DollarSavingsDirect's savings rate finally succumbed to gravity as the bank cut its rate from 4% APY to 3.5% APY. That rate is still significantly above the BestCashCow savings rate average of 2.99% APY.

As the graph below shows, DollarSavingsDirect bucked the decrease in overall rates since mid-October. Even though it has dropped its rate by half a percentage points, it's still well above the average of the top bank savings rates in the US and is now third on the BestCashCow rate tables.

Will it stay at the top of the rate tables? History suggests it might not. DollarSavingsDirect was started by Emigrant Bank, the parent of another online bank EmigrantDirect.com. As we discussed in an earlier article on the launch of DollarSavings, it was odd that the company started another online brand. The motive seemed to be a desire to not have to reprice the rates of all of the deposit money sitting in EmigrantDirect. The biggest difference between the two online divisions other than rate is the $1,000 minimum balance requirement for DollarSavingsDirect. Emigrant Direct as a $1 minimum balance.

In general, DollarSavingsDirect has received favorable reviews for the ease of its account opening process (see comments at bottom of linked article).

Whether DollarSavingsDirect cuts its rate further depends on its need for deposits and the competitive environment. Several other banks that offer savings rates include Clear Sky Accounts at 3.75% APY, Bank of Internet at 3.51% APY, and CNB Bank Direct at 3.5% APY.

Time will tell if DollarSavings remains competitive but as we've seen in the past, when one bank decides to cut rates, other banks are ready to move up to the top.

• Compare the top savings rates

Friday the 13th saw four bank failures - Pinnacle Bank, Corn Belt Bank and Trust, Riverside Bank of the Gulf Coast, Sherman County Bank - the most of any Friday so far. The FDIC generally closes banks on Fridays to allow it time to deal with depositors and make an orderly transition to a new bank or to put deposit insurance in place by the time the bank reopens on Monday morning. So far of the thirtnees bank failures this year, every bank failure has fallen on a Friday. According to the FDIC there were 25 bank failures all of last year.

In each case, the FDIC has arranged a buyer for each of the banks who will take over deposits.

All deposit accounts were transferred for Pinnacle Bank and Sherman Bank. That means that even if you had deposits in excess of $250,000 they will transferred and available at the new institution. All non-brokered deposit accounts were transferred for Corn Belt Bank and Trust, and Riverside Bank of the Gulf Coast. If you deposited your money into a brokered account, the FDIC will cover some of the loss. You should contact your broker for more information.

In all four cases, each bank will be open for business on Tuesday following the President's Day weekend under its new name. All checks issues will be cashed by the new bank. Over the weekend, customers can access funds via check or by the ATM machines.

Below is some specific information about each closing. For more detail, please visit the FDIC website.

Information for Pinnacle Bank, Beaverton, Oregon

Pinnacle Bank, Beaverton, Oregon, was closed today by the Oregon Division of Finance and Corporate Securities, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Washington Trust Bank, Spokane, Washington, to assume all of the deposits of Pinnacle Bank.

As of December 31, 2008, Pinnacle Bank had total assets of approximately $73 million and total deposits of $64 million. In addition to assuming all of the deposits of the failed bank, including those from brokers, Washington Trust Bank agreed to purchase approximately $72 million in assets at a discount of $7.6 million. The FDIC will retain the remaining assets for later disposition.

The FDIC and Washington Trust Bank entered into a loss-share transaction. Washington Trust Bank will share in the losses on approximately $66 million in assets covered under the agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers as they will maintain a banking relationship.

Corn Belt Bank

Corn Belt Bank and Trust Company, Pittsfield, Illinois, was closed today by the Division of Banking, Illinois Department of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with The Carlinville National Bank, Carlinville, Illinois, to assume all of the deposits of Corn Belt Bank and Trust Company.

As of December 31, 2008, Corn Belt Bank and Trust Company had total assets of approximately $271.8 million and total deposits of $234.4 million. The Carlinville National Bank will pay the FDIC a premium of 1.75 percent.

The Carlinville National Bank will not assume $92 million in brokered deposits held by Corn Belt Bank and Trust Company. The FDIC will pay the brokers directly for the amount of their insured funds. Customers who placed money with brokers should contact them directly for more information about the status of their deposits

Information for Riverside Bank of the Gulf Coast, Cape Coral, FL

Riverside Bank of the Gulf Coast, Cape Coral, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with TIB Bank, Naples, Florida, to assume all of the deposits of Riverside Bank.

As of December 31, 2008, Riverside Bank had total assets of approximately $539 million and total deposits of $424 million. TIB Bank agreed to pay the FDIC a premium of 1.3 percent.

TIB Bank will not assume $142.6 million in brokered deposits held by Riverside Bank. The FDIC will pay the brokers directly for the amount of their funds. Customers who placed money with brokers should contact them directly for more information about the status of their deposits.

Sherman County Bank, Loup City, Nebraska

Sherman County Bank, Loup City, Nebraska, was closed today by the Nebraska Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Heritage Bank, Wood River, Nebraska, to assume all of the deposits of Sherman County Bank.

As of February 12, 2009, Sherman County Bank had total assets of approximately $129.8 million and total deposits of $85.1 million. Heritage Bank will pay the FDIC a premium of six percent. In addition to assuming all of the deposits of Sherman County Bank, Heritage Bank agreed to purchase approximately $21.8 million in assets, comprised mainly of cash, cash equivalents and marketable securities. The FDIC will retain the remaining assets for later disposition.

Sherman County Bank, Loup City, Nebraska, was closed today by the Nebraska Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Heritage Bank, Wood River, Nebraska, to assume all of the deposits of Sherman County Bank.

1st Centennial Bank in California was closed today by the California Department of Financial Institutions, marking the third bank closing of 2009. And we're still only in January!

As of January 9, 2009, 1st Centennial had total assets of $803.3 million and total deposits of $676.9 million, of which there were approximately $12.8 million that exceeded the insurance limits. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers.

What will happen to the $12.8 million is unclear. In the case of Indymac Bank's closure, the FDIC paid out some money above FDIC insurance limits.

Customers with accounts in excess of $250,000 should contact the FDIC toll-free at 1-800-822-1918 to set up an appointment to discuss their deposits. This phone number will be operational this evening until 9:00 p.m., PST; on Saturday from 9:00 a.m. to 6:00 p.m., PST; on Sunday from 12:00 p.m. to 6:00 p.m., PST; and thereafter from 8:00 a.m. to 8:00 p.m., PST. Customers who would like more information on today's transaction should visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/centennial.html.

Beginning Monday, depositors of 1st Centennial with more than $250,000 at the bank may visit the FDIC's Web page "Is My Account Fully Insured?" at http://www2.fdic.gov/dip/Index.asp to determine their insurance coverage.

First California agreed to assume the insured deposits for a 5.29% premium. It will also purchase approximately $293 million of the failed bank's assets. The assets are comprised mainly of cash, cash equivalents and marketable securities. The FDIC will retain the remaining assets for later disposition.