As many of you have already noticed, yesterday, ING Direct dropped its interest rates in response to the Fed’s drop of the interest rate. I’m glad I got that CD started before the rates dropped! Savings accounts dropped from 3.0% to 2.75% (oh how I miss the days of 5%+ interest), and CDs are also down about a quarter percent. Still, 4% for a 12 month CD isn’t terrible. It’s not great, but it’s better than a lot of options.
Flexo has been discussing FNBO Direct quite a bit lately. FNBO is the online section of the First National Bank of Omaha, and given this latest rate drop, I have been looking at them a bit more closely.
I’m always wary of opening another account – I currently have accounts at HSBC Direct and ING Direct, though HSBC only has my Dollar a Day plan, as I have been much happier with the features of ING Direct. I just don’t want to be spreading out my savings too much. But I’m thinking of pulling my money out of HSBC Direct at the end of the year, so it might be time to check out a different high yield account.
As of yesterday, FNBO Direct was still at 3.5%. And of course, they’re fully FDIC insured, so there’s not any real risk, other than the hassle of having money at yet another institution. I may consider an account there over the next few months. While my current 2.75% rate is great, 3.5% would be that much better.
Do you find yourself switching banks to find the best rates possible?
Megan is a 40-something government employee in the Washington, DC area. She got interested in Personal Finance when she got out of college and realized that her paycheck wasn’t going to go as far as she had hoped. Since starting this blog, she has managed to buy a house and make a solid start on her retirement goals, and hopes to help others do the same. Here is her story:
In 2007, I was a gainfully employed 20-something with no debt but not a lot of knowledge about personal finance. It was a co-worker’s comment about Roth IRAs that sent me to the internet, searching for information. It was then that I realized that I really didn’t know a whole lot about personal finance and that my current financial situation was due a lot to inherent frugal tendencies, generous family members, a fear of debt, and good luck. While that was working for me, clearly I needed a better plan.
While I had no debt, I was also pretty much living paycheck to paycheck and not worrying about going over budget (I say this as if I had a real budget) because I had an emergency fund set aside to cover any overages.
Except that’s not what an emergency fund is for.
So I did a lot of research, read a lot of blogs, and decided that I needed a plan. I needed to budget. I needed to know what I was spending my money on. I needed to prepare for the future.
I decided to create a blog not only to make myself accountable to others but also to share the knowledge that I gained along the way. I’ve learned so much from my fellow bloggers, and I hope that my readers can find something useful in what I have to share as well.
nope – i’ve kept w/ USAA the entire time since i’ve paid attention to stuff like that. it’s just not worth the effort to move things around all the time – esp. since i’ve got everything in one spot, ya know?
if i had mad loads of money it may be one thing, but for now i’m pretty happy staying put 😉 good job on locking in that great rate btw! smarty over there.
I have been debating the merits of INGDirect vs FNBO and after reading your post today, I’d say my decision is made. FNBO here I come!