You may have noticed it’s dang hard to get a good rate for saving money right now. Used to be you could get an online savings account with 5%, no problem. Now if you can get in the upper 1% you’re doing pretty good. So what’s the dilly?
So, of course, one day after I post about how great E*TRADE’s 5.05% savings rate is, it drops to 4.4%. Truth be told, that was kind of unsustainable with the federal interest rate at 3.5%. It will still probably be higher than the rates offered by the other players which have like HSBC Direct (currently 4.25%), ING Direct (currently 3.6%), and Emigrant Direct (currently 4.55%). Tears, tears.
Today’s interest rate cut means online savings accounts lovers will once again experience heartbreak as their high-interest accounts become even less so. There is still one company offering rates from the what now must be seen as halcyon days; E*TRADE’s online savings accounts give you 5.05%, though it’s not without caveats…