Hi,
This question is regarding the latest article about the best high-yield online savings accounts.
I just read the “fine print” in AE’s FAQs about opening a high yield savings account. It states:
" *The Annual Percentage Yield (APY) as advertised is accurate as of 06/24/2023. Interest rate and APY are subject to change at any time without notice before and after a High Yield Savings Account is opened."
How do I know the APY isn’t going to tank once they have my money? Thanks!
What is the APY rate? Is it better than you can get at Treasury Direct buying 4 week treasury bills?
Resource Center | U.S. Department of the Treasury
Current 4 week t-bill rate is about 5.17% . And you have no state income tax on t-bill yields either.
Thanks for your knowledgeable reply. The follow up question then is: If every other savings account has the same terms, is it common for online savings banks to take advantage of their customers? Or do they tend to continue offering reasonable interest rates relative to economic conditions, inflation, etc.
And does anyone out there have any personal experience with American Express’ high-yield savings account?
I’ve had the AMEX account for a couple of years. With interest goin up over this time, it’s been adjusted up about every 2-3 months. I assume when rates start going down, they will be adjusted down the same way.
Based on the Atlanta Federal Reserve Bank market probability tracker, I would expect bank savings rates to eventually get below 3.50%. Kathy Jones @ Schwab thinks possibly below 3%.
Not good for savers, and the media is totally clueless about mortgages… mortgages do not respond to the Fed Funds Rate, they follow the 10 year US Treasury. Mortgages have spiked up recently even as the Fed is lowering. The yield curve is steepening.
Market Probability Tracker - Federal Reserve Bank of Atlanta
