Insights Into Rate Cuts And Account Restrictions At Internet Banks

You might recognize a few of the people mentioned in this WSJ article, Finding High Rates Online. In addition to describing the falling rates at internet banks, it has a few interesting tidbits from the internet bank management. Some excerpts:

"Nationally, bank margins are being squeezed, and banks must adjust their funding costs accordingly," says Citizens National Bank Senior Vice President Stacy Lauer. Balances in the bank's Internet savings accounts have fallen 38% in response to the rate cuts, she says.
[...]
IncredibleBank savers who want to move money out of the bank within 60 days of opening the account face extra scrutiny, unless the money is going back to the account it came from. "We want to make sure that the activity going on in the customer's account is legitimate," says Jay Wittman, chief operating officer at River Valley Bank.

Read more (may have go through Google News to access it (search for "finding high rates").)