It’s not your imagination. Banks are now looking for ways to actively discourage new deposit accounts. It’s not just through lowering interest rates, they are scaling back marketing. It makes sense from a business standpoint; the economy is not so great, so companies are saving their operating expenses.
Here is a summary of the most recent interest rate declines, listed as annual percentage yields (APYs) as of June 13. These accounts are recommended. I have accounts here and I’ve never had any problems with the banks.
- FNBO Direct Online Savings Account dropped to 2.15% (1.50% as of November 2009)
- E*TRADE Bank Max-Rate Savings Account dropped to 1.95% (0.50% as of November 2009)
- HSBC Direct Online Savings Account dropped to 1.85% (1.55% as of November 2009)
- ING Direct Orange Savings Account dropped to 1.65% (1.30% as of November 2009)
- Ally Bank Online Savings Account dropped to 1.64% as of November 2009 (Formerly GMAC Bank)
These accounts are recommended by others but I have no personal experience with the banks.
- ShoreBank Direct Online Savings Account dropped to 2.80% (1.95% as of November 2009)
- Kirkpatrick Bank Savings Square dropped to 2.30% (1.55% as of November 2009)
- Dollar Savings Direct dropped to 2.25% (1.60% as of November 2009)
For a history of savings account interest rates for the last fourteen months or so, take a look at this history of high-yield interest rates. With banks decreasing their rates almost every week, it’s difficult to keep up with the changes.
Where do you keep your savings?
Updated September 2, 2011 and originally published March 10, 2009. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.