Two years ago I opened a HSBC online Savings account at 6% APY. Six months later, I opened WaMu online savings account at 6% APY. WaMu was going bankrupt and purchased by JPMorgan Chase overnight on 9/25/08. It was a dramatic rescue operation. Chase announced that all services and Interest rates would remain the same.
Interest rates of Wamu Online Savings were 4.5% APY as of 9/25/08 and 3% as of 12/31/08. It had dived to 0.75% APY from February 2009! I let it go without checking this WaMu online savings account for several months. I looked at it yesterday, and I was astonished!
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The interest rate of HSBC online savings had plunged to 1.55 % APY. It's twice higher than WaMu online savings interest rate. In a hurry, I transferred some funds from WaMu to HSBC online savings yesterday. The merit of online savings is that you can do everything through Internet.
As I checked on"online savings interest rates," The highest rate is 2.5 % APYat Bank of Internet USA Bank, 2% APY at Discover and American Express, etc. Without noticing, it all dived under 2.6 %. One regular savings interest rate at another bank is like 0.25% APY----it's getting close to 'zero'. That's scary!
I have been banking with WaMu, and the previous bank, "Home Savings & Loan" for checking accounts, credit cards, IRA (Individual Retirement Account), and Home loan for more than 20 years. When Home Savings was purchased by WaMu in 1998, there was no change in services. So, I was off-guarded when WaMu was purchased by JPMorgan Chase.
The "New Credit Card Regulation" that President Obama listed as one of his proposals passed at the congress last May and signed by President on 5/22/09. The interest limit on the past purchase balances will be 14%. (Currently without regulation, the highest interest is 32%.) Also the period of Notice to change rates and fees will be postponed to 45 days from the current 15 days.
It seems this New Credit Card Regulation will be effective from next February. Many Economic analysts predict that banks suffering from Economic meltdown will lower Reward Rates, make Reward program worse, increase fees and penalties, make application approval stricter, etc. It might lower savings interests and purchase powers.
The credit card holders with good standing who paid off monthly balances every month will loose some. If we want to revive American Economy, we should review and improve the details of the "New Credit Card Regulation". Jamie Dimon, JPMorgan Chase's chief executive, hit out on 7/16/09, at strict new rules on US credit cards, saying they will cost the bank's lossmaking card unit up to $700m next year. He singled out the credit card provisions, which from February will constrain lenders' ability to raise rates for risky borrowers, etc.
Another Economic News is that the Federal Minimum Wage will be raised to $7.25 from 7/24/09. 14 states having higher minimum wages are not affected. The top is Washington DC at $8.55, 2nd is Oregon at $8.40, 3rd is Vermont at $8.06, and the 4th ties are California, Connecticut, Illinois, and Massachusetts at $8.
Dream On@LAへようこそ！ コメント、リンク大歓迎。. 留学からLA永住し28年以上経過。. ダンス、写真、映画、ヨガ、グルメ. 霊気、世界平和が趣味です。. Blog started 8/7/2007 Counter set 8/6/2008. Welcome to "Dream on@LA" blog! I welcome your comments. I live in LA, CA, USA. It's been over 28 years.