Say Goodbye to 5.00% Savings Account Yields?

The reality of lower short-term rates has set in and the next step is to watch the leading online banks to see how quickly and by how much they adjust their deposit rates. The 5.00% and higher APY yields which have been prevalent over the last year are nearly certain to drop to rates in the 4.50% to 4.75% range and the 6.00% and higher promotional rate specials offered by everbank.com and FNBO Direct seem destined to be lowered as well.

The bright spot for savings investors is that these rates for the time being are still available and investors can still lock-in 5.25% and higher on certificates of deposit. It would appear that 5.25% in the pocket for two years may beat what owning the top-yielding checking account and money market accounts will yield if the Federal Reserve continues with rate cuts into 2008.

Current Deposit Rates:

Money Market Rates

Checking Account Rates

Savings Account Rates

CD Rates (7-day to 2-years)

CD Rates (+2 years)

Online Bank Rate Deals