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Savings Account Rate Cuts by Countrywide, ING Direct and Citibank

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I thought we would see a little slow down in the banks cutting rates until after next week's Fed meeting in which the Fed is expected to make at least a 50-basis-point cut. But three big players in online banking made cuts today to their online savings accounts. Here's a summary of the cuts:

This Forbes article has some opinions from economists about how low the Fed will go this year. This CNN article discusses what many readers have mentioned regarding the current Fed policy of cutting rates, and this WSJ article discusses other tools the Fed may use instead of just cutting rates.
  Tags: ING DIRECT, Citibank, savings account

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51 comments.
Comment #1 by Anonymous posted on
Anonymous
Ben Bernanke will destroy all savers by pumping money into the Banks. So far he flooded the Banks with $300 billions and will pump another $200 billions by the end of the month.

Read this:

"Tuesday March 11, 9:49 am ET
By Jeannine Aversa, AP Economics Writer
Fed Announces Further Steps to Ease Credit Crunch

WASHINGTON (AP) -- The Federal Reserve on Tuesday ramped up efforts to provide more relief to squeezed financial institutions, a coordinated action with other central banks aimed at easing a global credit crises that threatens to push the U.S. economy into its first recession since 2001.

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The Fed said it will make up to $200 billion in Treasury securities available to big Wall Street investment houses and banks. The new action is designed to ensure that there is an ample supply of Treasury securities. With strains in financial markets, demand has grown for Treasury securities, considered the safest investment in the world because they are backed by the U.S. government.

The Fed announced the creation of a new tool, called the Term Securities Lending Facility (TSLF), geared to provide primary dealers -- big Wall Street investment firms and banks that trade directly with the Fed -- with short-term loans of Treasury securities. They would pledge other securities -- including federal agency residential-mortgage-backed securities, such as those of mortgage giants Fannnie Mae and Freddie Mac -- as collateral for the loans of Treasury securities.

The loans would be made available through an auction process. Auctions will be held on a weekly basis, beginning on March 27, 2008.

The new lending initiative "is intended to promote liquidity in the financing markets for Treasury and other collateral and thus to foster the functioning of financial markets more generally," the Fed said.

The Fed since December has been making short-term loans of cash available to banks through a new auction facility. It has provided $160 billion available to squeezed banks in hopes it will help them to continue lending to individuals and companies.

In addition, the Fed also on Tuesday said it has authorized increases in existing programs called "swap lines" with the European Central Bank and the Swiss National Bank

"These arrangements will now provide dollars in amounts of up to $30 billion and $6 billion to the ECB and the SNB respectively," the Fed said, extending the term of these swap lines through Sept. 30.

Last week, the Fed announced that it would increase the amount of loans it plans to make available to banks this month to $100 billion. At the same time, it said it would make another $100 billion available to a broad range of financial players through a series of separate transactions.

The Fed has been working to pump billions of dollars into the banking system......."

By Sept. 2008, there will be over a ONE TRILLION DOLLARS pumped to the Banks, therefore, they will get bailed out on taxpayer expense, behind our backs and without public ever knowing about it.

Sam

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Comment #2 by Anonymous posted on
Anonymous
No wonder everything is going up in cost. Ben is creating an unbelievable hidden inflation and destroying the Dollar.

Saving became meaningless if what you save will be eaten by inflation created by the Fed to save Wall street. Ben is working against the people, and against his mandate as chairman of FOMC.

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Comment #3 by Anonymous posted on
Anonymous
Now I'm convinced, Ben works for wall street and not the people.

"U.S. stocks rally, reversing course after three sessions of declines, as investors cheer the Federal Reserve's move to loan as much as $200 billion in securities in a bid to boost liquidity in the financial system."

Good by savings.

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Comment #4 by Anonymous posted on
Anonymous
I would like to swap my mortgage currently paying at 8.02% for one of those Ben peddles to the Banks for 3%.
Can I do that Ben, neahhh!, he only let wall street enjoy the benefits.

"The Fed announced a new temporary lending program that will allow participants in the bond markets to swap the mortgage-backed securities that they can't currently sell for highly liquid Treasurys that they can."

We are only people, we don't exist in Ben's mind.

