Bank Deal Summary for April 29, 2006
Apr 29, 2006 - 5:16 PM by Ken Tumin
The big news for this week was the announcment by HSBC that the post-promo rate for their online savings account is going from 4.80% to 4.50% APY. I had hoped that HSBC would at least keep it at 4.80% since interest rates have continued to rise. 4.80% is a high rate, but now it's not unreasonably high.
There are several alternatives where you can get better than 4.50%. If you don't want a minimum balance requirement, VirtualBank is a good choice with a 4.60% APY savings account and a $20 referral bonus (see post).
For a relatively modest minimum of $500, GMAC Bank's money market account is a good choice at 4.75%. I just did a transfer from HSBC to GMAC this week. I initiated the ACH transfer at GMAC on Thursday. It was posted at GMAC on Friday. As of today, it's still not debited at HSBC. As many have reported, GMAC ACH transfers are fast. I'll have more about my experience with opening a GMAC Bank money market savings account in a future post.
Another good choice is to take advantage of EverBank's FreeNet Checking Account promotion. For the first 3 months, the APY is 5.51%. After that, it goes back to the standard checking account rates (currently 3.01% APY for balances under $10K).
There are other safe alternatives besides bank accounts. For those with state income taxes, Treasury Bills are a good option. The current 6-month T-Bill has an APY of 4.98%. For someone in the highest tax bracket in California, this is equivalent to a bank CD at 5.47% APY (see tax-equivalent converter at CNN). This Fatwallet thread discusses many of the details of T-Bills with several links to the Treasury's website.
Although they're not government insured, money market funds can also be a safe alternative. Some advantages of money market funds include availability of tax-free funds and limited check writing similar to bank money market accounts. Vanguard's Prime MMF has a current yield of 4.53%.
If you don't mind locking in your money for 6 months or a year, you might want to considering moving your HSBC money into a CD. This is apparently what ING Direct must be hoping for. Today ING did a large rate hike to their 6-month, 9-month and 12-month CDs which now have APYs of 4.75%, 5.00% and 5.25% (see post).
World Savings currently has the best short term CD deal with their 5-month internet CD with an APY of 5.16%. It does require at least $10K (see post).
For those who don't mind locking your money into a long term CD, Pentagon Federal Credit Union now has the best 3-year CD deal in the nation. Their 3-year CD now has an APY of 6% which is up from last month's 5.50% (see post).
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 Apr 22nd, Apr 15th, Apr 8th, Apr 1st, Mar 25th and Mar 18th.
As of April 29, 2006
Savings/Money Market Accounts:
6-Month Certificates of Deposit:
12-Month Certificates of Deposit:
18-Month Certificates of Deposit:
36-Month Certificate of Deposit:
48-Month Certificate of Deposit:
60-Month Certificate of Deposit:
84-Month Certificate of Deposit:
High Rates with Conditions - Open to All
Checking and Saving Accounts at Local Credit Unions
CD Specials at Local Credit Unions/Banks Over the Last Two Months
Terms of 60 Months and Over
Terms of 24 Months to Under 60 Months
Terms of 12 Months to Under 24 Months
Terms of Under 12 Months
CD Alternatives
There are several alternatives where you can get better than 4.50%. If you don't want a minimum balance requirement, VirtualBank is a good choice with a 4.60% APY savings account and a $20 referral bonus (see post).
For a relatively modest minimum of $500, GMAC Bank's money market account is a good choice at 4.75%. I just did a transfer from HSBC to GMAC this week. I initiated the ACH transfer at GMAC on Thursday. It was posted at GMAC on Friday. As of today, it's still not debited at HSBC. As many have reported, GMAC ACH transfers are fast. I'll have more about my experience with opening a GMAC Bank money market savings account in a future post.
Another good choice is to take advantage of EverBank's FreeNet Checking Account promotion. For the first 3 months, the APY is 5.51%. After that, it goes back to the standard checking account rates (currently 3.01% APY for balances under $10K).
