I Knew It

August 14, 2023

Just under 6 months ago, I went to both the bank and credit union I use to buy a CD from both. Both rates were comparable, so easy, easy, I took the plunge.

Well, here we are, and both of those CD’s are getting ready to mature. So first I called the bank. I asked them the renewal rate, and low and behold, it’s more than a point lower than what they have listed on their website. I simply asked why the disparity, and the answer was that the advertised rate was for new customers only. My bank is currently in the process of being bought by another, so I said, technically, I was a new customer. No dice……….

Great. So, I called the credit union and asked the same questions. Any guesses on the response?? Seriously, guess. You got it, same answer.

I completely understand why they do it. Anything to bring in money. We call it a loss leader. They’re willing to pay a bit more upfront to charge a lifetime of fees. However, it puts me in a pickle.

I’m not willing to accept the lower rates when I know higher rates are available, but now I have some work to do. I can either go to another bank, open another account (and we all know how quickly that process goes….cough..cough), or I can go online to a bank, and go through that process (and we all know how easy that is…..cough…cough). If I do go ahead and open new accounts, now I’ll have four bank statements, four 1099’s to worry about come tax time, and worst of all, four passwords I’ll have to remember. At this age, I have issues remembering what day the trash truck comes. After pondering, it’s almost as if inertia is the best option, and just accept less because I don’t want the hassle. And that’s exactly what the bankers want.

So why the story? In a previous email, I hinted that we were creating an account that solves the above problems. I’ve never been a CD buyer until recently. Illness and age will do that to you. Simply, we created a cash management account that will solve my issues, and will most likely solve yours, if you suffer from Banking Frustration Anxiety (BFA) as I do……..

Thanks again for your trust and confidence