Interest Rates for Savings Accounts

[Anonymous]

Hi All,

I was talking interest rates today with a colleague. She suggested Ally online bank as they offer 2% interest for Savings accounts. I am with Cap One and my interest rate is 1%. Seems like a no brainer except I like Cap One and would rather stay with them. Do you think it is possible to negotiate a 2% interest rate with them to keep me from jumping ship or is it a nonstarter?

Thanks for any advice or feedback!

[Pikaboo-icu]

Have you looked into any Credit Unions?

They offer some of the very best interest rates both the local CUs and National.

[Anonymous]

Capital One 360 offers 2% on a Money Market.  I don’t recall the minimum required for the rate, but you can find it on the internet, as it seems like you would prefer to stick to Capital One.

I get higher than 2% now but would move funds if I can find a relationship banking deal with over 2% interest and no required minimum balance to maintain to waive fees even though I would deposit a significant balance but don’t want to be forced to keep funds in to maintain minimum.  

There are so many physical branch banks throughout the country as well as credit unions and online institutions.  People pick different institutions but its hard to understand why one picks one over another.

[CramEiko]

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@Anonymous wrote:
Hi All,

I was talking interest rates today with a colleague. She suggested Ally online bank as they offer 2% interest for Savings accounts. I am with Cap One and my interest rate is 1%. Seems like a no brainer except I like Cap One and would rather stay with them. Do you think it is possible to negotiate a 2% interest rate with them to keep me from jumping ship or is it a nonstarter?

Thanks for any advice or feedback!

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Have you looked at the bank rate website? Cap1 1 yr CD's are showing 2.70%. I belive if you can get into PenFed they are at 2.80% for a 1yr.

 

Edited: changed out pics.

[Anonymous]

Thanks for this. I hadn't considered a credit union as it always seemed membership was dependent upon some specific affiliation that I never had. Will do some research. And thanks for the Bank Rate resource. That's very helpful. Definitely going to check out the Cap One Money Market, though the minimum is $10,000. Will have to think about that. But it's helpful to see how many other options there are. Time to stop being so passive about this. 

[Anonymous]

How much money are you looking to put into the account?  There are higher yield options, but they have max caps.

[Pikaboo-icu]

PenFed that has an option to join by donating I think $17 to their charity, has some good rates.

Certificates:

1yr 2.8% 5yr 3.5%  Start at $1000.

Their savings is 2% start with as little as $5. 

There are plenty of other CUs, there's a thread around here with a list. 

My CU in WA state is paying 8% but only up to $500 darn it. LOL

[jacetx]

Ally just raised the savings rate to 2.20%, you might want to look into it.

[iced]

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@Anonymous wrote:
Hi All,

I was talking interest rates today with a colleague. She suggested Ally online bank as they offer 2% interest for Savings accounts. I am with Cap One and my interest rate is 1%. Seems like a no brainer except I like Cap One and would rather stay with them. Do you think it is possible to negotiate a 2% interest rate with them to keep me from jumping ship or is it a nonstarter?

Thanks for any advice or feedback!

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Unless you have a significant amount parked at Cap One (millions), I very much doubt they'll budge on their rates for you. If word got out they made an exception for you, imagine how many others would follow suit trying to do what you did to get that rate boost?

As others have stated, your best bet is to move your cash to a place with a higher rate. Several are offering 2.2% today (Barclays, Ally, etc), or you can play the debit card/minimum transaction BS that some of the high-yield savings accounts do and get 5% or so.

[Anonymous]

Capital One won’t work to pay bills from checking account via mobile banking with its latest revision.  If relationship banking led to higher rates without requiring high minimums on par with online banks I would do it myself.  But the market seems to be against that.  HSBC has a high rate now at 2.22% for online accounts but their own branches are closing and it is an online only account.

I don’t do products where I pay interest to banks and I don’t do high minimum balance accounts where my funds are used to waive fees in lieu of interest rates where I am worse off as I can pay for needed service out of pocket and it would cost less than the money I lost on interest by having the account in the first place.

You would think most customers would understand this but apparently they don’t and the largest national banks earn huge profits as they like having local branches, drive through tellers, lots of ATM’s and the like and people are willing to pay extra for these services.