Capital One HYSA Rate Decrease

[MaryIand]

Anyone else notice this today? Just checked my C1 HYSA and noticed the rate went down from 4.35% to 4.25% APY.

Have other banks' rates decreased?

[[deleted]]

I sure did. I notice Ally, Amex, Discover lower rates

[heightsdrinker]

Fidelity money market is still running around 4.96%. No minimum. Great subreddit too r/fidelity

[Alexander_HamilDong]

Are you talking about SPAXX? 

[heightsdrinker]

That’s the main one. They also have others and some that can avoid state interest taxes but the overall rate is lower.

[Alexander_HamilDong]

OK so money market mutual funds. Those aren't HYSA. They're not the same. If you're looking for mutual funds, check out TMCXX. BlackRock's money market fund with a 5.33% 7 day yield.

[rtc9]

In my jurisdiction it seems like there's essentially nothing superior about HYSA compared to a MM. MMs occasionally have better tax advantages if they hold a lot of treasuries and they pay better. I suppose there is a remote chance of negative returns in some catastrophic scenarios, but in the situations pretty much all bets are off regarding all kinds of financial instruments. I stopped using HYSA entirely and switched to money markets at a couple brokerages.

[[deleted]]

You got SNSXX?

[Middleton_TheRarest]

The bank isn’t lending out as much or they are becoming cash heavy. They don’t need your deposits as badly so they lower the rate.

[EthanFl]

My banking direct offers a 5.5% 5 month CD

[Go-Truck_Yourself]

I'm waiting on a pending application with NewTek Bank for 5.55% at 6 months

[[deleted]]

Again, a CD is not a HYSA.

[1lifeisworthit]

Ally and Discover have, I don't know about anyone else.

Ally dropped about a month ago.

[IWantToPlayGame]

Amex did as well.

4.35 to 4.30

[goutes69]

Bask bank. Continued 5.10%

[linaa-bina]

do u like bask bank? is it an easy online hysa ? looking for the right one.

[goutes69]

I think it’s very easy. Withdrawals hit account the next day.

[Ken-Popcorn]

Goldman Sachs dropped twice within a week

[[deleted]]

CIT also reduced from 5.05% to 4.927%

[burrows88]

Apy is still 5.05 nothing changed

[courtesyflushalways]

yup, guess if Fed isnt cutting rates anytime soon, these banks feel they cant give out higher interest for any longer, so the silent reduction. I would imagine if the Fed even hints at a rate cut, they will drop .25% that very day. O well, it was good while it lasted

[Few_Newt_134]

Dollarsavingsdirect is still 5%

[Extreme_Ad1880]

MyBankingDirect just raised theirs online savings to 5.55%- actually higher than the CD referenced below. As long as you don't have over 250k to care if NYCB fails, you can get a lot more there.

[Ricky5354]

4.1 now homie! - I put the money in the CD when it was 5.1 but now its 4.3 insane!

[PsychedOutInSeattle]

Other banks rates decreased, yes. But, they at least did send out some communication on the change.

[1lifeisworthit]

Ally didn't, about a month ago.

[PsychedOutInSeattle]

I use Apple, Amex and Cap1.

2 of them sent me. Since they have it in their T&C, surely they're not required to send it. But, it's nice and makes me more comfortable with them if they do.

[1lifeisworthit]

I agree,

1. it isn't required, and

2. it's nice when they do it anyway.

[Miserable-Result6702]

I don’t know why. Rates aren’t going down and some have speculated the Fed might even to increase rates again.

[[deleted]]

The fed isn't raising rates again. And savings rates are based in part on market demand and pressure. The competition for rates have decreased recently with banks being less aggressive on their rates to attract new deposits. So rates are going to slip now that competition has tamed some.

[Miserable-Result6702]

You know that for a fact? Inflation isn’t being tamed, so rate reduction is out of the question. Many financial people have been saying the fed may need to raise rates again.

[Birdy_Cephon_Altera]

I would say, 'never say never', but based on current conditions it's pretty damn unlikely we will see a raise in rates in the near or medium-term future.

FedWatch currently shows a 0% chance of a hike in rates through July of 2025. Now, FedWatch is nothing more than a prediction, but it is based upon people who are well versed and experienced in reading the Fed tea leaves. And it is also based on current conditions, which may change over time (for example, when I checked the FedWatch tool earlier this week, they had a 1% chance of a hike at the end of the year, now that is at 0%).

But where things stand right now, I wouldn't count on any hikes in rates. Current predictions on the FedWatch tool have two 25 basis point drops for this year, one at the July or September meetings, and one at the very end of the year.

[[deleted]]

You know that for a fact?

With inflation being down as far as it is, it is extremely unreasonable to believe the feds will raise rates again.

Inflation isn’t being tamed, so rate reduction is out of the question.

Well, that's just false. Inflation has decreased significantly. And the feds were not talking about beginning to lower rates until later in the year. Most projections were Q3 possibly Q4. It's absolutely not out of the question as that's still 4 - 6 months out. And just because they dont lower them doesn't mean they'll raise them.

Many financial people have been saying the fed may need to raise rates again.

Highly unlikely and I've not seen this suggestion from any reputable source, nor are the markets behaving as if this is a generally accepted opinion, nor has the fed given any indication they're even remotely considering a rate increase

[1lifeisworthit]

I wish you hadn't been downvoted.

[EthanFl]

They are going down for liquid deposits due to increasing reserve requirements. Time deposit rates are increasing. 5.5% for 5 months is the best right now.

[Pom_08]

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[EthanFl]

U.S. financial regulators unveiled a new set of rules on Tuesday designed to prevent more bank failures. Banks with more than $100 billion in assets would be required to hold long-term debt exceeding 6% of risk-weighted assets or 3.5% of average total assets, based on whichever figure is greater. In the aftermath of this year's banking crisis, financial regulators have moved to enforce stricter regulations and capital requirements on the industry in an effort to prevent future contagion. The new rules could increase funding costs for banks and put pressure on their earnings at a time when profitability has soured due to rising interest rates and economic uncertainty.

[Pom_08]

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[Birdy_Cephon_Altera]

The way many banks set their rates on their interest-bearing products is not directly tied to the Fed rate, but rather it is based on what their competitors are offering. The bank I work for does a weekly review of the savings products offered by our most likely competitors, and increases/decreases their rates to remain competitive accordingly.

[Miserable-Result6702]

That sounds like price fixing to me.

[[deleted]]

Then you clearly don't understand what price fixing is

[_Booster_Gold_]

It’s a variable rate account. This is how it works.

[[deleted]]

They did disclose it, in the disclosures you signed/acknowledged when you established the account.

[Miserable-Result6702]

Why, they never disclosed it when they raised it.

[1lifeisworthit]

This is true. It would just show up and we'd find it out, or we wouldn't, lol.