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
UFB Direct 5.31% $1 1.00% $50
AmTrust Direct 5.26% $1 N/A N/A
Savings Square 5.10% $1 N/A N/A
FNBO Direct 5.05% $1 N/A N/A
IGoBanking 5.00% $1 N/A N/A
WT Direct 4.90% $1 N/A N/A
Emigrant Direct 4.75% $1 N/A N/A
E-Loan Bank 4.75% $5,000 N/A N/A
Washington Mutual 4.75% $1 N/A N/A
Costco Capital One 4.60% $1,000 N/A N/A
E-Trade 5.05% $1 4.00% $5,000
Salem Five Direct 4.70% $100 N/A N/A
Discover Bank 4.60% $1 N/A N/A
Presidential Bank 4.60% $5,000 3.75% $1,500
Umbrella Bank 4.56% $100 N/A N/A
Univest Direct 4.50% $1 3.55% $1
Ever Bank 4.51% $1,500 3.01% $1,500
GMAC Bank 4.50% $50 N/A N/A
HSBC Direct 4.50% $1 0.05% $5
Citi Bank 4.50% $1 N/A N/A
ING Direct 4.20% $1 3.25% $1
Flagstar Bank 3.75% $1 0.50% $1
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.

This article was originally written or modified on . If you enjoyed reading this post, please consider subscribing to my full RSS feed. Or you can also choose to have free daily updates delivered right to your inbox.

Author Info

This post was written by Sun You can find out more about Sun and his activities on Facebook , or follow him on Twitter .

8 Responses to “4-Week T-bill Rates and Savings & Checking Accounts”

  1. Tim |  Nov 09, 2007 at 11:53 am

    I show WAMU’s savings square as being 4.75% now. Have Amtrust, FNBO, UFB, WT adjusted rates yet in response to the fed rate drop? If not, I think I’ll wait another two weeks to see if they do. UFB sounds interesting…any experience with them? I just tried to go to AMTrust website and it was down. I have had this experience before, which does not give me confidence with them.

  2. Money Blue Book |  Nov 09, 2007 at 2:42 pm

    I wonder if App-O-Ramas are worth it at this point due to the steadily dropping rates… :/

  3. tba02 |  Nov 09, 2007 at 6:41 pm

    Countrywide’s savings link is at 5.35% APY w/ 10K min.

    @Tim – yes, WAMU just recently dropped to 4.75%
    FNBO has been steady at 5.05 since they dropped near the end of Sept. They have not moved (yet?) since the last Fed rate cut.

    I’m starting to look again too as I have my money at WAMU and Electric Orange (now both at 4.75% 50K+ rate). If WAMU had held on I would have moved the ING money there and lived w/o a few points for convenience factor.

  4. MJK3 |  Nov 10, 2007 at 1:23 pm

    Just an FYI about UFBdirect (UFB), i had opened an account with them for the rate, but was dissappointed to find that they did not offer ACH electronic bank to bank transfers….you can still do it by paper mail or wire transfer (fees).

  5. linda |  Nov 11, 2007 at 1:46 pm

    I think you need to start exploring foreign currencies savings or CDs, at Everbank for one.
    In lights of declining US dollars and much worse to come, what’s the points to chase ever dropping US saving rates?