Banking Deal Summary for Sept 4th

The big news for this week was HSBC increasing the interest rate on the online savings account from 3.50% to 3.75% APY. HSBC now has the highest interest savings account rate without a minimum requirement. You never know how long it'll be on top. HSBC doesn't have a long history with this savings account. For most of this year, it has been close to ING's rates. In the last two months, it started to jump ahead of ING and be close to EmigrantDirect. For more info on comparing ING Direct vs. EmigrantDirect vs. HSBC Bank, refer to this graph and this post.

The other rate news isn't good for savers. CD rates have started to go down a bit. ING kept the 1 year CD rate the same but lowered the longer term CD rates. GMAC Bank reduced both its 6 month and 1 year CD. Its 6 month CD was only reduced from 4.00% to 3.95% APY. However, its 12 month CD had a significant reduction from 4.35% to 4.07%. This is another indication that the yield-curve continues to flatten. Rates on long term certificates of deposits are not much higher than shorter term CDs. This can also be seen with Umbrella Bank. Its one year CD went from 4.38% to 4.25% APY, but its 6 month CD actually went up a bit (4.00% to 4.05% APY).

The rates listed below are in APY. No minimum balances are required unless noted. Previous weekly summaries are available for Aug 28th, Aug 20th, and Aug 13th.

As of September 4, 2005

Savings Accounts:

• Presidential - 3.87% (min $5K, only first $35K receives this rate), offers checking, my post
• HSBC - 3.75%, offers checking, my post ($50 deal)
• MyBankingDirect - 3.75% (min $5K), my post ($25 deal)
• UFB Direct - 3.70%, offers checking, my post
• UmbrellaBank.com - 3.65% (min $1K), offers checking, my post
• Corus Bank - 3.56% (min $10K to open)
• EmigrantDirect - 3.50%, my post
• GMAC Bank - 3.45% (min $500), offers checking
• ING Direct - 3.30%, my post ($25 deal)

6-Month CDs:

• Corus Bank - 4.09% (min of $10K)
• UmbrellaBank.com - 4.05% (min of $1K)
• GMAC Bank - 3.95% (min $500)

12-Month CDs:

• Corus Bank - 4.52% (min of $10K)
• UmbrellaBank.com - 4.25% (min $1K)
• ING Direct - 4.15%
• GMAC Bank - 4.07% (min $500)

16-Month CDs:

• Digital Credit Union - 5.00% (min $5K)

Credit Card Deal:

• Charles Schwab VISA Credit card - $100 VISA gift card when signing up. No annual fee.

Technorati Tags: banks, banking, money