Interest rate falling? She ends the love affair
Posted
Feb 06 2008, 09:01 PM
by
Karen Datko
Single Ma at Fabulous Financials apparently took it as a personal slight when her bank informed her in a letter that -- due to rate cuts by the Federal Reserve -- her online savings account was, so to speak, losing interest. So Single Ma responded with a Dear John letter online.
She noted that her bank first attracted her with a 5.05% APY. In the past five months, it has dropped four times, now to 3.55%. She wrote: "I really enjoyed our love affair while it lasted: the 5.05% APY, our biweekly exchanges, your generous deposits, the sneak peaks at my growing balance -- ah, the memories. But it's over now."
She added, "And I hate to break it to you, darling, but I, too, evaluate and respond to market changes."
In fact, she's found two new places to park her $14,000 -- a special introductory seven-month 7% APY share certificate and a 15-month 5.35% APY share certificate at a local credit union. "I will begin moving my emergency fund on Thursday, all except $1,000," she wrote. "When I get settled, I'll come back for the rest of my things."
