What's up with Wells Fargo?
I belong to a club that has a small CD with Wells Fargo. It matured this week. Here are the interest rates Wells Fargo offered (min. balance 5,000):
15 mo. or less term ... .5% (that's 1/2 of a per cent interest)
15 mo. term ............. .75% (that's 3/4 of a per cent interest)
21 mo. term ............. 1.1 %
Wasn't Wells Fargo one of the big banks who got stimulus funds?
I guess they don't want to fool around with small CD holders when they can get almost free money from taxpayers.
I just spent 30 min. reading about Wells Fargo and B of A and the TARP funds they got. They are two of the largest banks. I also looked at current CD rates from many websites who offer that service.
9 big banks received stimulus money. Wells Fargo received $25 Billion (with a B.) They immediately bought "troubled Wachovia Bank" for $12.7 Billion (they had nixed the purchase before they got the stimulus money, but after they got it, they bought Wachovia). Appears they used over half the money to buy Wachovia.
Today's average CD rates by the big banks for small CDs (the $5,000 or less variety) nationwide is .77% for a 12-month term and 1.19% for a 24 mo. term.
It appears after looking around on the net and making several calls to my local banks (who are FDIC insured) that what the big banks (BofA, Wells Fargo) will pay for interest has brought down the average national interest for CDs. My local FDIC insured local community bank pays almost 3x Wells Fargo's interest and 2x the national average and so does a national bank chain (a lot smaller than B of A or Wellls Fargo).
Just some thoughts on a slow, snowy day in the mountains of NE California.