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local bank & credit union rates


jq26
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I noticed that, despite all of the large banks dropping savings, money market, and checking account rates in tune with the Fed, my local neighborhood bank still pays me 4.01% on my free CHECKING ACCOUNT. I thought that was strange because even ING online high-yield money market is close to 3% now.

This article explains why. Survival in this environment of the neighborhood bank and credit union. Even if they breakeven or lose money on the deal, then they can keep you and your money and make it to see another day.

Another reason to go local.

http://finance.yahoo.com/banking-budgeting/article/104643/New-High-Yield-Accounts-Come-With-Plenty-of-Restrictions?mod=oneclick

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I noticed that, despite all of the large banks dropping savings, money market, and checking account rates in tune with the Fed, my local neighborhood bank still pays me 4.01% on my free CHECKING ACCOUNT. I thought that was strange because even ING online high-yield money market is close to 3% now.

This article explains why. Survival in this environment of the neighborhood bank and credit union. Even if they breakeven or lose money on the deal, then they can keep you and your money and make it to see another day.

Another reason to go local.

http://finance.yahoo.com/banking-budgeting/article/104643/New-High-Yield-Accounts-Come-With-Plenty-of-Restrictions?mod=oneclick

Okay, JQ, inquiring minds want to know. What local bank is this? And what's the minimum deposit?

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I use St. Edmond's Bank. There are only three of them that I know of. Minimum deposit is $100. No ATM fees or monthly issues that one would need to look out for.

Another one to check is East River Bank. I drove by them last night (in Philly) and they have banners out front touting their 4% checking account. Looks like a $100 minimum and a 4.09apr, which beats my bank (see Ultimate Checking). http://www.eastriverbank.com/rateinfo.htm

These two banks can't be the only ones. Seek out a little one near your home and ask if they have any specials. They need you & your money. And there is some real value in building a relationship with people in the bank rather than just being a SS number on an account.

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I have not used my ATM card at all. In fact the only time I use it is when I need a hair cut, and to pay my Rewards 660 bills. I now use my credit cards and my bank's bill pay to pay bills. Prior to that, I was a total ATM junkie.

If I were to go the local bank (heritage community bank), I'd have to use my ATM card 10 times, and WAIT for my atm fees to be reimbursed just to get a couple of dollars a month. For me, it's just not worth it. (I value time as well as money)

Because I'm so heavy into the bill pay, as well as other other reasons, I haven't even switched to BOA from my current bank. (Sovereign). It might happen the beginning of April or beginning of May. But personally, I would much rather have access to a whole lot of bank branches, then getting all nice and cuddly with the folks from the local bank. I am sure I'm not alone in that.

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I have never had a reimbursement of an ATM fee in my life. There just aren't any. Here in the Philly area (more like East Coast anymore due to expansion), there is a WaWa convenience store on every corner. And in every WaWa is a free ATM. No ATM fees from either the home bank or the cash distributing bank. Very nice.

Its not for everyone. Just mentioning this for yield seekers. You have the benefit of cash on demand (checking) with the benefit of high yield. Try that at BoA or WaMu.

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For yield seekers, it's great. I did open up an online savings account (HSBC direct). Not the highest yield (at the time I opened 3.55%), but I figure with no monthly fees and no minimum balance, I can't lose. I put a few bucks each check.

When the Fed cuts interest rates even more, I can't see how many places are going to sustain high yields. Great for Wall Street but bad for savers when the Fed cuts rate. But it's all cyclical anyway I suppose.

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I have never had a reimbursement of an ATM fee in my life. There just aren't any. Here in the Philly area (more like East Coast anymore due to expansion), there is a WaWa convenience store on every corner. And in every WaWa is a free ATM. No ATM fees from either the home bank or the cash distributing bank. Very nice.

Its not for everyone. Just mentioning this for yield seekers. You have the benefit of cash on demand (checking) with the benefit of high yield. Try that at BoA or WaMu.

Yeah, I never pay ATM fees. I either go to Wawa or my own bank, Commerce or I get extra cash when I use the card at the grocery store or drugstore.

I have some savings in ING Direct which is now down to 3.1% (argh!!), some in a PSECU money market which is at 3.5% and some in the Franklin Mint FCU which is 7% (that unfortunately is on only the first $500). But Franklin Mint also has a 5% vacation club, that's up to a $2,500 balance.

I'm gradually moving the money out of ING into the higher interest rate accounts.

All this savings is early times for me, just started in mid-January, so I only have about $1200 spread through the accounts.

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Yeah, I never pay ATM fees. I either go to Wawa or my own bank, Commerce or I get extra cash when I use the card at the grocery store or drugstore.

I have some savings in ING Direct which is now down to 3.1% (argh!!), some in a PSECU money market which is at 3.5% and some in the Franklin Mint FCU which is 7% (that unfortunately is on only the first $500). But Franklin Mint also has a 5% vacation club, that's up to a $2,500 balance.

I'm gradually moving the money out of ING into the higher interest rate accounts.

All this savings is early times for me, just started in mid-January, so I only have about $1200 spread through the accounts.

Just curious. I'm going to see my brother on Friday in South Jersey (where WaWa's are also quite bountiful as one seems to be on every block). Who administers those ATMs? Or does that even matter.

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Just curious. I'm going to see my brother on Friday in South Jersey (where WaWa's are also quite bountiful as one seems to be on every block). Who administers those ATMs? Or does that even matter.

I was going to answer but I see JQ beat me to it. I used to be a PNC customer so I well know about the Wawa/PNC connection. PNC sucks though, that's why I'm with Commerce.

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