Markets get Crushed, Big Banks Follow Suit

Wall Street’s taking another beating today, with the the Dow looking to close down around 4.20 percent.

The roller coaster highs and lows we’ve been seeing appear to be here to stay, and whenever the markets get crushed the major publicly traded banks at least follow suit with equal losses – and in some cases much more.

Current Status of Publicly Trade Banks:

1) Citigroup Inc: (NYSE: C) – Down roughly 7.50%.

With a market cap of $70 billion (and almost twice that amount earlier in 2011) Citigroup is still one of the largest banking institutions in the United States. Thanks to the repeal of the Glass-Steagall Act of 1998, which allowed consumer banks to merge with investment banks and insurance institutions, Citigroup rose to mammoth heights almost over night in 1998. With their current market cap of $70 billion they are just a small fraction of their original size – once controlling $700 billion in assets.

2) Bank of America (NYSE: BAC) Down roughly 5.60%

Even with the help of a $5 billion injection from Warren Buffet at the end of last month, Bank of America still encountered substantial losses today. In fact, they lost more than half of what Berkshire invested in market cap losses from today’s trading alone. And even though Warren negotiated a nice little 6% annual dividend for his holding company, it seems gains from an increase in stock price wont be encountered anytime soon.

3) JPMorgan Chase & CO (NYSE: JPM) Down roughly 5.60%

Looks like JPMorgan Chase will end up with an almost identical percentage loss as Bank of America (although they have almost twice the market cap). That’s a big hit for what Forbes once called the “world’s largest publicly traded company.” JPMorgan Chase controls roughly $2 trillion in assets.

4) Wells Fargo (NYSE: WFC) Down roughly 3.50%

Considering the circumstances, Wells Fargo actually made out alright.

5) US Bancorp (NYSE: USB) Down roughly 1.31%

US Bank is today’s big winner! Down just 1.31% it managed to only lose a half of a billion dollars in market cap. Congrats.

No more Rewards for Wells Fargo Debit Card Customers

Wells Fargo, a bank rarely known for rewards in the first place, has now put an end to their reward structure for existing debit card holders. This comes only months after ending the same program for new debit card holders earlier in 2011.

Debit card rewards work similarly to credit card rewards in that you earn points when you spend with the card. You can then exchange your points for cash, gift cards, or a number of other items. In addition to being rewarded for spending you may also be rewarded with points for carrying high balances or making minimum deposits.

With the Wells Fargo Debit Card Rewards Program (which officially comes to an end in October of this year) customers were earning 1 point for every $4 they spent (this ratio is usually 1:1 or even 2:1 with some rewards credit cards) and even 16 points for every $1 spent on items online through partnered retailers. Unlike traditional debit cards, however, this one came with an annual fee – typically found with premium frequent flier credit cards.

Immediately following the bank collapse of ’08 we saw a number of credit card offers taken of the table only to be replaced with these reward debit cards. And despite the emergence of a double dip recession, we’ve seen this trend appearing to reverse itself – with an increase in the number of credit card offers along with their accompanying rewards and a decrease in debit card rewards.

Lowest Fixed Rate Mortgages in California – Best APR’s

Since we were forwarded a couple of fixed rate mortgage deals out of California that deserve mentioning this weekend, we figured we’d devote a post to highlighting the most attractive APR’s in CA. These fixed rate mortgages are available in certain parts of California BUT may also be available in neighboring states. You’ll have to contact the institution directly to see if you’re eligible.

Keep in mind the mortgage rates we’re covering assume a home loan or home refinance of $417,000 or less. Jumbo mortgages are provided but you’ll have to visit the bank (or credit union’s) website for their APRs.

Top California Fixed Rate Mortgages:

(Rates accurate as of June 2011.)

- Mechanics Bank (Walnut Creek, CA) has a 30 year fixed rate mortgage with an interest rate of 4.875% assuming a down payment of 20%.

- USE Credit Union (San Diego, CA) has a 30 year fixed rate mortgage with an interest rate of 4.59% assuming a down payment of 20%.

- First Technology Federal Credit Union (Santa Rosa, CA) has a 30 year fixed rate mortgage with an interest rate of 4.50% assuming a down payment of 20%, 0.125% in points and 0.50% origination fees.

- Mechanics Bank (Walnut Creek, CA) also has a 15 year fixed rate mortgage with an interest rate of 3.750% assuming a down payment of 20%.

- US Bank National Association (Rancho Santa Margarita, CA) has a 15 year fixed rate mortgage with an interest rate of 3.625% assuming a down payment of 20%, 0.875% in points and 1.00% in origination fees.

- Wells Fargo (multiple locations in CA) has a 15 year fixed rate mortgage with an interest rate of 3.625% assuming a down payment of 20%, 0.875% in points and 1.00 origination fees.