There are other safe alternatives besides bank accounts. For those with state income taxes, Treasury Bills are a good option. The current 6-month T-Bill has an APY of 4.98%. For someone in the highest tax bracket in California, this is equivalent to a bank CD at 5.47% APY (see tax-equivalent converter at CNN). This Fatwallet thread discusses many of the details of T-Bills with several links to the Treasury's website.
Although they're not government insured, money market funds can also be a safe alternative. Some advantages of money market funds include availability of tax-free funds and limited check writing similar to bank money market accounts. Vanguard's Prime MMF has a current yield of 4.53%.
If you don't mind locking in your money for 6 months or a year, you might want to considering moving your HSBC money into a CD. This is apparently what ING Direct must be hoping for. Today ING did a large rate hike to their 6-month, 9-month and 12-month CDs which now have APYs of 4.75%, 5.00% and 5.25% (see post).
World Savings currently has the best short term CD deal with their 5-month internet CD with an APY of 5.16%. It does require at least $10K (see post).
For those who don't mind locking your money into a long term CD, Pentagon Federal Credit Union now has the best 3-year CD deal in the nation. Their 3-year CD now has an APY of 6% which is up from last month's 5.50% (see post).
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 Apr 22nd, Apr 15th, Apr 8th, Apr 1st, Mar 25th and Mar 18th.
As of April 29, 2006
Savings/Money Market Accounts:
- GMAC Bank - 4.75% MMA (min $500), my post
- Presidential - 4.75% (min $5K, only first $35K receives this rate), offers checking, my post
- BankUnited - 4.75% (min $5K), my post
- Corus Bank - 4.74% MMA (min $10K to open)
- Heritage Bank Online - 4.72% (min $1K), my post
- American Partners Bank - 4.71% MMA (min $1K), my post
- UmbrellaBank.com - 4.70% MMA (min $1K), offers checking, my post
- Western Financial Bank - 4.60% MMA, offers checking, my post
- VirtualBank - 4.60% (min $100), offers checking, my post ($20 bonus)
- MyBankingDirect - 4.55% MMA (min $5K), my post
- CapitalOne/Costco - 4.51% MMA (min $5K, Costco members only, $50 deal for exec. members)
- HSBC - 4.50%, offers checking, (rate history)
- EmigrantDirect - 4.50%, my post, ($10 signup bonus), (rate history)
- Citibank - 4.50%, requires checking account, my post
- Transportation Alliance Bank - 4.50% MMA (min $25), my post
- UFB Direct - 4.40%, 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.)
- Self-Help Credit Union - 4.16% MMA (min $500), my post
- ING Direct - 4.00%, my post ($25 bonus), (rate history)
- MetLife Bank - 4.00% MMA (min $5K), my post ($50 bonus)
- 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
- ETrade Bank - 2.80% (min $1K to avoid fees/$5K for APY), my post (4.75%/$50 bonus)
6-Month Certificates of Deposit:
- World Savings - 5.16% (5 months) (min $10K), new funds only, my post
- AmTrustDirect - 5.15% (min $1K) my post
- Corus Bank - 5.15% (min $10K)
- Meadows Credit Union - 5.12% ($1K min), new funds only, my post
- GMAC Bank - 5.10% (min $500)
- ETrade Bank - 5.10% (min $1K), my post
