Capital One reduced rates on its money market account from 5.00% to 4.80% APY. The rate on the Costco version remained at 5.14%.
VirtualBank's move followed many other banks in slashing long term rates. However, it also slashed the 6-month CD rate. With Capital One's rate drop on the money market account, short term rates now seem vulnerable. According to this article, the fed's latest rate pause and the weakness in US housing are pointing to a weaker economy. An economic professor thinks the US will experience a recession in 2007 that'll be worse than the 2001 recession. If that happens, this might be the last year of 5-percent-plus savings accounts or 6-percent-plus CDs for some time.