Online Savings Accounts & Current Rates

[BTC]

They're dropping like flies, which isn't surprising. I was bummed that FNBO wasn't going to hang with 5.25, but now 5.05 is looking dandy in comparison to most. HSBC, low rates and slow transfers. Gotta love it.

[sweeps]

I used to be a big HSBC fan, but I fell out of love with them. I closed my account about a month ago. I hope my other long-time favorite GMAC stays in for the long haul.

I'm also surprised at the systemic rate drops. I disagreed with Aleta in another thread when she said they'd all drop, but she was right. (Apologies if Aleta is not a 'she'. )

I'll step further out on this cracking limb I'm on and say these lowered rates won't last. Inflation is going to rear its ugly head and the Fed will have to reverse the trend fast.

[BTC]

Are mortgage rates dropping at all? I know that initially they actually increased.

[Ima saver]

I agree, ouch, my local bank dropped from 5.25 to 4.75%

[sweeps]

Originally Posted by BTC

Are mortgage rates dropping at all? I know that initially they actually increased.

Yes, they've increased slightly. I wouldn't be surprised if they go up a lot more. As I mentioned in another thread, the Fed's lowering of short term rates will likely cause long term rates (e.g. 30-year mortgage rates) to go up. It all hinges on bond investors' belief whether inflation can be contained.

[Broken Arrow]

Originally Posted by sweeps

I'll step further out on this cracking limb I'm on and say these lowered rates won't last. Inflation is going to rear its ugly head and the Fed will have to reverse the trend fast.

Well, fancy meeting you here on this fine, cracking limb. Small world.

[Aleta]

Hey Sweeps: Aleta here. Wish that I had been wrong about that one. I also have an FNBO accoount and there are a couple of things I don't like. There's just too much float time. Also, they don't have anything set up like other financial institutions to POD. (Pay on death to beneficiaries). When I asked they said they were working on it.

Also, they say 5.05,and that's the APY. What is the APR? That does make a difference.

I'm thinking about transferring back to Vanguard Prime Money Market. The rate there was 5.08 and they already have my set-up there. I've always kept some money there, but I might also split it up with a CD.

Oh, and yes, I am a female.

[kv968]

Originally Posted by Aleta

I'm thinking about transferring back to Vanguard Prime Money Market. The rate there was 5.08 and they already have my set-up there. I've always kept some money there, but I might also split it up with a CD.

Don't be so quick. Watch, that rate will fall below 5 in a week or so too.

[Aleta]

I've thought about that as well. I might get a CD to hedge things though.

[poundwise]

Originally Posted by Aleta

I've thought about that as well. I might get a CD to hedge things though.

Of course, the problem is that most of the CD rates have adjusted downward as well.

Even so, a quick look at some of the top ones shows there are still a couple of 5 and 6 month CDs at 5.40%. That may bear investigating.

Addendum: If you have $10K, you can get a 1 year CD at Countrywide Bank at 5.65% APY. Or, with $5K you can get 5.40% on a 6 month CD at IndyMac Bank.

[poundwise]

Just for consideration, I'd like to point out that, while rates have fallen, there are still plenty of good offerings, including most which, at this point, have not adjusted their rate at all.

At present, of the 23 savings accounts I track on this list, nine have lowered their rates.

Of those who have lowered their rates, most of them have done so by 0.20% or less.

[Aleta]

I just received an Email from HSBC saying that their rates have changed. Now down to 4.50, effective as of 9/26/2007. Believe it or not, I moved the remainder of my funds from HSBC on 9/11. The fact that I had very little there and the extra paper work was reason enough for me to get it out of there. I will probably take everything except $10. out of ING as well. I'll transfer the rest to Emigrant Direct. So far, they are still at 5.05 but who knows for how long? I think that people will just start moving money out of these accounts as they go down. I would be better off with my bank's money market account at 4.50 which is locked in for the next 6 months.

[goodtosave]

Originally Posted by Aleta

Hey Sweeps: Aleta here. Wish that I had been wrong about that one. I also have an FNBO accoount and there are a couple of things I don't like. There's just too much float time. Also, they don't have anything set up like other financial institutions to POD. (Pay on death to beneficiaries). When I asked they said they were working on it.

