Adjust Text Size
small medium big

More Online Bank Interest Rate Decreases

Written by Nickel - 12 Comments
  •  Tip It!

And the hits just keep on coming… Earlier this week HSBC Direct announced that they’re reducing their interest rate form 2.60% APY to 2.45% APY, and I just received notification from E-Trade that they’re reducing their rate form 3.01% APY to 2.50% APY. These sorts of changes make the term “high yield online savings account” almost laughable, as the yields are far from high. If you’re curious as to where things stand at other institutions, be sure to check out my updated list of online savings account interest rates.

Published on January 30th, 2009 - 12 Comments
Filed under: Banking

About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!

Related articles...

» Ally Bank Raises Savings Account Interest Rate
» Ask Your Bank for a Better Deal
» Online Bank Interest Rates on the Rise? E-Trade Bank to 3.30% APY
» Online Savings Account Rate Changes
» Everbank Raises Rates
» How Many Bank Accounts Do You Have?
» WaMu Drops Interest Rate, Alternatives Abound
» Locking in Long Term CDs in a Low Rate Environment

Was this article useful? Please sign up to receive our content via e-mail:

You will receive only the daily updates, and can unsubscribe at anytime.

12 Responses to “More Online Bank Interest Rate Decreases”

  1. 1
    Srikks Says:

    From when E*trade is going to reduce the interest rate? Their website still advertises 3.01 % APY.

  2. 2
    nickel Says:

    The new rate will be effective at the end of the business day on Monday, 2/2/09. It’ll still be at 3.01% over the weekend.

  3. 3
    Jeff-StretchyDollar Says:

    Darn – I was already down about this when I wrote an article about it earlier this week. Now what?

  4. 4
    thomas Says:

    I saw ING dropped to 2.4% APY. Ugh.

  5. 5
    Mike J Says:

    As discussed on the DollarSavingsDirect review comments, they dropped from 4% to 3.5%.

    I just opened a rewards checking account with The Provident Bank (of New Jersey) that pays 5.01%. They haven’t reduced it yet as far as I can tell. It’s only good up to $25k, though, and also has the regular reward checking account requirements (10 POS transactions, 1 ACH deposit, online statement, etc per month).

    -Mike J

  6. 6
    Jerry Says:

    Absolutely right. It will take effect on Monday. Thanks for mentioning it Nickel.

  7. 7
    GM Says:

    I guess the lesson to be learnt is to just keep ready cash and maybe a month or two worth of emergency cash in these accounts whose interest rates are so volatile.

    The remaining emergency cash should be locked up in modular CDs as explained by Nickel previously.

    So in the event of an emergency one can use the money market cash to tide over and strategize on how to use the modular CDs.

    Of course right now most CDs also offer pathetic rates, so one should wait when a 5 year CD offers much better rates to put a plan in action.

  8. 8
    Jeremy Says:

    shore bank just dropped from 3.5 to 3.15

  9. 9
    Kev Says:

    FNBO Direct just sliced their’s to 2.6%

    Sucks…

  10. 10
    Craig Says:

    I have been thinking about opening up an online account and have been doing research. With all the rates lowering, not sure if I want to yet. Do you recommend holding out till the rates improve?

  11. 11
    nickel Says:

    Craig: To what end? Are you earning more elsewhere? There’s no harm in opening an account now, as your rate climb in the future when interest rates eventually start rising.

  12. 12
    Craig Says:

    Nickel: I am earning less now because my money is just in savings with my brick and mortar bank. I just didn’t know if it was worth the effort of starting it up now if the rates were low.

Leave a Reply

Top Cards by Category

 
Apply now for Chase Freedom® Visa - $200 Bonus Cash Back

Earn $200 Bonus Cash Back after you make $500 in purchases in your first 3 months. 5% Cash Back on up to $1,500 spent in bonus categories each quarter.

 
Apply now for http://www.fivecentnickel.com/rewardpoints.html

Receive 10,000 Membership Rewards bonus points when you spend $1,000 in 3 months of Card membership.

 
Apply now for American Express Premier Rewards Gold Card

Earn 3X points on airfare, 2X points on gas and groceries, and 1X points on everything else.

 
Apply now for http://www.fivecentnickel.com/lowratebalancetransfercreditcards.html

Earn up to 5% cash back* in categories that change and enjoy a 0% introductory rate for 15 months on Balance Transfers and 15 months on Purchases.

 
Apply now for Discover® More Card - $0 Balance Transfer Fee!

Enjoy no balance transfer fee for a limited time. 0% introductory rate on Balance Transfers and Purchases. Earn up to 5% Cashback Bonus in categories that change like gas, restaurants, department stores and more. Limitations apply*

 
Apply now for http://www.fivecentnickel.com/lowrateplatinumcreditcards.html

Enjoy no balance transfer fee for a limited time. 0% introductory rate on Balance Transfers and Purchases. Earn up to 5% Cashback Bonus in categories that change like gas, restaurants, department stores and more. Limitations apply*

 
Apply now for The Business Platinum Card® from American Express OPEN

Enjoy amenities for you and your business, like: complimentary airport club access, including American Airlines Admirals Club(R) lounges.

 
Apply now for http://www.fivecentnickel.com/studentcreditcards.html

5% Cashback Bonus in categories that change like gas, restaurants, department stores and more. Limitations apply*. Up to 1% unlimited Cashback Bonus on everything else. No annual fee

 
Apply now for American Express Premier Rewards Gold Card

Earn 3X points on airfare, 2X points on gas and groceries, and 1X points on everything else.

 
Apply now for http://www.fivecentnickel.com/credit-cards/credit/bad

Reports to 3 major credit bureaus monthly and acceptance at millions of locations worldwide, including website purchases and reservations.

Previous
Pause
Next

FiveCentNickel User Survey