do substantially larger amounts of money placed with one bank yield substantially higher yields of interest? Does that logic work?
Ideals
1) 10% or more reasonable, relistic and possible? 2) Actual bank suggestions?If possible and you can completely answer this question with an approximate level of certanty, please quantify at different financial scales, like $1000, $10,000, $100K, $1M.... what money ought to command. :)
thx! :)
Yes, larger amounts can command higher interest rates. But you are talking fractions of a percentage point, maybe a 1/4 point or so at most.
Not at all. 5% maybe in this market.
Check bankrate.com or check with your stock broker to find brokered CD's.
-john-
Nope. You can get slightly higher rates for more money, but nothing like what you are asking.
Risk follows return, that why there's the expression "risk-free rate of return" which is approx. the rate of a 1 year t-bill.
Bank CDs are now 5.2% give or take. You may find higher for long term CD (5 yrs or more), but 10% is higher than what banks get for 30 year mortgages. Even junk bonds aren't quite that high right now.
If I were offered 10% for my money, I'd run the other way, it would likely be a scam, not a legitimate offer.
JOE
For loyal customers, you can often ask for and get maybe a quarter point higher interest on a CD than the advertised rate, especially if you can show some other institution advertising higher.
At higher levels of saving, you can get more "free" perks such as safe deposit boxes, investment newsletters and personal consultations, discounted brokerage fees, notary, wire transfer services, and so on.
Unless, of course, it were a 50% "immediate return on investment" such as bozzle money from your employer. ;-)
-Mark Bole
Ah, great info. guys. So, it's true that $100,000 brought to a bank vs. $1MM will have little if no sway beyond maybe a quarter point + for a CD?
How long do you want to do this? If it is more than a few years, inflation is a big enemy. Twenty years of 3% inflation will roughly halve the value of your money. -- Doug
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.