Bank Deal Summary for Feb 25, 2006

Feb 25, 2006 - 6:28 PM by Ken Tumin

The list of banks with money market rates above 4.50% continues to grow. GMAC Bank raised its money market account today to 4.60% APY. The number of banks with 1-year 5%+ CDs also continues to grow. Bankrate.com now lists 8 banks in this category. The latest is Countrywide Bank with a 5% 12-month CD. In my list, the Self-Help Credit Union broke 5% on the 12-month CD. Its current APY is 5.01%. Hopefully, this will last longer than the last time it broke through 5% back in December. GMAC Bank and Corus Bank both raised their 1-year CD rates. Corus Bank is now at 5.09% and GMAC Bank is at 5.05% APY. VirtualBank continues to be on top with its 12-month 5.10% APY CD.

We are also seeing more promotional short-term CDs with rates over 5%. World Savings Bank quietly introduced its liquid internet 5.01% 5-month CD (see post).

There were many impressive local CD deals this week. The best is a 6% 6-month CD and an 7% 12-month IRA CD at First Reliance Bank in South Carolina (see post). Another good deal is at a Neveda bank which is offering a 5.50% 17-month CD (see post). A Tennessee Bank is offering 5.07% on a 5-month CD (see post), and a New Jersey bank is offering a 5% 5-Month CD (see post). As is typical, most of these local specials are only for a limited time. If you find one that has already expired, please leave a comment.

Thanks to all who have helped by leaving comments or sending emails on rate updates. Sorry I can't include all of the best rates in this summary.

The rates listed below are based on Annual Percentage 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 Feb 18th, Feb 11th, Feb 4th, Jan 28th, Jan 21st and Jan 14th.

As of February 25, 2006

Savings/Money Market Accounts:

HSBC - 4.80%, offers checking, (rate history), my post ($25 bonus)
VirtualBank - 4.60% (min $100), offers checking, my post ($20 bonus)
GMAC Bank - 4.60% MMA (min $500), offers checking, my post
UmbrellaBank.com - 4.60% MMA (min $1K), offers checking, my post
Corus Bank - 4.54% MMA (min $10K to open)
Presidential - 4.37% (min $5K, only first $35K receives this rate), offers checking, my post
UFB Direct - 4.30% MMA, offers checking, my post
CapitalOne/Costco - 4.30% MMA (min $5K, Costco members only, $50 deal for exec. members)
MyBankingDirect - 4.30% MMA (min $5K), my post
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
Self-Help Credit Union - 4.15% MMA (min $500), my post
CapitalOne - 4.00% (MMA has same rate, but with checks and ATM. $100 min.)
MetLife Bank - 4.00% MMA (min $5K), my post ($50 bonus)
ING Direct - 3.80%, my post (4.75% promo and $25 bonus), (rate history)
NetBank - 3.52% MMA ($500 min), requires checking, my post ($175 deal)
ebank - 3.50% MMA ($1K min, rate for $10K-25K balance), offers checking