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The 5.0% APY Threshold: The New Hotness

by Flexo on July 28, 2006

in Banking, Saving

If your savings account isn’t providing you 5.0% or more at this point, you can consider it old and busted. A few banks have raised their interest rates on “online” savings accounts lately, so take a look at the latest chart. Emigrant Direct moved to 5.15% today, but you may have problems accessing their new website. Aside from a slow response, I’ve been able to log in today.

OneUnited is at the top of the list, but you may want to read about Single Ma’s experience. To sum it up:

As I told the person who referred me to the bank, I hope the company succeeds, but I would never consider being a customer again and I’ll share my experience with everyone I know.

Consider yourself warned.

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Flexo, the owner and creator of Consumerism Commentary, has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about him and follow him on Twitter.

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  • How much money are people keeping in their online savings accounts, that the difference between 4% and 5% actually makes a difference worth worrying about, particularly after taxes?

    I'd think that customer service, website responsiveness, and easy of transferring money is far more important than an extra $10 or $15 per year.
  • theres way better rates than 5.15 on my bank ratings site. i currently have a 6.00 MMA and a 5.75 10month cd
  • That's wonderful bankaholic. The only 6.00% rate is a promotional rate, so it's really not a valid comparison with those offering steady rates with a history. Good luck with your saving!
  • Saver
    HSBC Direct at 5.05% APY is one of the best out there!!!
  • notworkingfornow
    If you are thinking about switching banks anyway, getting one that pays 5% interest is a great idea. However, that high interest should be balanced with customer service, and future "nickel and diming" surcharges. I currently use Netbank, and when I couple their rate of interest + superior customer service, I think it's a great deal.

    "samewriter" makes a good point. most people do not have large sums of money in their savings account. So, it likely won't amount to much.
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