Are the banks conspiring to bring saving rates down?
Eyebrows are sure to raise when three good-sized banks lower their deposit rates. In fact, the three banks – Sallie Mae Bank, Ally Bank, and EverBank – are known as some of the more aggressive financial institutions when it comes to popping out high deposit rates.
But now they’ve gone and done exactly the opposite. Each took a healthy cut out of their rate offerings, according to BankTracker.com:
- Sallie Mae Bank cut its certificate of deposit rates by up to 0.30%, and its savings account rate by 0.10%.
- Ally slashed its money market account interest rate and its online savings account rate from 1.24% to 1.19%. It also slightly cut CD rates.
- EverBank reduced its Yield Pledge Checking Account on a tiered basis (depending on how much money you have in the account). The highest cuts were by up to 0.15%.
With the Federal Reserve announcing last week that interest rates would stay near zero, more and more banks are comfortable pulling back on interest rates. That’s obviously discouraging news for bank savers, and it’s all the more reason to be a regular reader of our Banking Deals of the Week.
To get the best rates, you’re just going to have to keep your eyes on the prize, and that’s something we do for you every Wednesday.
Let’s start with a nice bargain from First New England Federal Credit Union. It’s a 3.51% APY for the credit union’s high rate Checking Rewards account. The deal is for new members. Here's what you get:
- A 3.51% Annual Percentage Yield (APY) paid on balances between one cent and $15,000, and 0.250% APY paid on all amounts above $15,000 each cycle the minimum requirements are met for Relationship Account Members.
- A 2.498% APY on balances between $0.01 and $15,000, and 0.250% APY on all amounts above $15,000 each cycle the minimum requirements are met for non-Relationship Account Members.
If you don’t meet those requirements, you’ll still be eligible for free checking with a 0.10% APY. But you won’t get any ATM refunds for the period if you do not meet the requirements. At least there is no minimum balance required.