Many people who are with FNBO Direct right now earning 0.65% APY are asking – What is FNBO Direct’s rate going to be after September 28th? After a few phone calls, the official answer is apparently “We’re not going to tell you until we have to… on 9/28.”
This is actually pretty smart on their part. If they announced that the rate is going to drop now, then people may already start moving their money out. It’s better to keep us in suspense, playing off our hope that it will somehow stay high. I personally feel like it’s going to go back to 5.25% at the highest, otherwise they would have told us to kept us from preemptively moving. But that’s just my guess.
If this turns out to be the case, then the rates for no-minimum balance, no-monthly fee, liquid savings accounts will be again clustered closely around (a respectable) 5% APY. For those that want to keep chasing, I also tried to find the best combination of highest rate, FDIC-insured, lower minimums, and high liquidity:
6.01% APY for up to 6 months from EverBank, $1,500 minimum
Although this is technically a promotional rate for their FreeNet Checking Account, since it’s guaranteed you could simply treat it like a 3-month, 100% liquid CD paying 6.01% APY. Here are the details:
- 6.01% APY guarantee for first 3 months, after it goes to 3.35-4.89% APY based on balance.
- $1,500 minimum to open, no monthly minimum or fees, no direct deposit requirement
- Online Billpay costs $4.95/month if you have less than $1,500 in there, $25 fee if closed within 30 days of opening
- Free ACH in/out funds transfer system
- Checkwriting (1st 50 free), ATM rebates (up to $6/month), Postage-paid deposit envelopes
- FDIC-insured (certificate #34775), 3 star “Performing” Safe & Sound rating
After the first 3 months (assuming it’s still available), you can then open a Yield Pledge Money Market that also has 6.01% APY for 3 months. Also $1,500 minimum to open. It has more restrictions since it’s a savings account as well as a monthly minimum balance, so go with the Checking first. In total, this offers up to 6 months more of 6% goodness.
5.70-5.75% APY from IndyMac Bank
Indymac Bank has seen some troubles from the subprime loan mess, even though it specialized more in “Alt-A” loans, which are between prime and sub-prime in quality. However, it does offer some of the current top FDIC-insured rates. Here are two options:
$5,000 Mininum – Internet CD
- 5.70% APY for 5-month or 6-month Certificate of Deposit.
- Minimum to open is $5,000.
- It’s important to note that these are certificates of deposit, and so you can’t transfer money in and out as with checking/savings accounts. In addition, there is a early withdrawal penalty of 1 month of interest.
$25,000 Mininum – Internet First Rate Money Market
- 5.75% APY for balances above $25,000. No guaranteed term for this rate.
- Minimum to open is $1,000. Monthly fee of $7 if your balance falls below $1,000.
- Limited checkwriting is available.
Indymac’s FDIC certificate number is 29730, and it has a 2 star “Below peer group” Safe & Sound rating. Worried about their financial health? Check out my post exploring What happens if my bank goes bankrupt or fails? There may be ways to expand your $100,000 FDIC coverage.