Sunday, October 01, 2006

Emigrant Direct Ebb and Flow

The Fatwalleters are in dismay again: Emigrant Direct has dropped its savings rate from 5.15 APY to 5.05 APY.

Emigrant had been a rate leader, or very close to it, since July 28 or so. That's when they last lifted their American Dream savings account rate. Now, its current APY of 5.05 puts it in a still-admirable group of other online savings institutions that pay rates at 5% or better (HSBC, GMAC, and a host of others).

As I opined in my Emigrant Direct review, there are a host of reasons to like Emigrant (very fast ACH transfers, multiple linked accounts, etc.), and this rate change doesn't affect that. Interest-rate fluctuations, both to the up- and downsides, are a natural part of banking and economic life. Rate changes, as the bumper sticker would say, happen.

The issue at heart here (for most money bloggers, anyway) is one of whether old rate leaders ever return to rate greatness. Witness what's happened to ING Direct (review): They were the standalone rate leader at one time. Then they got big and popular . . . and were able to rest on their laurels . . . and now their rates are firmly at the back of the online-savings pack. There are still good reasons to have an ING Direct account. Interest rates, however, aren't one of them.

Now, if you're a devout rate-chaser, then it may indeed be time to start looking elsewhere. Actually, if you're really devout, you probably already have ... and your money is on its way to E-LOAN.

E-LOAN is the newest player in the online-savings game — and as is common for such new entrants, they're offering a rate (5.5 APY) that tops most everyone else. They also require a $5,000 minimum opening deposit, though, and can be linked to only one outside account. So at least for now, they're not for everyone.

— Posted by Michael @ 9:46 AM


I bother attimes too much for future.It may be about furutre of self and family,and futute of kids.Now if they read well ,what they will do with hearedearned samll money.Yf they are in a position to earn big money or at least a decentliving for themselves,why they will bother mine?


What is money?

I think it allows you to buy a sandwitch.

Anonymous Raj Chanani
, at 7:14 PM, October 05, 2006  

It's Your Money, Money Musings,
I love ING, but am seriously thinking about moving to E-Loan... But, I don't know if I can bring myself to do my banking with a company with "loan" in the title...

It is OUR money,

This comment is part of my 100 Comments Series over at No Credit Needed.

Anonymous Anonymous
, at 5:48 PM, October 06, 2006  
** Comments Closed on this Post **

Thoughts on my personal finances, goals, experiences, motivations, and accomplishments (or lack thereof).

My financial life began turning around when I took responsibility for it.
— Dave Ramsey


Start (2005-12): ~$21,900
Currently: $0
[About Our Debt Paydown]


Savings Goal: $15,000
Currently: ~$15,115
[About Our Liquid Savings Goal]