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Western Financial Bank pays 3.25% on MMA


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#1 adityanm

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Posted 02 March 2005 - 03:50 AM

This bank pays 3.25% APY guaranteed till 11/31/05 for deposits over $5000.
There is no other condition and it allows withdrawls and deposits by ACH.

#2 markber

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Posted 02 March 2005 - 06:48 AM

QUOTE(adityanm @ Mar 1 2005, 09:50 PM)
This bank pays 3.25% APY guaranteed till 11/31/05 for deposits over $5000.
There is no other condition and it allows withdrawls and deposits by ACH.
View Post




Wow, we have a new leader among FDIC-insured savings accounts. Thanks for the info.

Just in case if somebody needs a link to the bank, here is a link to
its rate table and a page with links to account terms and fees

#3 adityanm

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Posted 02 March 2005 - 04:18 PM

QUOTE(markber @ Mar 2 2005, 01:48 AM)
Wow, we have a new leader among FDIC-insured  savings accounts. Thanks for the info.



Incidentally there was a misprint as the rate is guaranteed till 12/31/2005.

#4 goldsheet

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Posted 02 March 2005 - 06:59 PM

I have done business for years with WFB at their local branch office, and have been very pleased with their services.

They probably are not as pleased with me for opening the high rate online account, then transferring almost all the money from my regular money market into it, but I just could not resist the rate !

Big thanks to markber for all his efforts to keep rate page updated !

Best Regards, bob

#5 fromashesirise

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Posted 03 March 2005 - 04:39 PM

QUOTE(adityanm @ Mar 1 2005, 10:50 PM)
This bank pays 3.25% APY guaranteed till 11/31/05 for deposits over $5000.
There is no other condition and it allows withdrawls and deposits by ACH.
View Post



Assuming my HP 12C has proper battery voltage, if the first $5,000 is dead money (earning no interest) then on a $25K deposit, the APY works out to 2.608%...and on a $50K deposit, the APY is 2.93%. Both examples assume daily compounding and a 360-day year.


Food for thought when comparison shopping wink.gif

#6 markber

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Posted 03 March 2005 - 07:55 PM

QUOTE(fromashesirise @ Mar 3 2005, 10:39 AM)
QUOTE(adityanm @ Mar 1 2005, 10:50 PM)
This bank pays 3.25% APY guaranteed till 11/31/05 for deposits over $5000.
There is no other condition and it allows withdrawls and deposits by ACH.
View Post



Assuming my HP 12C has proper battery voltage, if the first $5,000 is dead money (earning no interest) then on a $25K deposit, the APY works out to 2.608%...and on a $50K deposit, the APY is 2.93%. Both examples assume daily compounding and a 360-day year.


Food for thought when comparison shopping wink.gif
View Post



I think it would be a great idea to double check if the first $5000 is actually dead money.

#7 fromashesirise

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Posted 04 March 2005 - 04:20 AM

Yes, it's hard to tell with certainty from the disclosure on their website. They state that it's a tiered interest rate structure and on their rate schedule it has an "NA" for the interest rate earned on amounts below $5,000. I would expect them to display the same 3.25% APY for all tiers if it is in fact applicable to all tiers, but they might simply have placed the "NA" on the rate schedule to reflect the fact that the minimum opening balance is $5000.

I'll give them a call during their business hours tomorrow to satisfy my curiosity. I hope the rate applies to all funds - I hate those tricky MBNA-style structures that lure you to what appears to be a market-leading rate, only to turn out to be barely competitive.

#8 fromashesirise

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Posted 04 March 2005 - 05:42 PM

QUOTE(markber @ Mar 3 2005, 02:55 PM)
QUOTE(fromashesirise @ Mar 3 2005, 10:39 AM)
QUOTE(adityanm @ Mar 1 2005, 10:50 PM)
This bank pays 3.25% APY guaranteed till 11/31/05 for deposits over $5000.
There is no other condition and it allows withdrawls and deposits by ACH.
View Post



Assuming my HP 12C has proper battery voltage, if the first $5,000 is dead money (earning no interest) then on a $25K deposit, the APY works out to 2.608%...and on a $50K deposit, the APY is 2.93%. Both examples assume daily compounding and a 360-day year.


Food for thought when comparison shopping wink.gif
View Post



I think it would be a great idea to double check if the first $5000 is actually dead money.
View Post




I called WFB and it's as I suspected, the balance below $5,000 is dead money...so, a $25K deposit yields 2.61% and a $50K deposit yields 2.93%. In fact, to get a 3.25% APY on that account, you need to deposit $1,035,000 - 10X the FDIC insured ceiling.

The indifference threshold between this account and an account that pays 3.0% on the entire balance (like EmigrantDirect.com) is $62,700.

Isnít it sad what you have to go through for a lousy 25 basis points in this market? wink.gif

#9 pangya88

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Posted 04 March 2005 - 06:24 PM

I got a different answer. They said it's NOT dead money.

#10 fromashesirise

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Posted 04 March 2005 - 10:14 PM

QUOTE(pangya88 @ Mar 4 2005, 01:24 PM)
I got a different answer.  They said it's NOT dead money.
View Post




That's strange, but it wouldn't be the first time that a customer service representative at a bank didn't understand the terms of a tiered rate account. Now, the only question is which representative got it wrong.

I went through it with her very carefully, several times and she sounded certain.

I just called them back and spoke with "Pat" who confirms your response. Since that makes two positive vs. one negative response, I'm going with the positive. It is; however, a little disconcerting that the structure is so ambiguous - with the rate schedule posted on their website showing an "NA" for amounts under $5,000 and their reps giving mixed messages.

Did anyone else get a positive response from them?

#11 jrr7

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Posted 07 March 2005 - 05:09 PM

QUOTE(fromashesirise @ Mar 4 2005, 05:14 PM)

Did anyone else get a positive response from them?
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I just called and they confirmed that the first $5000 does earn interest at the stated rate, as soon as they receive the money from your bank.

I think the N/A on the website is a misprint, and that it's what probably confused that first representative.

#12 markber

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Posted 08 March 2005 - 08:27 AM

QUOTE(jrr7 @ Mar 7 2005, 10:09 AM)
QUOTE(fromashesirise @ Mar 4 2005, 05:14 PM)

Did anyone else get a positive response from them?
View Post



I just called and they confirmed that the first $5000 does earn interest at the stated rate, as soon as they receive the money from your bank.

View Post



Thanks for confirming this! I believe many members of this board consider opening an account in WFB and need to have this issue clarified.

#13 doglar

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Posted 31 July 2005 - 05:42 PM

I opened the WFB on 7/19 with $5k at 3.40%APY, my first statement of 7/29/05 reflected $5005.95 (earned $5.95 interest on the initial deposit)...doing the calculation, it was earning interest since the first day....so this is not "dead" money.





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