Comments on: WT Direct Promotion Code, Up To $150 Opening Bonus

By: Ken Feyl

Ken Feyl — Sat, 11 Jul 2009 12:30:21 +0000

Why do these WTDirect deals get worse every run? I remember that last time, you could get $250 for $50k. The time before that, you could get $250 for $25k. At the rates in the current promotion, I really have to question whether the lost days of interest on both ends of the transfer are worth the 0.75% increase over a 2% online savings account. Generally I say these promotions have to be worth $100 for me to waste my time. That is why I do not think this particular promotion is worth it.

By: Jonathan

Jonathan — Thu, 09 Jul 2009 22:11:14 +0000

RC – I’m afraid not. APY is annual percentage yield. If you get $150 for only keeping your money for 3 months, the annual yield is for just that amount is 4 times higher. So the contribution of the $150 itself would be about 1.2% APY. Add in the 1.76% APY for about 2.96% APY total.

By: RC

RC — Thu, 09 Jul 2009 20:32:50 +0000

Is the math right on this?
$150/$50,000 = 0.003 = 0.3%APY

By: mimi

mimi — Thu, 09 Jul 2009 17:02:53 +0000

That’s a decent rate (for these days), 1.76 — my credit union is only giving me 1.6 on the money I recently cashed out by refinancing — and charging me 5% to borrow it. I keep wondering if I was dumb by doing this — but I really love having almost $70K in the bank. I’ve never had that much money sitting in an account (besides my retirement) in my life. But, I don’t think $150 would be worth the headaches of moving it around. I’m happy to stay put for now.

By: Greg

Greg — Thu, 09 Jul 2009 16:25:04 +0000

I opened a WTDirect account about a year ago and wish I had known about this $150 offer!

For anyone who doesn’t know WTDirect, they’re part of Wilmington Trust which is a solid bank in Delaware. Their interest rate has always been very competitive and they don’t offer a real high rate for a little while and then kick the floor out from underneath you like some other banks do. And the service has been super.

I would definitely recommend.

By: Jonathan

Jonathan — Thu, 09 Jul 2009 09:04:17 +0000

Exactly, they are depending on people to move $50k++ there, and then leave it there. I’d happily pay 1.76% for some money and loan out a *multiple* of that at 6% (thanks to fractional reserve banking).

Banks have been unprofitably recently because they weren’t happy with their old-school cash machine – they wanted it turbocharged!!! …and blew the engine.

By: Maury

Maury — Thu, 09 Jul 2009 05:19:48 +0000

Scott,

They loan out money for a lot more than 3% interest and keep the difference. Heck, the rules will allow them to make about a half million in loans based on that $50K deposit.

By: Scott Lovingood

Scott Lovingood — Thu, 09 Jul 2009 05:11:05 +0000

Is it just me or does anyone else wonder how they can afford to pay these? If they value $50k that much they know they are going to make more than that back.

Banks aren’t non profits though many of them have been unprofitable for years. While your money is protected by FDIC insurance, it is a good idea to check the safety of the bank before opening an account there.

I have no idea about WT Direct so don’t take this as an issue with this bank specifically.