Rather low interest

My bank, I am told, continually seeks “ways to enhance our products and services to meet your financial needs and provide you an improved banking experience.” This sort of statement is usually shorthand for “We’re about to jack up fees,” and that’s what it proves to be here:

On December 7, 2016, your account(s) will be converted to a new Personal Savings account. Your ability to earn a competitive interest rate won’t be impacted by the change, and no immediate action is required on your part.

The major change: a $5 monthly service fee.

Now do the math. The current interest rate I’m being paid is, um, 0.03 percent. Last month I earned a whole four cents on this account. Five bucks will eat that up rather quickly.

In practice, I will not be affected by this fee: a $10 transfer from checking per month, or an average balance of $250, will get the fee waived. In the six years this account has been open, the balance has never been as low as $250. So this is apparently aimed at the folks who keep ten bucks in savings just to say they have a savings account. I’m told there are some such.

3 comments

  1. fillyjonk »

    30 October 2016 · 8:39 am

    My credit union would have charged me a fee, except the monthly direct-deposits (to checking, not savings: I’m not that rich) seems to help prevent it.

    But really? Keeping $10 in a savings account just so you can say you have one? Really? Is it that there are people who are impressed by someone having a savings account, or is it some kind of “personal” thing, as in “I can’t be too bad off because….”?

    this is just another example of the cognitive dissonance of modern times for me; I am old enough to remember 5% or even better interest rates on savings accounts. I remember when a CD was a pretty good idea. Now it’s just a way to tie up your money for long periods of time while inflation eats it.

  2. CGHill »

    30 October 2016 · 10:55 am

    Some online applications for credit cards and stuff ask if you have both checking and savings. Maybe they’re thinking that they get bonus points for having both.

  3. fillyjonk »

    30 October 2016 · 1:24 pm

    Or maybe you get turned down if you don’t.

    This is probably why I don’t get ahead more than I do: I have no sense of how to game systems. (Too much of Applejack in me, I guess)

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