- UFB Direct - 5.10% (min $8K)
- UmbrellaBank.com - 5.05% (min $1K)
- FirstFedDirect - 5.02% (min $10K), my post
- VirtualBank - 5.00% (min $10K), my post ($20 bonus)
- ING Direct - 4.75%, my post
- NetBank - 4.75% (min $1K)
- Transportation Alliance Bank - 4.65% ($1K min)
- Self-Help Credit Union - 4.57% (min $500), my post
- Western Financial Bank - 4.50% ($100 min)
- ebank - 4.50% (min $1K), 4.75% for ePremium checking customers
- MetLife Bank - 4.50% ($1K min)
12-Month Certificates of Deposit:
- GTE FCU - 5.38% (min $500) my post
- Mutual Bank - 5.35% (min $2.5K) my post
- Melrose CU - 5.35% (min $5K) my post
- GMAC Bank - 5.30% (min $500)
- AmTrustDirect - 5.30% (min $1K) my post
- Corus Bank - 5.30% (min $10K)
- ING Direct - 5.25%, my post
- Western Financial Bank - 5.25% ($100 min) (13-month)
- UmbrellaBank.com - 5.25% (min $1K)
- BankUnited - 5.25% (min $5K), my post
- FirstFedDirect - 5.21%, (min $10K) my post
- UFB Direct - 5.20% (min $8K)
- VirtualBank - 5.20% (min $10K), my post ($20 bonus)
- Transportation Alliance Bank - 5.15% ($1K min)
- ETrade Bank - 5.15% (min $1K), my post
- NetBank - 5.15% (min $1K), my post ($25 bonus)
- American Partners Bank - 5.07% (min $1K), my post
- MetLife Bank - 5.05% ($1K min)
- Self-Help Credit Union - 4.95% (min $500), my post
- ebank - 4.75% (min $1K), 5.00% for ePremium checking customers
18-Month Certificates of Deposit:
- Mutual Bank - 5.40% (min $5K) my post
- GMAC Bank - 5.30% (min $500)
- CapitalOne/Costco - 5.22% (min $5K, Costco members only)
- American Partners Bank - 5.18% (min $1K), my post
36-Month Certificate of Deposit:
- Pentagon Federal CU - 6.00% (min $1K), my post
- Melrose CU - 5.56% (min $5K) my post
- Transportation Alliance Bank - 5.34% ($1K min)
- GMAC Bank - 5.30% (min $500)
- Self-Help Credit Union - 5.21% (min $500), my post
48-Month Certificate of Deposit:
- USA FCU - 6.01% (min $1K) my post
- Pentagon Federal CU - 6.00% (min $1K), my post
- Melrose CU - 5.67% (min $5K) my post
- Transportation Alliance Bank - 5.36% ($1K min)
- GMAC Bank - 5.30% (min $500)
- Self-Help Credit Union - 5.25% (min $500), my post
60-Month Certificate of Deposit:
- Pentagon Federal CU - 6.00% (min $1K), my post
- Melrose CU - 5.77% (min $5K) my post
- Transportation Alliance Bank - 5.39% ($1K min)
- GMAC Bank - 5.30% (min $500)
- Self-Help Credit Union - 5.30% (min $500), my post
84-Month Certificate of Deposit:
- Pentagon Federal CU - 5.95% (min $1K), my post
High Rates with Conditions - Open to All
- 10% Savings Account for kids ($500 max)
- 5.51% 3-month intro rate on checking account
- 5.38% 9-month CD (must sign a Christian statement of faith)
- 5.00% Money Market with $100K min
- 5.00% Money Market with $100K min
Checking and Saving Accounts at Local Credit Unions
- 5.00% no-minimum savings account (New York)
- 5.00% Money Market Account (New York)
- 4.50% checking account promo (Oklahoma)
CD Specials at Local Credit Unions/Banks Over the Last Two Months
Terms of 60 Months and Over
- 6.25% 60-Month CD at a Carolina CU (Variable)
- 6.14% 60-Month CD at a Virginia CU
- 6.00% 60-Month CD at a California CU
- 6.00% 61-Month CD at a Michigan CU (Open to All)
