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"High Yield" no more

January 11th, 2008 at 03:31 pm

I have a "high yield" savings account at Citi. When I opened it, it had a 4.75%APY. The rates have tanked, and they are now 3.75APY. Now I wished I'd have gone with some other high yield account which still have rates from 4.50 to 5.25.

I like to watch my monthly interest climb as I add more to my savings account. But over the last half year it hasn't climbed at all, even though I have been contributing $500 to $1000 each month.

The fed is thinking about dropping the prime rate even lower. That sucks for savers, but it's good for people in debt. (Maybe I should refinance my mortgage from 6.75% to 5.75% that is offered right now by my credit union to offset the "losses" in my savings.)

Anyway, I have started buying up short term CDs (3 to 6 mo) at 4.50% APY at citi (even though other places have them as high as 5.25%).

Posted in Uncategorized | 5 Comments »

5 Responses to “"High Yield" no more”

  1. Ima saver Says:
    January 11th, 2008 at 04:17 pm 1200068238
    1200068238

    I know how you feel. I was getting 5.25% interest on my local money market account, now that has dropped to 4.1%. I just opened an account with Umbrellabank.com, online and they are paying 5% I am going to send more money over there. I live in Georgia also!(in the mountains)

  2. thriftorama Says:
    January 11th, 2008 at 05:10 pm 1200071416
    1200071416

    That's kind of a big drop. The interest n my online savings account has gone down with every rate cut, but it's still at 4.5 percent. Online banks know that people will skip to another high-paying account if they cut too much, so they've been less drastic...

  3. scfr Says:
    January 11th, 2008 at 05:18 pm 1200071917
    1200071917

    I feel your pain. Smile

  4. Mr. Meager Says:
    January 11th, 2008 at 05:32 pm 1200072765
    1200072765

    i opened an e-savings account also at citibank last year and its frustrating seeing all these rates drop like ING. I was considering moving all my banking to Citibank because their ATM's are inside 7-11's, but I guess I'll stay with WAMU for now. I recently closed an account at WAMU to get in their new savings account @ 4.75%APY but I wonder how long that will last.

  5. nance Says:
    January 11th, 2008 at 10:09 pm 1200089387
    1200089387

    I checked out Unbrellabank, and the 5% is only for ninety days, so I think I will just stay where I am for now, which is with ING. I have been happy with them. Every bank is going to lower rates very soon, after the feds reduce rates again.

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