4-Week T-bill Rates and Savings & Checking Accounts
While I don’t use 4-week T-bills as a short-term saving vehicle any more, I still keep an eye on the rate changes, though I don’t expect the rate to become competitive any time soon after the sharp drop in September, especially after two consecutive rate cuts.
The latest 4-week T-bill rate is at 4.008% APR. That’s equivalent to a 4.36% APY for New Jersey residents, putting it slightly above ING Direct after the bank lowered its rate again immediately after last week’s rate cut.
Speaking of rate reduction, an array of online banks have followed suit to lower their interest rates in the past week. The following is a updated table of what the online banks are offering right now, sorted by the savings APY (restrictions on some banks’ products can be found in my previous post). (Last updated 11/30/2007)
|Bank||Savings APY||Minimum||Checking APY||Minimum|
|Costco Capital One||4.60%||$1,000||N/A||N/A|
|Salem Five Direct||4.70%||$100||N/A||N/A|
|Bank of Internet||3.90%||$100||3.40%||$100|
Now that IGoBanking falls behind in the rate game, I am thinking maybe it’s time to move on. AmTrust and UFB do look attractive with 5.30+% APY (hope they can keep the rates). I considered these two banks before when I was looking for a better bank than Emigrant Direct and HSBC, but eventually chose IGoBanking. Maybe I need to pick it up again. Of course, if I get another account, I will need to close IGoBanking or FNBO Direct or both so the number of accounts I own won’t keep going up.
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