Also, they say 5.05,and that's the APY. What is the APR? That does make a difference.

I'm thinking about transferring back to Vanguard Prime Money Market. The rate there was 5.08 and they already have my set-up there. I've always kept some money there, but I might also split it up with a CD.

Oh, and yes, I am a female.

APR are what lenders quote or disclose for loans.
APYs are used for your savings accounts.

I would be careful with Money market funds as they are not FDIC insured and you can *potentially* lose the value of your principal.

[Aleta]

Yes, I know about that. They invest in good commercial paper for short periods of time. But like you, there could always be a first time. My bank is actually not to bad with the rates considering what the rest are doing now.

[goodtosave]

Originally Posted by Aleta

Yes, I know about that. They invest in good commercial paper for short periods of time. But like you, there could always be a first time. My bank is actually not to bad with the rates considering what the rest are doing now.

You may want to consider GE Interest Plus. It's paying 5.43% APY. GE has AAA ratings but the funds are not FDIC insured.

[Broken Arrow]

Originally Posted by goodtosave

APR are what lenders quote or disclose for loans.
APYs are used for your savings accounts.

I believe APR is the percentage interest on your principle each time they pay you. APY is the percentage interest you would get if you leave both the principle AND the interest in the account to compound during that year.

Something like that. But yes, APY is most certainly listed in savings since higher is better, whereas APR is most often advertised for loans since lower is better.

When I become overlord of the world, I'm going to abolish APY and make the APR the only universal standard.

[kv968]

Originally Posted by Broken Arrow

When I become overlord of the world, I'm going to abolish APY and make the APR the only universal standard.

A request to the overload...Could you make the standard APY instead since that's what's really paid (or earned) in the real world?

[Broken Arrow]

Originally Posted by kv968

A request to the overload...Could you make the standard APY instead since that's what's really paid (or earned) in the real world?

Silence, knave!

APY is merely a "marketing tool" from stuck-up, uppity, do-gooder nations who paint idyllic pictures of people saving money in a "vacuum". When in reality, even evil geniuses-- such as myself, even if I do say so... myself-- have to withdraw money from their savings from time to time. After all, death rays, mindless robots with mace for their hands, and even underlings from Henchmen High simply don't pay for themselves! And what will these transactions do to the APY? That's right! Flush it all down the evil throne and leave you hanging without any evil TP left!

But don't worry. That is why I'm going to do the world a huge favor and hold it for ransom with my latest TP Destructo Ray, factory built by our mindless mace-handed evil robots and quality inspected by our evil-certified underlings from our very own Henchman High. Then the world will have no choice but to give into my demands of ridding the APY, thus making the APR the only universal standard by which all of my evil savings accounts will be advertised under!

Muahahahahahaha!

[Skooby]

I'm debating with myself on which one of these I should open for an emergency fund. I'm already with FNBO, but their transfer times are slow and they don't have a debit card.

I think GMAC has a debit card but they just dropped their rates. Do you guys expect them to drop their rates any further?

[kv968]

Originally Posted by Broken Arrow

Silence, knave!

APY is merely a "marketing tool" from stuck-up, uppity, do-gooder nations who paint idyllic pictures of people saving money in a "vacuum". When in reality, even evil geniuses-- such as myself, even if I do say so... myself-- have to withdraw money from their savings from time to time. After all, death rays, mindless robots with mace for their hands, and even underlings from Henchmen High simply don't pay for themselves! And what will these transactions do to the APY? That's right! Flush it all down the evil throne and leave you hanging without any evil TP left!

But don't worry. That is why I'm going to do the world a huge favor and hold it for ransom with my latest TP Destructo Ray, factory built by our mindless mace-handed evil robots and quality inspected by our evil-certified underlings from our very own Henchman High. Then the world will have no choice but to give into my demands of ridding the APY, thus making the APR the only universal standard by which all of my evil savings accounts will be advertised under!

Muahahahahahaha!

Ok, ok, calm down. Go with APR. Jeez

I just hope you don't plan on building your "TP Destructo Ray" in China. That would be a slap in the face if, just when you were ready to activate it, it got recalled