Flopcandy OP t1_je2p6lb wrote
Reply to comment by urby3228 in [Beginner] In my location, my bank (PNC) has a savings account interest rate of 0.03%. Capital One is 3.4%. American Express is 3.75%. Is there any reason not to switch to one of those? by Flopcandy
Looks like it's only available in certain states, and unfortunately that doesn't include my state of New York.
They do have money markets & CD's, but both are <= 2.00%.
airportwaiting t1_je2zc6r wrote
Commented elsewhere, but would just like to add - I don’t think that list is accurate as the state I am in is listed as unavailable, but I have the 4%
neuro_turtle t1_je340bd wrote
Did you open it when you lived in a different state? I also have this account and I was having serious problems figuring out the “rules” since what was listed on the website for my zipcode was not actually happening to my account. (I was being charged fees that weren’t listed for my zipcode.) Anyway, I had to call them to figure it out and they told me that it matters where you lived when you opened the account, not where you live now.
airportwaiting t1_je350nm wrote
Weird - no I did not. If they’re giving you this much crap just go to Ally or capital one haha their loss
neuro_turtle t1_je38on6 wrote
I actually called to close my account because I was ticked off, and that’s what caused them to explain. Apparently their Virtual Wallet account has different offerings based on how big PNC’s presence is. It’s a pretty stupid system and it definitely shouldn’t be that hard to find the information.
moody_botanicals t1_je35uek wrote
I have the 3.75% money market PNC account in NY, I don’t think that’s accurate
Mayor__Defacto t1_je2r4f9 wrote
If you’re wanting a CD; Chase has a 3.5% rate on a 3 month CD if you deposit >$10,000 right now. Good balance between long and short term IMO.
WasteProfession8948 t1_je3dnww wrote
There are much better rates available right now - over 5% - with brokered CDs through Schwab and Fidelity. All FDIC insured.
Mayor__Defacto t1_je3ed6x wrote
Yep, they offer them as well. I’m less familiar with their rate schedule though, and I know Fidelity won’t give just anyone a CD, you have to be a brokerage client and that entails a minimum $5k account balance on the brokerage side (you can’t count the CD balance towards that), and they charge a $20 commission in some cases. They also have to be multiples of either $100 or $1000, where traditional CDs can be down to cents if you wish. On top of that, the interest does not go into the CD, it goes back into your brokerage account, where with a traditional CD it would go back into the CD and compound.
So it’s a bit of arbitrage on which is the better option for you. For most people that do not already do business with Fidelity, a traditional CD is the better option.
LarryCraigSmeg t1_je3nf6e wrote
Yeah but there are still multiple savings accounts offering over 4%. Including Wealthfront at 4.3 with no hoops to jump through.
So why go with a CD at 3.5?
Runfish t1_je3f97k wrote
Came here to say this. Brokered cds have better rates without the banks hassle. (Short grace periods to do something with it) Just set up a Fidelity account for my daughter for this purpose.
Also, the cash sitting In Fidelity’s invest accounts makes 4.4% currently. Varies slightly by the day.
[deleted] t1_je2smkj wrote
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Mayor__Defacto t1_je2vl00 wrote
That’s an annualized rate, it’s $90 for 3 months.
Additionally the rate is variable based on the amount you put in; I don’t remember the table off the top of my head but I believe the 3 month CD only has the 3.5% rate up to $25k.
misha511 t1_je354s9 wrote
Does anyone have a link to this table? I’ve never heard of these variable rates. As far as I’ve known, it’s always been the same rate no matter how much you deposit
Mayor__Defacto t1_je39x7e wrote
JP Morgan Chase uses them as sort of variable term financing devices for themselves, so the rate offered depends upon duration and amount of money you’re locking up. The rate is basically zero unless it’s what they want you to do, which right now at least in NY is: 2% for 3mo <10k, 3.5% 3 month 10k-100k, 4% 3 month 100k+, 3% 12 month <10k, 3.25% 12 month 10k to 100k, 3.75% 12 month 100k+.
They go all the way out to 10 years, but they don’t want you doing that and that is around 1%.
Even if you don’t want to buy the product, it’s an interesting portal into what america’s largest bank thinks its short, medium, and long term cash needs look like.
The current setup of rates indicates they think their short term cash needs are greater than their medium term needs, that they’ll still need cash over the medium term, but they think that maybe in 3 months they’ll have less need for short term cash.
Psychological_Turn72 t1_je333g6 wrote
Capital one is offering 5 percent APY which is like 4.88% APR right now for 11 month CDs
Infamous-Eggplant-37 t1_je36qj6 wrote
You should call them and ask about it, say you're looking for interest rate options. I am in one of those states and they bumped by interest rate to 4% when I started transferring to discover
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