Based on the decision minutes ago by the Fed to lower the discount rate by half a percent instead of the expected quarter of a percent, rates on short term CDs and savings accounts will most likely drop. The drop may start as early as tomorrow.
Based on the decision minutes ago by the Fed to lower the discount rate by half a percent instead of the expected quarter of a percent, rates on short term CDs and savings accounts will most likely drop. The drop may start as early as tomorrow.
With the Fed dicount rate now at 5.25%, banks have no incentive to lend money out above that rate. A quick glance at the BestCashCow CD Rate Table and BestCashCow Savings Rate Table shows that quite a few banks have CDs and Savings accounts in excess of 5.35% APY.
Consumers who want to be sure they receive these rates may want to lock-in quickly.
A review of changes in high yield CD rates and Savings rates listed on the BesstCashCow.com rate table.
Despite continued turbulence in the financial markets, and expectations the Fed will drop rates, rates on CD and high yield savings accounts stayed pretty much the same over the last week.
On the Savings Rate Chart, Umbrella bank lowered their rate slightly from 5.06% APY to 4.95% APY with a three month intro rate of 5.35% APY. No bank that we are aware of raised its savings rate.
On the CD Rate Chart, Umbrella Bank adjusted its rate slightly from 5.44% APY to 5.42% APY. Other than that, rates held steady.
Several other banks have joined the CD Rate Table this week. They include:
Element Financial with competitive rates in the 6 month, year, and 2 year tables.
Discover Bank, with competitive rates in the 6 month table.
Met Life bank with the second highest rate in the 2-year table. If you are willing to invest over $100,000 with Met Life Bank they pay 5.45% APY which is the highest rate we’re tracking. BestCashCow only reports CD and Savings Accounts covered by FDIC insurance.
As always, all of the banks on the rate tables are FDIC insured. If you have money in a savings account or CD earning less than 5%, check out the BestCashCow Rate Tables for a no-risk way to earn more on your money. Banks compete for your cash and you might as well benefit.
If you are aware of other bank offers that belong on the rate table, please feel free to post them below.
Yesterday, Bank of America announced that it was investing $2 billion to acquire a stake in Countrywide Financial. The investment is another example of how dominant Bank of America is becoming in the country's financial system. It already is the largest retail bank in the country, serving tens of millions of customers and has the largest branch and bank network. The company also purchased MBNA last year to have one of the largest credit card portfolios.
Yesterday, Bank of America announced that it was investing $2 billion to acquire a stake in Countrywide Financial. The investment is another example of how dominant Bank of America is becoming in the country’s financial system. It already is the largest retail bank in the country, serving tens of millions of customers and has the largest branch and bank network. The company also purchased MBNA last year to have one of the largest credit card portfolios.
Over the last two years, Bank of America has tried somewhat unsuccessfully to increase its share of the mortgage market. In the first six months of 2007, Bank of America was the fifth-largest originator of home loans in the U.S., with a market share of about 7%, according to Inside Mortgage Finance. The investment in Countrywide is the foot in the door for Bank of America and a chance to gather more knowledge about the business before making a bid for it.
Over the last five years, the company’s stock has shown solid and consistent growth. Bank of America pays a 5% dividend and generated $21.1 billion last year. The bank is flush with cash, has a solid balance sheet and is aggressively pursuing opportunities in attractive markets. I think more than any other bank, Bank of America can truly become the dominant bank in the US.
