bank rates

Savings Leader Drops Rate — Again

It’s like limbo dancing: How low can you go?

SFGI Direct still holds the best savings account rate.SFGI Direct, the savings account rate leader, has dropped its rate a tenth of a percentage point to 1.21% APY.

The cut isn’t enough to knock the online division of Summit Community Bank in Moorefield, W.Va., out of the top spot for the best nationally available savings rates.

That illustrates just how bad the situation continues to be for savers.

SFGI Direct’s move is just the latest in a continued slide in savings account interest rates. In January, SFGI was offering 1.41% APY for savings accounts, then dropped its rate to 1.31% in mid-February.

And SFGI is far from alone. Just a month ago, five banks were offering accounts with rates of 1.25% APY or higher. Today, none is.

The second-best nationally available rate is held by Discover Bank at 1.20% APY.

American Express Bank, Clear Sky Accounts, Sallie Mae Bank and Capital One Bank have all cut rates to below 1.20% APY.

Discover Bank, which is owned by the credit card company, is the only one that has resisted a recent rate cute, offering 1.20% APY on savings accounts since early February.

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Comments (2)
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2 Existing Comments
  1. Joe George said:
    on April 1st at 08:17 pm

    Hudson City Savings (NJ) is paying 1.25% on money mkt savings. You can apply on-line and live anywhere.

  2. Kathy at Bankaholic said:
    on May 23rd at 08:54 am

    SFGI’s rate is still available as of May 23, 2011. Discover has dropped its rate to 1.15% APY.