When will this stop?

[akbarpunjabi]

I felt the same pain recently with a few navy fed CD’s that just matured, going from 6% APY down to 2.7% APY definitely hurts. So I took all the matured CD’s from Navy Fed and went around the corner to countrywide in mission valley and got 4.15% APY on a 12 month CD. Highest rate I could find and the banker there was very nice and friendly and honest about the current finacial crisis when we chit chatted with him while starting the CD. I wanted to stay with navy fed as i have everything with them but I couldnt justify the loss of interest and I asked and they would not match countrywide. Just stick to the FDIC limits and everything will be fine regardless who goes BK or merges with whomever.

[ocrenter]

might want to look into AARP, money market is above 4% (around 4.25%). just get an associate AARP membership (not age restricted) prior to sign up.

[ocrenter]

might want to look into AARP, money market is above 4% (around 4.25%). just get an associate AARP membership (not age restricted) prior to sign up.

[ocrenter]

might want to look into AARP, money market is above 4% (around 4.25%). just get an associate AARP membership (not age restricted) prior to sign up.

[ocrenter]

might want to look into AARP, money market is above 4% (around 4.25%). just get an associate AARP membership (not age restricted) prior to sign up.

[ocrenter]

might want to look into AARP, money market is above 4% (around 4.25%). just get an associate AARP membership (not age restricted) prior to sign up.

[akbarpunjabi]

AARP does look pretty good with a savings APY of 4.5% and an over 50K money market APY of 4.75%. Makes it easily worth the $12.50 for the yearly membership. You never know what way those rates are going to go when they change every week or month, but it is hard to imagine them going down from this point. http://www.aarpsavings.com/rates.aspx

[akbarpunjabi]

AARP does look pretty good with a savings APY of 4.5% and an over 50K money market APY of 4.75%. Makes it easily worth the $12.50 for the yearly membership. You never know what way those rates are going to go when they change every week or month, but it is hard to imagine them going down from this point. http://www.aarpsavings.com/rates.aspx

[akbarpunjabi]

AARP does look pretty good with a savings APY of 4.5% and an over 50K money market APY of 4.75%. Makes it easily worth the $12.50 for the yearly membership. You never know what way those rates are going to go when they change every week or month, but it is hard to imagine them going down from this point. http://www.aarpsavings.com/rates.aspx

[akbarpunjabi]

AARP does look pretty good with a savings APY of 4.5% and an over 50K money market APY of 4.75%. Makes it easily worth the $12.50 for the yearly membership. You never know what way those rates are going to go when they change every week or month, but it is hard to imagine them going down from this point. http://www.aarpsavings.com/rates.aspx

[akbarpunjabi]

AARP does look pretty good with a savings APY of 4.5% and an over 50K money market APY of 4.75%. Makes it easily worth the $12.50 for the yearly membership. You never know what way those rates are going to go when they change every week or month, but it is hard to imagine them going down from this point. http://www.aarpsavings.com/rates.aspx

[HLS]

There is desperation in the air…

There are people who are buying T-BILLS at less than 2% return who are well aware of what FDIC institutions are offering.

The Discount Rate is what ELIGIBLE institutions can borrow from the FED at, which is 2.25% this week.

The Fed Funds Rate is what banks lend to each other at, which is currently 2.00%

The 11th District Cost Of Funds Index (COFI) is
the weighted average interest rate paid by 11th Federal Home Loan Bank District (CA,NV,NV) savings institutions for savings and checking accounts. It is currently 3.28%

So, this means that the public is loaning to the higher paying banks who appear to be in some sort of trouble,
because the other banks may not trust them.

If they were ELIGIBLE to borrow from the Federal Reserve or other banks, they sure wouldn’t be offering to pay double that rate because they are generous.

They can never borrow their entire assets from the FED, nor other banks, but if they were solid, they wouldn’t be offering such high rates. They do need a base of consumer deposits, but understand why some are offering MUCH higher rates than others.

When looking at 4.50% instead of 2.50%, it’s not just “2 points” it is 80% more….
Don’t assume that FDIC ins. means ZERO risk…

Although we all expect FDIC to step up to the plate the next business day to offer coverage to a failed bank, this just may not be possible if it is a large bank.

