Over at MyMoneyBlog.com today they’re talking about high-yield savings accounts, and how the rates are beginning to drop – after being so high for some time.
As expected after the 0.75% Fed rate cut, the interest rates on savings accounts aren’t doing so hot. From the classic ING Direct dropping to 3.65% APY (still $25 bonus), to the formerly high-flying FNBO Direct landing at 4.30% APY.
My old 6.01% promo rate at Everbank was nice for 3 months, but is now gone as well. I’m happy that my core account at Washington Mutual is holding steady at 4.75% APY, at least for now (read my review). It’s hard to go back to lower rates, but still remember when 3% was an awesome deal.
Other options?
If you’re looking to lock in a higher rate and willing to trade some flexibility, IndyMacBank has 7-month CD at 5.0% APY. If you’re looking to gamble and willing to jump through some hoops like mandatory debit card transactions, the First Arkansas Bank has a checking account paying 6.06% APY. Be aware, though, as it’s very unlikely his rate will last much longer. Use my Rate Chase Calculator to see how much you’ll make if the rate difference is the same for a month (even that might be optimistic), and keep in mind the potential lost days of interest.
I’m just hoping that the account we’ve set up will stay high for a while longer, but you never know with how things are going. Remember folks, every month you put off switching your money to a high-yield account is another month with lost money that’s never coming back!
LINKS:
MYMoneyBlog.com
Rate Chaser Calculator at MyMoneyBlog
Last Edited: 28th April 2009
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