Rate Cuts Continue

Banks continue to cut rates on your savings. However, they're not moving as fast as you might expect.

Ken at the BankDeals site has noted that banks are moving gradually to move savings and CD rates. Instead of one big bite, they're nibbling away at rates. Why? Probably to discourage customers from jumping ship.

These banks may be doing you a favor. Every time you switch banks, you create headaches for yourself and your money sits in cash (not in an interest bearing account) for a few days. Keep in mind that all banks operate in the same interest rate environment. Bank A may have higher interest rates than Bank B, but they can't offer substantially more for very long.

As always, your goal should be to get a competitive rate on your savings. Constantly chasing the best rate is most likely not the best use of your time.