The 3 Superbanks and the Effects on Depositors

This MSNBC article reviews the 3 new superbanks that have been created this year as several of the nation's largest banks have been acquired by the healthier giants. These 3 banks now control about 32% of the nation's deposits. The article mentioned one of the results of reduced bank competition: higher fees. But it didn't mention another result: lower deposit rates. Some examples that we've seen this year include:

• Countrywide (acquired by Bank of America, 11.3% of nation's deposits) Its SavingsLink account and CDs have dropped off the highest-rate lists. SavingsLink yield is now 3.15% APY for balances between $10K and $50K. Highest internet CD yield is now 3.90% APY.
• WaMu (acquired by JPMorgan Chase, 10.2% of nation's deposits) WaMu's online savings account rate dropped from 4% to 2.50% and its 1-year CD yield fell to 3%.
• Wachovia (acquired by Wells Fargo, 11.2% of nation's deposits) Wachovia's Featured CD rates have been falling, and they recently dropped some of the unadvertised long-term Featured CDs. Current Featured CDs for Texas include a 5% APY 60-month CD, 4% APY 12-month CD and a 3% APY 7-month CD.