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Comment #5 by Anonymous posted on
Anonymous
More bad news:

" The five-year slide in the U.S. dollar vs. its counterparts has overlapped with acceleration in consumer inflation. That's no coincidence, say some economists. Since it takes more dollars to import goods and services, such as oil, a weak dollar makes imported goods more expensive.
"The weak dollar is behind all of the inflation pressures," says Ellen Zentner, U.S. macro economist at Bank of Tokyo-Mitsubishi UFJ.

Since the start of the year, oil, gasoline, wheat and soy have all hit new record highs, a spike commodity analysts attribute to the weak dollar, supply squeezes and a rush of money from institutional investors seeking protection from inflation. On Friday, the dollar reached a new record low against the euro. It's lost 13% in the past year vs. a basket of six major currencies.
Prices for food and energy "would not be as high as they are today if it weren't for the fact that the dollar is weaker," Zentner said.

These price gains are coming at an unfortunate time for the U.S. economy, which is slowing and possibly in a recession, and the Federal Reserve policymakers trying to manage this unwinding. The Fed is trying to jump start growth by lowering interest rates. But those cuts, which have brought short-term interest rates to 3% from 5.25% in September, are also weighing on the dollar. The cheaper buck, in turn, is stoking already high commodity prices higher and eating at the worth of U.S. assets."

So now you know, inflation is behind all of Ben's policy of cutting interest rates and printing money.

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Comment #6 by Anonymous posted on
Anonymous
Bernanke was forced to cut rates to try to socialize bank losses and save housing.

Odder yet that commodities haven't risen by the same percentage in Europe, Canada, or Australia. Perhaps those countries are on a different globe?

Oddest of all is how major commoditity charts inversely mirror the Dollar chart.

Predictable is how oil stays around ten barrels per troy ounce of gold, plus a ten or fifteen percent supply/security premium that is being held down by, once more, "mysterious" inventory builds on crude.

I think this is all straight forward and predictable, the congress passing the Deficit Stimulus Act of 2008 while Gentle Ben is slashing rates while the Dollar hits new lows and ommodities hit new highs. Nothing mysterious about it.

Ben will totally destroy the US economy.

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Comment #7 by Anonymous posted on
Anonymous
What do you expect when Ben is cozy up with corporate America.

Don't you just love those fat cat Corp. economists. You know, the ones who tell us that the weak dollar does not contribute to our domistic inflation. The reason is that our suppliers will absorb that cost in their margins. I think those people where on O J's jury. How long are these people going to get away with making us think they know something.

Nothing surprises me more

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Comment #8 by Anonymous posted on
Anonymous
I love the Forbes article. Says the fed rate will hit 1% by the end of the year. People at my work think one can retire on $2 million. At the old rates of 5% that would be $100K income. I could live on that. But at 1% that same $2 million would only earn $20K per year. Cannot live on $20K. We all know that long term the rates that banks offer tracks the fed rate (look at the low 3% rates now). Thanks to Ben retirement is becoming impossible!!!

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Comment #9 by We are all #@%*^! (anonymous) posted on
We are all #@%*^!
What would savers who just want FDIC or NCUA insured accounts do if interest rates went down to 1 to 2%? Just live with it?

Wow! Who would have predicted this last year when the rates were 5%?

Sad.

1
Comment #10 by Anonymous posted on
Anonymous
What do you expect when Ben lied to Congress few weeks ago when he told that inflation is not an issue and that he can do whatever he likes with the interest rates.

Ben lying, nope, he lied to the American people only. That is not impeachable offense.

Now I now why the members of FOMC keep quiet, he is bully and arm twister.

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Comment #11 by Anonymous posted on
Anonymous
Ben moto, it's my way or no way.

Does he reports to anyone else, forget Congress, they have no clue what he is doing, except when he lyes to them and us.

Who supervises Ben, it's not the members of FOMC?

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Comment #12 by Anonymous posted on
Anonymous
If Ben tells the truth to Congress, they can stop him, but if he twists the truth or outright lyes, he is home free and can do whatever he pleases.

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Comment #13 by Anonymous posted on
Anonymous
Ha ha ha. It is fun to see you all "savers" getting squeezed!

What the f**k are you going to do about this except raving and ranting?

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Comment #14 by Ranter and Raver (anonymous) posted on
Ranter and Raver
There is absolutely nothing we can do except complain and take in less interest income.

The losses will be staggering when added up together.

