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Started By
Message
Banks getting desperate for returns on cash?
Posted on 3/28/13 at 1:58 pm
Posted on 3/28/13 at 1:58 pm
So my bank just sent me a request to take out +$20k in unsecured debt for 1.9% rate for one year. I'd like to take it but I honestly have no need.
3
Posted on 3/28/13 at 2:28 pm to C
wow, what bank?
Posted on 3/28/13 at 3:34 pm to jso0003
USAA
Posted on 3/28/13 at 4:10 pm to C
I got that email too.
With 3% fee for writing a check not to exceed $75.
So let me get this straight and y'all help me out.
Say I got a 5k student loan at 7%. I should write a check for say 1k, pay $30 bucks for the transfer fee. And then pay off that 1k at 1.9% instead of 7% right?
With 3% fee for writing a check not to exceed $75.
So let me get this straight and y'all help me out.
Say I got a 5k student loan at 7%. I should write a check for say 1k, pay $30 bucks for the transfer fee. And then pay off that 1k at 1.9% instead of 7% right?
This post was edited on 3/28/13 at 4:14 pm
Posted on 3/28/13 at 4:13 pm to Teddy Ruxpin
quote:
I got that email too.
Yeah but assume USAA isn't the only one trying to get people to borrow more money. Just seems like an absurdly low offer.
Posted on 3/28/13 at 4:14 pm to C
About a month ago, my bank called me from their home office to feel me out about my plans to borrow. Very professional conversation, discreetly executed. Basically wanted to know if I was planning any additions or renovations to my house or if I would be interested in their credit card.
Told her I was probably going to buy a car this year.
My thoughts after the call was that the .gov wants them to lend out more of those reserves and they are having problems finding suitable borrowers.
Told her I was probably going to buy a car this year.
My thoughts after the call was that the .gov wants them to lend out more of those reserves and they are having problems finding suitable borrowers.
Posted on 3/28/13 at 4:14 pm to C
quote:
Yeah but assume USAA isn't the only one trying to get people to borrow more money. Just seems like an absurdly low offer.
Am I allowed to do what I added to my post above? I might call.
This post was edited on 3/28/13 at 4:15 pm
Posted on 3/28/13 at 4:18 pm to Teddy Ruxpin
quote:
Am I allowed to do what I added to my post above?
of course. It's actually in the email that they want you to payoff other lines of credit with it. But you can also write yourself a check for whatever amount of credit you have available.
Posted on 3/28/13 at 4:23 pm to C
quote:
of course. It's actually in the email that they want you to payoff other lines of credit with it. But you can also write yourself a check for whatever amount of credit you have available.
Ya, I don't want the full amount as I don't want to be stuck with 9.9. But converting 1,000 to 1.9 at $30 instead of 7/8% is a steal.
I hope USAA keeps this up. I might pay my student loans off in this lifetime.
Posted on 3/28/13 at 4:28 pm to Teddy Ruxpin
quote:
I don't want the full amount as I don't want to be stuck with 9.9. But converting 1,000 to 1.9 at $30 instead of 7/8% is a steal
It's only going to save you about $20 if you are just converting $1000. If you convert the whole thing and pay it off, you'll save a few hundred.
Posted on 3/28/13 at 4:51 pm to C
quote:You'll save 5% per annum. Regardless of amount, that's a good deal and a nice spread.
It's only going to save you about $20 if you are just converting $1000. If you convert the whole thing and pay it off, you'll save a few hundred.
Posted on 3/28/13 at 4:55 pm to C
Rachal calls me every week offering to lower my interest rates.....
Posted on 3/28/13 at 4:56 pm to NC_Tigah
quote:
You'll save 5% per annum. Regardless of amount, that's a good deal and a nice spread.
Ya, I think I need to take out more though to make it work. Think if I converted all of it, the savings would be about $30 per month or $360 (something like that). Of course I'd be accelerating repayment and saving the 8% over the next 5 years as well. I suck at math off my head though so I could be way off.
If I do that with my big fed loans each year chunk by chunk as long as USAA sends me these checks, I'd have a good thing going.
This post was edited on 3/28/13 at 4:57 pm
Posted on 3/28/13 at 4:58 pm to Teddy Ruxpin
quote:
Say I got a 5k student loan at 7%. I should write a check for say 1k, pay $30 bucks for the transfer fee. And then pay off that 1k at 1.9% instead of 7% right?
Term of the loan would alter this estimation, obviously.
But to make it easy let's say you plan to pay off the loan in 24 months.
$5,000 @ 7% for 24 months = $5,751.29 Roughly $750 you'll pay in interest.
$5,000 + 3% Transfer fee @ 1.9% for 24 Months= $5,271.56 Roughly $270 in fee and interest
So transferring the entire loan would save about $480 over 2 years
Posted on 3/28/13 at 4:58 pm to Teddy Ruxpin
quote:
Say I got a 5k student loan at 7%. I should write a check for say 1k, pay $30 bucks for the transfer fee. And then pay off that 1k at 1.9% instead of 7% right?
Isn't there a favorable tax treatment, as in a deduction for the interest, if you're repaying a direct student loan? Will the re-scheduled debt be eligible for that deduction?
Posted on 3/28/13 at 5:00 pm to LSURussian
quote:
Isn't there a favorable tax treatment, as in a deduction for the interest, if you're repaying a direct student loan? Will the re-scheduled debt be eligible for that deduction?
I doubt I'd get the same treatment, which probably kills the savings. However, that stops at 2,500 of qualified interest a year, and sadly my fed loans are huge so it still may work. So anything over that amount in interest gets no favorable treatment.
This post was edited on 3/28/13 at 5:27 pm
Posted on 3/28/13 at 5:25 pm to LSURussian
The transfer fee is capped at 75$
Posted on 3/28/13 at 5:45 pm to LSURussian
quote:
Rachal calls me every week offering to lower my interest rates.....
I've told Rachal calling from about a thousand different phone numbers to take my name off their list. The last call, I punched one and then placed the phone on the speakers and blasted "her" with "Down the Field".
Posted on 3/28/13 at 6:18 pm to Blakely Bimbo
Posted on 3/28/13 at 7:25 pm to Blakely Bimbo
quote:
I've told Rachal calling from about a thousand different phone numbers to take my name off their list. The last call, I punched one and then placed the phone on the speakers and blasted "her" with "Down the Field".
I always faked an Indian accent and feigned interest. After keeping them on the phone for several minutes, I realized I didn't have my wallet with me so I couldn't give them my credick card number.
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