargo bought Wachovia has not been the same.  I asked about giving me a competitive rate on regular CDs and Roths, and they were not interested.  So as they have matured, I've moved the funds elsewhere.
styx
styx   |     |   20 posts since 2014
bwk1954: Thanks for sharing your experience. Sorry to hear of the difficulties you and paoli2 encountered. You gave them a chance to retain/gain your business and it didn't work out. Moving your money or reducing your deposits at this bank is a next logical move. Thank goodness DepositeAccounts is available for rate comparison. Good luck!
lou
lou   |     |   630 posts since 2010
styx, what rate did he get on that Wells Fargo money market account?
styx
styx   |     |   20 posts since 2014
Thanks Lou: the rate was bumped enough to ease my friends concern and put a smile on his face. The fellow had a few points going in his favor that may have enhanced the outcome of his request. He had a working history at this location prior to the takeover, meaning he had more than just an active deposit account with line of credit, short term loans and the like. This history was apparent on the screen in front of the manager. Perhaps he saw a potential for future business by retaining this customer. Also, while the name of the bank changed, most of the key personnel within did not. They all knew him. Lastly, ever notice all banks offer "competitive" rates? Competitive with who? Competitive with banks of the same class mostly. National chains, regionals, local, credit unions and specialty outlets. When we researched rates we realized our chances were dim if we took a top tier rate from, say, a credit union or an online bank and asked for that. Rather we went with competing national and regionals. After all, this was a regional that became a national. So, that's how it went and the gentleman recieved a rate that he enjoyed before the takeover. Fist-bumpin' awesome!