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Comment #15 by Anonymous posted on
Anonymous
All of the interest lost from the savers was given as a gift to the Banks by Ben, and then some.

Now he is giving free money for the worthless paper they hold.

What is next, free money just for asking. What an idiot.

1
Comment #16 by Anonymous posted on
Anonymous
To Anonymous of 10:41 AM, March 11, 2008.

You must be a sadist, for laughing out at people losses. Are you happy what Ben is doing?

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Comment #17 by Anonymous posted on
Anonymous
A comment like his {laughing guy} doesn't need a rebutle. He's a looser himself!

1
Comment #18 by Anonymous posted on
Anonymous
Go Ben. You rock!

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Comment #19 by Anonymous posted on
Anonymous
Lowering rates is inflationary.

Printing money is inflationary.

Buying back worthless pieces of paper form the Banks is inflationary.

Giving money to wall street, bond issuers and other institutions is inflationary.

Trashing the Dollar is inflationary.

What the heck Ben is up to?

Does he knows basic economics?

1
Comment #20 by Anonymous posted on
Anonymous
Ben,

Glad we hired you.

- Wall Streeter

1
Comment #21 by Anonymous posted on
Anonymous
Hey Wall Streeter, do you know what will happen to wall street enthusiasts like you when hyper inflation will set in next year?

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Comment #22 by Anonymous posted on
Anonymous
Real Wall Streeter never reads blogs about savings. He is phony as Ben is.

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Comment #23 by Anonymous posted on
Anonymous
Yo Savers:

What's up?

So our man Ben is f***king you ...

Good job Ben ;-)

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Comment #24 by Anonymous posted on
Anonymous
Sadist? No. I'm no sadist, but there 's a distinct fun in reading you "savers" rave & rant!

You know that there's nothing you can do about Ben while he f**ks you out of your pesky interest!

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Comment #25 by Anonymous posted on
Anonymous
"By Anonymous, at 1:45 PM, March 11, 2008"

Yes, this guy certainly is a looser, in more ways than one.

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Comment #26 by Anonymous posted on
Anonymous
muhaaaa

the loser "savers" are losing their interest rate every week & they are calling somebody else a loser!

i like it!

muhaaaaaaaaa

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Comment #27 by Anonymous posted on
Anonymous
We savers are only losing money.

You apparently have lost your social skills.

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Comment #28 by Anonymous posted on
Anonymous
So saver/losers, what are you plans after Ben is done with you? Lemme guess ... Food Stamps? Chapter 11?

Only because of Ben there's new show in town. Ben & his partners are "Gang Banging" a bunch of saver/losers!!!

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Comment #29 by Anonymous posted on
Anonymous
To Anonymous of 6:40 PM, March 11, 2008:

Well the first plan of these saver/losers should be the clean-up!

I mean the Food Stamps & Chapter 11 can wait, but after Ben & Associates are done with f**king these saver/losers they better clean up all that **** from their faces & other body part first. ;-)

Food Stamps & Chapter 11 can wait!

1
Comment #30 by Anonymous posted on
Anonymous
Wall streeters will be the biggest losers at the end, after Ben is done with the savers.

"The dollar approached its all-time low against the euro on speculation the Federal Reserve's plan to provide funds to banks won't be enough to break the gridlock in money-market lending and stem credit losses.

``Read the need for such new measures as being a symptom of what ails the world and not a panacea for its problems,'' said David Simmonds, the London-based global head of currency research at Royal Bank of Scotland Plc, the world's fourth- biggest foreign-exchange trader. ``Stay short on dollars.''

All your inflated money made on wall street will shrink in value when cashed or security sold. The more you make know, the dipper the loses later. Therefore, was street guy will lose his shirt at the end and kill himself when wall street collapses in front of his eyes.

And the biggest loser is: Wall street guy and his gang.

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Comment #31 by Anonymous posted on
Anonymous
Hey wall streeter, Ben will make you puke at the end, after he is done with the savers. When he no longer can cut rates, since 0% interest is not far from here, he will destroy all stock market players.

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Comment #32 by Anonymous posted on
Anonymous
The two previous posts are correct.

Savers will lose the interest on the principal only.

Wall streeters will lose the principal and the interest.

And the biggest losers are wall streeters.

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Comment #33 by Anonymous posted on
Anonymous
To "Anonymous, at 9:54 PM, March 11, 2008":

You're right my friend. These saver/losers will have to clean-up first. Then they can go do their Chapter 11.

