@IsambardPrince wrote:There's still outfits out there offering nearly 5%.
Some of them are like Laurel Road or UBS Direct where people tend to complain that their entire account got frozen for reasons unknown and it's difficult to even get a hold of anyone when it happens.
Ally Bank is under intense pressure to lower rates as fast as they can because their main "asset" is a bunch of car loans that are going bad and the last thing they need on top of it is expensive deposits. Some deposit options are still 4.3-4.5% and haven't dropped, like PayPal Savings.
I think the general trend is definitely down but it still depends largely on how much the bank is trying to attract deposits and how much pressure there is to lower them so they aren't being squeezed by toxic assets on one side and deposits on the other.
However, you can still throw a rock and hit dozens of online banks offering at least 4% on deposits, and none of them are like the megabanks where you get a tenth of a freaking point of interest and customer service that's up there with Spirit Airlines. So I think it's worth keeping perspective.
I think this is a pretty good assessment. ik Amex isn't wasting time dropping their rate (just got APY < 4.00%) and Citi follows suit not long after.
My issue with firing up deposit accounts at FIs with APYs still in excess of 4.5% is that there's a bit of uncertainty/distrust involved which could lead to what I bolded in your quote. Plus, I'd eventually like to use some of their other banking products, and if their CCs/rates/CS sucks, it's a no-go from me.
I look at the post at Doc often - https://www.doctorofcredit.com/high-interest-savings-to-get/
It took me along tome to get Ally, they were always chex sensitive for me. So i keep them regardless.
I did manage to move some of my assets over to EverBank (formally TIAA).
I stopped chasing the bank APY, because it is too much work to keep moving. When I do go looking, I have criteria. 1) I only targeted places that are true banks (or brands/subsidiaries), not fintechs. So places like One Finance, Upgrade, Wise, Betterment, Wealthfront, etc. 2) It must have a checking/money market option. 3) it should support zelle (not a deal breaker). Places that are savings/cds only are a pass.
My Primis checking just went from 5.07% to 4.85% yesterday.
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