One Percent Totally Sucks
A while back I was looking into online banking accounts, and thought it might be wise to open one so I could start saving money. Around here it’s tough enough to save money as it is, so it would be nice if the money I could save would earn more money while it sat there. Online savings accounts have interest rates as high as 6% while I barely make 1% at my local bank, so it’s really a no-brainer when it comes to deciding how to save the money. Deciding where on the other hand, is the big decision.
For a while I was looking at Washington Mutual which offers an interest rate of 5% on their savings accounts, but then I discovered that HSBC was offering a bit more than 5%, so I decided I had better wait and do a little research before making my decision.
I’m really glad I waited, because I found SavingsAccounts.com which lists all of the online banking establishments and their current interest rates. It’s nice to have one place I can go and check out the latest rates and learn about each of the online banks. SavingsAccounts.com includes a brief description of each bank as well as their current interest rate and which products they offer, including savings accounts, checking accounts, or credit cards. They also give you the heads up on any fees or minimums for the accounts, which is awesome.
Thanks to SavingsAccounts.com, the banks are now competing for my business whether they know it or not. Of course, I still haven’t decided where I am going to open an online savings account, but at least now I have the resources to make an informed decision when the time comes.
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Oh man, that sucks. Did you tell them that you were used to interest now, and they can give you more any time they think they’re ready? haha
WaMu and the Old Bait and Switch!!
A True Story
I was interested in opening a Washington Mutual Online Savings Account with a 4.75 APY after viewing the WaMu website around 11/05/07. To take advantage of their savings account I was first required to open a WaMu checking account at a local branch. After opening my checking account I was told that the Online Savings Account could only be opened online by me.
Later I attempted to open a WaMu Online Savings Account and after several tries I was given this response “Your application has been canceled.†The response finished with “if you wish to apply at a WaMu branch, you can bring in two supporting documents from the list below to start a new application.â€
On 11/19/07, I entered the branch where I opened my original checking account with the proper documentation. I met with a WaMu Representative who said she could not help me with opening an account. I then referenced the information giving to me on their website. She took the information to her Supervisor, who said they are permitted from assisting customers with opening an Online Savings Account. The Representative then recommended a “Statement Savings Account†at 0.25 APY or if I wanted the Online Savings Account I would need to contact customer services.
I contacted customer service that evening and was transferred three times. Each time I had to repeat my current situation. Finally I spoke with a representative who assisted me online to verify the information I submitted was correct. As a result we received a response on the final page of the application which stated. “We are unable to complete your application at this time. You may, however, return seven days from now to try again.â€
Based on my experience I feel WaMu is drawing many customers to their bank through online advertising of their Online Savings Account. In return customers who become a customer and want to open a WaMu Online Savings Account cannot do so. As a result they are swayed by WaMu Representatives to open a “Statement Savings Accountâ€.
You think 1% is bad, Bank of America pressured me to start a savings account and my interest rate is .00017%. When I asked them why the ridiculously low rate, they said it was to get me used to interest. Being a math major, I quickly calculated that in 1000 years I’ll have roughly 18% of my original investment in interest.
Yes, I did find a better way to make interest, by the way.