The business headlines yesterday and today are full of stories about a certain brokerage that is having financial trouble. Of course, articles and announcements like what I have read only serve to hurt the public. Can you say "run on the bank?"
I refuse to participate. Many a company has been destroyed needlessly by an inflammatory statement from an analyst or from a particularly harsh media article.
I'm not saying the press should be muzzled, just that I don't want to be involved and have any blood on my hands.
When someone is down I'd prefer to offer a hand than kick them in the stomach.
The average rate on the top 10 savings accounts dropped for the third straight time as banks continue to bring rates down.
The average rate on the top 10 savings accounts dropped for the third straight time as banks continue to bring rates down. The average rate on 10/17/2007 was 5.29% APY versus 5.44% APY two weeks ago. Almost every bank adjusted their rates down.
Over the last month, the top banks have dropped their rates 29 basis points, less than the 50 basis point reduction engineered by the Fed. Analysts expect that rates will continue to fall and that eventually most major banks will be at or below 5% APY.
Today, consumers can still get rates in the mid 5%s.
The index dropped 10 basis points over the last week according to the BestCashCow savings rate index. Banks are lowering their high yield savings account rates.
The BestCashCow Savings Rate Index shows a 10 basis point drop over the past week. The impact of the Fed's rate cut is starting to be felt in high yield savings accounts. While the top rate remains 6.01% APY (this is a 3 month guaranteed promo rate) the second best rate fell from 6.00% APY to 5.6% APY as FNBO's savings promotion ended. Other banks in the Top 10 also dropped rates.
Last week's Index: 5.54
This week's Index: 5.44
The BestCashCow Savings Rate Index is an average of the top 10 rates on the BestCashCow Savings Rate Table. The index helps you track the direction of bank savings rates and compare them to previous periods. We'll be adding additional historical data shortly and updating it weekly.
