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FNBO Direct Lowers Online Savings Account Interest Rate to 3.25% APY

by Flexo on October 22, 2008

in Banking

Only yesterday, HSBC Direct lowered the interest rate offered on the bank’s online savings account from 3.25% to 3.0% APY. Today, following suit, FNBO Direct lowered its rate from 3.5% to 3.25%. These drops are now expected with the Federal Reserve lowering interest rates and the London interbank offered rate (Libor) decreasing.

It’s increasingly hard to find good outlets for short-term cash. The tax-exempt money market fund I invested in three weeks ago, VNJXX, has seen its annual yield drop 2.5 percentage points from 4.83% to 2.36% in that same time.

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Tagged as: Banking, fnbo direct, interest rate, Saving



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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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  • Harold
    It's increasingly hard to find good outlets for short-term cash...


    Well at least the credit markets show signs of thawing and hopefully companies will get loans instead of resorting to laying people off.
  • Anonymous
    Any chance they will lower the interest rate they charge on thier credit cards as well.
  • BW
    I just opened an Ultimate Savings Account with Citibank, which is offering 3.5%. Now that ING has lowered its rates, and Vanguard's tax-exempt money market funds' yields are below 3% again and dropping, I am moving most of my cash to Citi.
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