Given the recent drop in Fed interest rates, here is a quick update on the rates being paid on online savings accounts:
HSBC Advance lowered its rate to 3.00% APY.
Capital One 360 also recently lowered its rate to 0.75% APY. ($25 bonus) However, they do have a new 12-month CD at 0.40% APY.
Emigrant Direct is still at 3.00% APY, but if you have more than $1,000 there, you should move your money to DollarSavingsDirect at 4.00% APY instead. They are both under the same parent Emigrant Bank, and so your deposits are insured together for FDIC purposes. The only real difference is that DollarSavings requires a $1,000 balance to earn the 4%.
I was really annoyed at this until I figured out that there is actually no minimum balance requirement at DollarSavingsDirect, your interest rate just drops to 1.0% APY if you go below. No fees or penalties. Thus, I can still open an account and move my money there while the rate is good, and still be able to move it out if the rate drops. Okay, so I’m still kind of annoyed. They are saying “we think you’re too lazy to move your money, but new customers get 4% APY”.
EverBank’s Yield Pledge savings account has an intro rate of 4.65% APY for the first 3 months, and then 3.51% APY afterwards. Not bad, considering even the non-special rate is very competitive, as it “pledges” to stay amongst the top 5% of competitive banks. There is a minimum balance requirement of $1,500 to avoid fees.
Corus Bank has what looks like the top 12-month CD rate at at 4.60% APY if you open with $10,000+.