Perhaps there needs to be another category for the banks that are making two big rate cuts. E-LOAN did this with two 25 basis point rate cuts. Now GMAC Bank has done it. GMAC Bank dropped its Money Market Yield from 4.90% to 4.75% APY. Before the Fed rate cut, it had been 5.30% APY. Below is summary of the recent rate cuts of online savings and money market accounts:
- IndyMac Internet First MMA: 5.50% APY (was 5.60%, 5.75%)
- KeyDirect MMS: 5.30% APY (was 5.35%)
- Etrade Complete Savings: 4.70% APY (was 5.05%)
- GMAC: 4.75% APY (was 4.90%, 5.30%)
There are still some online savings accounts that are holding on to their pre-Fed-rate-cut yields. It's likely these are just the wait-then-cut banks. It's either part of their strategy or they're just slow. I'll do a review of some of these banks in the next few days.
Thanks to the readers who have been providing updates on the rates.