Although times may not seem quite as tough as they did a few years ago, the savings account and money market rates continue to fall. It doesn’t seem like that long ago that we could expect a return of at least 1% APY or maybe even more. These days we are lucky to see half a percent, and often that is contingent on how much money you have in your bank account.
ING Direct has dropped their money market rates at least three or four times in the past year. We can only speculate whether this has anything to do with the recent announcement last year that Capital One has purchased ING Direct. Whether this dramatic drop in rates has a connection or not, it is certainly disheartening for those of us who manage to sock away money month after month.
Thankfully, not all banks have dropped their rates to pitiful lows – at least not by comparison across the board. Ally Bank is one example where you can still find a decent APY – currently .84% for money market accounts. This comes with no minimum deposit and has a debit card tied into the account. Doesn’t sound like a bad deal at all. As just one more example, American Express boasts a .75% APY with their high-yield personal savings accounts. Keep your eyes peeled for these better rates and be vigilant with your money so you can get the best return on your investment.