When I mentioned that ING Direct dropped its savings interest rate 20 basis points, from 4.5% to 4.3% following the Fed’s drop, there was no surprise. I felt that other banks would be soon to follow. HSBC Direct is next, dropping a steeper 55 basis points from 5.05% to 4.5%.
There are more options out there. FNBO Direct is offering its 6.0% APY promotional rate for only a few more days, and their current plan is to reduce that rate to 5.05% according to Bank Deals.
- E-Loan is offering 5.0%.
- Emigrant Direct is still offering 5.05%, but I expect that to change soon.
- Various brokerages offer tax-exempt money market funds that are not protected by FDIC and sometimes have fluctuating rates, but your money would be as safe there as in a savings account.
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