As expected after the 0.75% Fed rate cut, the interest rates on savings accounts aren’t doing so hot. From the classic Capital One 360 dropping to 0.75% APY (still $50 bonus), to the formerly high-flying FNBO Direct landing at 0.85% APY.
My old 6.01% promo rate at Everbank was nice for 3 months, but is now gone as well. I’m happy that my core account at Washington Mutual is holding steady at 4.75% APY, at least for now (read my review). It’s hard to go back to lower rates, but still remember when 3% was an awesome deal.
If you’re looking to lock in a higher rate and willing to trade some flexibility, IndyMacBank has 7-month CD at 5.0% APY. If you’re looking to gamble and willing to jump through some hoops like mandatory debit card transactions, the First Arkansas Bank has a checking account paying 6.06% APY. Be aware, though, as it’s very unlikely his rate will last much longer. Try my Rate Chase Calculator to see how much you’ll make if the rate difference is the same for a month (even that might be optimistic), and keep in mind the potential lost days of interest.
By Jonathan Ping | Banking | 1/26/08, 4:12am