Interest rates on savings accounts are dropping left and right. With the Fed Funds rate at near 0%, I don’t see any hikes soon. The question is… how low can they go? Capital One 360 hit a new low since it started in 2000!
Liquid Savings Accounts
- If you’re a rate chaser, Broadway Federal is offering a pretty amazing 4.08% APY with a minimum opening deposit of $1,000. However, there is no guarantee this rate will last very long at all, and reports indicate a hard credit check. To see if it’s worth it, don’t forget my handy Rate Chaser Calculator.
- The Everbank Yield Pledge Money Market Account is offering 3.51% for 3 months guaranteed for new accounts, and after that it goes down to the regular rate of 2.43% APY. (Balances up to $50,000.) See my review of the application process here.3.51% APY for 3 months remains better than any other banks’ top 3-month CD rate, while still allowing withdrawals.
- DollarSavingsDirect has made a few drops, currently down to 2.65% APY now. If you are moving money out, remember that you need to maintain a minimum average daily balance of $1,000.00 during the entire month to keep the high rate for that period. For those with lower balances, it may be better to withdraw after you see your last month’s interest credited. See my quickie review here.
- FNBO Direct is now at 0.85% APY. See my account review here. Their CD rates have dropped significantly.
- If you have money committed to the (now expired) WT Direct $250 bonus promo like I do, just a note that they are at 2.16% APY for $10,000+ balances. We have to hold until end of February, and they promised the bonus the 2nd week of March.
- The “Original” Capital One 360 is now down to 0.75% APY, but new savers can still get their $50 opening bonus. According to my data, this is the first time ING has ever dropped below 2%.
- E-Trade Savings (useful if you trade stocks there) is at 2.15% APY. HSBC Direct is at 2.25% APY.
Certificates of Deposit
It may not be worth locking in these low rates for a long time, but if you have a CD ladder going you might be interested:
- Pentagon Federal Credit Union is offering 3-year CD at 3.89%, 4-year CD at 4.15%, and 5-year CDs at 4.39% APY. If you aren’t a member and don’t otherwise qualify, you can join the NMFA for a one-time fee of $20.
By Jonathan Ping | Banking | 2/21/09, 4:57pm