Bank Deal Summary for Jan 28, 2006

Jan 28, 2006 - 5:58 PM by Ken Tumin

After four months, EmigrantDirect finally raised the rate of its savings account. Unfortunately, it wasn't the 0.5% increase like in September, but only a 0.25% increase. The new rate is 4.25% APY. HSBC Direct's Online Savings account has been at 4.25% since December 15th.

I've updated my rate chart comparing ING Direct, HSBC and EmigrantDirect. It also includes the changes in the Federal funds rate. Based on history, I wouldn't be surprised if HSBC increases its rate to 4.50% after Tuesday's Fed meeting. It's widely expected that the Fed will up the funds rate to 4.50%. As my chart shows, HSBC has matched the funds rate for the last two Fed meetings. In fact, the only time it didn't raise the savings rate right after the Fed meeting was in September when it raised its savings account rate to 3.75% about 20 days before the Fed raised the funds rate to 3.75%.

MetLife Bank increased the rate of its money market account from 3.75% to 4.00% APY. However, the $50 sign-up bonus seems to have gone away.

Both Corus Bank and CapitalOne/Costco had slight increases in their money market accounts. Corus increased from 4.35% to 4.38% APY and CapOne/Costco went from 4.27% to 4.30% APY.

Virtual Bank took over the lead 6-month CD rate after World Savings' 4.86% expired today. Virtual Bank's 6-month CD has an APY of 4.75%. Corus Bank increased its 1-year CD from 4.89% to 4.94% APY to pull ahead of Virtual Bank. However, Patelco Credit Union continues to offer its 5% APY CD.

Yesterday, a reader informed me of a credit union called Unified Federal Credit Union that is open to all and has a 14-month CD special with an APY of 5.10%. To be eligible to join just requires membership to a non-profit group. The credit union even offers to pay for the first year's annual dues of $15 (which is all that is required for permanent CU membership).

Finally, not all CD rates increased this week. ING Direct reduced the rates on most all of its CDs. The rates of both the 6-month and 12-month CDs went down by 0.05%. Perhaps, ING is trying to pay for its 4.75% Save Up Sale.

The rates listed below are based on Annual Percent Yield (APY). No minimum balances are required unless noted. MMA next to the rates indicate a money market account. Most MMAs have check writing and ATM cards. Online savings accounts usually lack both of these. Previous weekly summaries are available for Jan 21st, Jan 14th, Jan 8th, Dec 31st, Dec 17th and Dec 10th.

As of January 28, 2006

Savings/Money Market Accounts:

UmbrellaBank.com - 4.40% MMA (min $1K), offers checking, my post
Corus Bank - 4.38% MMA (min $10K to open)
GMAC Bank - 4.30% MMA (min $500), offers checking, my post
CapitalOne/Costco - 4.30% MMA (min $5K, Costco members only, $50 deal for exec. members)
HSBC - 4.25%, offers checking, (rate history), my post ($25 bonus)
EmigrantDirect - 4.25%, my post, ($10 signup bonus), (rate history)
Western Financial Bank - 4.25% MMA, offers checking, my post
FirstFedDirect - 4.25% (closed to CA residents), my post
Presidential - 4.12% (min $5K, only first $35K receives this rate), offers checking, my post
MyBankingDirect - 4.10% MMA (min $5K), my post
CapitalOne - 4.00% (MMA has same rate, but with checks and ATM. $100 min.)
UFB Direct - 4.00% MMA, offers checking, my post
MetLife Bank - 4.00% MMA (min $5K), my post
Self-Help Credit Union - 3.96% MMA (min $500), my post
ING Direct - 3.80%, my post (4.75% promo and $25 bonus), (rate history)
VirtualBank - 3.55% (min $100), offers checking, my post ($20 bonus)
NetBank - 3.52% MMA ($500 min), requires checking, my post ($175 deal)
ebank - 3.30% MMA ($1K min, rate for $10K-25K balance), offers checking