BofI Federal Bank has recently launched a new internet bank. It’s called Bank X at bankx.com (Thanks to the reader who emailed me news of this). BofI Federal has a history of creating online banking brands that are targeted to specific consumer segments. One example of this is UFB Direct which focused on airline miles rewards. This attracted a lot of attention due to the high rate of its savings and money market account. Last April it attracted attention for the opposite reason: very low rates. Both the savings and money market rate fell to...Continue Reading
A CD with a top rate is being offered through the custodial CD program of Jumbo CD Investments, Inc. It's a 10-year CD with a 2.38% interest rate. Minimum deposit is $100,000, and it has a 6-month early withdrawal penalty. It’s nationally available, and compared to other nationally available CDs, it’s a clear rate leader. As of 6/18/2013, the highest CD rate that doesn’t require an active checking account is 2.00% APY for a 10-year CD at Apple Federal Credit Union. The highest at an internet bank is 1.90% APY for a 10-year CD at Discover Bank. Both Apple and...Continue Reading
Northern Bank & Trust Company is offering an 18-month CD and IRA CD with a 1.15% APY. Minimum deposit is $500, and the maximum is $500,000. This can be opened online and is available for personal and business accounts. This special CD is listed in this bank’s promotion page as of 6/17/2013.
The CDs can also be opened...Continue Reading
Montauk Credit Union has long offered top CD rates. However, it stopped accepting new deposits in 2011. That has recently changed. After a reader mentioned this in the comments, I called on Friday and confirmed that they are again accepting new deposits. The current long-term CD rates are very competitive. However, it’s important to point out that the early withdrawal penalty (EWP) is very harsh. Below are the CD and IRA CD rates as listed at the credit union’s rates page as of 6/17/2013:
- 2.75% 7-year CD and IRA CD
- 2.50% 5-year CD and IRA CD
- 2.25% 4-year CD...
Community & Southern Bank has been advertising a promotion for its Investment Money Market Account that’s a good deal. It’s guaranteeing 1.00% APY for the first 180 days the account is opened. Minimum opening and daily balance of $2,500 is required to avoid a monthly service charge of $15. Also, a checking account with monthly direct deposit is required. This special is listed in the bank’s great rates page as of 6/17/2013. Hat tip to the reader who emailed me news of this promotion.
A branch visit appears to be required to open an account. Community...Continue Reading
If you're looking for ways to save money, and who isn't, there's new research that suggests that if you're trying to save more and spend less, consolidate all those bank accounts you have into just one. That's the thinking of Promothesh Chatterjee, an assistant professor from the University of Kansas and a team of researchers from the University of Utah.
“For years, the conventional wisdom has been that spreading your money across various accounts encourages you to save,” Chatterjee said in a prepared statement.
Many people have a combination of checking and savings accounts. “But our research finds this is the wrong...Continue Reading
The fourth FOMC meeting of the year is scheduled for next Tuesday and Wednesday. At the end of the meeting, the Fed will be releasing its summary of economic projections and Chairman Bernanke will hold a press conference. Many will be looking for hints of when the Fed will pull back on its bond buying program (i.e. QE). The Chairman worried the markets in the May congressional testimony when he said the Fed could reduce its monthly bond purchases at one of the next few meetings if the economy is shown to be making steady improvements. That’s one reason for...Continue Reading
This was a quiet week for CD rate changes. The few rate cuts were small. For example, Ally Bank had another rate cut on its 5-year CD, but it was only 1 basis point with the yield falling from 1.51% to 1.50%.
Stanford Federal Credit Union increased its CD rates. Its premium Jumbo 5-year CD yield increased from 2.02% to 2.07%. This and Connexus Credit Union’s 2.00% APY 5-year CD remain the only nationally available CDs with a yield of at least 2.00%. Both require an active checking account.
I added EverBank’s 4-year and 5-year CDs to the list. Its 5-year CD...Continue Reading
Why do banks offer absurdly low CD rates? DA member FAR asked this question in the DA discussion forum on Wednesday. That’s a good question, and it also brings up an important issue that can cost savers money if they’re not careful.
First, what is considered absurdly low? I’m sure some people may consider all CD rates in today’s environment as absurdly low. However, CD rates should be evaluated based on the current interest rate environment. One quick way I judge a CD rate is to compare it to the savings account rate at Capital One 360 (formerly ING...Continue Reading
It used to be easy to find reward checking accounts with top yields of at least 3% for balances up to $25,000. These are now rare. In the entire nation, we only have 16 reward checking accounts with top yields of at least 3% for balances up to $25,000. None of these are easily available nationwide.
Seven of these 16 reward checking accounts are from credit unions which have limited membership. The best deal continues to be at Southwest Airlines Federal Credit Union which offers 4% APY on balances up to $25,000. As you might expect, membership is primarily limited...Continue Reading
For criminals to use the ACH system to steal money from your bank accounts, they must have access to the banking system. Some criminals have been able to get that access by using third-party payment processors and banks that have turned a blind eye to suspicious activity. Last November I reported on First Bank of Delaware and the penalties it received from the FDIC and the Justice Department. According to the Justice Department:
First Bank of Delaware violated the Financial Institutions Reform, Recovery and Enforcement Act (“FIRREA”) by originating withdrawal transactions on behalf of fraudulent merchants and causing money to...Continue Reading
Evergreen Bank Group has recently launched reward checking and savings accounts under the Kasasa brand. As is common for new Kasasa accounts, the rates and balance caps are a little disappointing. Nevertheless, they give those who live in the Chicago metro area another reward checking option. The reward checking account is called Kasasa Cash, and the linked savings account is called Kasasa Saver. The account details are listed in the bank’s Kasasa Cash page and Kasasa Saver page. A summary of the rates and features as listed at these bank’s pages as of...Continue Reading