Online Savings Accounts & Current Rates

[poundwise]

I have recently updated the specifics and the look of the savings rates list. I have also I have now added online interest checking account information to the list.

Click on the word "First" below to go the post; the first one in this thread. Feel free to bookmark that page for future reference if you'd like.

If you have any questions or comments you may post them in this thread or send me a PM.

[poundwise]

09/07/07

Added two more interest checking accounts

[cubajean10]

for the
6.01% Equity Bank WOW Gold Checking

you need to be from:
Kansas or Missouri, or an existing Equity Bank customer to apply for a new account online
--
PLEASE NOTE: All applicants must be (1) a U.S. Citizen or Permanent U.S. Resident; AND (2) a resident of Kansas or Missouri, or an existing Equity Bank customer to apply for a new account online. You will also be required to come into one of our branches to sign the signature cards so we can verify your identity, a Customer Service Representative will notify you when your signature cards are ready.

[poundwise]

Originally Posted by cubajean10

for the
6.01% Equity Bank WOW Gold Checking

you need to be from:
Kansas or Missouri, or an existing Equity Bank customer to apply for a new account online

That's too bad. Thanks for catching this and reporting it. I'll remove this account from the list.

[sweeps]

Hey Pound, I like the redesign!

[sweeps]

By the way, I'm not sure if it fits the criteria of this list, but the Bank of America "Defenders of Wildlife" money market account pays 5.33% APY for balances $2,500 and higher (5.69% APY for balances $50,000 and higher).

More info here and here.

[cptacek]

Sorry about that, poundwise (I am the one who told him about Equity Bank). I had an account there, so they just let me sign up.

[poundwise]

ING rate down from 4.5% APY to 4.3% APY.

Technically, they do not qualify for the list any longer because this puts them outside of the 1% from the top range that I use. But, just barely, and because they are popular and served as a long-time benchmark, the account will remain listed.

[poundwise]

Originally Posted by sweeps

Hey Pound, I like the redesign!

Thanks! Its good to have you back around. Congrats on the family addition.

Originally Posted by sweeps

By the way, I'm not sure if it fits the criteria of this list, but the Bank of America "Defenders of Wildlife" money market account pays 5.33% APY for balances $2,500 and higher (5.69% APY for balances $50,000 and higher).

Its a little difficult to account for since the rate can vary depending on your state, however, I'll take a closer look at it later and see about adding it to the list. Thanks for bringing it to my attention.

[kv968]

Well, it's started...GMAC's MMA is down from 5.3% APY to 4.9% for accounts with balances >$500.

[sweeps]

Originally Posted by kv968

Well, it's started...GMAC's MMA is down from 5.3% APY to 4.9% for accounts with balances >$500.

OUCH.

[safari]

Originally Posted by sweeps

OUCH.

I just opened a 12-month CD with Countrywide Bank, which is currently paying 5.65% on balances over $10,000. The bulk of my GMAC account will be going there.

[Ima saver]

My local bank was paying 5.25%, they changed yesterday to 4.65% darn!!

[sweeps]

Originally Posted by safari

I just opened a 12-month CD with Countrywide Bank, which is currently paying 5.65% on balances over $10,000. The bulk of my GMAC account will be going there.

Nicely done!

[BTC]

E-LOAN is down to 5.00% APY from 5.25%.

[poundwise]

The list was updated today, Saturday, September 22nd --

AmTrust Direct down from 5.31% to 5.21% (.10)
GMAC down from 5.30% to 4.90% (.40)
Apple Bank down from 5.27% to 5.15% (.12)
E-Loan down from 5.25% to 5.00% (.25)

(Thanks to kv968 and BTC for posting changes noted.)

Contrary to popular belief, a definite shift downward in rates across the board is not necessary and is unlikely. These online banks do not establish their rate solely based upon the Fed.

For instance, FNBO states, "Our rate is typically determined based on market condition such as, but not bound by, the Federal Funds rate. We strive to always maintain a very competitive rate..."

That is why there is such a range of rates to begin with. These institutions do not all offer the maximum rate that they can or always jockey for position to be the number one offering. Instead, many of them seem to try to settle upon a "happy medium" of sorts so that they can offer a consistent rate. A shift by the fed of a quarter or even a half a point up or down does not historically show up, across the board, in the rate offerings for these accounts.

It could be noted that the accounts above, which have lowered their rates, were all offering 5.25% or higher. (You could also note that although the Fed reduced the rate by 0.5, none of these banks lowered their rate by that much, although GMAC came close.) Of those banks offering 5.05%, which has been the mean offering for quite some time, none of them, as yet, has changed their rate.

Will more of these rates change next week and into next month? Probably. I would surprised if we didn't see some more downward shifts. Will all of these rates go down? Unlikely. Which rates will move? I don't know for certain; I suspect it is more likely to be those offering greater than 5.05% rather than those offering that rate and below but there will likely be some that continue to offer greater than 5.05% and some, currently offering 5.00% or less, that may drop their rates.

By the way, thought it was a very small shift, there was one rate increase --

Umbrella Bank up from 4.95% to 5.00% +.05

[poundwise]

ING Orange Checking drops from 4.00% APY to 3.50% APY

This is coupled with their previous savings rate drop from 4.50% APY to 4.30% APY

[sweeps]

FNBO will reportedly drop to 5.05% as of 9/28/07.

[poundwise]

The list was updated today, Wednesday, September 26th --

HSBC down from 5.05% to 4.50% (.55)
Ultima Bank down from 5.12% to 5.00% (.12)
UnivestDirect down from 5.05% to 4.90% (.15)
Zion's Bank down from 4.98% to 4.81% (.17)

FNBO's post promo rate set to 5.05%

(Thanks for the info on FNBO sweeps.)

UnivestDirect (interest checking) down from 4.00% to 3.75%

So, it would seem in an effort to prove me wrong, two of the 5.05% rate accounts dropped. Of course, this does leave four accounts at 5.05% as well as five at 5.00% and, still, six at greater than 5.05% (in other words 15 at 5%+) so my point remains valid; on the whole, we can expect multiple offerings to remain at 5.00%-5.05% and up even with the recent rate drop.

What about HSBC? Wow. They dropped their rate in excess of the Fed's recent adjustment. And this, fairly recently after offering a promo rate of 6%. They had been at 5.05% prior to that promo offer and had returned to 5.05% after it. Now, they have fallen a long way, sitting at the bottom of the list with ING.

Stay tuned. I'll be updating the list more frequently now that we are experiencing greater volatility.

[Broken Arrow]

Ouch.