As I expected, following the Fed’s interest rate drop to 3.5%, banks offering high-yield savings accounts were quick to react. FIRE Finance wrote in to let me know that ING Direct and Capital One were among the first to slash their rates. I’ve gone through my list again and updated the group of popular high-yield accounts requiring low minimum initial deposits.
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10:07 pm (reply)
I was shocked that it took less than 24 hours for ING to cut their rate.
1:28 am (reply)
King: I can’t say I’m surprised. In the last few years, ING has been quick to respond to lowered rates. I’m sure they had time to prepare—all the marketing materials and web graphics were updated immediately. Someone plans for these moves well in advance.
8:17 am (reply)
Etrade Complete Savings has dropped to 4.40%
9:22 am (reply)
Thanks SingleGuyMoney—I captured that change in yesterday’s update.
11:45 am (reply)
Flexo,
GE Interest Plus (AAA rated) also gives reasonably high yields on their MM.
4.59 for less than 15K
4.75 for 15K – 50K
4.91 for > 50K
http://www.geinterestplus.com/interestplus/
11:54 am (reply)
Mars: Thanks! GE Interest Plus is not a money market account and not insured by the FDIC, so I haven’t included them on the savings and checking account list. It would be comparing apples with oranges.
I wrote about the GE Interest Plus account last July; the “deposit” is an investment in GE’s debt and not as liquid as a savings/money market account.
1:38 pm (reply)
I don’t know if it’s still being offered as of today, but WaMu has a pretty good local (AZ, Co, CT, FL, GA, ID, NV, NJ, NY, TX and UT) deal for a 7 month CD. The APY is 5.10% (4.98% APR) additionally it has add-on features – so during the term you can deposit additional money into it. I opened one yesterday as soon as i heard about the rate cut. In the branch it is called the “January Promotion” so it might be good through the end of the month regardless. You can also call 1-866-808-1396 to open an account. I think you might have to have a WaMu checking account – but those are free too. Min deposit is $1000, min add-on is $100, max add-on is equal to the initial deposit. I’m dumping all my free cash into these CD’s, at least I’ll be able to hang on to a 5% rate for another 7 months:)
2:36 pm (reply)
Flexo,
Agreed that it’s not FDIC insured. GE Interest Plus is a Corporate Note (similar to MM funds offered by mutual fund companies). As for liquidity, you do get a check book.
12:33 pm (reply)
Looks like FNBO direct just dropped to 4.30% APY. Ouch!