Dedicated to Deposits: Deals, Data, and Discussion

New Savings Account Rate Cuts

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The effect of the latest Fed rate cut is starting to be seen at several online banks. Here's a summary of the rate cuts in the last 2 days:
  • E-LOAN's Savings Account: 4.50% APY (was 4.75%)
  • Zions' Deseret MMA: 4.86% APY under $50K, 5.13% APY over $50K (was 5.08%/5.23%)
  • ING Direct's Savings Account: 4.10% APY (was 4.20%)

ING Direct also cut rates on all tiers of its Electric Orange Account by 10 basis points. The new yield is 3.15% APY for balances under $50K, 4.65% APY for balances between $50K and $100K, and 4.80% APY for balances over $100K.

Some good CD rates are also being cut. Ascencia Bank ended its 5.21% 6 and 12 month CDs. The new yields are down to 4.81% APY and 4.78% APY.

I'm sure we'll see more cuts. It could have been worse if the Fed had done a 50 basis point cut. Thanks to everyone who have been posting rate updates in the comments.
  Tags: ING DIRECT, Ascencia Bank, Zions Bank, savings account, E-LOAN.com

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Comments
19 comments.
Comment #1 by Anonymous posted on
Anonymous
No surprise that ING is first...

1
Comment #2 by Anonymous posted on
Anonymous
I expected ING to be the first -- well, it is the (or among the) first banks, but last night I discovered that several of my credit unions had lowered the rates on their (basic) share accounts. OK, it's only from 0.9% to 0.8% for example, but every penny counts these days.

1
Comment #3 by Anonymous posted on
Anonymous
virtualbank also dropped...to 4.08

1
Comment #4 by killer spinach (anonymous) posted on
killer spinach
back in 2004 i remember getting junk mail from ING "promoting" 2% APY on their orange savings account.

they have no qualms being uncompetitive on rates.

their innovative checking account helps make up for their annoying rates.

1
Comment #5 by Anonymous posted on
Anonymous
impressive that countrywide still keeps their 3 mo cd at 5.45%. realls shows the level of desperation for their need of funds.

1
Comment #6 by Kevin (anonymous) posted on
Kevin
I was surprised to see Zions Bank so quick to drop their rates. I wasn't even notified. But it is also interesting that the Deseret Money Market Account is also advertised on their home page. Before when it was a higher rate (5.5%) it was hidden in layers of pages and hoops to sign up for the account.

1
Comment #7 by Anonymous posted on
Anonymous
I moved a considerable amount of $$$ to Zions just six weeks ago. Since then they have dropped their rates twice, but they are still good rates, considering the Fed cuts and Zions is a strong bank. No regrets.

1
Comment #8 by Matt I (anonymous) posted on
Matt I
Ouch! Countrywide Savingslink just dropped 130 basis points to 4.00. I'm moving my funds into the new 5.25%/9mo CD at FNBO Direct.

1
Comment #9 by SVG (anonymous) posted on
SVG
 

Banking Guy,

State Bank of Toledo had a big rate cut ... Down from 6.01% to 5.01%. They have imposed a limit (70k) on the max deposit that's eligible for this rate. *sigh*

- SVG

 

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Comment #10 by Anonymous posted on
Anonymous
Matt--Are you sure about Countrywide? It's always been 4% for balances under 10k. Maybe they're lowering it in the AM but as of right now (11:45 ET) it is still 5.3% for balances over 10k.

I wouldn't want you to jump with incorrect info.

1
Comment #11 by Anonymous posted on
Anonymous
CW is still 5.3%.

1
Comment #12 by glxpass (anonymous) posted on
glxpass
The reason for the Zions Deseret MMA being hard to find is that it isn't (at least when I last looked) available to Utah residents. If they keep the 5.13% APY, it might be a good alternative for people with large balances at SBoT.

Not only did SBoT impose the 70K limit, they also kept the same 10-check transaction/ACH/e-statement requirements as before, which is ridiculous. Unless other rates drop a lot by compared to SBoT's 5.01% APY, they're going to lose a lot of accounts.

And there's the question of whether this rate drop, effective 12/13 on the web site, is going to impact their current account holders, whose statement period ends around 12/15.

1
Comment #13 by Anonymous posted on
Anonymous
breaking news: Countrywide 3 and 6 mo cds up to 5.5%. really surprised to see an INCREASE, however small, on the 6 mo. Maybe they feel the Fed is done. Hope they get a lot of business from this to keep them afloat.

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Comment #14 by Anonymous posted on
Anonymous
Be nice if Countrywide would reduce the minimum CD price down from 10,000.

1
Comment #15 by Anonymous posted on
Anonymous
AmTrust Direct dropped to 5.11% on their new 3 month promo.

1
Comment #16 by Anonymous posted on
Anonymous
Amtrust can cut rates a lot faster than they can answer a e-mail

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Comment #17 by Kevin (anonymous) posted on
Kevin
I wanted to share that Zions Bank has changed its tiered structure.

0-999.99 0.0% APR
$1,000 - 49,999.99 4.60% APR
$50,000 - 99,999.99 5.02% APR
$100,000 and up 5.07% APR

They seem to have added the $100,000 and up account

1
Comment #18 by Hans (anonymous) posted on
Hans
Rates dropped again. As of 1/23, the above tiers are now:
0%
4.18%
4.34%
4.51%
(APY)

1
Comment #19 by Kevin (anonymous) posted on
Kevin
Zion bank changed their rates again.

Max 4.51% for $100,000+

1