The onslaught of savings rates cuts continue as some of the more popular banks become less attractive to savers. In the past week, Capital One, Discover Bank, and EverBank are the biggest names who’ve changed the rates on some of their popular products.
Low benchmark lending rates are having a prolonged effect on the savings products available to savers. The top players in savings accounts and CDs are losing their edge as they drop rate interest on a majority of their highly acclaimed savings products.
Just last week, ING Direct and Ally cut their rates, preceded by similar moves from other banks such as HSBC Advance, Sallie Mae Bank, and Zions Bank. As a result, there is little difference between yields on savings accounts, money market accounts, and CDs.
Capital One Cuts High-Yield Savings Rate
As of March 2, 2011, the new rate for the Capital One InterestPlus Online Savings account is 1.20%, down from 1.25% APY. Since savings rates have suffered a relatively unified drop, Capital One’s high-yield savings account remains among the top echelon of savings rates.
Discover Bank Drops CD and IRA CD Rates (Again)
In early February, we reported Discover Banks rate cuts among its entire savings product offerings. And it doesn’t stop there. As of March 2, 2011, some of Discover Bank’s CD and IRA CDs will be paying less interest:
|CD Product||Old APY||New APY (as of 3/2/11)||Rate Change (APY)|
|12-Month CD and IRA CD||1.25%||1.20%||- 0.05%|
|24 Month CD and IRA CD||1.45%||1.40%||- 0.05%|
|30-Month CD and IRA CD||1.55%||1.50%||- 0.05%|
EverBank Cuts CD Rates
Nearly two months ago, EverBank was the leader among long-term CD rates according to the banks tracked on MyBankTracker.com. Now, EverBank CDs are placed lower on the list.
As of February 25, 2011, EverBank made major rate cuts on its CDs:
|CD Product||Old APY||New APY (as of 3/2/11)||Rate Change (APY)||CD Term||Old APY||New APY (as of 2/25/11)||Rate change (APY)|
|12-Month CD and IRA CD||1.25%||1.20%||- 0.05%||9 months||0.68%||0.65%||- 0.03%|
|24 Month CD and IRA CD||1.45%||1.40%||- 0.05%||30 months||1.63%||1.45%||- 0.18%|
|30-Month CD and IRA CD||1.55%||1.50%||- 0.05%||36 months||1.93%||1.45%||- 0.48%|
|48 months||2.08%||1.45%||- 0.63%|
|60 months||2.43%||2.33%||- 0.10%|
The next Fed decision of whether or not to change interest rates will be in nearly two weeks. If interest remain at historic lows, we can expect more savings rate cuts to ensue.