Online Savings Rates Still Competitive

The Federal Reserve's move this week to move the Fed Funds rate down 50 points from 1.50% to 1.00% has sparked widespread movements amongst banks to lower their own deposit rates, except for those banks at the top of the leaderboard who have for the most part kept rates steady. Listed below the best rates listed at Money-Rates.com:

GCF Bank, 4.00% APY, $100 to open, $100 balance to earn highest APY

Dollar Savings Direct, 4.00% APY, $1,000 to open, $1 balance to earn highest APY

Valley Community Bank 4.00% APY, $1 to open, $100,000 balance to earn highest APY

CNBBankDirect.com 4.00% APY, $1 to open, $1 balance to earn highest APY

1st Constitution Direct, 4.00% APY, $100 to open, $10,000 balance to earn highest APY

UFB Direct, 4.00% APY, $500 to open, $500 balance to earn highest APY

SmartyPig, 3.90% APY, $25 to open, $25 balance to earn highest APY

E-Loan Bank, 3.85% APY, $5,000 to open, $100,000 balance to earn highest APY

Venture Bank, 3.80% APY, $1 to open, $1 balance to earn highest APY

Provident Direct, 3.75% APY, $100 to open, $1 balance to earn highest APY

BankUnited, 3.75% APY, $5,000 to open, $5,000 balance to earn highest APY

OneUnited Bank, 3.75% APY, $1,000 to open, $1,000 balance to earn highest APY

GMAC Bank, 3.75% APY, $1 to open, $500 balance to earn highest APY

Heartland Bank Direct, 3.55% APY, $500 to open, $1 balance to earn highest APY

Doral Bank Direct, 3.55% APY, $100 to open, $250 balance to earn highest APY

Capital One Bank, 3.55% APY, $1 to open, $10,000 balance to earn highest APY

E-Loan Bank, 3.51% APY, $5,000 to open, $25,000 balance to earn highest APY

Citibank, 3.50% APY, $100 to open, $1 balance to earn highest APY

ShoreBank, 3.50% APY, $1 to open, $1 balance to earn highest APY

Century Bank Direct, 3.41% APY, $100 to open, $1 balance to earn highest APY

Countrywide Bank, 3.40% APY, $10,000 to open, $10,000 balance to earn highest APY

Imperial Capital Bank, 3.40% APY, $50 to open, $50,000 balance to earn highest APY

WT Direct, 3.31% APY, $1 to open, $10,000 balance to earn highest APY

Centennial Bank, 3.30% APY, $500 to open, $100,000 balance to earn highest APY

E*Trade Bank, 3.30% APY, $1 to open, $1 balance to earn highest APY

Kaiser Federal Bank, 3.30% APY, $100 to open, $75,000 balance to earn highest APY

iGOBanking, 3.28% APY, $1 to open, $1 balance to earn highest APY

See the complete list of highest rates on bank savings accounts

All the banks listed above are FDIC-insured for up to $250,000 per depositor, but restrictions and limitations can apply. Savers should also remember that the $250,000 insurance cap is only temporary until December 31, 2009. To compare just how attractive the bank savings rates listed above are - take at look at today's US Treasury yields:

3-month T-Bill 0.25%

6-month T-Bill 0.85%

2-year T-Note 1.49%

5-year T-Note 2.71%

10-year T-Bond 3.84%

The best rates on online savings account are clearly currently outperforming US Treasuries and Mutual Fund Money Market accounts (which are yielding below 3%). Banking experts are predicting that competition between banks for online savings account will continue to keep rates above 3.50%.

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