If depositing money in the bank to grow interest was next on your to-do list, you may want to make it a lower priority until rates stop dropping. Of course, it’s never a bad idea to put away money for a rainy day, especially if it grows in value, but according to recent APY stats from various online banks, saving may not be as appealing as it once was.
Here are a few recent drops to make note of:
- E*Trade Bank, a bank that was offering one of the higher interest rates, has had the most significant drop from 3.01% to 2.5% APY.
- Emigrant Direct had the smallest drop, from 2.5% to 2.4% APY.
- While Dollar Savings Direct is holding onto the highest rate of those noted, it still dropped 0.3% from 3.5% to 3.2% APY.
- FNBO dropped slightly from 2.8% to 2.6% APY.
- HSBC dropped even less from 2.6% to 2.45%.
- ING Direct is pulling up the rear with a rate of 2.0%, which dropped from 2.2%.
Despite there being lowered rates across the board, you’ll be happy to know that they’re still higher than the 0.3% APY you’re likely to find at your local bank branch. And who knows? Maybe with rates lowering as much as they are, consumers will feel inspired to spend to stimulate the economy rather than invest for smaller returns.
With the recent drop in rates across many banks, how are you investing your money?
Wow, these rates are dropping fast. Maybe they’re trying to get people to spend rather than save?