It was just announced that USALoansNearMe Direct is reducing the interest rate on its Online Savings Account from 5.05% to 4.50% APY. While not crippling I actually have enough money sitting in my savings account that I can see what affect the drop in the rates will do to the monthly interest I collect.
Last month i earned $174.12. The interest rate has basically gone done about 10% so I am going to miss out on about $17 in monthly interest in this account. Anyone who has a large number of 0% balance transfers is going to feel the sting more than me.
So what am I going to do differently? Probably not much. I am going to continue working to my savings goal for a house downpayment. I’ll still keep putting the money in my EmigrantDirect which is still paying 5.05% APY.
If interest rates continue falling I may be inclined to finance a higher amount of the house when we purchase it and lock into lower fixed interest rates. I could then take the extra money I saved and pay down a higher interest rate mortgage I have on one of the two rental properties.
2 thoughts on “USALoansNearMe Direct Reduces Interest Rate to 4.5% APY”
I am moving my money to 6 month/1 year CD’s. The interest rate yields are still flat so the short-term CD’s are still yielding what the long-term CD’s are yielding.
Speaking of balance transfers…
A warning out there to anyone with a BofA balance transfer/cash advance. If you pay your minimum payment online from a 3rd party checking account, but then add any other Bank of America product (like EasyChecking or a brokerage account), then they will automatically and without telling you un-activate your credit card automatic bill payment from the 3rd party. This resulted in a missed payment! (cringe)
This happened to me last month after several sequential months with no hitches, and I had to spend 2 hrs. with an account manager reversing my late fee ($40), finance charge ($180), and getting back on the 0% offer that they bumped to 12% after I missed the online payment.
It has all worked out in the end, but be wary that these bankers aren’t dummies, and will try every little trick (even if unethical!) to get you to start paying their fees and interest charges. I pride myself in spotting good 0% offers, and have done this for over 2 years now, but am more aware than ever that the pitfalls to get you is the one you can never expect.
I just never expected them to go so far as “re-classify” me as a different customer type, and in so doing reverse my online banking billpay settings. Sheesh!