New Money To Open A CD

adlerps01 | Sep 7, 2017 | 2 posts since 2017

My local TCF bank has a good offer for 1 and 2 year CDs. It require new money. All my money are in low paying accounts at the same bank. Any advice on getting a better rates that requires new money, when all your money is in the same bank? Thanks

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Bozo | Sep 7, 2017 | 1,375 posts since 2011

"New money" is generally defined as being from an external account. For example, if you have $100,000 at XYZ bank, and $100,000 at ABC bank, and ABC bank has a great offer, the $100,000 at XYZ would usually be considered "new money". That said, the devil's in the details. You should always ask the following: "I am a current account-holder at your bank. I have funds elsewhere. Do I qualify as "new money" under your offer if I utilize my funds elsewhere?"

paoli2 | Sep 17, 2017 | 2,641 posts since 2011

I really hate this "new money" business! As I explained to my local bank, "you certainly know that the large sum I deposited in my savings and checking in this bank is "not" from all the interest you are paying me! So basically anything I have here IS new money which I am only holding here!" Well it worked! She gave me the higher money market rate promotion they were having and she voluntarily added my savings to the amount so I could get the higher rate on that money too!

Sometimes people you just have to out think them on their own schemes and make certain they know you "will" withdraw all your funds and take elsewheres if they don't show you some appreciation for doing business with their bank. I usually don't use money market accounts with banks but this was a much higher rate than I could get with even a one year CD and it is completely liquid!

Sylvia | Sep 7, 2017 | 389 posts since 2012

Definitions of new money can vary. Some define it as money not at the bank as of a certain date. If that's the case w/TCF, you might be able to qualify by moving funds temporarily to an external account. Alternatively, you can tell TCF that you're prepared to permanently move your money to another bank with better rates unless they give you access to "new money" offer.

Bozo | Sep 8, 2017 | 1,375 posts since 2011

Sylvia, as I said, the "devil's in the details". I seem to recall, some time back, "new money" was defined in one disclosure as money which had not been on deposit therein for a specified period of time. Personally, I find the "new money" requirement somewhat insulting. If I am a valued customer, then I should get the same (if not better) than folks just walking in the door. OK, I understand cross-marketing and the value of new customers. But brand loyalty seems to be forgotten, these days.

In days of yore, keeping existing customers was a "plus". Based on my own recent personal experience, it's a yawn.

Bozo | Sep 8, 2017 | 1,375 posts since 2011

My banker candidly admitted some months ago "we don't need your money."

paoli2 | Sep 18, 2017 | 2,641 posts since 2011

Bozo: My "former" banker said the same thing to me so I am no longer with that bank. I also found out the banks are no longer getting such big amounts from Federal Reserve. My new banker seems very eager to get deposits and go out of her way to cooperate with me. I think we may see a turn around in the banks in the near future.

adlerps01 | Nov 25, 2017 | 2 posts since 2017

If my money at TCF bank in in my name, can I open a account a new account in my wife name and transfer the money to her account. Is that coincided a new account?

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