Whether you’re a dutiful saver or someone who has newly resolved to sock more cash in your emergency fund, good luck getting a decent yield from your bank. Interest rates on savings accounts and CDs are pretty dismal. (When 1.69%  — the rate currently offered by Colorado Federal Savings Bank — is the best you can get on a savings account, you know things are bad.)

Now it looks like those rates are going to take another dip, thanks to a new Federal Deposit Insurance Corporation rule that went into effect on January 1. Last May, the FDIC ruled that banks that are “less than well capitalized” would not be allowed to offer interest rates more than 75 basis points (that’s 0.75 percentage points) over a national average rate published by the agency. It’s not uncommon for a struggling bank to ratchet up interest rates on its deposit accounts as a way to attract capital. But if the bank fails, it’s the FDIC that is responsible for covering those insured deposits. With 140 banks on the failure list in 2009, it’s clear the FDIC doesn’t want to be on the hook for more than it has to be. (Another FDIC proposal on the table this week: Tie banks’ insurance premiums to their level of risky pay behavior.) …read more