Online Savings Account rate changes – March 2009

March 3, 2009 1 Comment »

We are 3 days into March now and have yet another downward trend of online savings account rates. In most cases one or two online savings institutions will drop their rates and within days (or even hours) the rest seem to follow suit. If you can recall, during most of 2006-2008 (until the bank collapse) these same savings accounts were trending upward, following each others pace.

Current Online Savings Rates

E-TRADE Bank 1.95% APY – Down from 3.01% two months ago.

ING Direct 1.65% APY – Down from the mid 2.0′s as of two months ago.

HSBC Direct 2.25% APY – While HSBC Direct has lowered it’s rate some, it’s changes remain less sporadic and seems to be a favorite amongst banking consumers.

WTDirect 2.01% APY – WTDirect typically keeps their online savings rates within the top 5%, however, they require a minimum balance of $10,000 in order to receive their rates.

Possible alternative to online savings accounts

After posting an alternative to Bank CD’s last week, much excitement/commotion was generated over the possibility of earning 6.50% APY + through Peer to Peer lending platforms. Lending Club allows you to lend your money to prime borrowers and earn anywhere from 6.69% to 19.37% APY (depending on the credit score YOU require from a borrower). If you read the article from last week you will see that everyone who commented generally had positive things to say. Keep in mind, if you are after FDIC insured investments, then Peer to Peer lending is probably not for you.

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  • Jayschiffer

    BEWARE HSBC ONLINE CD’s!!!!!!!Hsbc has an online form that you use to sign up for a choice of CD’s. You check off the length and the rate as part of the form. The funds I used were from an existing online account through them. Just to make sure the rate was secure even though the form listed it I call twice with various questions and was assured that the rate was what I checked off on the form. The next day I checked and they had given me a lower rate and could really care less. Two weaks later and three long phone conversation with a few people half way around the world and still no call back. What a joke and very decieving. My account is pretty darn big too. Cant believe it!!!!!!! Dont get involve. Even my online savings had some issues.