Author Topic: Cash Parking  (Read 52936 times)

Debt Free

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Re: Cash Parking
« Reply #120 on: February 05, 2020, 04:23:40 PM »
If you go to the link and then scroll down, you'll see the offer.

Honestly, I may have been mistaken before.  When you click on the link, the page displays what appears to be a message indicating a page error.  However, when you scroll down, the Kasasa offer is displayed.

Rob L

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Re: Cash Parking
« Reply #121 on: March 30, 2020, 10:57:25 AM »
To put a book end on it, the opening through the first two months of our TAB bank Kasasa checking account experience has been extremely positive. Opening was simple and afterwards we transferred in $5k from our Ally bank savings to initially fund it. We gave it a few weeks testing and then transferred in another $45k to take full advantage of the max amount qualifying for the 4% rate. It was always our intention to replace our Wells Fargo checking account with this account so we have had no problem generating the 15 debit card transactions and single ACH per month to qualify for the 4% rate. We are way over on both. Anyway, no regrets and soon good bye completely to WF :)

We received an email today saying the max rate was being lowered to 3% from 4%. Obviously this was no surprise. Our Ally bank savings account now only pays 1.5% and our old WF checking account paid zip. WF even charged a $12 monthly fee for Quicken downloads and another $12 fee if the daily average balance in a month was less than $1,500. I'm really going to miss their great customer service though (not)!

Rob L

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Re: Cash Parking
« Reply #122 on: April 28, 2020, 11:51:31 AM »
From TAB Bank, the hits just keep on coming. I would say "bait and switch" but these are extraordinary times so I guess I have to cut some slack.
From $166 per month interest (4% APR, $50k) to $62.50 (3% APR, $25k). No plans to close the account; still glad to be rid of Wells Fargo.

"Information regarding a change to your Kasasa cash deposit cap:
 
Dear Valued Customer,

We are reaching out to you today to make you aware of a recent rate decision we had to make on your Kasasa Cash account.  For us to provide our products to as many individuals as we can, we must lower the maximum deposit amount that qualifies for our highest rate on the Kasasa Cash account.  We are lowering this amount from $50,000 to $25,000.  This change is effective 5/29/2020.  Please review your account disclosures to review all other details on your account.

We are aware that this comes on the heels of a recent interest rate reduction, but with the current situation and the demands put on the banking system this is necessary move for us.  We are only doing this after a lot of careful thought and deliberation.  TAB Bank is dedicated to continuing to provide High Yield Checking to our customers and appreciate the trust you have placed in us.  We look forward to continuing to serve you for years to come.

If you have any further questions or concerns please reach out to us anytime at customerexperience@tabbank.com.

Sincerely,

Michael Palmer, Chief Operating Officer"

Rob L

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Re: Cash Parking
« Reply #123 on: July 01, 2020, 06:55:18 PM »
Saw this one coming a mile away:

"Dear Valued Customer,
We're writing to let you know that the Annual Percentage Yield (APY) for your Kasasa Cash Checking Account with TAB Bank is changing from 3.00% APY to 2.00% APY for balances from $0.01 to $25,000 effective 7/1/2020.

As our country continues to deal with the economic impacts of the COVID-19 pandemic, there have been major shifts in interest rates for deposit accounts. At TAB Bank, we are committed to providing the best possible rate that we can under the current circumstances."

Not any heads-up; the change is today! I've gone from $50k max deposit to $25k and from APR 4% to 3% to 2% ($166 per month to $42 per month). Don't you just love the FED's printing press? Hey, 2% on a checking account still ain't bad. If I don't make the required debit transactions of 15 in a month the APR is 0.5% so what the heck. Still it's much better than having the Wells Fargo checking account I had (0% APR) and they were charging me $14.95 per month for Quicken downloads.

I remain very pleased with the TAB website features and overall experience.




.Ryan.

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Re: Cash Parking
« Reply #124 on: July 01, 2020, 10:37:26 PM »
Cheap money is good and all, but there are drawbacks as well (including what we are seeing with savings rates) that I feel like no one really wants to acknowledge.

I anticipate the ride back up to normal rates + less overspending could be very painful.

Rob L

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Re: Cash Parking
« Reply #125 on: July 02, 2020, 01:32:09 PM »
Cheap money is good and all, but there are drawbacks as well (including what we are seeing with savings rates) that I feel like no one really wants to acknowledge.

I anticipate the ride back up to normal rates + less overspending could be very painful.

There is recent evidence to support what you say. From Dec 2008 until Nov 2015 the FED implemented ZIRP (Zero Interest Rate Policy) targeting the Fed Funds Rate (FFR) at 0 to 0.25%. From Nov 2015 until Oct 2018 the FED slowly raised its FFR target to 2.25% and was letting its balance sheet contract. The FED raised the FFR one more time on Wed 12/19/2018 up to 2.50%. This was too much to bear for the US economy (at least as indicated by the stock market which dropped 25% from Oct 2018 until Christmas Eve 2018). The stock market tantrum caused the FED to stop increasing rates and stop contracting its balance sheet. 

In Jan 2019 FED chief Powell earnestly apologized for the error of his ways and by May 2019 the stock market had recovered all its losses hitting an all time high. The FFR remained at 2.5% through July 2019 then from Aug through the end of Oct 2019 it was lowered in three monthly 25 bps steps to 1.75%. This caused a terrific stock market rally of 18% to an all time high in Feb 2020. We all know what has happened since. Today the stock market is 9% above the level it was at in Oct 2019 (9 months ago) and ZIRP is once again the order of the day.

The point is that in Jan 2019 the US economy was unable to accommodate what is an anemic FFR of 2.5% after 7 years of ZIRP and three years of very slow increases. How long will we be stuck here in ZIRP again? You mentioned ride back up; will the horse ever leave the stable?


lascott

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Re: Cash Parking
« Reply #126 on: July 07, 2020, 05:04:13 PM »
FYI on Ally checking. I was happy I helped my kid moved some money $25K to one of their CDs for 2.5% before some of these drops. Their future house downpayment.

Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y

Rob L

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Re: Cash Parking
« Reply #127 on: July 07, 2020, 07:42:58 PM »
FYI on Ally checking. I was happy I helped my kid moved some money $25K to one of their CDs for 2.5% before some of these drops. Their future house downpayment.



Yeah, very well!
Just now I received this moments ago from Ally:

"Robert, we want to let you know that the Annual Percentage Yield (APY) for your Online Savings Account is changing from 1.10% APY to 1.00% APY on all balance tiers. Your new APY is effective 7/8/2020 and will show online in your account details on 7/9/2020. Remember, while savings rates fluctuate, our commitment to helping you grow your money never wavers."

Hunger Games: "May the odds be ever with you" :)


AnilG

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Re: Cash Parking
« Reply #128 on: July 08, 2020, 01:36:47 AM »
FYI on Ally checking. I was happy I helped my kid moved some money $25K to one of their CDs for 2.5% before some of these drops. Their future house downpayment.

Do you use U.S. Treasury’s I-series Bond? It might have been a good use case in your situation. Before base rate reset to 0% from 0.10%, we dumped maximum allowable $10K per SSN into it.
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