Re: Does a bank or credit union have a moral or legal obligation to offer a higher interest rate?

On Oct 8, 9:12 am, stonej <sto...@xxxxxxxxxxxxxxxx> wrote:
While looking through my dad's finances recently in order to
straighten some things out my
brother in law discovered that my dad was only earning 1/2 of 1%
interest on a $90,000 savings
account he had with a local credit union. The money had been
automatically deposited over a long period of time from his
retirement checks, I don't think my dad was even aware of the
amount of money that was there or the interest rate as he has lived a
frugal life just on his
social security checks and other investments for a long time. This
account has now been closed and the money transferred to the woman who
handles his stock market investments.
He also has a $75,000 CD with the credit union that he is planning to
pull out next March
as a penalty would be assessed if it was done earlier.

The family is pretty upset with the credit union and feel they took
advantage of him by paying
such a lower interest rate for many years, is a financial institution
under any legal obligation to
offer a higher interest rate over time?




Sort of reminds me of my father in lawn who had $80,000 in cd's at
the bank
when and investor "friend" found out that he was only earning a
minimal interest on the money. He offered to put into higher earning
investments for him...several months later we found this out and also
found that the $80,000 had turned into $32,000

.

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