Online savings accounts are not the only accounts being hit with rate cuts. State Bank of Toledo's reward checking account also had a major rate cut. Its top yield fell from 5.01% to 4.01% APY. For most of the second half of 2007, State Bank of Toledo (SBoT) had offered 6.01% APY with no balance caps. In December 2007, they lowered the rate to 5.01% APY and added a balance cap of $70K that is eligible for this top yield (see post).
There are still many doubts about whether these banks and credit unions can keep their reward checking account rates high. My guess is that most won't be able to keep the rates much higher than 1% or 2% above the rates offered by the online savings accounts. If SBoT can keep this 4.01% APY for the rest of this year, this may still be a good deal since most online savings account rates are falling to below 3%.
Below is a recap of the latest rate drops. Please see my Wednesday rate cut post for cuts made earlier in the week.
- Emigrant Direct Savings: 2.75% APY (was 3% and 3.30% before this week)
- Flagstar MMA: 3.90% APY (was 4%)
- State Bank of Toledo Reward Checking: 4.01% APY (was 5.01%)
- FNBO Direct Savings: 3.25% APY (was 3.85%)
- HSBC Direct Online Savings: 3.05% APY (was 3.55%)
- E-LOAN Savings: 3.00% APY (was 3.50%)
- AmTrustDirect e-Savings: 3.25% APY (was 3.50%)
- AmTrustDirect e-Money Market: 2.50% APY low tier (was 2.75%)
- VirtualBank eMoney Market: 2.28% APY for under $25K (was 3.05%)
- Grand Yield Direct Savings: 3.50% APY (was 3.70%)
- WaMu Online Savings: 3.55% APY (was 4.00%)
- Presidential Premier Savings: 2.75% APY (was 3.50%)
- Presidential Checking PLUS: 2.10% APY (was 2.75%)
- UFB Direct Absolute Savings: 3.35% APY (was 3.85%)
- WTDirect Savings: 3.56% APY (was 3.81%)
I'll have my complete update of savings accounts, checking accounts and CDs in my Saturday's weekly summary. With all these changes, I'm going to be busy...