How to Triple Your Interest at Sovereign Bank
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How to Triple Your Interest at Sovereign Bank

Banks are trying to differentiate themselves by quirky products. One challenge is how brick and mortar banks can compete with internet banks. Sovereign is trying its best. One of their newest products allows one to triple their interest.

Remember when you got a free toaster for opening an account at a bank?  Maybe it was a savings account, maybe a line of credit, but you got something as a thank you.  Back then, one knew the bankers, the tellers and the account representatives.  These days I can’t even keep up with the name of my bank – forget that toaster.  Yet, banks are realizing that they are in effect a dime a dozen and have to differentiate themselves.  Sovereign Bank is slowly impressing me with their products and push to get people back to a bank, rather than one in cyberland. 

Sovereign has created a savings account promotion that triples their standard savings rate (of a fantastically dismal 0.30%) to a moderately acceptable 0.90%.  To my dismay I can’t believe sub 1% is acceptable!  The original marketers at the bank came up with the name “Triple Your Interest Savings” for the product.

The process to get this triple rate is surprisingly lacking in hoops to jump through, although you must have a Sovereign checking account.  One must set up reoccurring automatic transfers from the linked Sovereign checking account.  If the sum of the automatic monthly transfers is between $50.00 - $99.99, the interest rate doubles to 0.60%.  If the sum of the automatic monthly transfers is $100.00 or greater, then the interest rate triples to the advertised 0.90%.  There is a modest $10 opening balance required and if no automatic monthly transfers are scheduled there is a maintenance fee of $3.50.  While this interest rate seems very low (and it is), all savings and money market accounts are.

At the same bank, the Premier Money Market Savings account, is offering a rate of 1.10% if your balance is $100,000 or greater.  That same account interest tiering system is: 1.00% APY for balances of $50,000 - $99,999.99, 0.90% APY for balances between $10,000 – $49,999.99 and 0.35 APY for balances less than $10,000. This must be linked to a Premier Checking Account and if the aggregate amount of the Money Market and checking account is less than $15,000 – you win a $30 fee.

This 0.90% rate is close to the ING (1.00%) and FBNO Direct (1.10%) and allows actual physical interaction with a person.  Imagine that!  All of the information for his account may be found at http://www.sovereignbank.com/personal/banking/savings/triple-your-interest-savings.asp

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Comments

  • Damus

    March 06, 2011

    This is quite interesting.

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