If you live in California and have locked in a better interest rate on a fixed mortgage lately, let us know about it by leaving a comment!

Wells Fargo CD Rates 2011

In this week’s coverage of CD rates offered by the largest banks in the country, we dug up the current APYs of Wells Fargo’s CD rates so far in 2011. Wells Fargo, after it’s acquisition of the failing Wachovia bank, is now one of the largest banks in the country with 6,300 branches throughout the US. Their deposit products have been notable in the past but are currently offering some completely horrific rates. Traditionally, Wells Fargo offers their CD rates in tiers based on your deposit amount. The first tier offers a rate for $2,500, the second for deposits of $10,000 and the third for deposits above $100,000. However, because Wells Fargo’s CD rates are so unfathomably low this year, their APY’s are currently the same for all deposit amounts up to $250,000.

Wells Fargo’s CD Rates 2011

(Rates accurate as of April, 2011)

- 3 month CD yielding 0.05% APY with a minimum deposit of $2,500 required.

- 6 month CD yielding 0.10% APY with a minimum deposit of $2,500 required.

- 12 month CD yielding 0.15% APY with a minimum deposit of $2,500 required.

- 11 month CD “SPECIAL” yielding 0.20% APY with a minimum deposit of $5,000 required.

- 25 month CD “SPECIAL” yielding 0.65% APY with a minimum deposit of $5,000 required.

- 45 month CD “SPECIAL” yielding 1.15% APY with a minimum deposit of $5,000 required.

- 58 month CD “SPECIAL” yielding 1.90% APY with a minimum deposit of $5,000 required.

To offset the fact that Wells Fargo is offering pretty much nothing on their standard CDs, they have a subset of “Special” CD products which blow their regular CD rates out of the water. However, these “specials” still struggle to even come close to the current national average. To put Wells Fargo’s CD rates in perspective the current national average for 6 month and 12 month CDs sit at roughly 0.55% and 0.86% respectively.

Today’s Lowest Adjustable Rate Mortgages in Texas

Recognizing the rising trend in mortgage rates recently has had many people rushing to their banks and/or credit unions to refinance their mortgage. Last week we saw mortgage refinance applications rise for the 3rd straight week with the trend expecting to continue. And since this rise, we’ve been taking note of some decent local offers from around the country. This week we wanted to narrow our focus to the state of Texas, and more specifically, to some of the lowest adjustable rate mortgages offered there.

And for those looking to purchase a new home in Texas, there’s still plenty of reason to believe it’s a buyers market.

According to our surveyed data on home prices in Austin, Texas, current homes on the market which have recently seen a price reduction come in at 30% of all homes listed for sale, while the national average for home price reductions sits at just under 25%.

Below are this week’s best ARMs (adjustable rate mortgage) offers in Texas. Please note these offers come with the assumption of 20% down and a home loan under $400,000.

Lowest ARMs in Texas:

(Rates accurate as of Jan 2011)

- Wells Fargo Bank out of Wimberly, Texas, has a 7/1 ARM (adjustable rate mortgage) going for 3.370% APR with origination fees of 1.00%.

- Bank of America out of Dallas, Texas, has a 5/1 ARM (adjustable rate mortgage) going for 4.125% APR with 1.00% points.

- Bank of the Ozarks out of Texakana, Texas, has a 5/1 ARM (adjustable rate mortgage) going for 3.500% APR with no origination fees or points.

- Sabine State Bank and Trust Company out of Jasper, Texas has a 3/1 ARM (adjustable rate mortgage) going for 4.75% interest with no origination fees or points.

- The same Wells Fargo (out of Wimberly, TX) that we mentioned earlier has a 3/1 ARM going for 3.378% APR with 0.25% points and 1.00% origination fees.

- Sabine State Bank and Trust Company out of Jasper, Texas also has a 1/1 ARM (adjustable rate mortgage) going for 4.125% interest with no origination fees or points.

If you live in Texas and happen to know of a better adjustable rate mortgage deal going on through your local bank or credit union, please share by leaving a comment!

Illinois – Wells Fargo Mortgage Rates Below National Avgerage

We’ve been seeing some fairly decent mortgage rates in Illinois offered through Wells Fargo’s mortgage division recently. If you happen to be in the market for an adjustable rate mortgage (more specifically a 5/1 ARM) AND if you live in Illinois you may want to stop by your local Wells Fargo. Currently with a down payment of 20% you can lock in a 5/1 ARM for 3.142% APR. This APR was recently found at Wells Fargo in Peoria, IL, Vernon Hills, IL and Woodhul, IL but may be available in other Wells Fargo locations throughout the state.

