[macintologist]

I have been a Wells fargo customer since 1998 and I plan on keeping them as my primary bank for as long as they don't screw me over for any particular reason.

I've been looking at saving money this summer from working and opening a certificate of deposit (CD).

The CD rates at Wells Fargo for my state really suck, and you need a $2500 minimum deposit.

The CD rates at other competing banks close to where I live have a $1000 minimum deposit and much better rates.

My question is: Is it a bad idea to open an account at another bank for a single purpose, like a CD savings account. Is it a better idea to keep all that kind of stuff with your primary bank? I have this feeling that if you keep doing all your banking stuff with one bank, you get a better rating from them, you're a more favored customer somehow and you'll get better credit or whatever.

Am I totally off base or is it common to have your money stored in multiple banks?

[Big Mac]

Yeah, you're almost totally off with that line of thought. Doing all of one's banking at a particular bank should have next to no effect on your status as a customer. If using another bank's services had the type of impact you envision, there would not be such fierce competition among credit card issuers. The thing that will improve your rating from banks (and your credit rating) is the demonstration of good money and debt management skills.

[waxcrash]

Originally Posted by macintologist

I've been looking at saving money this summer from working and opening a certificate of deposit (CD).

Are you really sure you want to tie your money up in a CD? Right now they are one of the worst investments you could ever make.

[MaxPower2k3]

the only reason i know of to keep your money in one bank is that some will give you a better interest rate on a CD if you also have another one of their accounts. citibank, for instance, has a 9-month 4% APY CD thats only available if you also have a citibank checking account. I think Chase had something similar, too

[Scotttheking]

ing has a 5.25% 12 month CD. Their normal savings account is 4.15%.
Online bank (you link it to your checking account). If you are interested, PM me and I'll send you a referral that will get you $25 as an opening bonus.
http://www.ingdirect.com

[Cody Dawg]

You'll be better off looking at credit unions if you want to stash money.

They usually offer better plans.

[SpaceMonkey]

Originally Posted by Scotttheking

ing has a 5.25% 12 month CD. Their normal savings account is 4.15%.
Online bank (you link it to your checking account). If you are interested, PM me and I'll send you a referral that will get you $25 as an opening bonus.
http://www.ingdirect.com

Another vote for ING-style high-yield savings accounts. HSBC, GMAC, and others have them now too. You get about the same interest rate as a CD, but you can withdraw your money whenever you want without penalty. The only downside is that, with ING at least, it can take a few days for the withdrawal to go through.

[macroy]

Some places will give you better rates/service based on your "total" investment with them. i.e. you may be given the "premier" client services if you have over $100K with the bank. But your mortgage will count as well - so its not like you need 100K in one account. I know CU's do that. And like Cody said, they USUALLY have better rates. Although I typically see better loan rates vs saving rates when it comes to them.

As for spreading your wealth... I see no problem with that in this day and age of online banking. I would only see this as an issue if you typically bank in person.

And yet, one more vote for high-yield savings plans - i.e. money market.

[macintologist]

Originally Posted by Cody Dawg

You'll be better off looking at credit unions if you want to stash money.

They usually offer better plans.

Don't they charge a monthly fee for something like that though?

Other than ING Direct which I have taken a look at with approval, is there another one you can recommend?

[ghporter]

Wells Fargo has been good to me, but I'd go to someone else who offered a much better return on a CD in a heartbeat. It's not "my dad and grandfather banked with Mr. Fargo," you know; it's all retail. That means they really don't expect to find 100% brand loyalty, as much as they want to compete in certain products. Where you are, WF is not the best choice for a CD (for you), so feel free to go with the bank that has the best terms.

[RAILhead]

Screw local banks, use ING Direct and really get some decent interest.

[macintologist]

Originally Posted by RAILhead

Screw local banks, use ING Direct and really get some decent interest.

Yep, I think I'm close to a decision on that one. I'd like to thank y'all for bringing it up