New Savings Account Rate Cuts
Dec 13, 2007 - 10:15 AM by Ken Tumin
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:
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.
- 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.
Banks Mentioned in this Post:
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Anonymous - #1, Thursday, December 13, 2007 - 10:46 AM
No surprise that ING is first...
Anonymous - #2, Thursday, December 13, 2007 - 11:39 AM
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.
Anonymous - #3, Thursday, December 13, 2007 - 1:10 PM
virtualbank also dropped...to 4.08
killer spinach (anonymous) - #4, Thursday, December 13, 2007 - 1:12 PM
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.
Anonymous - #5, Thursday, December 13, 2007 - 2:47 PM
impressive that countrywide still keeps their 3 mo cd at 5.45%. realls shows the level of desperation for their need of funds.
Kevin (anonymous) - #6, Thursday, December 13, 2007 - 7:16 PM
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.
Anonymous - #7, Thursday, December 13, 2007 - 7:50 PM
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.
Matt I (anonymous) - #8, Thursday, December 13, 2007 - 10:21 PM
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.
SVG (anonymous) - #9, Thursday, December 13, 2007 - 10:37 PM
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
Anonymous - #10, Thursday, December 13, 2007 - 10:48 PM
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.
Anonymous - #11, Thursday, December 13, 2007 - 11:31 PM
CW is still 5.3%.
glxpass (anonymous) - #12, Friday, December 14, 2007 - 12:01 AM
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.
Anonymous - #13, Friday, December 14, 2007 - 12:35 AM
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.
Anonymous - #14, Friday, December 14, 2007 - 9:49 AM
Be nice if Countrywide would reduce the minimum CD price down from 10,000.
Anonymous - #15, Friday, December 14, 2007 - 11:36 AM
AmTrust Direct dropped to 5.11% on their new 3 month promo.
Anonymous - #16, Friday, December 14, 2007 - 6:05 PM
Amtrust can cut rates a lot faster than they can answer a e-mail
Kevin (anonymous) - #17, Thursday, January 10, 2008 - 1:13 PM
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
Hans (anonymous) - #18, Friday, January 25, 2008 - 9:56 PM
Rates dropped again. As of 1/23, the above tiers are now:
0%
4.18%
4.34%
4.51%
(APY)
Kevin (anonymous) - #19, Tuesday, January 29, 2008 - 10:48 AM
Zion bank changed their rates again.
Max 4.51% for $100,000+
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