Fed Cuts Rates to 0% But Still Some Savings and CD Rates at 4%+

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The Fed cut its Fed Funds rate to 0-.25% last week but there are still some very attractive savings and CD rates. Get them before they are gone.

The Fed cut its Fed Funds rate to 0-.25% yesterday but there are still some very attractive savings and CD rates.  Get them before they are gone.

These rates include:

  • EverBank is offering a checking account with a guaranteed 3 month bonus rate of 4% APY and a first year APY of 3.42%.  In addition, BestCashCow readers receive $40 when they open the account using this link and fund the account with $40,000 or more.  In one sense, the 3 month bonus is like a liquid 3 month CD.  At 4% APY it would be the highest rate by over 70 basis points.  Another bonus of Everbank, they were one of only a handful of banks that actually saw their Bauer rating for financial stability and solvency increase over the last quarter.  Everbank has told us that the rate will only last through the year.  They will be lowering rates in January.
  • A five year CD from Chase/WaMu paying 5% APY.

There are many other savings, money market, and CD accounts that are paying well above the national averages.

Rates are falling and banks have indicated to us that they will fall further over upcoming days and weeks.  But as chart below shows, savings and CD rates have held up incredibly well despite several rounds of Fed rate cuts.  Why?  Because there is competition for your money and banks needs your deposits to fund their operations and stay solvent.

CDandSavingsRateAnalysis-12/17/2008

 We expect rates to fall but if this trend holds anticipate top savings, money market and CD rates will not approach 0%, but rather come down to the 3-4% range.  Still, if you have money that you want to invest in an FDIC insured account, now is a good time to look into opening an account.

Sol Nasisi
Sol Nasisi: Sol Nasisi is the co-founder and a past president of BestCashCow, an online resource for comprehensive bank rate information. In this capacity, he closely followed rate trends for all savings-related and loan products and the impact of rate fluctuations on the economy. He specifically focused on how rates impact consumers' ability to borrow and save. He also has authored a wee

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