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When you set out to negotiate bank deals, experts report that your chances of success improve if you negotiate with a community bank instead of a large credit union or one of the ten major banking institutions.
The Lowdown on Negotiating
If you are looking to negotiate a better rate on your certificate of deposit, realize that in the current economic climate, the bank's "spread" has decreased. A bank spread is the cash difference between the interest rate a bank charges for its loans and the rate the bank pays its depositors. Under today's economic conditions, most banks have less negotiating room. Still, there are approaches you can take to get the best possible bank deal for yourself.
First, be realistic. Chances are that even if you negotiate successfully, you will not be able to nail down a rate of return any higher than a quarter of a percent more than the bank's standard offer.
Prepare for the negotiation in advance by researching and acquiring evidence of favorable bank deals offered by competitor banks. Bring that information with you.
You chances of negotiating a favorable bank deal for yourself increase with the size of your deposit.
Don't take your first "no" for a final answer. Persist up the chain of authority if necessary, past your representative, because a branch manager will often have negotiating discretion your representative does not.
