Tuesday, February 10, 2009

A lot of banks are gonna fail...

So, Geithner's announcement, while vague, seems to indicate the Fed and Treasury are ready to do the dirty work of saving some banks while rescuing others. And the financial market rescue could cost trillions of dollars.

Meanwhile, my own bank is still paying 4.76% APY on its checking accounts. On its CHECKING accounts! Free, no-minimum-balance, etc.

Its Tier-3 Money Market account (requiring $50,000 minimum) is only paying 1.26%.
A 60 month CD is only yielding 3.41%.

So, everyone has moved their money into the checking account. We've been getting that interest rate for several months.

Their 30-year fixed rate mortgage is only getting them 5.185%. 15-year is 4.98%. So, opportunity for profit would appear to be slim...

But, on their checking accounts, they're giving 4.76%.

OOPS, correction! I just checked the rates they updated it today. They're now only giving 4.07% APY.

Still, try finding 4.07% anywhere in the U.S.

At what point should I be concerned that my bank is running a ponzi scheme?

No comments: