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?