Have you noticed that interest rates on savings accounts have been creeping up over the past few months? A review of bank ads a couple of weeks ago from the Boston Globe reveals some of the rate hikes.
This is certainly much better than the fractions of one-percent that have been offered in recent years. But this bank has tucked a nasty provision in the fine print.
*MOUSE PRINT:
That’s right, to get the advertised rate you have to deposit a minimum of $200,000. Thanks for nothing, Admirals Bank.
Of course, this was not the only bank ad in the Globe. A few days earlier, HarborOne bank offered a higher rate with better terms.
*MOUSE PRINT:
This bank only requires one-eighth the minimum deposit of the first bank — $25,000 — to get a higher interest rate.
But we are not done. Another ad in the same paper as the Admirals Bank ad is even more generous.
*MOUSE PRINT:
Now we’re up to 1.50 percent with a $25,000 deposit. But one final ad in the same paper tops them all.
*MOUSE PRINT:
Bingo. One and a half percent on balances of only $10 or more from Belmont Savings Bank. But why hide that great fact in the fine print?
To the other banks: How about being upfront and posting your minimum deposit requirement right next to the advertised rate that grabbed the reader’s attention?
WOW that is high…
And some people here in the USA got pissed off earlier this year when Bank of America made major changes to the eBanking checking account program they had.
There are much better places to invest $200,000 than in a bank savings account.
I have been with Cit Bank for many years and they offer tremendous (for today’s market) returns on their Premiere Savings Account with very little deposits.
We use Ally’s online savings. No minimum deposit and I believe the current interest we earn is 1.45%. After several years, we’ve no complaints. Also, I believe the last offer from AMEX was 1.45%. Amazing the banks that require a minimum of $25,000 for the same or lesser rate!