The Huffington Post has a New Year's Resolution calling for everyone to move their money out of the large banks and into community banks and credit unions.
Frankly, forget the politics of blood thirsty conglomerates who in the 1980's started massive layoffs and in the 1990's started squeezing workers further with more work, less pay and in the 2000's started offshore outsourcing any job that wasn't either in the executive class or absolutely nailed down...
Think about the most bang for the buck. Credit unions have better credit cards, better interest rates, better loans, interest checking, interest CDs, much more flexibility, better terms and even better service.
So, why stick your money making no interest, or getting jacked on some outrageous interest rate and instead go see what your local credit unions and banks are offering. It's usually a way better deal and they have a tendency to support local businesses too.
Move Your Money
Yesterday, I spoke with the bank (Wells Fargo) where I keep about $150K on deposit at an interest rate of about 2%. Inquiring about a mortgage to refinance my condo, they saw my FICO was excellent and quoted me 4.625 for a 5 year ARM. I asked what their rate was based on -- what cost of funds index -- and was told that "It's determined by the market." I repeated my question -- clearly the 5 year Treasury would be a safe index for a 5 year ARM. Again, I was told "It's the market -- our investors want that rate."
Of course these mortgages are funded by Fannie and Freddie, but the banksters don't want to explain the mechanics of rate setting. It's all "It depends on the market."
So much for transparency -- I'm pulling my savings OUT of these TBTF MFs and moving it to where they don't insult your intelligence by paying you 2 percent and charging you 5 percent on secured debt.
Yes, Arainna, there is a Santa Claus -- and his name is Ben. Unfortunately, he only stops at the TBTF, and the rest of us gets lumps of coal. Take away his checkbook? If only the senate had more spine!