Why aren't major banks raising CD rates? (buy, interest, money)

[thrillobyte]

Wells Fargo CD: 0.01%


Chase CD: 0.02%

[mojo101]

look at CIT,CFG,Marcus ,they are paying over 1%

[lieqiang]

I must be missing something, why would anyone invest in a CD at 0.01%? Would it be in anticipation of deflation happening with negative interest rates?

[wp169]

I found an on-line 3 year CD at 3.04%, but it says the APY can be changed at any time without prior notice. I'm assuming the bank means the CD rate can change after you buy it. Has anyone heard of a CD with a APY that's not locked in?

[wp169]

Originally Posted by thrillobyte

Wells Fargo CD: 0.01%


Chase CD: 0.02%

A banker told me the major banks don't give higher CD rates because nobody would go to the smaller banks for a CD. Capital One has pretty good rates, better than the other major banks.

[carnivalday]

I looked at Fidelity's CD list, and 1 year CDs from various banks are at 2.5%.

[wp169]

Originally Posted by carnivalday

I looked at Fidelity's CD list, and 1 year CDs from various banks are at 2.5%.

Are those brokered CD's? They work different than a bank CD.

[Thatsright19]

Originally Posted by thrillobyte

Wells Fargo CD: 0.01%


Chase CD: 0.02%

Because there are swaths of people with cash who are willing to throw money at the banks any way at suboptimal returns and don’t understand they’re simply swapping one form of risk for others?

In other words, they don’t need to.

[aboucher33]

Originally Posted by wp169

A banker told me the major banks don't give higher CD rates because nobody would go to the smaller banks for a CD. Capital One has pretty good rates, better than the other major banks.

So the big banks are doing charity work to small banks by not having higher CD rates?

[wp169]

Originally Posted by aboucher33

So the big banks are doing charity work to small banks by not having higher CD rates?

I think it's regulated. The Chase banker asked me if Chase had high CD rates would I get one here or go to another bank for a CD. I said I would get one at Chase, so he said that's why the rates are higher at smaller banks. (I assumed the higher rates give the smaller banks a fair share of the CD business)