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More Savings Account Rate Cuts - Provident, Zions, WaMu and Others

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Online banks continue to cut the rates on their savings accounts. The number of accounts with rates above 4% is falling. Provident Direct cut its rate from 4.50% to 3.75% APY. ShoreBank also cut its rate to below 4%. Below is a summary of the cuts this week. I'll have a more complete update in my weekly summary tomorrow.

  Tags: ShoreBank, EverBank, Zions Bank, savings account

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Comments
12 Comments.
Comment #1 by Reginald (anonymous) posted on
Reginald
WaMu Online Savings went down from 4% APY to 3.30% APY within a week.

Wow!

Sad.

I now need to decide where to transfer my money from WaMu. I am just afraid that wherever I choose, that bank will also lower their rate.

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Comment #2 by Anonymous posted on
Anonymous
Thanks to anti people Fed, especially Ben Bernanke, who is saving his wall street buddies on our expense, we can expect more rate cuts across all financial institutions and Banks.

Ben took the side of corporate America and we will all suffer now and later with hyper inflation.

Ben's goal is to flood the Banks with cheap money so our deposits will become worthless to the Banks.

Ben, confused liquidity with money supply and we are all going down the drain after paying taxes and inflation eating our assets and money saved.

Ben destroyed the value of the Dollar and we are all wondering now, what he will do next to harm the American people.

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Comment #3 by Anonymous posted on
Anonymous
I agree about Ben's comment and need to add this:

Feds are not suppose to use people's money to save wall street. This is an extraordinary effort by Ben to include none Banks as eligible for bail out on taxpayers expense.

It is shameful, and it shows that American people are irrelevant and unimportant in the Ben's eyes.

1
Comment #4 by Anonymous posted on
Anonymous
Ben is going to be "grilled" next week in Congress by answering about the Bear Stearns deal of $30 Billions
taxpayers money used for the bail out.

1
Comment #5 by Anonymous posted on
Anonymous
Congress only talks tough, but the outcome is alway the same and without any reprimands.

1
Comment #6 by Anonymous posted on
Anonymous
How on earth we gave so much power to one person?
Are there any other checks and balances to control Ben and the printing presses of money supply?

Anyone knows?

1
Comment #7 by Anonymous posted on
Anonymous
READ THIS and say a prayer:

Wall Street Bailout Could Forever Alter Role of Central Bank

By Neil Irwin
Washington Post Staff Writer
Friday, March 28, 2008; A01

In the past two weeks, the Federal Reserve, long the guardian of the nation's banks, has redefined its role to also become protector and overseer of Wall Street.

With its March 14 decision to make a special loan to Bear Stearns and a decision two days later to become an emergency lender to all of the major investment firms, the central bank abandoned 75 years of precedent under which it offered direct backing only to traditional banks.

Inside the Fed and out, there is a realization that those moves amounted to crossing the Rubicon, setting the stage for deeper involvement in the little-regulated markets for capital that have come to dominate the financial world.

Leaders of the central bank had no master plan when they took those actions, no long-term strategy for taking on a more assertive role regulating Wall Street. They were focused on the immediate crisis in world financial markets. But they now recognize that a broader role may be the result of the unprecedented intervention and are being forced to consider whether it makes sense to expand the scope of their formal powers over the investment industry.

"This will redefine the Fed's role," said Charles Geisst, a Manhattan College finance professor who wrote a history of Wall Street. "We have to realize that central banking now takes into its orbit everything in the financial system in one way or another. Whether we like it or not, they've recreated the financial universe."

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Comment #8 by Anonymous posted on
Anonymous
Great articles, what is next, bailing out Corporations. How dumb the Feds think we are!!!!!!

Ben will finish America as we know it......

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Comment #9 by Anonymous posted on
Anonymous
Now our savings are directly link to wall street. Hmmm!

More worrisome, in the view of top Fed officials: The parties that do business with investment banks might be less careful about monitoring whether the bank will be able to honor obscure financial contracts if they assume the Fed will back up those contracts. That would eliminate a key form of self-regulation for investment banks and other commercial Banks were people save.

Watch for FDIC to disappear as we know it.

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Comment #10 by ProfessorB (anonymous) posted on
ProfessorB
That was a huge drop at Provident Direct but we knew it was coming.

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Comment #11 by Anonymous posted on
Anonymous
I have given up on CD's and money market. The rates cannot keep up with inflation.

I think Treasury Inflation Protected Securities (TIPS) may work out better. Both Fidelity and Vanguard have good TIPS funds.
Another option is exchange-traded debt in solid companies like GE or ATT. A good resource for research is quantumonline.com.

Since the Fed's actions are undermining the value of the $US, we may not be able to continue to rely solely on insured deposits.
Educate yourself or sit down with a Certified Financial Planner (not a stockbroker).

The only good news is we'll all be back locking into high rate CD's once inflation kicks into high gear and rates come back up. Unfortunately, the Fed has come up with creative ways to manage inflation figures so that they are significantly under-reported.

We taxpayers are now burdened with billions of dollars of mortgage securities of questionable value that the Fed has accepted as collateral for loans to the banks and investment houses. There isn't enough money in the world to bail them all out. Get some of your money out of $US.

1
Comment #12 by Anonymous posted on
Anonymous
To the previous poster.
If inflation is under reported, TIPs and other Government securities are not real savings either.

The Dollar is already trashed against all other invest able world currencies, that makes no sense to start now.

CD, money markets and savings are way bellow the current inflation level.

Commodities are way over priced to invest in them.

Stocks are manipulated by wall street sharks and are not real reflection of the present economy.

Let face the truth, Fed did this on purpose to keep us subservients to their stupidities and long term agenda. They want to punish the good savers for recklessness of few bad apples.
Fed will continue to ponder to wall street cry babies and corporate America. We do not count at all and are already losers, no matter what we do now.

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