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Retirement Savings: How Much Should I Save Each Month?Falling Savings Account Rates: ING Direct, EverBank, Zions Bank
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POSTED
ON BY Ken Tumin
When the Fed lowers rates, ING Direct sure doesn't waste any time in following with rate cuts. Just like in September after the first Fed rate cut, ING Direct cut rates today on its savings account, checking account and CDs. I don't remember ING being this quick in 2005 and 2006 when the rates were going up. The Orange Savings account yield fell from 4.30% to 4.20% APY. For the Electric Orange checking, the yield fell from 3.50% to 3.25% APY for balances under $50K. The yields of the short term CDs fell to 4.80% APY. The 6-month yield had been 5% APY. There was actually one rate hike, and that was on ING's 5-year CD. That yield increased from 4.75% to 5.00% APY.
More disappointing is the rate drops at EverBank. They finally cut the 3-month promo from 6.01% to 5.51% APY. This 6.01% had been offered on the checking since September 2006. The standard rate for the money market account also fell by 50 basis points from 5.01% to 4.51% APY. This 50 basis point change is similar to the rate changes EverBank made when the rates were going up. Those who mailed in their application yesterday should be able to receive the 6.01% rate lock (see my EverBank review post).
Zions Bank also lowered the yield on its Deseret Money Market Account. This actually took place a couple of days ago. The top yield fell from 5.51% to 5.40% APY for balances over $50K. The yield for the low tier fell from 5.30% to 5.19% APY.
I expect more cuts to come. GMAC Bank usually does their rate changes early Friday. Hopefully, GMAC won't be in a hurry to cut rates like ING.
More disappointing is the rate drops at EverBank. They finally cut the 3-month promo from 6.01% to 5.51% APY. This 6.01% had been offered on the checking since September 2006. The standard rate for the money market account also fell by 50 basis points from 5.01% to 4.51% APY. This 50 basis point change is similar to the rate changes EverBank made when the rates were going up. Those who mailed in their application yesterday should be able to receive the 6.01% rate lock (see my EverBank review post).
Zions Bank also lowered the yield on its Deseret Money Market Account. This actually took place a couple of days ago. The top yield fell from 5.51% to 5.40% APY for balances over $50K. The yield for the low tier fell from 5.30% to 5.19% APY.
I expect more cuts to come. GMAC Bank usually does their rate changes early Friday. Hopefully, GMAC won't be in a hurry to cut rates like ING.