I for one am enjoying the show Ben & partners are putting-up at the expense of these saver/losers!

In the meantime Wall Street made biggest jump in 5 years yesterday!

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Comment #34 by Anonymous posted on
Anonymous
Hey Saver/Losers,

What Ben & partners will do or won't do remains to be seen.

What matters to us here & now is what they are doing to you! So don't stop. Keep raving & ranting. Tell us how are you enjoying the sc**w so far?

- Wall Streter

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Comment #35 by Anonymous posted on
Anonymous
Hey wall streeter and your partner above you from: 8:22 AM, March 12, 2008.

What Chapter 11 has to do with savers. You have no idea what you are talking about.

Savers have money and dignity, you have foul mouth and disgrace.

Stop bragging until you find the real outcome of Ben's economics.

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Comment #36 by Anonymous posted on
Anonymous
Dignified? Sure.

Ben & Associates are publicly f***king you.

Contrywide & Citibank are publicly slapping you every week with lower & lower rates!

Yes yes, very dignified! ;-)

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Comment #37 by Anonymous posted on
Anonymous
Hey foul mouth, you are on a low life level and sadistically enjoying the moment of somebody's misfortune.

It will come back to you pretty soon
and you will pay together with your buddy wall streeter.

Ben's next agenda will be to destroy wall street, while savers again will enjoy high interest rates when hyper inflation sets in.

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Comment #38 by Anonymous posted on
Anonymous
To the foul mouth,

WHAT'S YOUR PROBLEM?

1
Comment #39 by Anonymous posted on
Anonymous
Please don't respond to these foul-mouthed ignorant posters. When they can no longer get a response from this blog, they will take their dirty, ignorant remarks elsewhere and leave us alone.

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Comment #40 by Anonymous posted on
Anonymous
To Anonymous, at 11:45 AM, March 12, 2008.

I disagree. I think we have to engage them and find out what the problem is and if we can help them in any way to become civilized.

Ignoring them, is not a solution to angry souls.

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Comment #41 by Anonymous posted on
Anonymous
>>>> WHAT'S YOUR PROBLEM?

None!

But you have a big one. It is spelled BEN. :-)

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Comment #42 by Anonymous posted on
Anonymous
To Foul mouth and wall streeter.

Have you filled your gas tank lately, have you bought grocery lately, have you flown lately, then you are losers too, you paid to much for everything.

See, Ben made you losers indirectly and this is just a beginning of what will be coming your way.

1
Comment #43 by Anonymous posted on
Anonymous
Foul mouth and wall streeter, we are paying the price upfront from Ben actions, but you will pay more on long run when inflation will destroy wall street, while we will recoup our loses and then some.

Pretty soon and you will condemn Ben when inflation will hit your pockets.

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Comment #44 by Anonymous posted on
Anonymous
Nobody can escape Ben action, especially Foul mouth and wall streeter, they will pay double for losing their principal, interest and pay extra from the coming inflation and will be the biggest losers at the end.

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Comment #45 by Anonymous posted on
Anonymous
Foul mouth and wall streeter have no future visions of what Ben is doing to them.

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Comment #46 by Anonymous posted on
Anonymous
True, everytime we go shopping, including Foul mouth and wall streeter, we all pay a hidden fee for Ben's economics. Foul mouth and wall streeter, Ben is stilling money from you every day,,,,,what you gonna do about?

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Comment #47 by Anonymous posted on
Anonymous
I think there are some lyrics to a rap song in these posts. SVG is SVG your user name or the name of a band?

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Comment #48 by Anonymous posted on
Anonymous
Saver/losers,

I had enuf fun for now.

This was just a 4play. I'll return on March 18 when our man Ben will sc**w you one more time.

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Comment #49 by The Real Client 9 (anonymous) posted on
The Real Client 9
Stop the bickering. It is a waste of time.

It won't change anything.

Who cares whose fault it is?

Makes no difference.

We all just must ride it out, which is what we are going to do anyway.

Just please post helpful comments that maybe can assist us in finding the best rates for our money.

Thank you.

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Comment #50 by Anonymous posted on
Anonymous
Someone certainly needs help in more ways than one. A couple of very unstable people posting or is it just one person posting under differant aliases?

Must be someone craving for attention that they can not earn respectfully.

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