Below is a list of Wells Fargo’s Mortgage Rates offered in some regions in Illinois:

- 3.142% APR 5/1 adjustable rate mortgage with 1% origination fees and 20% down

- 4.311% APR 15 year fixed rate mortgage with 1% origination fees and 20% down

- 4.907% APR 30 year fixed rate mortgage with 1% origination fees and 20% down

Why Choose Wells Fargo as your Mortgage Provider?

(find out more on Wells Fargo’s home mortgage page)

1) Service – Time your payments with your paycheck. Manage your mortgage and your finances in one place. Use their “PriorityBuyer preapproval” to ease home purchase uncertainties. If approved for this you will receive guaranteed closing.

2) Reliability – Wels Fargo will continue to service their loans rather than selling them off. Customers with less than ideal credit can take advantage of their “Steps to Success” program which provides free credit management education.

3) Stregth – Wels Fargo claims that despite today’s changing mortgage market, Wells Fargo Home Mortgage is uniquely positioned for success AND as a mortgage industry leader, they are committed to helping as many customers as possible enjoy the personal and financial benefits of home ownership.

Current CD Rates from Big Banks

Below is a comparison of CD rates (certificate of deposit) rates offered by three of the largest banks in the United States. If you’ve been in the market for an FDIC insured savings product then you’ve undoubtedly noticed that rates are sitting at some of the lowest levels in recent history. You’ll also see that the largest banks in the country are generally offering APY’s significantly under the already abysmal national average. The list we’ve compiled below shows the interest rates offered on deposits through Chase Bank, Bank of America and Wells Fargo. We’ve compiled a list of the bank’s standard term CD rates which include 6 month CDs, 12 month CDs, 2 year CDs, 3 year CDs and 5 year CDs as well as any promotional offers they have. Frequently banks and credit unions will offer promotional CDs with odd-ball terms such as 9 months, 18 months or 30 months, however, you’ll see that even the promotional offers by these big banks are struggling to keep up with the national average.

For the most part large banks such as these are able to offer much lower savings rates due to their vast branch networks. Because of their constant visibility and reach they are able to service savings accounts to many consumers even though their APY’s significantly lack a competitive edge. To get a better idea of this compare the rates below with some of the top CD rates in our database.

Bank of America’s CD Rates:

(rates accurate as of Nov 23, 2010)

- 6 month CD yielding 0.05% APY with a minimum deposit of $1,000 required.

- 12 month CD yielding 0.20% APY with a minimum deposit of $1,000 required.

- 24 month CD yielding 0.40% APY with a minimum deposit of $1,000 required.

- 36 month CD yielding 0.75% APY with a minimum deposit of $1,000 required.

- 60 month CD yielding 0.95% APY with a minimum deposit of $1,000 required.

- Bank of America’s Promotional CD: 9 month “risk free” CD (available online only) yielding 0.35% APY with a minimum deposit of $5,000 required.

Chase Bank CD Rates:

(accurate as of Nov 22, 2010)

- 6 month CD yielding 0.25% APY with a minimum deposit of $1,000 required.

- 12 month CD yielding 0.25% APY with a minimum deposit of $1,000 required.

- 24 month CD yielding 0.50% APY with a minimum deposit of $1,000 required.

- 36 month CD yielding 1.01% APY with a minimum deposit of $1,000 required.

- 60 month CD yielding 1.75% APY with a minimum deposit of $10,000 required.

Chase Bank Promotional CD Rates: 9 month and 13 month CD yielding 0.50% APY and 0.60% APY respectively with minimum deposit requirements of $10,000 required.

Wells Fargo CD Rates:

(accurate as of Nov 22, 2010)

- 6 month CD yielding 0.10% APY with a minimum deposit of $2,500 required.

- 12 month CD yielding 0.15% APY with a minimum deposit of $2,500 required.

Wells Fargo CD Rate Promotions: 11 month, 39 month and 58 month CD’s yielding 0.20% APY, 0.90% APY and 1.65% APY respectively. All promotional CDs require a minimum deposit of at least $5,000.

To put the offers above in perspective the national average for 6 month CDs, 1 year CDs, and 3 year CDs sits at roughly 0.65% APY, 0.90% APY and 1.50% APY respectively.

Wells Fargo Auto Loan Products and Rates

San Francisco based Wells Fargo is one of the largest banks in the United States today with roughly 6,600 banking branches in nearly 40 states (the infamous stagecoach probably makes a stop near you!). They operate in almost every major banking vertical – including retail, commercial, and corporate banking; investment management; insurance; equipment leasing; and venture capital investment. Within the personal retail banking arena they offer CD (certificate of deposits), auto loans, checking accounts, money market accounts, credit and debit cards. They are also a top residential mortgage lender in the US as well as one of the largest mortgage servicers. The company owns Wells Fargo Insurance Services, one of the world’s largest insurance brokerage firms. It is also a leader in mutual funds and online brokerage services. Wells Fargo acquired Wachovia at the end of 2008, which doubled the company in size.

