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The 5.0% APY Threshold: The New Hotness

This article was written by in Banking, Saving. 10 comments.

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.

Updated February 6, 2012 and originally published July 28, 2006. 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.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 5 comments… read them below or add one }

avatar samerwriter

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.

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avatar bankaholic

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

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avatar Luke Landes

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!

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avatar Saver

HSBC Direct at 5.05% APY is one of the best out there!!!

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avatar 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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