Online Savings Account Rate Changes

Written by nickel - 12 Comments

Not long after the Federal Reserve’s recent interest rate cut, ING Direct dropped their interest rate from 3.00% to 2.75%* APY. This is par for the course for ING Direct, as they’re always among the first to drop rates and the last to increase them. Not long thereafter, HSBC Direct dropped their rate from 3.25% to 3.00%* APY. And now, FNBO Direct has dropped their rate from 3.50% to 3.25%* APY.

While I’m a bit disappointed, I can’t say that I’m very surprised. Actually, the most surprising thing to me right now is that banks such as WT Direct (3.31%* APY) and E*Trade (3.30%* APY) haven’t followed suit (yet). It’s likely only a matter of time.

As for us, we’re sticking with FNBO Direct which is, in my opinion, one of the very best online savings accounts out there (read my review). Not only have they consistently offered high rates, but they’re also amongst the safest online banks.

*Rates current as of 10/24/08.

Published on October 24th, 2008 - 12 Comments
Filed under: Banking
email this article email this article - add to tip'd - digg this - stumble it - save to del.icio.us

Related articles...

     » WaMu Drops Interest Rate, Alternatives Abound
     » Washington Mutual Raises Savings Rate to 4.00% APY
     » How Many Bank Accounts Do You Have?
     » FNBO Direct has the Best Online Savings Account
     » WaMu Increases Online Savings Interest Rate
     » ING Electric Orange Online Checking Account
     » Another Fed Rate Cut - Time to Load up on CDs?
     » Money Poll #24: Bank Accounts

Comments (scroll down to add your own):

  1. My checking account is still making more interest than your savings account. :) http://www.centurybankdirect.com
    Savings: 3.41%
    Checking: 3.35%
    Money Market: 3.57%

    Comment by Jacqui — Oct 24th 2008 @ 4:33 pm
  2. Short term (6month) CDs probably are a better option.

    Comment by gm — Oct 24th 2008 @ 4:34 pm
  3. Citibank is still offering a 6 month cd for 4%

    Comment by gm — Oct 24th 2008 @ 4:40 pm
  4. Of course I’m sad that FNBO dropped their rate but I’m not surprised, I expect it to drop again soon with all the talk of another fed rate cut. Sucks for savers. I’ll stick with FNBO, I’ve been happy with them and I like the liquidity of a savings account. I may put some money in a CD but never all of it.

    Comment by Miss m — Oct 24th 2008 @ 6:56 pm
  5. Yep, those high yield savings accounts aren’t doing very much these days. I think they’re going to get worse before they get better too. It’s trickier than playing the stock market lately.

    Comment by Nick — Oct 24th 2008 @ 9:15 pm
  6. why FNBO shoudl be better than Etrade ?

    Comment by pluto — Oct 25th 2008 @ 12:19 pm
  7. 3.25 is still really good! I am not complaining!
    My hubs got in a car accident and the lady who was at fault had AIG, so far, they have not paid up for the car! Any tips/ ideas? We call them about twice a week to remind them.
    ~The Bargain Shopper Lady

    Comment by The Bargain Shopper Lady — Oct 25th 2008 @ 5:00 pm
  8. I use FNBO, Dollarsavingsdirect and Banco Popular (Money Market). The last two are at 4.00% with the MM account guaranteed through 12/31/08. Closed my Emigrantdirect account to open the Dollarsavingsdirect. So far, customer service at both has been exceptional.

    Comment by Hector Lebron — Oct 27th 2008 @ 8:35 am
  9. How about adding Principal Bank and Discover Bank rates to your discussion? It would be nice to have on-line bank rates in one place. Bankrate often leaves many on-line bank rates out of their list.

    Comment by cemccon — Oct 27th 2008 @ 11:10 am
  10. dollarsavingsdirect.com is still 4.0% APY

    Comment by Adam — Oct 27th 2008 @ 12:18 pm
  11. I work on the PR team representing MoneyAisle.com and we have been seeing high-yield savings account rates around 4% recently. So far it doesn’t seem that rate changes are affecting the 100 or so banks in our network.

    Comment by emilster — Oct 27th 2008 @ 1:15 pm
  12. GMAC Bank still has their no-minimum Online Savings @ 3.75%, and they also removed the $500 minimum on the Money Market, which isn’t as impressive @ 3.00%.

    Comment by David — Oct 28th 2008 @ 4:24 pm

Leave a comment

Subscribe without commenting

Subscribe for free updates...


Search this site...

Sponsors...



Great deals...

Readers’ choice...

Recent articles...

Recent comments...

  • Dennis: Actually some of the machines that take up to 10 checks will kick out...
  • Eric J. Nisall: Also remember that even though you may be self-employed, the...
  • Lloyd: Wow, I was Googling “how much cash on hand should I have”,...
  • SimplyForties: Thanks for this information. My son just happens to be a...
  • nickel: doug: Tomato, tomahto. It’s part of your total compensation,...
  • doug: ‘These taxes are levied on both the employee and employer so, for...
  • Craig: I always just look at it every pay check and see how much money is...
  • thomas: I believe I paid FICA when in the military. That’s a...

Most talked about...

Disclaimer...

    The terms of third-party offers referenced on this website are subject to change without notice. While we strive to maintain timely and accurate information, offer details may be out of date. Visitors should thus verify the terms of any such offers prior to participating in them. Please see our terms of service for additional details.