The Fed’s decisions on monetary policy should be driven by economic data, primarily the unemployment rate and the inflation rate. Today, inflation data was released by the government, and it showed that CPI increased 0.3% in June, which was inline with the consensus forecast. The core CPI, which excludes food and energy, increased by 0.1% which was under the consensus forecast of 0.2%. Over the past 12 months, CPI is up 2.1%, and the core CPI is up 1.9%. These are close to the Fed’s 2% target, and thus, this...Continue Reading
Last week was another week with more rate cuts than rate hikes in my survey of top CD rates. Two internet banks cut their rates on 1-year and 18-month CDs. Both were close to the rate leaders. EverBank reduced its 1-year CD rate by 9 basis points to 1.01% APY and its 18-month CD rate by 12 basis points to 1.05% APY. VirtualBank reduced its 1-year CD rate by 6 basis points to 1.01% APY and its 18-month CD rate by 9 basis points to 1.08% APY.
EverBank’s 5-year CD rate...Continue Reading
After four years, Shell Federal Credit Union (Houston, Texas metro area) continues to offer their high-yield reward BE GREEN Checking account. Even though the BE GREEN Checking has two downsides for a reward checking account (an above average debit card usage requirement and a below average balance cap), the upside is having a reward checking account available in a large metropolitan area.
BE GREEN monthly requirements include:
In January 2013, Silvergate Bank begin offering online CDs (1-year and 2-year) on its website. These two High Yield Online CDs debuted with competitive rates, albeit not spectacular rates. The rates on both CDs dropped soon after the initial offering, but have continued to climb back to the original rates. Silvergate Bank has recently raised the rate on the 1-Year CD, pushing it beyond its original rate.
The rates, as of today, are:
Moving is often a chance to make a fresh start. Is it also an opportunity to dump your bank?
According to new research from TD Bank, moving impacts banking behavior. Twenty nine percent of those surveyed said they opened a checking account at a new bank when they moved. This was especially true for the 55-plus crowd, 32% of whom switched banks. In contrast, among Millennials, (those 18-34), only 24% did so.
That Millennials were not quick to leave was not news to some. "They see traditional banking as irrelevant. Branch...Continue Reading
A small Georgia bank was closed by state regulators last Friday. Eastside Commercial Bank was the 13th bank in the nation to fail this year, and the first one to fail in Georgia. At this time last year there had been 16 bank failures, and for all of 2013 there had been 24 bank failures.
Friday’s bank closure was typical in that the FDIC was able to find a buyer. Consequently, no one lost any money. According to the FDIC FAQs:
CD customers of the failed bank will have to wait...Continue Reading
Cooper State Bank (a private, locally owned and managed community bank in the Columbus, Ohio area) has raised the rates on two of its CDs: the 36-Month Step Up Special and the 12-35 Month CD. The 36-Month Step Up Special CD's new rate is 1.60% APY and can be opened with $500; it also allows one "step-up" during the term of the CD. The 12-35 Month CD's new rate is 1.10% APY and also has a low minimum of $500 to open.Continue Reading
Adirondack Bank's (central New York state) eCo Checking account offers a great combination of benefits by allowing you to manage your checking account electronically as you earn up to 3.04%. Adirondack Bank eCo Checking has two recurring transactional requirements:
If you fulfill only one of these requirements, your account still earns 1.51% on the account balance up to $25K, with balances over $25K earning 0.05%. In addition, online banking...Continue Reading
BBVA Compass now has special CD rates that are competitive for both the mid-term and long-term maturities. In March I reviewed the bank’s special 29-month and 60-month CDs. The bank also has a special 18-month CD with a competitive 1.15% APY. Minimum deposit is $500, and the maximum deposit is $2,500,000 ($250,000 maximum deposit for CD accounts opened online). This rate is listed in the bank’s CD promotion page as of 7/17/2014.
BBVA Compass customers who have preferred client relationship may be able to get an extra 10 basis points...Continue Reading
First Choice Bank in Southern California has a good deposit deal for large balances. The bank is offering 1.25% APY that’s guaranteed until June 30, 2015. However, this requires a minimum balance of $250,000. Competitive rates are also available for smaller balances. This special rate is listed for the bank’s Premier Personal Interest Checking and Premier Personal Savings accounts. The business versions of these also have a 1.25% APY. Thanks to the DA member who emailed news of this. He said he saw this promotion advertised in Sunday's OC...Continue Reading
Fed Chairwoman Janet Yellen started her two-day testimony before Congress on the economy and monetary policy. In her prepared testimony, she suggested low rates will continue for awhile:
The only hope for savers is if the economy improves faster than expected. If that happens, we may see the Fed move to hike rates sooner. According to the Wall Street Journal, Fed Chairwoman Yellen did say today that "rates would rise sooner and more rapidly of the labor market continues to improve faster than expected." However, Yellen and most on the Fed...Continue Reading
CD rate cuts became more prevalent last week. In my survey of top CD rates, there were noteworthy cuts at GE Capital Bank, Northern Bank & Trust Company, Doral Bank NY and First Republic Bank.
There were just a couple of bright spots. One of those is the 15-month CD special at Synchrony Bank. The rate went up by 5 basis points to 1.20% APY.
The second bright spot was at Wright-Patt Credit Union in Ohio. Its Jumbo 6-year CD rate went up 10 basis points to 2.39% APY.
CDs from two credit...Continue Reading