More Savings Account and CD Rate Cuts
POSTED
ON BY Ken Tumin
It has been just one day since my last rate cut post, and several online banks have already made more cuts to their savings account and CD rates. Countrywide cut rates on both its savinglinks account and its CDs. Its top internet CD yield is now 4.45% APY for a 6-month term (down from 4.75%). Amboy Direct cut the rate on its Premium Savings account to 3.75% APY. However, the rate on its eSavings remains at 4.25% APY (see my eSavings account and bonus review). Below is a list of the recent cuts since my post from yesterday. I've also included the cut at iGOBanking which I missed yesterday.
GMAC Bank didn't cut any rates today, but I noticed something humorous at their CD webpage. On the right of the rate table, an animated graph shows how much better their CD rates are as compared to the national average. They're not doing a good job with this. The average that's shown is 3.75% and their yield is 3.50%.
The national average CD rate is 5 months old, so they're probably ahead of today's average. But with rates falling as fast as they are, GMAC Bank may want to either remove this graph or perhaps keep their rates higher.
- Countrywide savingslink: 4.50% APY (was 4.75%)
- WaMu Online Savings: 4.00% APY (was 4.25%)
- Amboy Direct Premium Savings: 3.75% APY (was 4.00%)
- iGObanking Savings: 4.05% APY (was 4.20%)
GMAC Bank didn't cut any rates today, but I noticed something humorous at their CD webpage. On the right of the rate table, an animated graph shows how much better their CD rates are as compared to the national average. They're not doing a good job with this. The average that's shown is 3.75% and their yield is 3.50%.
The national average CD rate is 5 months old, so they're probably ahead of today's average. But with rates falling as fast as they are, GMAC Bank may want to either remove this graph or perhaps keep their rates higher.
Yours,
Bozo
The one from GMAC Bank that Banking Guy gives a link to in his article.
Countrywide will also keep lowering their rates (and for sure once the B of A buyout is complete in the fall).
PinkSprinkle, you should call your bank and place a stop payment on that lost check, just in case.
And yes, if someone had one's account number, one could put through a debit, but it would be an unauthorized debit, so you'd be protected. Yes, you'd have to file a police report and a claim with your bank, but eventually your bank would give you back the stolen money.
7:20 PM, February 15, 2008[/quote]
Yeah, you got to love the bigshots that like to shoot off their mouths, yet never give any advice...
http://bankdeals.blogspot.com/2008/01/wachovias-new-way-2-save-account.html
(It has a 5% APY plus a 5% bonus after the first year.)
The 6.5% WAMU account is their Savings for Success Account described here:
http://bankdeals.blogspot.com/2007/07/wamus-new-700-savings-for-success.html
Both accounts limit the maximum deposit to a very trivial amount and impose other conditions. But it's still a way to pick up some chump change if you are up to the hassles.
While the monthly limit is $100, you can open 5 accounts per SS#. So, $1200/year = $60 bonus/acct.
Plus, avg balance of $600/year = $30 int. Multiply this times 5 accounts x number of household members = nice bonus.
The $100 monthly transfer to Way2Save checking linked to Way2Save Savings can be automated, so no muss or fuss.
For me, easy $900 bonus (15 accounts x $60 bonus each).
Not a 10% APY, rather ~7.5% or so. Still decent...if Wachovia maintains the 5% APY on the savings account thru the year. *smile*
I also think that banks would love to roll over maturing CDs to new CDs with much lower interest rates, especially the longer term CDs. So a letter to the bank is just added insurance as to cashing out on time without penalties before a roll is done and the grace period expired.
Clearly , an attempt to get you to roll over or forget about the due date.
THe best thing to do is have a free checking or savings acct there, and go in person on the maturity date, and move the money in directly. I had this done the last time.