Redirected here on March 8.
Ever get the feeling that someone is trying to get you to spend your money, perhaps to stimulate the economy? Banks seem to offer no encouragement for deposits lately. Here are some of the latest interest rate drops over the past few days.
- Dollar Savings Direct has dropped from 4.0% to 3.5% APY (2.0% as of May 2009)
- FNBO Direct has dropped from 2.8% to 2.6% APY (1.65% as of May 2009)
- E*TRADE Bank has dropped from 3.01% to 2.5% APY (0.95% as of May 2009)
- HSBC Direct has dropped from 2.6% to 2.45% APY (1.55% as of May 2009)
- Emigrant Direct has dropped from 2.5% to 2.4% APY (1.55% as of May 2009)
- ING Direct has dropped from 2.4% to 2.2% APY (1.5% as of May 2009)
In order to keep cash available for when an emergency strikes, it may be necessary to occasionally forgo a satisfying interest rate. This is one of those times. These choices are all better than earning 0.1% to 0.3% APY in your local bank branch. If the economy doesn’t pick up this year, we may see more of the same for the immediate future.
If you want to track how interest rates have changed over the past year, take a look at this table which shows a history of savings account interest rates.
Updated March 22, 2011 and originally published February 3, 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.