I've received an offer for a relatively high interest savings account. The offer is from Capital One Bank (a major US financial bank), and it's for a 1.1% APY interest rate savings account. They also provide a $100 signup bonus if you open the account with the minimum balance, which is an extra 1% for the minimum $10k.
Today is June 27, 2015 and the US Federal Reserve lending rates are all under 1%. The saving account rate is quite attractive as it's over twice the rate of the savings account I have through my credit union and about 30% higher than CD's I can get for balanced under $90K (which I don't have).
The complication is this: I don't have any other accounts with this bank, so it would be quite a hassle to set up, maintain, and ultimately retrieve the funds. The minimum opening balance is also higher than my cash reserves, so I'd have to scrape together a few extra funds to 'lock in' their 'promotional' rate.
But my question wouldn't be about the hassle. My question would be about the typical terms for promotional, luring rates for this. I basically want to know how common it is for the savings rate to be cranked back down to the currently typical 0.1%~0.2% rates as soon as the promotional period is over. I imagine they're playing it as close as they can with these terms to avoid lawsuits for false advertising and bait-and-switch. After all, a $100/account (1-2% commission) isn't that high in terms of marketing budgets.