GMAC conversion to bank holding company results in lower interest at GMAC Bank online savings

I was afraid this was going to happen. Maybe it is just a coincidence, but here we are at the very next business day after the Federal Reserve approved the conversion of GMAC to a bank holding company and GMAC Bank lowers the interest rate for online savings from 3.75% APY to 3.25% APY, a decline of 0.50%. Sigh. In truth, it does not surprise me at all. I half expected it.

Oh, and Capital One Direct Banking cut their online savings rate again, from 3.25% APY to 3.00% APY.

First National Bank of Omaha (FNBO Direct) cut their rate from 3.25% APY to 2.80% APY.

Somehow, I am still managing to get 3.25% APY in my Sovereign Bank money market account.

GMAC Bank is still offering 4.00% for a 12-month CD.

Fidelity Money Market fund (SPRXX) has a 7-day yield of 2.04%.

Microsoft stock has a dividend yield of 2.71%.

-- Jack Krupansky