Bank Deal Summary for Mar 4, 2006

Mar 5, 2006 - 12:49 PM by Ken Tumin

Over the last couple of months, we saw the 5%+ 1-year CD become common. Now the 5%+ 6-month CDs are starting to appear. Last week, it was World Savings Bank with a 5.01% 5-month liquid CD. This week, Meadows Credit Union (membership open to all) came out with a 5.01% 6-month CD special. I just noticed today that ETrade Bank increased its 6-month CD from 4.75% to 4.90% APY. Two Oregon Credit Unions even had 6% 6-month and 5-month CD specials.

The CD rate news wasn't all good news. Self Help Credit Union had another major drop in its CD rates this week similar to what happened last December. The 1-year CD fell from 5.01% to 4.78%. The 6-month CD fell from 4.58% to 4.35% APY. The longer term CD rates fell around 0.15%. SHCU is a rather small credit union so it's possible that it could be influenced after a surge in deposits. That's my only guess about why we see these big drops. The Pentagon Federal Credit Union also had some CD rate decreases. The 6% 7-year CD fell to 5.88% APY. Also the 5.75% 5-year CD fell to 5.67%. Penfed seems to offer very high long-term CD rates early in the year and then move the rates back in line with the competition later in the year.

The higher rate trend is continuing with savings accounts. Both UFB Direct's and Capital One's no-minimum savings account rates were increased this week: UFB Direct from 4.30% to 4.50% APY and Capital One from 4.00% to 4.25% APY. UFB Direct's jumbo money market account increased from 4.65% to 4.73% APY.

Local CD deals continue to improve. The best were in Oregon where two credit unions are offering 6% 6-month and 5-month CDs. Other good CD deals are 5.50% 13-month CD in Chicago and 5.81% 30-month CD in Wisconsin.

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 25th, Feb 18th, Feb 11th, Feb 4th, Jan 28th and Jan 21st.

As of March 4, 2006

Savings/Money Market Accounts:

HSBC - 4.80%, offers checking, (rate history), my post
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 - 4.60% MMA (min $10K to open)
UFB Direct - 4.50% MMA, offers checking, my post
Presidential - 4.37% (min $5K, only first $35K receives this rate), 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
CapitalOne - 4.25% (MMA has same rate, but with checks and ATM. $100 min.)
MetLife Bank - 4.00% MMA (min $5K), my post ($50 bonus)
Self-Help Credit Union - 3.97% MMA (min $500), my post
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