Wanton bank theft
 

Financial question here, from someone who is really disgusted and fed up with my bank.

It's real simple: I have over X amount (lots) USD in a savings account with Dewey Phuquem & Howe, here in AZ. I've had the account for several years and have always had a high amount in there. High amount for someone who has never earned more than 35K per year, anyway.

Now, over the past two months my money has earned a whopping (hold your breath folks...) six cents in interest.


That's what I call a serious lack of interest. Can anyone explain to me how this can be okay? To my mind, naive as I am, this should be illegal.

I was told by one advisor that this is balanced out by the amounts that they are willing to lend. That's fine and dandy, but the money they loan me, by way of my credit card, comes with a 17% percent interest rate. Mathematically, the bank has a ridiculous advantage over me, which is not justified by my banking or credit history, which is exemplary. For heaven's sake, my credit rating with one of the major bureaus last time was 830.

Somebody is making more than a few piddly cents off of the funds I have in savings, but it isn't me.:mad:

It's the same all over. Those multi-million banker bonuses have to come from somewhere. Over here if you're willing to tie your money up for years you can get a few percent interest, but it's hardly worth the effort.

To add insult to injury, last year I opened a CD with my bank and put 5,000 USD in it. I did it as an experiment, and wanted to see how much it would earn if I didn't do any kind of trading or razzle-dazzle.

After the eleven month term, the CD earned all of $8.36. They get to keep my money for eleven months, and I can't touch it. If I remove it before its maturity date, I'm charged a penalty. And this penalty would be far more than the measly eight bucks and change the certificate would earn if left untouched!

Talking with others, I was to learn that no other banks are offering much better rates. Why don't the banks just hoist the Jolly Roger and be honest criminals?

Hi Mary, I think I crossposted with you. Thanks for sharing my misery! I really think something needs to be done. I know that emailing Wells Fargo will be completely useless, and it probably won't even be read. That's part of the problem. I don't think there are any actual human beings running the show. It's all done automatically, on the computer systems.

When I complain to the bankers at the branch I go to, they all just shrug and agree with me, but nobody has any real answers.

I tried to post to you privately but you have opted to not receive PMs. Do you really want to divulge particulars of your financial situation on a public site that can be read by millions? I suggest you reconsider and use general examples.

Sorry, I thought I went and changed my options to accept private messages? I will look into it.

I don't see how I can get the actual wrongness of what the bank is doing if I use general information. I think people in general, not people here on this forum, really need a wake up call.

I thank you very much for your concern. I made a wee change.

Janice, according to my user CP, I am allowing private messages, and have in fact received one from another member very recently, so I don't know what happened.

It's just the same here. I always said we should hang a few bankers. Now you know I was right.

I'm wondering why you are surprised. When you bought the CD, for example, didn't they tell you what the fixed interest rate would be? And does the interest they paid correspond with that interest rate?

I know interest rates are horribly low (though I suppose the good part is that they are also extremely low for mortgages right now), but when you buy a CD the fixed interest rate is very clear. It is part of the "name" of the product you are buying.

Your CD sounds a bit low. You should have been able to get a 1% CD for a year, which would mean you should have gotten over $40 in interest instead of just $8.

There are banks that have a "no penalty CD" that would allow you to withdraw early without penalty. Currently they pay just a smidge under 1% (I did a quick check before posting).

Yes, John, let's hang 'em high. And, charge each one $50,000 for the rope and another $75,000 for the hangman's fee.

No, I wasn't surprised, since I did know of the rate. I guess maybe I wanted to see if they would actually go through with it. Sounds crazy, but then I'm a bit crazy. If they were even slightly service oriented, mayn't they have given me a call about sitting with an advisor and seeing about how to go about trading, or reinvestment, or somesuch? Online they have a link or two for such things, but I'm an ignoramus when it comes to numbers. And the "help" pages sound like Greek to me. You literally have to go proactive and go out of your way in order to get anything useful out of a bank. I see that as upsidedown and immoral. After all, they depend on their clients' money, on their customers' investments, for their profits.

The question I ask is this: Do they want to accrue more customers? Do they want to have people invest their money with them? Do they have any interest at all in making their clients happy?

And by clients I mean all clients, not just the filthy rich ones.

I just checked the [bank name removed] rate and found "11 month CD rate 0.15%" -- which is amazingly low, even in today's environment, and would explain your situation. The 1% rate I mentioned before was from Ally. That's a very big difference. It pays to shop around even when it comes to savings accounts and CD's, since there's a big variation in what different banks pay. A lot of "high yield" (laughable term, but everything is relative) savings alternatives are available from online banks like Ally.

PS--Cross posted with your last. So, you thought they would go ahead and pay you more interest than they said they would in the name of customer relations? Really?

No, I didn't think they would pay me more interest. I thought perhaps someone might offer to help me with some advice on trading and what not. Yes, I'm hopeful that there are some good people in the world. Call me Lot.

I just checked into this deal my bank calls a "high-yield" savings account. The premium variable rates are:

$0 - $49,999.99 - 0.05%.

Absolutely sickening.

Roger, would you mind taking the name of my bank out of your post. I think Janice is right, it's not a good idea I give out too much private info here.

Thanks.

If you're eligible to join a credit union, look into it. A nonprofit, member-owned credit union is likely to give you a better deal than a bank that has to show a profit to shareholders. I can certainly testify that my credit union gives me better service.

This is the message I got just now on a second attempt.

Williamb has chosen not to receive private messages or may not be allowed to receive private messages. Therefore you may not send your message to him/her.

If you are trying to send this message to multiple recipients, remove Williamb from the recipient list and send the message again.

Maybe you have checked some box that blocks me. ;)

Well that's the strangest thing, Janice. I just went and reviewed all my options, and I have all the relevant boxes checked. I saved and saved again. I don't have anyone on ignore, and I don't even see that option here.

Maybe an admin can intervene and find out what the trouble is??

Janice, I think I may have found the problem. I had Williamb as my "aim" name, but I do not use that service at all. I don't know why that box was filled in. Did you try and message me that way?

Leave the poor bankers alone William.
When you can't grow or build, heal or craft something, how else is one expected to live like 17th century monarchs if not on the backs of the obliging throngs? Its all they have left.

Thank you, Maryann, I will look into that.

Sory to conduct this off-topic conversation publicly. We can ask a mod to delete irrelevant posts when it gets sorted out.

I looked in the membership list to find Williamb and got this message

Sorry - no matches. Please try some different terms.

I suggest you contact Alex. Use the contact us option at the bottom of this page.

Thanks, Janice. This is very strange. I'll do as you suggest.

Willie,

Move your money. There's bound to be a credit union near you, or at least a better bank. You have nothing to lose but your aggravation.

Ed

While the back-and-forth over William's PM settings is sort of off-topic, I don't think I'll delete those posts, since I might inadvertently also be removing something relevant.

Just sent a test PM. Please let me know if you received it...

Thanks,

Bill

It worked.

I thought I left a response to this, but maybe I didn't? Anyway, thanks for the suggestion, Ed, I will certainly look into it.