Picking up Nickels

Wednesday, September 19, 2007

Deposit rates already falling after Fed rate cut

Well, it has begun.

ING Direct has already cut deposit rates. The Orange Savings Account rate has been cut from 4.50% to 4.30% APY, and the rates on the tiered Electric Orange checking account have also been cut:

  • 4.00% -> 3.50% APY for balances up to $50,000
  • 5.25% -> 4.90% APY for balances between $50,000 and $100,000
  • 5.30% -> 5.00% APY for balances of $100,000 or more
E-Loan has followed suit, dropping the 5.55% APY 3 month and 5 year CD rates that I locked in over the past few weeks to 5.35% and 5.30%, respectively.

I'm sure there are many more rate cuts out there, but it does appear that mortgage lenders IndymacBank and Countrywide Bank are continuing to offer market-leading rates on FDIC-insured CD accounts. Perhaps the liquidity problem isn't over just yet...


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