Their auto loan rates are currently on par with the national average. However, they are known for offering promotional products as well, so you may want to ask your local branch about any special offers available.

Auto Loan Rates offered through Wells Fargo:

New Car Loans:

- 12 – 36 month auto loan comes with APR of 6.74%

- 48 month auto loan comes with APR of 6.74%

- 60 month auto loan comes with APR of 6.99%

- 72 month auto loan comes with APR of 6.99%

Used Car Loans (from Dealer):

- 12 – 36 month auto loan comes with APR of 6.74%

- 48 month auto loan comes with APR of 6.74%

- 60 month auto loan comes with APR of 6.99%

- 72 month auto loan comes with APR of 6.99%

Used Car Loan (Person-to-Person):

- 12 – 36 month auto loan comes with APR of 6.74%

- 48 month auto loan comes with APR of 6.74%

- 60 month auto loan comes with APR of 6.99%

- 72 month auto loan comes with APR of 6.99%

Auto Refinance:

- 12 – 36 month auto loan comes with APR of 6.49%

- 48 month auto loan comes with APR of 6.49%

- 60 month auto loan comes with APR of 6.74%

- 72 month auto loan comes with APR of 6.74%

*Rates accurate as of June 7, 2010. Visit their auto loan page for current rates and offers.

Monday Showdown: Obama vs. Big Banks

It appears that history is repeating itself when it comes to “wall street fat cats” and the banking industry’s exuberant bonus structure. While main street continues to suffer and unemployment remains at an insanely high 10%, big banks and financial giants are, once again, paying out outrageous sums to their corporate leaders. This time, however, President Obama hopes to do something about it.

In a recent CBS interview (shown below) the president says “people on Wall Street still don’t get it.”

Top executives from Goldman Sachs, JPMorgan Chase, Bank of America and Wells Fargo (among others) are expected to be in attendance during today’s meeting with the President. Although some executives from the banks are claiming this is simply a P.R. stunt postured by the white house, President Obama says he didn’t run for office “to be helping out a bunch of fat-cat bankers on Wall Street.”

An article released on Yahoo News today claims, “the President has real problems only the banks can help him solve. On jobs, housing and the strength of the economy, he needs bankers to change their behavior, and there’s only so much he can do to force them. So when he sits down with the financial industry Élite on Monday, he may talk tough, but he’ll also be asking for their help.”

Why does Obama need help from the banking industry?

For the economy to get back on track, the staggering unemployment figures need to dwindle. However, in order for this to happen increased lending from banks to small businesses needs to take place. And this is one of the messages Obama hopes to articulate to banking leaders today. 

“One of the main messages from this meeting is that the financial industry received extraordinary help from the government – and ultimately the taxpayer – and now the industry has an obligation to help the small-business owners,” says White House spokesperson Jen Psaki.

Will today’s meeting amount to any real change within the banking industry?

Wells Fargo: CD rates and bank review

Wells Fargo is one of the oldest and largest banking institutions in the United States. Originally founded in 1852 in the era of the California Gold Rush, Wells Fargo (and Wachovia) now have over 13,000 locations nationwide. They are the fourth largest bank in the US by assets and third largest by market cap. They are headquartered in San Francisco, California and serve roughly 48 million customers with over a quarter of a million employees. 

They offer almost every banking product available, for both personal and business accounts, as well as retail and wholesale banking. 

Current CD rates offered by Wells Fargo:

Please Note – These CD rates are current as of December, 2009. Early withdrawals may result in reduced earnings. These accounts are FDIC insured. They may offer deposits with longer durations than what is shown below but you will need to contact a local representative for rates. A minimum deposit of $2,500 is required to open an account.

3 month CD (certificate of deposit) yielding 0.15% APY 

6 month CD (certificate of deposit) yielding 0.25% APY

12 month CD (certificate of deposit) yielding 0.40% APY

Promotional CD rates:

9 month CD (renews for 6 month term) yielding 0.50% APY with a minimum deposit of $5,000 required.

18 month CD (renews for 12 month term) yielding 0.90% APY with a minimum deposit of $5,000 required.

23 month CD (renews for 12 month term) yielding 1.40% APY with a minimum deposit of $5,000 required.

30 month CD (renews for 24 month term) yielding 1.90% APY with a minimum deposit of $5,000 required.

At term end, you have a seven-day grace period during which you can:

• Let your CD renew automatically at the current rate — no need for you to do a thing
• Withdraw all or part of your deposit
• Select a new term
• Make one additional deposit