An ongoing thread on the topic of banks garnering deposits to use for risky activities
Chase bank sent me some junk mail that offers $500 to open checking+saving accounts.
Requirements checking: Direct deposit each month of at least $500
Requirements saving: maintain $15,000 deposit for at least 90 days
Both: keep open for at least 6 months.
Maybe some more fine print, but I think the above is the essence.
What is going on here? JP Morgan Chase must be desperate for deposits to offer the equivalent of 6.67% interest over 6 months on the savings account (actually more because you can reduce the balance after 90 days. Do your own calculations).
Now, why is Chase doing this?
Possibility 1: With NIRP-on-excess-reserves on the horizon, the banks must be desperate to get more deposits to make more loans, so that the reserves are not "excessive" anymore?
Possibility 2: Banks need cash to paper over their bad oil/gas/fracking loans.
Which one is it, or does anyone have other suggestions?
#VolckerRuleDelayed #GlassSteagall #DoddFrank #BankSpeculation #ProprietaryTrading
they prolly figure that once they get your direct deposits, you will just let it ride.
and it takes away direct deposits from their competition (wells fargo around here).