FNBO Direct savings and CD rate drops

December 23rd, 2008 · No Comments

I got a customer service e-mail from FNBO Direct this morning, December 23rd, to announce changes in the interest rate being paid on their savings accounts and CDs.  While I expected this due to the other rate drops I’ve been seeing, I still find it disappointing when it actually happens.  Here’s the details:

The savings account yield has made a relatively huge drop, changing from the previous 3.25% APY to a new 2.80% APY.  They’re just 0.05% above ING right now, and I much prefer ING Direct’s website, plus I can download transaction history directly into Quicken which FNBO Direct does not support.  However, ING Direct has yet to adjust their rates after the big Fed rate drop.  I wonder if they’ll hold them where they’re at or not?

[EDIT: I just visited the Bankrate.com list of high-yield savings accounts and discovered that even with the new savings rate, FNBO Direct is still in the top 10, but just barely as they’re 10th, of savings yields.  The highest yield currently is at Dollar Savings Direct which offers a 4.00% APY, though it does require $1,000 to open.  I suspect that rate won’t last long though as the next highest yield listed is only 3.21% APY at EverBank.]

The FNBO Direct CD rates are now:

  • 6-month: 3.01% APY
  • 9-month: 3.01% APY
  • 12-month: 3.25% APY
  • 18-month: 3.25% APY
  • 24-month: 3.50% APY

I’m disappointed because I was only a day away from opening the third CD of my Emergency Fund CD Ladder with a new 6-month CD.  Just yesterday the rate was 3.50%.  Sigh.  On the other hand, the rate for the 6-month CD is still higher at FNBO Direct than at ING Direct, 3.01% APY vs 2.50% APY.   So I’ll still be opening the next CD at FNBO Direct — unless I find another bank with a better rate in the next day.

Tags: Savings

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