Taking it to the bank

There's a new game in town. The banks around here are advertising some fairly attractive CD rates -- 4% or better for periods of 12 months and less. But to get one, you have to open a new checking account. That's mentioned in teeny tiny print at the bottom of the ad, the part you literally need a magnifying glass to read. Seeing as how I don't want three or four checking accounts, I'm out of luck.

Is it me, or are these guys going out of their way these days to be difficult and deceptive?

I recently moved all my uncommitted cash into a local savings account at 4%, which I figured was an introductory rate. Now, I should have packed up my checkbook and run when the bank rep didn't seem to know what an "introductory rate" was. She seemed confident, though, that the rate would remain the same for "a while" and, with rates rising, I figured I'd be OK for six months or so. Well, try six weeks. In this month's statement, the APY had dropped considerably, with the new rate taking effect last month. And to make things even more insulting, the statement gave only the "APY earned to date" which would, of course, average in the higher original earnings. No clue as to the current rate.

There seemed to be no way to get a phone call through to a live human at the bank, so I stopped by to find out what the new rate was on the account. The teller handed me a list of rates that didn't include the kind of account I had. When I insisted she look up the "Maximum Money Market Savings" she quoted me the APY. I wanted the rate. So I had to walk her through the difference before she could figure out what to tell me. It's 3.78 now. Still pretty good, but there are better choices elsewhere.

So what have they gained, these banks? Here I am, a ready and willing customer who prefers to keep her accounts at local institutions. And I'm pissed at all of them.

I will never do business again with the one above because I feel ripped-off and the customer service just sucks. I will not open checking accounts all over town, either, so those other banks won't be seeing me anytime soon.

Instead, I'll keep the same checking account I've had for 15 years and link it to Emigrant Direct : American Dream Savings Account. And for CDs, there's always  BankRate.com and my broker, TD Waterhouse.

So. Neener.