Dedicated to Deposits: Deals, Data, and Discussion

Rate Cuts and Other Banking News


It looks like 2009 will be a challenge for savers. Banks continue to cut rates. ING Direct's Orange Savings Account yield is now down to 2.50% APY (was 2.75%). It also cut rates on its Electric Orange checking account and CDs. Its top CD rate is now only 2.75% APY for terms of 12 to 60 months.

Other banks that have recently cut rates include Corus Bank (MMA now 3.55% APY, was 3.65%) and Provident Direct (savings account now 3.25% APY, was 3.75%). There are still are three banks offering 4% savings accounts (see my weekly rate summary).

Banks are also cutting reward checking rates. I'm in the process of updating rates for dozens of banks in my High Yield Checking website. Thanks to the readers who have been leaving comments on the rate changes.

As reported by Wall Street Journal, GMAC fell short of its goal to raise $30 billion by converting its issued debt into preferred stock holdings. On Monday, GMAC received commitments from the federal government for $6 billion in aid.

GMAC is the parent of GMAC Bank. We'll have to see how greater stability at GMAC will affect the bank and its rates in the future months. GMAC Bank continues to offer a competitive 4.00% APY 12-month CD (see post).

According to this HousingWire article Fannie Mae may be holding up the IndyMac sale. The article mentioned sources that claim Fannie Mae has demanded $1 billion from IndyMac due to misrepresentations of loans it had sold to Fannie Mae.

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