I don’t know what the worst case scenario is,, I suppose that it is paying back the principal over time, without paying any interest on the funds ?

[HLS]

There is desperation in the air…

There are people who are buying T-BILLS at less than 2% return who are well aware of what FDIC institutions are offering.

The Discount Rate is what ELIGIBLE institutions can borrow from the FED at, which is 2.25% this week.

The Fed Funds Rate is what banks lend to each other at, which is currently 2.00%

The 11th District Cost Of Funds Index (COFI) is
the weighted average interest rate paid by 11th Federal Home Loan Bank District (CA,NV,NV) savings institutions for savings and checking accounts. It is currently 3.28%

So, this means that the public is loaning to the higher paying banks who appear to be in some sort of trouble,
because the other banks may not trust them.

If they were ELIGIBLE to borrow from the Federal Reserve or other banks, they sure wouldn’t be offering to pay double that rate because they are generous.

They can never borrow their entire assets from the FED, nor other banks, but if they were solid, they wouldn’t be offering such high rates. They do need a base of consumer deposits, but understand why some are offering MUCH higher rates than others.

When looking at 4.50% instead of 2.50%, it’s not just “2 points” it is 80% more….
Don’t assume that FDIC ins. means ZERO risk…

Although we all expect FDIC to step up to the plate the next business day to offer coverage to a failed bank, this just may not be possible if it is a large bank.

I don’t know what the worst case scenario is,, I suppose that it is paying back the principal over time, without paying any interest on the funds ?

[HLS]

There is desperation in the air…

There are people who are buying T-BILLS at less than 2% return who are well aware of what FDIC institutions are offering.

The Discount Rate is what ELIGIBLE institutions can borrow from the FED at, which is 2.25% this week.

The Fed Funds Rate is what banks lend to each other at, which is currently 2.00%

The 11th District Cost Of Funds Index (COFI) is
the weighted average interest rate paid by 11th Federal Home Loan Bank District (CA,NV,NV) savings institutions for savings and checking accounts. It is currently 3.28%

So, this means that the public is loaning to the higher paying banks who appear to be in some sort of trouble,
because the other banks may not trust them.

If they were ELIGIBLE to borrow from the Federal Reserve or other banks, they sure wouldn’t be offering to pay double that rate because they are generous.

They can never borrow their entire assets from the FED, nor other banks, but if they were solid, they wouldn’t be offering such high rates. They do need a base of consumer deposits, but understand why some are offering MUCH higher rates than others.

When looking at 4.50% instead of 2.50%, it’s not just “2 points” it is 80% more….
Don’t assume that FDIC ins. means ZERO risk…

Although we all expect FDIC to step up to the plate the next business day to offer coverage to a failed bank, this just may not be possible if it is a large bank.

I don’t know what the worst case scenario is,, I suppose that it is paying back the principal over time, without paying any interest on the funds ?

[HLS]

There is desperation in the air…

There are people who are buying T-BILLS at less than 2% return who are well aware of what FDIC institutions are offering.

The Discount Rate is what ELIGIBLE institutions can borrow from the FED at, which is 2.25% this week.

The Fed Funds Rate is what banks lend to each other at, which is currently 2.00%

The 11th District Cost Of Funds Index (COFI) is
the weighted average interest rate paid by 11th Federal Home Loan Bank District (CA,NV,NV) savings institutions for savings and checking accounts. It is currently 3.28%

So, this means that the public is loaning to the higher paying banks who appear to be in some sort of trouble,
because the other banks may not trust them.

If they were ELIGIBLE to borrow from the Federal Reserve or other banks, they sure wouldn’t be offering to pay double that rate because they are generous.

They can never borrow their entire assets from the FED, nor other banks, but if they were solid, they wouldn’t be offering such high rates. They do need a base of consumer deposits, but understand why some are offering MUCH higher rates than others.

When looking at 4.50% instead of 2.50%, it’s not just “2 points” it is 80% more….
Don’t assume that FDIC ins. means ZERO risk…

Although we all expect FDIC to step up to the plate the next business day to offer coverage to a failed bank, this just may not be possible if it is a large bank.

I don’t know what the worst case scenario is,, I suppose that it is paying back the principal over time, without paying any interest on the funds ?

[Author]

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