More Falling Rates: GMAC, Countrywide, Presidential, Bank of America

I've got a Money Market savings account at GMAC, and my experience with their Web site and banking services has been positive -- but I'm unhappy about their swift rate slashing.

However, I suppose that this news (http://tinyurl.com/27mkqs) has a lot to do with their decisions right now.

GMAC just lost my money. Their problems are only going to get worse now that they've lowered to 4.5%. I'm going to go with Countrywide. 5.35% is sure a lot better than 4.5%

Yes, GMAC has now cut 79 basis points from their MMA yields and the Fed has only cut 75 bp. I don't like the idea of moving money around all the time to chase rates, but now that GMAC is out in front of the Fed I'm moving a sizable chunk of money away from them. I do like GMAC's ACH facility and the ability to move funds promptly and easily, so I'll keep my accounts with them open, at least for the time being.

Anonymous @ 9:36 AM and Bill @ 10:35 AM, you typed the words right out of my mouth, so to speak. I'm thinking of transferring most of my GMAC funds to a new account elsewhere, probably at Countrywide.

However, a friend commented pointedly that I should keep in mind WHY Countrywide is offering higher rates right now. I'm wondering whether I should wait for the dust to settle, allowing institutions to adjust their interest rates in the wake of the Fed's change, before I leap into a new account. And would it be riskier to open accounts at Countrywide, GMAC, Indymac, and others who are "in trouble" from the whole sub-prime mortgage fiasco, regardless of how attractive their interest rates seem right now?

What do you think, Banking Guy? (And BTW, thanks for providing such a useful resource! I check your blog daily to stay on top of good deals and general trends.)

I'm sticking with GMAC until the dust settles.

I've been thinking about Citi or WAMU. 5% with B & M access is starting to look very appealing. Anyone have feedback on either?

Of course either of them is liable to drop their rate at any time since neither did after the initial Fed cut.

i'm sticking with igobanking at 5.17%...figure in a week or two they will lower, but will still remain above 5%.

igobanking here, too; they'll probably lower soon, but they've been nice to me, so I'll be nice to them.

Apple Bank's Grand Yield Direct also down from 5.15% to 5.00%.

AmtrustDirect will be down soon. They just dropped their CD rates.

re: I've been thinking about Citi or WAMU. 5% with B & M access is starting to look very appealing. Anyone have feedback on either?

I have a WAMU account that works just fine for me. I am not very demanding and pretty much just have the money sitting there. The B/M aspect is nice for deposits and if I need access to my funds it takes about two minutes to move it to checking and write a check if needed. I'm waiting for the dust to settle as well, but if WAMU holds at 5% I am most likely moving my 50+k in ING over to that account.

Wamu rocks always :)

I too love the GMAC web site. However, I love it a lot less since the rate went under 5%. I had FDIC limit there until rate cuts and now have only a few thousand which will be moved monday leaving enough to keep account open. I really dislike CD's but saw the writing on the wall with the first Fed cut so I went to Cd"s. CD's are not so bad if you stagger matuuity dates. I now have most of my money in CD'S that all mature in 3 to 24 months. Rates vary between 5.35 and 5.75. I beleive there will probally be one more cut and then a few months of unchanged before heading back up in year or so.Of course that is just my uneducated opinion .

Countrywide has lowered its CD rates again today. 6 month is now 5.35%, down from 5.4 this morning :o(

Speaking of falling rates...

I got up early today to do some first-of-the-month bookkeeping and found that my Apple Bank Grand Yield Savings rate has just dropped again to 4.88% (5.00%APY) - down from 5.15%APY.

- no big shock & like you have been saying, it was just a matter of time - some are just faster than others.


iGObanking's iGOsavings account will drop the hammer soon I'm sure - I do appreciate them holding out longer than these other trigger happy banks.

Two rate cuts and Wamu is holding at 5%.

Interestingly, Countrywide is continuing its past practice of offering higher CD rates for amounts $10,000 and above to California residents, compared to their overall "Internet" rates (though both types can be opened online, without a branch visit).

(PS-I haven't checked to see if this same state-based variation is happening with other states besides California).

If you type a California zip code in the location box on their CD rates web page, you'll see APYs as of Sat. morning (post Fed cut) that were 5.35% for 3 and 12 month, 5.45% for 9 month, and 5.55 for 6 months.

Those compare to their current "Internet" rates of 5.2% for 12 month, 5.3% for 9 month, 5.35% for 3 month, and 5.4% for 6 month.

The longer CD terms, however, both appear to be the same (California and Internet rates) at 5%.

If you happen live in California, the shorter term CD rates they're continuing to offer are pretty darned good, especially in the wake of the latest Fed cut.

Unfortunately for us Cali folks, there is no such difference, for their SavingLink account, which fell to a still appealing 5.21% rate/5.35% APY for $10K to $100K balances in the wake of the Fed's action.

John from Los Angeles

Washington D.C. and suburbs' Chevy Chase Bank is currently offering a 5.3% APY 7 mos CD for amounts over $100,000. The yield decreases with the amount deposit, but is still 5.25% APY for $25K and up. The extra 5 bp kicks in at $100K. I talked to the CSR when I opened a CD at my branch yesterday. She said they change the rates as needed and had no idea when the next change would be. This is by far the best "bank" deal I have found in the DC area at the moment. I will be very surprised if the rate hold much longer though.

"Countrywide has lowered its CD rates again today. 6 month is now 5.35%, down from 5.4 this morning :o("

This lower rate for the Countrywide 6 month CD seems to show up only in certain markets. When I click on banking guys link it still shows 5.40%, but if you enter a Michigan zip it shows the lower rate of 5.35%. Must be differences in areas, such as the higher California rates?