Overall, savings account interest rates are continuing to drop. It has been difficult to keep track of the rates that I've been getting in my various money market accounts. So, I've decided to periodically post a list of the annual percentage yields (APYs) for institutions that I have accounts at, or have otherwise mentioned in the blog. These rates are sorted by APY.
2.05% Umbrellabank Pot O' Gold Money Market
1.75% Citibank Ultimate Savings
1.65% HSBCDirect Online Savings
1.65% Countrywide SavingsLink
1.50% ING Direct Orange Savings
1.45% E*TRADE Complete Savings
1.20% Guaranty Bank Gold Rewards Money Market
0.85% Washington Mutual (WaMu) Online Savings
0.75% Western FCU Money Market
0.32% PayPal Money Market*
0.05% TD Ameritrade Money Market*
Rates are believed to be accurate as of 4/6/09. I did not include banks that had special, or introductory rates in the list because these are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list.
*Note that the PayPal Money Market and the TD Ameritrade Money Market funds are NOT FDIC insured.
After my last post on the topic, I did open an Umbrellabank Pot O' Gold Money Market account, which gives the highest interest rate in my list. The 0.85% rate that I'm getting at Washington Mutual (WaMu) is particularly disappointing, and I have been moving money out of WaMu (soon to be Chase) over the last few months.
My fellow blogger, Smarty has published a interesting post with a few institutions that are still offering good interest rates. Please see his post 10 High-Yield Savings Accounts. Note that his post is more than a month old, and the interest rates may have changed.
Historically, money market funds (offered through brokerages) have paid a higher interest rate than their counterparts at commercial banks. However, this situation has reversed itself, and the money market funds are now at the bottom of the list. Money market funds are NOT insured by the FDIC. However, money market accounts offered through banks are.
Due to the ridiculously low interest rates paid by TD Ameritrade and other ongoing issues that I've had with TD Ameritrade, I'm seriously considering moving my assets to another brokerage. Does anybody have some suggestions?
In these times of uncertainty, I will repeat two pieces of advice that I think few people would disagree with:
1) Never exceed the FDIC insurance limits.
2) Don't keep all of your money in one place.