Dedicated to Deposits: Deals, Data, and Discussion

Falling Saving Account Rates: GMAC, AmTrustDirect, Apple, BofA DoW Money Market

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Many of the online banks are not wasting any time in lowering their rates after the big Fed rate cut on Tuesday. Some of the recent savings account rate drops include:

I guess we should have anticipated that the biggest drop would be at Bank of America. The top yield on the Defenders of Wildlife Money Market Savings account fell from 5.69% to 5.01% APY. The new rate tiers are below:

Balance APR APY
Less than $2,500 2.96% 3.00%
$2,500 - $9,999 4.55% 4.65%
$10,000 - $24,999 4.65% 4.75%
$25,000 - $49,999 4.65% 4.75%
$50,000 - $99,999 4.90% 5.01%
$100,000 - $499,999 4.90% 5.01%
$500,000 - $2,499,999 4.90% 5.01%

For more info on this money market account, please refer to my previous post. The AAA and NEA affiliate money market accounts that are tied to the MFR index (see post) have held up better so far. The top yield for the AAA account is 5.30% APY.

The high CD rates at Indymac Bank and Countrywide are still holding. If you stay below the FDIC limits and don't mind the worries of the subprime problems, these can be good deals. For more info on CDs at Indymac, please refer to this post and for Countrywide, please see this post. These deals will require some trust in the FDIC. From this FDIC consumer news page:
Historically, the FDIC pays insured deposits within a few days after a bank closes, usually the next business day. In most cases, the FDIC will provide each depositor with a new account at another insured bank. Or, if arrangements cannot be made with another institution, the FDIC will issue a check to each depositor.

Also, you shouldn't have to worry about losing any interest if your balance is below the insured limits:
Federal law requires the FDIC to pay 100 percent of the insured deposits up to the federal limit including principal and interest.

  Tags: Grand Yield Direct, AmTrustDirect, E-LOAN.com, Bank of America

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Comments
24 Comments.
Comment #1 by Anonymous posted on
Anonymous
Why they are reducing the rate.

1
Comment #2 by Anonymous posted on
Anonymous
For the previous several months, I've been moving my money into 5.XX% 2 year CD's. Not all of my money got into these in time for the rate drop, but I feel fortunate to know that a large chunk of my savings will be getting high rates for a while. Even now, I'm still moving money into longer term 5.00+ % yields, but I expect this to end within about a week.

1
Comment #3 by Anonymous posted on
Anonymous
It's a good thing that GMAC gave us checks. Now I get to move money from GMAC as well as Banco Popular.

1
Comment #4 by Snippy (anonymous) posted on
Snippy
ATTENTION: To the first "anonymous" poster here: Try reading the opening sentence of Banking Guy's original entry on the falling rates. Pay attention and try to keep up with the rest of the class, OK?

1
Comment #5 by Jon (anonymous) posted on
Jon
It seems that igobanking.com still has their 5.3% rate; I hope they stay with it!

1
Comment #6 by Anonymous posted on
Anonymous
I just opened the AAA Cash Maximizer account online. They tell me that all deposits and withdrawals can be made at my BofA center. Does anyone have more info about this setup?

1
Comment #7 by Anonymous posted on
Anonymous
Countrywide is not lowering rates nor is Indymac and they have 5.50 AND 5.75%

HSBC also has not lowered the rate and it is at 5.05% APY

Citibank increased their rate to 5.10% just recently.

1
Comment #8 by Anonymous posted on
Anonymous
I was going to call FNBO but found this on their website in response to the frequency asked question: What will the rate be after the 6% promotion ends.

"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, and plan to do so when our promotion ends in September 28, 2007. Our rate prior to 5/01/2007 was 5.25% APY."

1
Comment #9 by Anonymous posted on
Anonymous
I just opened the BofA DoW yesterday! Waaahh...

1
Comment #10 by ShraZZy (anonymous) posted on
ShraZZy
Amtrust and Grandyield are still good rates over 5%
New website for GMAC, looks clean.

1
Comment #11 by Anonymous posted on
Anonymous
I just locked in the 3 month 6% teaser at Everbank. I really didn't want to bother - I had just planned to move it all back to Eloan at 5.25%.

Thanks to this post, I now understand that it is worthwhile to deal with Everbank.

1
Comment #12 by Anonymous posted on
Anonymous
Good thing i just locked in my AOR money with the ING 12-month 5.25% CD :)

1
Comment #13 by Anonymous posted on
Anonymous
regarding the AAA account, I have been able to make withdrawals at banking centers. ATMs I had trouble getting money since there's something to do with California on a different system. never made a deposit (always just transfer from savings) but i'm sure you can.

1
Comment #14 by Anonymous posted on
Anonymous
To anon at 1:05 PM, September 21, 2007:

Don't be so proud. If you had any wits at all, you'd be in a 6% CD not a lousy 5.25%.

1
Comment #15 by Cyclone (anonymous) posted on
Cyclone
My Wachovia rep in FL called me today to tell me about some rates for some new money I brought over. They are offering 5.25 APY for 12 months and 5.41 APY for 6 months.

1
Comment #16 by Anonymous posted on
Anonymous
HSBC is keeping 5.05% is steadily. I been using this HSBC online savings for 3 months without any interst drop.

1
Comment #17 by Anonymous posted on
Anonymous
I got one of my CD mertired Y'day(it was @5.5% APY) then I tried to move it into TechCU's promotional 6% CD, CSR told me that its already expired and they had a 5.5% APY CD. Also she indicated that all CD rates/savings/checking promotional rates announced at the start of this month(Sept'07) mostly holds good till the end of the month but after that there will be a drastic decrease in the interest rates from almost all of the financial institutions
Moral: What ever we see the rates today may change to real lower from Oct 1st onwards.. so, run fast and pack your money into good availble rates ASAP

1
Comment #18 by ProfessorB (anonymous) posted on
ProfessorB
Just wanted to point out a small grammatical error in this sentence: "Below is the new rate tiers."

The "is" should be "are."

1
Comment #19 by Banking Guy (anonymous) posted on
Banking Guy
Thanks, I've updated the post with the grammar fix.

1
Comment #20 by Terry (anonymous) posted on
Terry
banking guy,
Geez...At least we know what your talking about. I can't say the same for a majority of the other posters sometimes.

BTW- You do a heck of a good job! Thanks!

1
Comment #21 by Anonymous posted on
Anonymous
I have a question -- For the Bank Of America Defender of Wildlife savings account, what is the outbound transfer limit per day and per month, IF I initiate the transfer from another financial institution? (since BoA charges outbound transfer fee)
Thanks a lot!

1
Comment #22 by Banking Guy (anonymous) posted on
Banking Guy
I had trouble getting a straight answer from the BoA CSR, but it seems like there is no limit if you initiate from your external account.

1
Comment #23 by Anonymous posted on
Anonymous
Bank of America's website for Defenders of Wildlife savings rate shows, as of 10/9/2007, the rate is just .20%. Am I missing something? Or did their rates just drop through the floor?

https://www4.bankofamerica.com/myexpression_banking/productInfo.do?affinity=12181&segment_id=CHAR

1
Comment #24 by Banking Guy (anonymous) posted on
Banking Guy
Make sure you click on the 2 on the right side. That takes you to the rates for the money market savings which are still high. The 0.20% is for the regular savings.

1