High Yield Savings Account Update - January 25, 2008
Published 1/25/08 (Modified 3/22/11)
In response to heightened concerns surrounding recent plunges in world stock markets and fears of an imminent economic recession, the U.S. Federal Reserve made a surprising rate cut on Tuesday, January 22, 2008, days before its next official meeting when it is expected to cut rates further. In the daring move, the Fed slashed the federal funds rate from 4.25% to 3.50%, an astonishingly huge drop. In response, numerous online banks have already dropped their interest rate offerings to match - Take a look at my updated list of the top High Yield Savings Accounts.
Countrywide Bank continues to reign at the top with a tiered rate offering of (3.92% - 5.00% APY). I hope a few of my long time saving favorites like Washington Mutual and Etrade Bank will hold rates steady and high but they are likely to be influenced by the trend as well. Among the online banks, a few more major interest rate reshufflings are likely to occur again in the next few weeks.