Local banks and credit unions

[nvidia99999.livejournal.com]

Are there local banks or credit unions that offer decent rates on savings or CDs? Obviously, I would be happy to support them over big banks, if the rates are not pathetically low.

Comments

[squirrelitude]

This is relevant to my interests as well. I still use the UVa Community Credit Union, and it might be nice to have a local bank instead.

[jadelennox]

Wainwright is good. All of the credit unions are good if you qualify for membership (e.g. CPCU). Middlesex is pretty good.

[en-ki.livejournal.com]

Wainwright screwed me with the usual big-bank overdraft scam and quit SUM, so I left them for a credit union (MIT). Even with the credit union, though, the interest rate is sad compared to the various online banks. I keep several accounts sitting idle and move my money around when (a) I have money and (b) there's a rate worth moving to.

Wainwright Still in SUM

[dashford.livejournal.com]

Just to clarify, Wainwright is definitely still part of the SUM network. However, Wainwright (and every other institution in the network) need only have 60% of its ATMs participate, so the fact that some Wainwright ATMs aren't on SUM doesn't mean that the bank "quit SUM."

[wonkywheels.livejournal.com]

I use Cambridge Savings Bank SuperSmart Checking. If you do these three things, you get 4% interest on your checking account! It's insane!
1. Direct deposit
2. E-statements (online banking)
3. Use your debit card 15 or more times a month

Bank of America is evil, and I quit them and joined CSB, and it is great!

Cool, but that seems like a tease rate...

[nvidia99999.livejournal.com]

How long have you had that rate for?...

Re: Cool, but that seems like a tease rate...

[nvidia99999.livejournal.com]

I'm saying that in part because their CD rates are not very good.

Re: Cool, but that seems like a tease rate...

[wonkywheels.livejournal.com]

It's relatively new, so it could be a tease. I've had it since July. That's when I quit BOA, so I'm not sure how long the SuperSmart checking has existed. You could call and ask. CSB is a good local company.

Re: Cool, but that seems like a tease rate...

[nvidia99999.livejournal.com]

The other weird thing is that the APY is 4% for up to 25K. For balances of more than 25K, the rate falls to .05%! Bizarre.

https://www.cambridgesavings.com/pg_View.aspx?PageID=272

Re: Cool, but that seems like a tease rate...

[msackton.livejournal.com]

High-yield checking accounts with a requirement for a certain number of debit card transactions are a way to capture business by refunding a certain percentage of the interchange fee the bank gets when you buy things with your debit card.

That's way the rate goes way down above a certain balance - they aren't really giving you a rate based on what they earn lending your money out. Instead, its a rate funded by what they earn from merchant fees. It's probably not a teaser rate, but you need to use your debit card 15 times a month to buy things not just to make withdrawals.

Re: Cool, but that seems like a tease rate...

[clevernonsense.livejournal.com]

Also, it says if you don't make 20 debit transactions they charge you $5 for the month. It's a good idea for anyone who has a daily coffee habit or something like that, but I'm not sure I could meet this without *really* paying attention, which isn't really worth it to make $20-40/mo in interest. I think I'll stick to ING :)

Re: Cool, but that seems like a tease rate...

[nvidia99999.livejournal.com]

I'm with ING too... I may transfer a big chunk to Alliant, though. They have excellent savings and CD rates...

[clevernonsense.livejournal.com]

are there any weird fees associated with it? Does it include debit card use?

[wonkywheels.livejournal.com]

If you don't use your debit card 20 times in a month (i.e., if you use it between 15 and 19 times), they charge a $5 fee. I have never seen any fees on the account. Even the checks are free. And yes, the debit card is free. Oh, and they refund you if you use other banks' ATMs.

[squirrelitude]

What they are doing is shafting merchants by encouraging the use of debit cards for many small transactions. Of course, if you're using your card this way at Starbucks, Shaw's, or other out-of-town mega-merchants, no problemo!

[wonkywheels.livejournal.com]

Yeah, I would mainly use it at places where you can swipe it and not be embarrassed to be using it to buy gum or something (e.g., CVS).

[squirrelitude]

My concern would be that a bank that screws over merchants to drive business would not hesitate to turn around and screw *me* over.

[wonkywheels.livejournal.com]

I don't really see it as screwing over merchants. If I wasn't using that debit card, I would use my credit card that gives me cash back. Why use cash when it doesn't give you any benefits?

[wonkywheels.livejournal.com]

Oh ok. I will keep that in mind if I'm shopping at a local business.

(re-post for edit, sorry)

[squirrelitude]

It's only detrimental to the merchants if you use credit/debit cards for a ton of small purchases. They pay a fee per transaction for the privilege of accepting card payments, and the relative size of the fee for small purchases cuts sharply into the profit margin, potentially even driving it into the negative—I remember one small business owner talking about how he'd rather give away a bag of chips than have someone pay for it via credit card. (He was exaggerating, of course—he'd actually rather just not make the sale.)

[masswich.livejournal.com]

I find that all good rates are teaser rates, although maybe CSB is onto something with the debit card use.

Credit Unions are the way to go if you have one you can join- the rates are good because the overhead is low and they are non-profit. Customer service is both good and bad- good because they know who you are, but bad because they are a small operation and don't have a lot of bells and whistles. For example, they mostly have on-line banking but the on-line banking they use is a little Mickey Mouse...