Future Rates at FNBO Direct? and What's Next?
So if you haven't already transfered your money out of FNBO Direct, what are your plans? I've listed some options you might want to consider.
Other Promotional Liquid Accounts
EverBank has been offering a 3-month 6.01% APY promotion on its checking account since September 2006. In October of 2006 they also started offering this 6.01% promo on their money market account. I've been told by EverBank's customer service that both of these require you to be a new customer, and therefore, your can't string these together for a 6-month promotion. However, I've read about some people being able to do this so "your miles may vary". But with the Fed rate cut and future cuts possible, a 6.01% promo may not last too much longer. Please refer to EverBank promo post for more info.
Both the money market account and the checking account have some nice features. So these might be something you'll want to keep for the long term. The money market account has maintained a 5.01% APY for some time now.
UmbrellaBank is still offering a 90-day promo of 5.50% APY on its Green Day Savings Account. Those lucky enough to get in on this early were able to lock in 6% APY for 90 days. The standard rate on this account is only 4.16% so it might not be something you want to keep. However, UmbrellaBank's Pot O'Gold Money Market Account has maintained competitive rates for years. Please see my UmbrellaBank promo post for more info.
AmTrust Bank is offering a 5.50% APY guaranteed for 90 days on its money market account. This is not from AmTrust's online division AmTrustDirect so the money market account has standard rates more inline with brick-and-mortar banks rather than online banks. For more info on this, please refer to my AmTrust Bank promo post.
National City is offering a 5.25% APY for 180 days on its money market savings account. You'll have to hurry on this one. It expires 9/30/07. It also has a $25K minimum to receive the 5.25% and is only available in certain states. Please see my National City promo post for more info.
Non-Promotional High Yield Liquid Accounts - Reward Checking
A high yield reward checking is one option for those tired of rate chasing if you don't mind using your debit card. Some banks are offering yields of up to 6.25% APY on these accounts. Most are only local deals, but there are a few that don't have geographic restrictions. Also, most have a maximum balance cap of $25K. Over that cap and the rate falls to something very low.
One bank that has a reward checking without geographic restrictions and without a balance cap is the State Bank of Toledo which is offering 6.01% APY. It's a very small bank, but after more than 2 months since my first post on this bank, they're still offering 6.01% without restrictions. Please see my State Bank of Toledo post for more info.
For other reward checking accounts in other parts of the country, please see my reward checking account page and my best checking account post.
Non-Promotional High Yield Liquid Accounts - Online Savings Accounts
Another option for those getting tired of rate chasing is to just pick a top online savings account. Some online banks that have a history of top rates include:
- Countrywide savingslink: Current Yield: 5.50%, 5.25%+ for more than a year (see post)
- UFB Direct's Absolute Savings: Current Yield: 5.31%, 5.27%+ for more than a year if you include the old High Yield Money Market Savings account (see post)
- iGoBanking: Current Yield: 5.30%, Maintained 5.30% since it launched in Nov 2006 (see post)
- Zion Bank's Deseret MMA: 5.30% (5.56% for $50K+), 5.30% maintained since Dec 2006 (see post)
- AmTrustDirect e-Money Market: Current Yield: 5.21%, 5.21%+ for more than a year (see post)
Locking a Rate on a CD
With more Fed rate cuts a real possibility, savings account rates may continue to fall for many months. I'm sure many had wished they had locked into high rate CDs before 2001 when the target Fed funds rate fell from 6.50% to 1.75%. The next year probably won't be that bad, but it's something to consider.
I've listed several CD options in my weekly summary from last Saturday. However, a few options have already ended. Indymac Bank ended their 5.75% and 5.70% short term CDs yesterday. Countrywide Bank is still offering 5.65% APY on its one year CD although I've heard this might not last past Thursday. Western FCU and KeyDirect Bank still have some very high rates on their long term CDs.
Banks Mentioned in this Post:
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