I opened the account 4 months ago and they were advertising a 4.5% rate and every month it has gone down and is now 4.4%. Anyone know why the rate is going down.
2007-01-17 08:02:16 · 11 answers · asked by Ken 2 in Business & Finance ➔ Investing
Banks offer good rates initially on account deals. In the course of time they offer new products which are better deals. Inertia, people being busy with other things or not paying attention to rates means that a lot of money stays with the old products despite them becoming uncompetitive. Banks make a lot of money with this practice and it seems to be pretty universal. Only answer I know is to change your accounts from time to time.
2007-01-17 08:33:50 · answer #1 · answered by Robert A 5 · 1⤊ 2⤋
This Site Might Help You.
RE:
I have a metlife high yield savings account, why does the interest rate keep going down?
I opened the account 4 months ago and they were advertising a 4.5% rate and every month it has gone down and is now 4.4%. Anyone know why the rate is going down.
2015-08-12 03:51:11 · answer #2 · answered by ? 1 · 0⤊ 0⤋
Probably they offered you a promotional rate. Savings account usually sdo not pay high yield. They are "suppose" very save and secure investment. The lower the risk the lower the return.
2007-01-17 08:12:26 · answer #3 · answered by Leonardo 1 · 0⤊ 2⤋
It is going down because Metlife controls the interest rate, and they want to pay you less.
BTW: PayPal is paying me 5.03%.
2007-01-17 08:05:02 · answer #4 · answered by Feeling Mutual 7 · 1⤊ 0⤋
Banks have the power to change the rates of savings accounts. Typically, they do this to in response to the change in interest rates. Since long-term rates are declining, bank account rates will follow.
2007-01-17 08:06:42 · answer #5 · answered by gene177 2 · 0⤊ 2⤋
Because it is an insurance co and they take a big part of your div for them self. Dump it and go into Vanguard Prim money market fund it pays 5.10 to 5.15%
2007-01-22 11:30:28 · answer #6 · answered by ? 6 · 0⤊ 0⤋
Banks don't think people will monitor their rate to closely so as a way to pay you less money is to gradually lower the rate.
2007-01-17 08:34:55 · answer #7 · answered by gradatusf 2 · 1⤊ 2⤋
Do you ever question why an INSURANCE company would have a savings account?
2007-01-17 12:21:38 · answer #8 · answered by KIDD3422 3 · 0⤊ 0⤋
Would like to know more about this too
2016-08-09 00:15:02 · answer #9 · answered by Sofia 3 · 0⤊ 0⤋
Email me.
2007-01-20 14:07:43 · answer #10 · answered by 4x 2 · 0⤊ 0⤋