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Updated on Friday, October 17, 2014
In our weekly Fine Print Alert newsletter we call out any good news from the financial community and shine a spotlight on any sneaky changes in the fine print. We also share our favorite reads from the week.
FINE PRINT ALERT
Good news for shareholders, bad news for savers…
The big four banks, Bank of America, Chase, Citibank and Wells Fargo, announced Quarter 3 earnings this week.
- Bank of America has $545 billion of deposits in the consumer business. In their presentation, they brag that “rate paid on deposits remained low at 6 bps in 3Q14”
- Citibank has $165 billion of deposits in the North American Consumer business (and a lot more from the rest of the world).
- Chase has $492 billion of deposits, and they are #1 in deposit growth for the fourth consecutive year. This is despite only paying 0.01% on savings account.
- Wells Fargo does not split out their consumer and corporate deposits. But they did show that the $1 trillion of core deposits cost 0.1%.
What does this mean for the average American? It means we should stop giving free deposits to big banks that only earn us 0.01%. Instead, go to our savings account comparison table and find options to earn up to 0.95%.
MagnifyMoney in the news
- MarketWatch: Watch out, these companies may only hurt your credit score
- About.com:How To Make Your Credit Card Work For You
- Nooga.com:What makes a good boss?
Our favorite reads from around the web
To Find an Encore Career Job, Try a Matchmaker – “WANTED: Retirees looking for flexible, paid part-time work in their field of expertise. Now, that’s a help-wanted ad many boomers dream of running across in their Unretirement years, isn’t it? Well, for Harry Coleman of Cincinnati, Ohio, that’s pretty much what happened, thanks to a “matchmaking” service.” Chris Farrell covers the way Boomers are redefining retirement on Next Avenue.
How I Learned to Stop Worrying and Love My 401(k) – “However my fear of not having enough money to live comfortably in old age came about, I only really started saving for retirement at about my third job out of college. That was when pensions were being eliminated by employers, and self-directed 401(k)s were being introduced as retirement savings vehicles.” Aaron Crowe analyzes how he became an avid saver for the future on Daily Finance.
7 Money Mistakes You Shouldn’t Make In Your 50s – “Nearly half of adults in their 40s and 50s are raising a kid or financially supporting an adult child, while 15% say they’re financially supporting elderly parents as well, according to a Pew study. The pressure to support not only themselves but their families can leave a lot of room for error.” – Mandi Woodruff doles out some much needed practical advice for the sandwich generation on Yahoo! Finance.
Boomtown moms – “From working mothers raising their kids in RVs to stay-at-home moms who spend their days organizing events for the Oil Wives club, meet the moms of North Dakota’s oil boom.” – Blake Ellis profiles the stories of women for CNN Money.
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