New York Times discovers the high-yield savings accounts, and how they’re back on consumers’ list as opportunities for liquid investments, once the rates have gone above 4.50% and above. Interesting quote on the state of the industry and future directions:
Citibank had forecast that the market for online savings accounts would be $250 billion this year and $600 billion by 2010. And some banking analysts say that more banks will join in, if only for defensive reasons. Howard P. Milstein, chief executive of Emigrant, likes to note that his bank had $4.5 billion in deposits the day it introduced Emigrant Direct in January 2005. “In our first year of Internet banking, we raised approximately $6 billion,” he said.
