Online Savings Accounts & Current Rates

[sweeps]

Originally Posted by BTC

The Fed just cuts rates by another .5%.

Wow... The Fed is panicking.

[savingtaker]

those fools should've waited until today and dropped it 1.25%.
We could've locked in some CDs at better rates.

[Aleta]

Can you imagine what ING's rates will be like tomorrow?

[sweeps]

Originally Posted by Aleta

Can you imagine what ING's rates will be like tomorrow?

You pay them to keep your money in an Orange savings account.

[poundwise]

Updates 01/31 --

AmTrust down from 5.11 to 4.60
WaMu down from 4.75 to 4.25
iGOBanking down from 4.50 to 4.30
Presidential down from 4.40 to 3.50

[MoneyenoM]

IndyMac 7 Month CD down from 5% to 3.75%

indymacbank.com/Individuals/banking/page.asp?pSection=currRates

[poundwise]

More updates 01/31 --

iGOBanking down (again) from 4.30 to 4.20
SavingsSquare down from 4.80 to 4.50

[poundwise]

Of interest: With a quick look back through former posts I noted --

In August 2006, people were complaining that a respected bank offering had dropped down to 5.00% APY.

In February 2007, I made a post stating that there were 19 different offerings at 5.00% APY or better, including 5 at 5.30% APY or better.


How things have changed.

As of right now, and I expect things to continue to change, there are only 4 offerings exceeding 4.50%.

[krayziebone33]

This whole situation is awful.

[savingtaker]

Next meeting is in March. Market was up quite a bit today. Maybe they'll stand pat now at 3%.

[poundwise]

ING down from 3.65 to 3.40

It is almost as if ING says, "Whatever the lowest rate offered by our competitors is, we'll go lower!"

Ah well...

[MoneyenoM]

ShoreBank down from 5% to 4.15% APY

[poundwise]

Originally Posted by MoneyenoM

ShoreBank down from 5% to 4.15% APY

The ShoreBank landing page and the home site for ShoreBank both still show 5.00% APY as of 10:27 PM EST tonight January 31st.

Could you please share where you obtained that information?

[Blue Leader]

Originally Posted by poundwise

Of interest: With a quick look back through former posts I noted --

In August 2006, people were complaining that a respected bank offering had dropped down to 5.00% APY.

In February 2007, I made a post stating that there were 19 different offerings at 5.00% APY or better, including 5 at 5.30% APY or better.


How things have changed.

As of right now, and I expect things to continue to change, there are only 4 offerings exceeding 4.50%.

It is quite unfortunate that all these rates are dropping. However, all I have to do is look 3 months back and think of the .1% I was "earning" in my savings at US Bank. Oh how glad I am I woke up to online saving accounts!

[MoneyenoM]

I got from ShoreBank Email

Dear ShoreBank Direct Applicant,

As you know, the Federal Reserve has been cutting rates. In line with this new environment, ShoreBank is lowering the interest rate on the online high-yield savings account. We wanted to let you know that as of February 1, 2008, our high-yield savings account will earn 4.15% APY*.

The ShoreBank high-yield savings account continues to offer an unbeatable combination: a competitive rate, the convenience of 24-hour online banking, the security of FDIC insurance, and the knowledge that your deposits are funding initiatives like the Rescue Loan Program, which helps homeowners like Chicago’s Villareal family avoid foreclosure by replacing their adjustable-rate mortgages with fixed-rate loans that save them hundreds of dollars a month. As a customer of ShoreBank, you make a positive impact, every day.

We want you to know what is happening with your money. We will continue to update you regularly on changes affecting your account and on the impact that your dollars are having in communities around the country.

Thank you for choosing ShoreBank!

The Team at ShoreBank Direct

ShoreBank Direct
PO Box 497837
Chicago, IL 60649-7837
1-888-864-HYSA (4972)

Member FDIC

*The Annual Percentage Yield (APY) is effective as of February 1, 2008, and is subject to change without notice. APY is valid only with a ShoreBank online high-yield savings account. Fees could reduce earnings on the account. A minimum balance of $1.00 is required to open the account and obtain the stated APY.

[kilcher]

HSBC Direct lowered theirs from 4.25 to 3.80%. Thankfully I'm still getting 4.50% from my credit union. Not sure how much longer that'll last.

[claudius753]

Originally Posted by poundwise

ING down from 3.65 to 3.40

It is almost as if ING says, "Whatever the lowest rate offered by our competitors is, we'll go lower!"

Ah well...

Wasn't ING one of the pioneers in the online savings field? They were the first online savings banks that I ever heard of.

But now it seems that they are always one of the lowest offerings any time I look at rates. I wonder why they always seem to be outpaced by nearly every other bank? Because they are a foreign bank?

[kilcher]

Originally Posted by claudius753

Wasn't ING one of the pioneers in the online savings field? They were the first online savings banks that I ever heard of.

But now it seems that they are always one of the lowest offerings any time I look at rates. I wonder why they always seem to be outpaced by nearly every other bank? Because they are a foreign bank?

My guess is people don't know any better. ING is one of the best known online savings account providers. If people were pulling their money or not depositing money they'd have to be more competitive.

[poundwise]

Originally Posted by MoneyenoM

I got from ShoreBank Email ... as of February 1, 2008, our high-yield savings account will earn 4.15% APY

Thanks.

Updated.

[poundwise]

Originally Posted by claudius753

Wasn't ING one of the pioneers in the online savings field? They were the first online savings banks that I ever heard of.

But now it seems that they are always one of the lowest offerings any time I look at rates. I wonder why they always seem to be outpaced by nearly every other bank? Because they are a foreign bank?

I think the answer is as simple as they don't need to offer a higher rate.

Apparently, most of their customers are content to accept the lower rate. Also, they still spend quite a bit advertising on TV and in magazines. This, coupled with the bonus money they offer for sign-ups, must provide them with enough influx of new customers.

On another forum, some of the members actually get miffed if you suggest that ING is a poor choice among the online savings options. Part of this is because some of these people make quite a bit of scratch from referring others but, most likely, the majority of these folks are simply brand-loyal, for whatever reason.

For the record, I have no problem if someone prefers ING or has an account there and doesn't want to hassle with changing. That's their decision. I only suggest that, for people who do not have an account and/or are looking for a new online savings account, that ING is clearly not a top choice.