Comments on: More Online Bank Interest Rate Decreases

By: Craig

Craig — Mon, 02 Feb 2009 20:53:37 +0000

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.

By: nickel

nickel — Mon, 02 Feb 2009 20:52:17 +0000

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.

By: Craig

Craig — Mon, 02 Feb 2009 20:50:36 +0000

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?

By: Kev

Kev — Mon, 02 Feb 2009 20:26:36 +0000

FNBO Direct just sliced their’s to 2.6%

Sucks…

By: Jeremy

Jeremy — Mon, 02 Feb 2009 14:46:27 +0000

shore bank just dropped from 3.5 to 3.15

By: GM

GM — Sun, 01 Feb 2009 17:14:51 +0000

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.

By: Jerry

Jerry — Sun, 01 Feb 2009 15:16:06 +0000

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

By: Mike J

Mike J — Sat, 31 Jan 2009 15:09:18 +0000

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

By: thomas

thomas — Sat, 31 Jan 2009 06:23:30 +0000

I saw ING dropped to 2.4% APY. Ugh.

By: Jeff-StretchyDollar

Jeff-StretchyDollar — Sat, 31 Jan 2009 05:31:03 +0000

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

By: nickel

nickel — Fri, 30 Jan 2009 21:47:43 +0000

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.

By: Srikks

Srikks — Fri, 30 Jan 2009 21:12:00 +0000

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