Savers continue to be punished. Tomorrow, Thursday, April 2, 2009, FNBO Direct will lower the interest rate offered on its on-line savings account from 2.15% to 1.9% APY.
A little over a year ago, I introduced SmartyPig to Consumerism Commentary, a savings account with a higher rate. Their current rate yields 3.25%, by far the highest among high-yield online savings accounts. Accounts held with SmartyPig are fully backed by the FDIC. SmartyPig’s philosophy is designed to focus on goal-oriented saving, and the bank encourages redeeming (withdrawing) your funds only when the goal is reached, and preferably in the form of a gift card offered by one of several retailers partnering with the bank or of a prepaid debit card.
If you opt to redeem your account in the form of a gift card, SmartyPig offers a bonus above the value of the cash you have saved, but keep in mind that where legal, many of the gift cards “expire” if not fully redeemed after a period of time. Is the higher interest rate worth the hassle?
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Related Articles at Consumerism Commentary: A Personal Finance Blog Since 2003:
- FNBO Direct Lowers Online Savings Account Interest Rate to 3.25% APY: …
- FNBO Direct Drops Interest Rate to 2.4% APY: …
- Another One Bites The Dust: HSBC Direct Lowers Interest Rate: …
- Reminder: Free $100 Gift Card for SmartyPig: …
- FNBO Direct Drops Interest Rate to 2.8% APY: …
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