Best Interest Rate Banks

WTDirect sent out an email to account holders notifying us that they would be increasing the security of the login process. They’ve added a few new features that other banks have been using such as separation of the User ID entry and the password entry, addition of a picture, and new Security questions. As is the case with other online banks and brokerages, they will let you register your computer as well so you won’t have to go through the process every single time.

Here’s the email:

We’ll soon be introducing additional security measures to further protect online access to your financial information.

These new security features add a layer of protection to help us verify your identity, and help assure you that you are using the genuine WTDirect website. Your Password will now be on a separate page from your User ID, and we will ask you to confirm your chosen Security Image and Caption at Log In. We may also prompt you to answer one or more new Security Questions before permitting access to your accounts. For example, if you attempt to log in to WTDirect.com from an unrecognized computer, we will ask you to answer one of your new Security Questions and Image/Caption to ensure that you are permitted access.

As part of the introduction of these new measures, the next time you log in to WTDirect.com, we’ll request that you select and provide answers to two Security Questions and select an Image/Caption that will be used as additional identification.

These new security measures provide another example of why you can be confident that WTDirect continues to implement ways to protect your personal information and assets.

What a crazy last few weeks! Almost every major online bank has dropped their rates twice in the last two weeks. That’s right, twice! I won’t go into the exact chronology of who dropped to what rate and then dropped to what rate, but suffice it to say, your best bets right now are to lock in a good certificate of deposit rate and then try to wait things out. Forget the money markets, forget trying to get a good rate with high yield savings accounts, to ensure a good rate you’ll have to go with a certificate of deposit.

The damage, as it now stands is:

• Dollar Savings Direct - 3.50% APY
• FNBO Direct - 2.60% APY
• EverBank - 3.51% APY Promotion Rate
• WTDirect - 2.81% APY
• E*Trade - 2.50% APY
• ING Direct - 2.20% APY

If you’ve checked out the front page of Best Interest Rate Banks lately, you’ve seen the latest rates as of early January 2009 and they are ugly.

The highest rates barely peek over 3.00% and there isn’t much we can do about it. The best thing you can do is lock in a good CD rate at whatever bank you’re at and wait for better times.

One bank you might want to consider is Dollar Savings Direct with their 4.00% rate, which will likely fall very soon.

If you have the means, you might consider putting a little in the market or even in into some municipals bonds, which are offering slightly higher yields.

Bank rates will be low, and going lower, for the foreseeable future.

In an ideal world of instant transfers, you would always transfer your savings to the bank account with the highest rate. Choosing between a 3.06% APY (WTDirect) and a 3.25% APY (FNBO Direct)? Don’t bother, always go with the higher rate. If your money is at WTDirect, transfer it to FNBO Direct. No brainer.

However, banks have been using float for as long banking has existed and some banks float longer than others. On average, it takes about 5 days to get funds from one bank to another. Five whole days. In our era of electrons flying back and forth, it seems amazing something like a transfer would take that long, right? That’s because of the float, where the bank earns money while the money is in transit.

So, the next time you’re going to rate chase, consider how much interest you’re losing when the funds are in between banks.