Money Market & CD Interest Rates Tumble

Because of the Fed’s decision to drop interest rates 0.50% last week, banks have been dropping their rates all across the board.

This is definitely bad news for those of us who haven’t locked in high bank interest CD rates at the peak of the interest rate rally.

Today I was a little disappointed to see the big banks drop their rates. Here are the latest significant changes in interest rates.

Money Market & High Yield Savings Account Rates

• FNBO Direct will drop it’s rates from 6.00% to 5.05% APY tomorrow, September 29, 2007 as their popular summer interest rate promotion comes to an end.
• Emigrant Direct drops their high interest American Dream Savings Account rate from 5.05% to 4.75%
• HSBC Direct drops their online savings rates from 5.05% to 4.50%
• E-LOAN drops their money market rates from 5.25% to 5.00%
• Amtrust Direct drops their e-money market rate from 5.31% to 5.21%
• Flagstar Bank drops rates to 5.10%
• GMAC drops their savings rates to 4.90%

High Yield CD Interest Rates

• Virtual Bank drops CD 3-month CD rates from 5.44% to 5.23%
• IndyMac Bank 6-moth CD rates fall from 5.70% to 5.40%