The Barclays Dream Account is no longer being offered. The main page has no notice, and existing users were not informed. The FAQ page has a terse message saying "As of 10/17/2017, the Dream account is no longer being offered. For any Dream account(s) opened before this date, your account terms and conditions will remain the same".
This was an interesting sub-type of a savings account. The extra incentive on regular monthly deposits (up to 1000$) and no withdrawal for 6 month periods was negligible: one would get 2.5% additional interest. However, I seem to have found the incentive compelling enough to warrant not moving a single cent out of that account for a year. It was more a behavioral obstacle than a fiscal one.
I wonder what interest rate calculations went into this decision? To me, it would seem that (slowly) rising interest rates would encourage a slightly larger number of people to start/contribute to savings accounts and CDs, thus negating the need for incentives and special perk accounts like this. Is my thinking correct?
Either way, I plan to continue putting in money to my account till I need it.
Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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I don't think it's that rational. I think banks provide temporary teaser deals to get people to open accounts, relying on the fact that they can cut or eliminate them a couple of years later and people will keep the account as long as they are comparable, or not much worse than, the competition.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.