Can I negotiate my bank up to a higher rate on my CD?

Factual Questions
1

Say I check out the rates for CDs through several banks, including my own. Another bank pays a percentage point or two higher than my own bank. Is it worth it to try to get my bank to match the other bank’s rate, or are these rates set in stone?

I’d rather keep all my eggs at one bank so I can review everything at a glance, but if someone is paying more, I’d be happy to give them my business.

2

My grandfather did it 5 years back with a small-town bank he’s at.

3

My mother did it last year, after telling the credit union teller that she was going to move a CD to a bank elsewhere in town. It can’t hurt to ask.

4

Certainly.

Last fall, an organization I was treasurer for moved it’s CD’s to a different bank that offered a better rate. As I was cashing in the CD’s, they made several offers to increase their rate to match the other bank. So they clearly can and will negotiate.

5

Thanks. For the record:

Current Wells Fargo rate for a 3 month CD: 2.1%
Citibank’s ditto: 3.55%

It’s worth it to shop around. In three months, when my CD matures and it’s time to turn it over into a new one, we’ll see how my negotiation skills measure up.

6

Not that you asked, but you can get a better rate at Citibank on a six-month CD (4.88% APY) or even on the e-Savings account (4.5% APY).

7

Very true, and I’ll keep all that in mind in three months. I belatedly thought to shop around after purchasing a Wells Fargo three month CD today, and found the rate differences. The reason I needed a three month CD today is that I have another CD maturing in three months, and I wanted them to mature at approximately the same time so I can combine them at that time. I’ll check out what Citibank’s rates are in three months and see what they’re offering.

BTW, Citibank’s best one as of today’s date is the seven-monther at 5%. That’s almost as much interest as we pay on our mortgage!

8

Another suggestion is to look in Money Magazine or at the bankrate.com website when you’re comparing CD rates.

9

WF offered me a 5% CD for 5 months.

10

Yep, California only, which applies to the OP.

One option might be online savings, like Etrade or ING direct. They have rates around 5.0 and the money is not locked up, it just takes them a few days to deposit into your brick and mortar account.