Online Banks Quick to Cut Rates after Yesterday's Fed Rate Cut

Ing Direct's Electric Orange Checking Account was 4.75% when I signed up end of 3rd quarter 2007. It is now below 2%.

Shameful.

It goes without saying: I have pulled my money out of ING Direct Electric Orange and am in a Credit Union's Reward Checking. Yes, I fear my Reward Checking Rate will also decline, but I am praying it won't go below 4%. I'd live with 4%. But if they lowered my Reward account below 4%, I would be raising the white flag of surrender.

I hear what you are saying and feel your pain like I am sure most of us that visit this site do.
But where do we savers all go if we surrender?

I ,for one, will not invest in the stock market. Although that may be part of Benarke's strategy, to force us out of secure bank accounts and into the market in order to prop it up and the next thing you know, Wall Street's financial institutions will have our money too.
No thanks big Ben.

I negotiated a 1yr cd renewal with indymac today for 4.10%APY. just a bit above their advertised rate. probably won't last much longer.
:(

You can lock in 7% rate for 9 months at TDAmeritrade. Need 30k increments: 30k or 60k or 90k. If you have the liquidity to do that by tomorrow, write me. If you don't, then don't bother - the offer is dying

To singlepap,

You keep touting the same deal. If it is legitament, why don't you just add the link or web address to your comments?

I sure appreciate the work that Banking Guy puts into this blog, as well as the comments the other readers share. I have really picked up some good knowledge that I would not have had otherwise.

I share the sentiments that others have expressed. It drives me crazy that moves made by the fed to make credit more available are slow to be reflected in borrower's rates, yet the moves so quickly punish people who try to save.

AMEN to the anonymous writer that talked about not getting sucked into the stock market. I have money in it now, and it makes the savings rates look like a dream come true.

As Banking Guy says, the rates seem to be trending toward 2002 levels. That time around I used a bunch of my cash toward the purchase of a bigger house for my family. Of course we know what the real estate market looks like, don't we??

What's a saver to do? I guess we just share what we know and do the best we can! Make them stay competitive if they want our deposits.

By "surrender" I mean just accepting the fact that for the time being, I will just not make any decent return on my money. I will sit back and do without the decent return until the return of the higher interest rates.

I got burned too many times playing the stock market.

I'd rather sit back and make little after taking into account inflation but knowing my money is safe in federally insured accounts than put it into a risky endeavor (no matter how small the risk) and have to worry about it.

KeyDirect's 10 year is still over 5%. They are nuts, but you might want to avail, and all that. Anything over 5% is a gift, so 5% is a "present" in these rate environments.

I have my KeyDirect at 5.75% for 10 years, so I'm OK.

Yours,

Bozo

To: All those who are cashing in their stocks
Fm: Me (Bozo)

Please exit stage right with your stocks. I will buy them. Diversify, diversify, diversify.

Once you have maxxed out in your cash stuff (as I have), keep a tad in your ammo locker to buy beaten-down stuff.

You folks are a tad pessimistic.

Yours,

Bozo

Bozo, if what you do works for you, fine. To each their own.

But I think you are barking up the wrong tree. You might gain more attention on a stock trading blog site rather than this one:

Bank Deals-Best Rates and Deals.

I don't think one has to ONLY put their money in banks to be interested in the best bank deals. But that's just me.

Victim of his own policy.

Report: Bernanke's own home down 260K in value

Say it isn't so: The Fed chairman, rapidly losing home equity in the housing bust?

Bloomberg News reports Fed Chairman Ben Bernanke's Capitol Hill home is slipping in value and may soon be worth less than he paid for it. An economist quoted by Bloomberg estimates Bernanke's house has lost $260,000 in value.

"Bernanke lives in Washington's Capitol Hill area in a four- bedroom, 2,600-square-foot house he bought new in May 2004 for $839,000. Almost four years later, it may not be worth any more, according to real estate records and local agents.

More: "'Even though he's the Fed chairman, he's going to get hit -- but I think lot of people will in Washington,' said William Wheaton, an economist at the Massachusetts Institute of Technology. The value of Bernanke's home 'probably went up to $1.1 million and it's probably back down to $840,000,' because prices in Washington just a couple years ago 'out of control,' Wheaton said."

Congress, Regulators Look to Expedite Housing Relief Proposals.

Congress concluded: "Dump the present dead bits and focus on speculators again"

Now that the Federal Reserve has pledged billions of dollars to rescue Wall Street bankers from possible default, lawmakers and regulators are turning their attention to helping average citizens -- from homeowners in danger of foreclosure to people who want to buy a home.

Here we go again, politicians will decide how we live and buy properties. Watch for disastrous outcome.

Isn't that the speculators destroyed the housing market by creating housing bubble?

Leave it to Congress to finish us all, how stupid they think we are.

But, I see their point, with millions of homes seating empty, if they can unload back to the speculators, the final ax will be postponed for the next administration to deal with.

Now I see the connection of Ben's rush to cut rates down to nothing.

They are fighting fire with fire.

They want to create second bubble that will be bigger than the previous bubble, thus taking credit for nullifying the previous housing bubble.

We are all doomed......

That is what happens when we elect incompetents members for Congress.

They need to listen to the people and not Ben Bernanke.

Ben and Congress and the Banks are conspiring against the people, therefore, don't expect savings rate to go up anytime soon.

Savers lost interest will be used to create profit for the Banks and finance second housing bubble.

There are over 7 (seven) trillion dollars in savings, checking, money markets and CD in all of the Banks in USA.

Cut the interest rate from 6% to 2%, and you created $280 Billions of free money for the Banks per year.

This float will be used to create the second housing bubble as Congress implied today, and finance the speculators again on expense of the Savers.

Back to the rates.... FNBO is down to 3.25%.

VirtualBank is down to 2.25%. YUCK! But yes, what's a saver to do, especially with shorter term emergency savings? It's annoying as well as time-consuming to open and close so many accounts and move money around to chase better yields.

To BOZO
Please go to the Post" FED CUTS 75 BASIS POINTS" and read the comment I left there for you. You can have all of the 10 year cd's at Key that you want cause I don"t want any of them. Besides SINGLEPAP can get you 7% but I guess he wants you to pay for the info since he keeps it secret.

And UFB Direct is down to 3.30%, 3.35% APY. Double yuck! I've been keeping most of my very short term savings there because it has the best rate of the liquid accounts I have, and now it's also crappy.

Singlepap's got no magic...all it is, is a $1000 bonus for opening an account with $30K, plus keeping your money in their money market fund for 9 months. Hardly a secret...you just have to know what to ask to get the $1000 bonus.

FNBO Direct down to 3.25%.

WAMU now is 3.55% still pretty good!
Their CDs also dropped
60M CD at 4%

GrandYield Direct 3.50%

Emigrant Direct now down to 2.75

AmTrust e-saving down to 3.25% and highest tier of e-money market to 3.00%.