With Fed Rate Cuts, Prepare for Savings Dips

12.17.08 | Online Savings Accounts | 0 Comments | by junger

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The news that the Federal Reserve cut a key interest rate to near zero on Tuesday may have pushed the stock market up more than 300 points, but for savers, there's a downside.

Almost consistently, when the Fed has cut rates, savings accounts have dropped in reaction.

Given that it's been a while since the last round of rate cuts, don't be surprised if you get a notification (or not, if you use E-Loan) that your APY is dropping.

While I'm not normally a rate chaser, there are still a number of great APYs available.

Dollar Savings Direct is at 4.00% APY, by far the highest available among the big names.

Other options include ING Direct at 2.75%, FNBO at 3.25%, WTDirect at 3.06% and HSBC at 3.00%.

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