- 5.76% 60-Month CD at a South Carolina CU
- 5.64% 60-Month CD at a New York CU
- 5.64% 60-Month CD at a South Carolina/Georgia CU
- 5.61% 60-Month CD at a Minnesota Bank
- 5.50% 60-Month CD at a Illinois Bank (gradual withdrawal CD)
Terms of 24 Months to Under 60 Months
- 6.01% 48-Month CD at a California CU (Open to All)
- 6.00% 59-Month CD at a Missouri CU
- 6.00% 24-Month CD at a California CU (Variable)
- 5.81% 30-Month CD at a Wisconsin CU
- 5.75% 41-Month CD at a Missouri CU
- 5.75% 27-Month CD at a Florida CU
- 5.66% 48-Month CD at a South Carolina CU
- 5.64% 36-Month CD at a Michigan CU
- 5.61% 24-Month CD at a Chicago Bank (Open to All)
- 5.56% 24-Month CD at a Nashville CU
- 5.55% 24-Month CD at a Ohio CU
- 5.50% 30-Month CD at a Philadelphia Bank
- 5.50% 24-Month CD at a New York Bank
- 5.50% 35-Month CD at a Oklahoma Bank
- 5.50% 49-Month CD at a Georgia Bank
- 5.45% 36-Month CD at a Los Angeles CU
- 5.39% 24-Month CD at a California/Texas CU
- 5.35% 48-Month CD at a Texas CU
- 5.25% 24-Month CD at a Philadelphia Bank
Terms of 12 Months to Under 24 Months
- 10.00% 12-Month CD at a Multi-State CU ($2.5K max)
- 10.00% 12-Month CD at a Dallas Bank ($5K max)
- 8.00% 12-Month CD at a NJ/NY/PA CU ($2K max)
- 5.90% 18-Month CD at a Houston CU ($90K min)
- 5.54% 12-Month CD at a Ohio CU ($100K min)
- 5.50% 13-Month CD at a Massachusetts Bank
- 5.50% 13-Month CD at a Chicago Bank
- 5.50% 15-Month CD at a Florida CU
- 5.50% 12-Month CD at a Virginia CU
- 5.50% 20-Month CD at a Illinois CU (Open To All)
- 5.50% 12-Month CD at a New York/California Bank
- 5.48% 18-Month CD at a Florida Bank
- 5.40% 12-Month CD at a New York Bank
- 5.40% 12-Month CD at a Nebraska CU
- 5.38% 15-Month CD at a Maine CU
- 5.38% 12-Month CD at a CU Open to All
- 5.35% 12-Month CD at a New York CU (Open To All?)
- 5.35% 13-Month CD at a Ohio CU
- 5.35% 15-Month CD at a Florida Bank
- 5.30% 13-Month CD at a Georgia Credit Union
- 5.30% 20-Month CD at a Illinois Bank
- 5.30% 12-Month CD at a New York Bank
- 5.30% 13-Month CD at a Virginia Bank
- 5.30% 13-Month CD at a Georgia Bank
- 5.30% 13-Month CD at a Pennsylvania Bank
- 5.30% 19-Month CD at a Florida CU
- 5.30% 15-Month CD at a Florida Bank
- 5.27% 15-Month CD at a Kentucky Bank
- 5.26% 15-Month CD at a Florida Bank ($50K min)
- 5.25% 13-Month CD at a Illinois Bank
- 5.25% 16-Month CD at a Florida Bank
- 5.25% 13-Month CD at a California CU
- 5.25% 12-Month CD at a Vermont Bank
- 5.25% 12-Month CD at a Texas Bank
- 5.25% 18-Month CD at a Florida Bank
- 5.25% 20-Month CD at a Pennsylvania Bank
- 5.25% 13-Month CD at a Florida CU
- 5.20% 12-Month CD at a Georgia CU
- 5.18% 12-Month CD at a Georgia Bank
- 5.17% 12-Month CD at a Texas CU
- 5.16% 13-Month CD at a Pennsylvania Bank
- 5.15% 15-Month CD at a Florida Bank
- 5.15% 12-Month CD at a Pennsylvania Bank
- 5.13% 12-Month CD at a Washington State Bank
- 5.12% 12-Month CD at a California Bank
- 5.12% 12-Month CD at a Texas Bank
- 5.10% 12-Month CD at a Washington State Bank
- 5.00% 12-Month CD at a New Jersey Bank
Terms of Under 12 Months
- 7.00% 7-Month CD at a Indiana CU ($14K max)
- 6.00% 6-Month CD at a South Carolina Bank
