Considering Another Bank Account
I was really impressed the other day when I found out that Provident Direct, a little known online bank, was offering 4.50% APY with their high-yield savings account, when everybody else was paying almost a full percentage point less. At that time, I was thinking of getting a new account if they won’t dramatically lower their rate after the Fed’s rate cut a week ago.
Well, I am still looking for an online bank that gives me more than my current bank, FNBO Direct (3.25% APY) and IGoBanking (3.28% APY), but my target isn’t Provident Direct any more after the bank dropped its interest rate by 0.75% last week following the Fed’s move. It’s Capital One Direct Banking’s Online Savings Account.
I don’t have a good feeling about Capital One in general and don’t like their “What’s in your wallet?” credit card commercial a lot, but the 3.85% APY sure looks attractive. The only drawback of this account, as I can see now, is its high balance requirement. To earn 3.85% APY, the balance has to be $10,000 or more. However, if the daily balance falls below the requirement, there’s no extra fee and the balance can still earn a rate of 3.00% APY, according to their rate page. The minimum deposit to open an account is $1 and there’s no fee for this account, which means the account doesn’t have to be closed if the rate becomes unfavorable in the future.
I am seriously considering it.
Anybody else has experience with Capital One Direct Banking?
BTW, some latest rates besides those mentioned above:
- Ever Bank: 4.76% APY
- Washingtong Mutual: 3.75% APY
- FNBO Direct: 3.50% APY
- HSBC Direct: 3.50% APY
- WTDirect: 3.31% APY
- E-Trade Financial: 3.30% APY
It’s a full time job just to track how the rats change every day
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