Rate Cuts Continue at Online Banks - UmbrellaBank, UFB Direct, ING Direct read and submit comments for this post

Online banks continue to cut their savings account rates as an economic slowdown and continued Fed rate cuts appear more likely. UFB Direct reduced the yield on its Absolute Savings Account from 5.12% to 5.00% APY. UmbrellaBank reduced the yield on its Pot O'Gold Money Market account from 5.00% to 4.95% APY. It also reduced the 90-day intro rate of its Green Day Savings Account from 5.35% to 5.12% (UmbrellaBank doesn't report APY on this 90-day period so the APY drop would be 5.50% to 5.25% APY.)

The CD rates at both banks have also been dropping. All of UFB Direct's CD yields are now under 4.00% APY. UmbrellaBank still has some decent short term rates like a 5% APY 12-month CD and a 5.05% APY 6-month CD, but the yield for terms over 18 months is just 3.75% APY.

ING Direct also lowered its CD rates. The top yield is now only 4.50% APY on the 60-month term (was 4.70% APY).

Thanks to everyone who have been leaving comments on the rate updates. I have a feeling we'll be seeing more falling rates this week so please keep the comments coming (either at this post or in the deals-and-news post).

For more details on the above banks, please refer to my UmbrellaBank review and my UFB Direct review.