Friday, February 6, 2009

My Incredible Shrinking Savings Interest Yields

I've got three online "high" interest savings account with DollarSavingsDirect (the online branch of Emigrant Bank), ING and Citibank's Ultimate Savings Account (Citi's online branch). And all of their interest yields have been steadily diminishing.



  • Dollar Savings Direct's APY went from 4.0% to 3.5% to now 3.2%

  • ING's recently decreased from 2.4% to 2.2%

  • Citibank USA's APY is now at 2.4%.

Hmmmm... as APYs go lower and lower, perhaps I will reach the point where potential returns of investment vehicles outweigh my need for security. But, with dividends getting slashed and Treasury bonds yielding virtually close to nothing, I'm out of ideas of where to put my money. Any ideas?

7 comments:

444 said...

You could put it into a gold mutual fund or ETF. I put $50 in during December and $50 in during January and now have $129!

T.W. said...

I agree with 444, gold is always a very safe investment, it's proven to be almost inflation proof for several decades.

My ING Canada accounts get 3% and 2.75%.

Sharon Rose said...

Hi there-that gold fund sounds very interesting indeed! Hope you come up with an ideal solution and have a great weekend!

Miss M said...

Even FNBO has dropped their rates to 2.6%. It's painful, I have all this money in savings and it's earning practically nothing. I looked at CD rates and they aren't much better. I think gold was a good buy two months ago, it shot back up again though and is near $1000 an ounce. Not sure it's a great buy at that price, oil on the other hand is cheap again. But you'll probably need a few years for that play to payoff.

Finally Frugal said...

Aaaarggghhh! I have also watched my ING Direct rates plummet. 3.75% sounds heavenly at this point! I was reading at another blog (Ready to Change, I think) that her credit union is offering 5% (!!!!) I may look into this locally and see if I can get a better rate than ING is currently offering. . .

jpkittie said...

yuck! that sucks!!!

DebtConsultant said...

everyone is sad of financial crisis