Banking Deal Summary for Oct 29th

There wasn't much rate activity with banks this week. Corus Bank did its usual rate tweak on its money market acount. It's now 3.92%, up from 3.86% last week. CapitalOne/Costco also had a small increase in its money market rate. It's now 3.88%, up from 3.80% last week.

I've added a link to the non-Costco CapitalOne Money Market account and High Yield Savings account. These accounts are now paying 3.75% so there's not much benefit for the Costco version. Both the CapitalOne Money Market and High Yields Savings offer 3.75% APY. The Money Market has check-writing privileges and ATM cards where as the Savings doesn't have either. The disadvantage of the Money Market account is that it has a $100 minimum requirement and doesn't link to your checking account. You can only fund it with a check or wire transfer. On the other hand, the High Yield Savings is very similar to ING Direct's Orange Savings Account. There's no minimum balance requirement and it links to an external checking account.

The CapitalOne/Costco accounts do have two advantages over CapitalOne's regular accounts. First, Costco executive members are eligible for a $25 signup bonus. This is available for opening either the Money Market account or a CD with at least $5K. The second advantage is that CapitalOne/Costco CDs do have much higher interest rates than the corresponding non-Costco CDs. For example, the 18-month CapitalOne/Costco 18-month CD has a rate of 4.65% APY. The same term non-Costco CD has a rate of only 3.90% APY. Both have a minimum deposit requirement of $5K.

The only change in the CD rates for this week was at GMAC Bank. Its 6-month CD increased from 4.13% to 4.25%.

In previous posts this week, I've listed several short term CDs and money market accounts that have rates 4.25% and higher. Many credit unions have special CDs with short term rates of 5% or better. My October 26th post lists 8 of these offers. Since these are one-time, local offers I'm not adding them to my main weekly summary list.

In addition to credit unions, I've found several banks with some short term CDs and money market accounts with rates of 4.25% or better. Like the credit unions, many of these are one-time specials. However, some of these are available nationally. Check out my list of these banks in my October 28th post. M&T Bank also has some good short term CD rates along with a very nice bonus on its checking account. It's a regional bank so I'm leaving it off my summary list. Information on M&T Bank, its bonus, and its rates are available in my October 24th post.

Finally, the opportunity to lock into a guaranteed 5% 14-month rate on a US Series I-Bond is quickly running out. New rates take effect next Tuesday, November 1st. You can't guarantee a 14-month rate then. It might already be too late to purchase an I-Bond for October at TreasuryDirect, but you might be able to buy paper I Bonds for October at your local bank. More information about this is available in my October 25th post.

The rates listed below are in APY. No minimum balances are required unless noted. Previous weekly summaries are available for Oct 22nd, Oct 15th, Oct 8th, Oct 1st, Sept 24th and Sept 17th.

As of October 29, 2005

Savings/Money Market Accounts:

• Presidential - 4.12% (min $5K, only first $35K receives this rate), offers checking, my post
• EmigrantDirect - 4.00%, my post, ($10 signup bonus)
• UmbrellaBank.com - 4.00% (min $1K), offers checking, my post
• MyBankingDirect - 4.00% (min $5K), my post
• Corus Bank - 3.92% (min $10K to open)
• CapitalOne/Costco - 3.88% (min $5K, Costco members only, $25 deal for exec. members)
• UFB Direct - 3.80%, offers checking, my post
• HSBC - 3.75%, offers checking, my post ($35 deal)
• CapitalOne - 3.75% (MMA has same rate, but with checks and ATM. $100 min.)
• GMAC Bank - 3.75% (min $500), offers checking
• VirtualBank - 3.55% (min $100), offers checking, my post
• MetLife Bank - 3.50% (min $5K), my post ($50 deal)
• ING Direct - 3.40%, my post ($25 deal)
• ebank - 3.30% ($1K min, rate for $10K-25K balance), offers checking, my post ($50 deal)
• NetBank - 3.20% ($500 min), requires checking, my post ($175 deal)

6-Month Certificates of Deposit:

• Corus Bank - 4.30% (min $10K)
• GMAC Bank - 4.25% (min $500)
• UmbrellaBank.com - 4.25% (min $1K)
• VirtualBank - 4.25% (min $10K)
• NetBank - 4.10% (min $1K), my post ($25 CD deal)
• ebank - 4.00% (min $1K), 4.25% for ePremium checking customers, my post ($25 CD deal)
• ING Direct - 3.75%

12-Month Certificates of Deposit:

• GMAC Bank - 4.60% (min $500)
• VirtualBank - 4.60% (min $10K)
• Corus Bank - 4.60% (min $10K)
• UmbrellaBank.com - 4.50% (min $1K)
• NetBank - 4.45% (min $1K), my post ($25 CD deal)
• MetLife Bank - 4.41% ($1K min)
• ebank - 4.25% (min $1K), 4.50% for ePremium checking customers, my post ($25 CD deal)
• ING Direct - 4.20%

18-Month Certificates of Deposit:

• CapitalOne/Costco - 4.65% (min $5K, Costco members only)

Short Term Special CDs

• Very Short Term Bank/CU Specials (Oct 28th)
• Credit Union Short Term CD Specials (Oct 26th)

Longer Term CDs

• Highest Rates on Bank CDs (Oct 11th)
• Highest Rates on Credit Union CDs (Oct 13th)

CD Alternatives

• I Bonds as CD Alternatives

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