- 5.55% 11-Month CD at a Georgia Bank
- 5.50% 11-Month CD at a California CU
- 5.50% 9-Month CD at a Georgia Bank
- 5.50% 10-Month CD at a California CU
- 5.45% 9-Month CD at a California Bank
- 5.38% 9-Month CD at a CU Open To All
- 5.38% 11-Month CD at a Arizona CU
- 5.35% 10-Month CD at a Tennessee CU
- 5.25% 9-Month CD at a Illinois Bank
- 5.25% 11-Month CD at a Michigan CU
- 5.25% 10-Month CD at a Massachusetts Bank
- 5.25% 7-Month CD at a Florida CU
- 5.25% 11-Month CD at a Wisconsin CU
- 5.25% 7-Month CD at a Georgia Bank
- 5.20% 9-Month CD at a California Bank
- 5.20% 7-Month CD at a Kentucky CU
- 5.20% 9-Month CD at a Nebraska CU
- 5.15% 10-Month CD at LaSalle Bank
- 5.15% 11-Month CD at a Georgia CU
- 5.15% 11-Month CD at a Minnesota Bank
- 5.15% 10-Month CD at a Florida Bank
- 5.15% 11-Month CD at a Multi-State CU
- 5.15% 7-Month CD at a Georgia Bank
- 5.12% 7-Month CD at a Wisconsin CU
- 5.10% 9-Month CD at a Ohio Bank
- 5.10% 7-Month CD at a Kentucky CU
- 5.10% 10-Month CD at a Virginia Bank
- 5.05% 7-Month CD at a Tennessee Bank
- 5.05% 5-Month CD at a Tennessee Bank
- 5.00% 7-Month CD at a Illinois Bank
- 5.00% 7-Month CD at a Pennsylvania Bank
- 5.00% 6-Month CD at a California Bank
- 5.00% 7-Month CD at a Florida Bank
- 5.00% 6-Month CD at a Virginia Bank
- 5.00% 3-Month CD at a Ohio CU (pick any term)
- 5.00% 9-Month CD at a Massachusetts Bank
- 5.00% 6-Month CD at a Washington State CU
- 5.00% 9-Month CD at a CA/MD/TX CU
- 5.00% 5-Month CD at a Tennessee Bank
- 5.00% 9-Month CD at a Wisconsin Bank
- 4.85% 4-Month CD at a California Bank
CD Alternatives
Featured Accounts
Useful Resources
Nationwide Savings Accounts
Mario (anonymous) - #1, Saturday, April 29, 2006 - 5:49 PM
Ken -
In the FW T-bill thread, some users were suspicious about the CNN/Money tax equivalent calculator. If you check state tax only, it returns a different value than the one given at MyMoneyBlog, here:
http://www.mymoneyblog.com/archives/2006/01/equivalent_inte.html
The formula used at MyMoneyBlog makes sense to me - don't know what formula CNN/Money is using.
Mario (anonymous) - #2, Saturday, April 29, 2006 - 5:59 PM
Well, looks like I can answer the question myself. CNN/Money's calculator assumes you're deducting your state and local taxes from your federal taxes. MyMoneyBlog's calculator assumes they are not deducted, i.e. perhaps because you are taking the standard deduction. MyMoneyBlog says they have a more conservative estimate.
Banking Guy (anonymous) - #3, Saturday, April 29, 2006 - 6:17 PM
Thanks for checking on this. The CNN tool should have an extra button to let the user check if they intend to deduct the state taxes or if they plan to take the standard deduction.
Anonymous - #4, Saturday, April 29, 2006 - 11:30 PM
ING bumped their rate to 4.15%
I wonder who still keeps their money there
Banking Guy (anonymous) - #5, Monday, May 1, 2006 - 6:28 PM
A reader had another good money market fund option:
PayPal Money Market fund is currently paying 4.53%. Plus, it offers a debit MasterCard and 1% cashback. More info on the MasterCard is available here. Info on the MMF is available here.
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