Thread regarding Wells Fargo & Co. layoffs

Post ID: @1cwo+1kXy8QQW

You’re thinking of an I- Bond.

@1tbk+1kXy8QQW

Isn’t there a 10k limit on how many of those you can buy per year? And you’re locked in for a year and lose the last 3 month’s interest if you cash them in before 5 years? Or is that a different series?

Big banks are generally notorious for cr---y rates. I had a savings back in 2007 with WF that got I think 0.25%.

I would love to buy a T-Bill thanks for that information!

Keep your existing Bank and still earn 4.5 %
Buy T-Bills using treasury direct

The commercial bank implemented a deposit retention strategy and they are actively seeking new deposits. Because of the spread we're making more money on deposits vs. loans.

Deposit funds can be used to fund other investments besides loans.

More deposits mean either you will have more assets or lower equity. Neither of which do we want.

I believe there was a wsj article last week about big banks loosing a lot of deposits because their savings rates aren't keeping up. I transfered over 100k out of WF to a 6mo CD with my brokerage at almost 4.5%. There a plenty of smaller and online banks offering over 4% on hysa's

Ally now at 3.4%. Citi online at 3.4% also. I have accounts with both. I have CDs of 12-14 month duration paying from 4% to 4.75% at several institutions. Just opened an IRA 5 year CD at 5.05%. Moved my HSA from Optum to Liberty Federal Credit Union at 2.07%. They are in Indianna and I'm not but easy to become a member. Check them out. They have a really cool checking account that pays 3.45%. Rates are out there for sure. I'm 80% cash right now with retirement a month away so thankful for the high cash rates. Don't give me the not keeping up with inflation crud. Inflation impacts your spending not your earnings rate. If I have a million dollars and spend $100k a year a 7% inflation rate means I only need to squeeze out another .7% from my assets to break even. It's a math thing.

The Asset cap has nothing to do with deposits. Deposits are a liability on a banks books not an asset. They must be paid back. Loans are an asset which is why so many of our moves have to do with shedding lower earning loans for higher earning ones since we can't lend past the cap. WF has significant cash on the books so acquiring new deposits that can't be then lent out makes no sense.

I disagree with those saying Wells doesn't want to attract deposits because of it's asset cap. WFC is currently offering a CD 7-month special at 4% interest. This strategy is aimed to retain and win deposits at a high cost of capital, and then hope the consumer lets it roll over to a "non-special" CD rate after the short-term. It's legalized bait-and-switch, but it also shows that Wells needs deposits/capital.

Tell me you don’t understand the consequences of the asset cap without telling me.

According to nerdwallet.com.. Click Banking icon.
SOFI is 3.75 Ally is 3.5. Wells Fargo isn't listed.

Having been out of Wells Fargo for several months. Recap... Wells Fargo doesn't know what it wants to be. A bank? A Visa? A fintech? Charlie wants it to be a tech company... but the people managing it ... don't know what they want to manage.
And they are so far behind... and getting further.
The only way for Wells Fargo to survive is to get rid of those who have been there the longest. Get them back to the office. Have them get certified. Make sure they are learning (and not just ordering around). If not Wells Fargo will be a melting ice cube country club.

Post ID: @1qzi+1kXy8QQW

Yes. I’m glad you pointed out another way Charlie is failing as CEO of the bank. 3 years in and no ETA. 👍

Post ID: @1osp+1kXy8QQW

Not disagreeing with your accounting, but apparently there are banks who have figured out it’s a slam dunk to pay customers 3% for their cash and loan it back out at anywhere from 6.90% on homes to 20% for credit cards.

Please remember we have an asset cap so we are not going to try and solicit additional deposits.

Post ID: @1gne+1kXy8QQW

Don’t see anyone saying anything about “breaking news”, but it does so happen that Ally just raised their rate again today while Wells Fargo continues to stay stagnant and uninvolved with what’s happening in today’s economy.

Sometimes, you should just stay out of the conversation if you don’t get the gist.

Deposits are a liability. Loans are assets. We have plenty of cash… we need to lend and make money. So we don’t need to attract savings accounts.

Sofi has 3.75% HYSA and 2.5% checking. Their credit card is 2% cash back but if you direct deposit >$1k/month you get their plus product for free where you get 3% cash back.

Numerous places have been paying 3.3% for a while. Seems the OP isn't paying too close attention if this is supposed to be breaking news.

Marcus
Barclays
Amex
Capital One
All pay 3.3% for weeks

I have a savings account with Ally...it's called 'Online Savings' and the rate just went up (again) to 3.3% APY. I literally only have about $1000 in that account (until my bonus goes in tomorrow). Also their online checking account has no fee.

Post ID: @1oeh+1kXy8QQW

To the best of my knowledge, Ally only has one savings account which is high-yield and pays 3.30%.

If you open a Platinum Savings account at WFC and deposit $100,000 - they will pay 1%.
I don’t know of a high yield savings.

“Does he think customers will stay because of his good looks? Because of our fine technology?”

No. He thinks customers will stay because they are not paying attention or think it’s too much trouble to switch.

I have a big bundle in Synchrony Bank at 3.75%. I used to use Ally but they pi---d me off about a transfer I tried to do, and had to wait on hold 20+ minutes every time I called.
Before I went with Synchrony, I called them and they answered immediately. Check them out.
My kids are with Wells because they have good debit accounts for teens, but once they are old enough we are moving them elsewhere for higher savings rates.

That Ally rate is for an HYSA… does Wells even offer that product?