Bank Deal Summary for July 1, 2006
Jul 1, 2006 - 5:30 PM by Ken Tumin
This had to have been the busiest week this year with banks raising rates. Many banks chose to increase rates before the Fed hiked the funds rates on Thursday. This included Citibank which raised the rate on its e-Savings account from 4.75% to 5.00% APY on Monday. Amboy Direct was another one. It topped Citibank with a 5.05% APY on Tuesday. Then on Friday after the Fed rate hike, Presidential and HSBC Direct both did a 0.25% increase to their rates (Presidential now at 5.12% APY and HSBC at 5.05% APY). My list now includes eight 5-percent-plus online savings accounts.
There were some disappointments this week. We don't expect much from ING Direct these days, but ING's 0.10% increase on its savings account rate (4.35% APY from 4.25%) was especially weak considering so many other banks breaking 5%. EmigrantDirect showed again that it doesn't intend to be the rate leader with its savings account remaining at 4.80% APY. VirtualBank's money market savings remained at 4.60% APY for balances under $50K. However, over $50K the APY is now 4.86%, and balances over $100K earn 5.13% APY. This is the first time I've noticed VirtualBank having this kind of rate tiers. Last year, the rate at VirtualBank actually decreased on large balances.
Although VirtualBank's savings account rate remained the same for small balances, it did have one nice rate hike. That was on its 6-month CD. The rate increased from 5.30% to 5.55% APY. Another nice surprise was at Citibank. Not only did it raise the rate on its e-Savings account, but it started offering a 5.50% APY 6-month CD. In addition, for those in Texas, Citibank is offering a 6.00% APY 6-month CD.
It may not take too long before we start to see 6% CDs become more common. Many banks are getting close. Countrywide is now offering a 5.70% APY 9-month CD. AmTrustDirect and Western Financial Bank started offering 5.65% APY 12-month CDs this week. World Savings is currently offering a 5.76% APY special 3-month CD that can be renewed at the same rate for another 3 months.
Even though the CD rates have risen considerably, there continues to be little if any premium for longer term CDs. In fact, many short term CDs have higher yields than the long term CD yields. This can be seen with Countrywide, VirtualBank and World Savings. The only reason these long term CD rates would make sense is if interest rates would start to fall. The Fed did give some hints that the rate hikes may be coming to an end. However, many expect a couple more rate hikes. One economist interviewed by USA Today predicts the funds rate will go to 5.75%. So it seems these savings rate increases will likely continue for several months.
The Chartway Credit Union's 8% 8-month CD deal continues and is available for those who meet membership requirements and are able to get referrals. Feel free to request referrals in this Chartway CD referral post.
Due to the many new 3-month and 9-month CD rate specials, I decided to add 3-month and 9-month CDs to my list. Also, I did some pruning. Several banks have not kept up in the rate hikes, so I've removed them from my list. I still kept several with subpar rates. I try to keep banks or credit unions that have some feature that may compensate for the rate. For example, I include Netbank primarily due to its sign-up bonuses. If you don't have much to deposit, a bonus can be an important factor in deciding on a new bank.
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 June 24th, June 17th, June 10th, June 3rd, May 27th and May 20th.
As of July 1, 2006
Savings Accounts/Money Market Accounts:
3-Month Certificates of Deposit:
6-Month Certificates of Deposit:
9-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
Savings Account/CD Alternatives
There were some disappointments this week. We don't expect much from ING Direct these days, but ING's 0.10% increase on its savings account rate (4.35% APY from 4.25%) was especially weak considering so many other banks breaking 5%. EmigrantDirect showed again that it doesn't intend to be the rate leader with its savings account remaining at 4.80% APY. VirtualBank's money market savings remained at 4.60% APY for balances under $50K. However, over $50K the APY is now 4.86%, and balances over $100K earn 5.13% APY. This is the first time I've noticed VirtualBank having this kind of rate tiers. Last year, the rate at VirtualBank actually decreased on large balances.
Although VirtualBank's savings account rate remained the same for small balances, it did have one nice rate hike. That was on its 6-month CD. The rate increased from 5.30% to 5.55% APY. Another nice surprise was at Citibank. Not only did it raise the rate on its e-Savings account, but it started offering a 5.50% APY 6-month CD. In addition, for those in Texas, Citibank is offering a 6.00% APY 6-month CD.
It may not take too long before we start to see 6% CDs become more common. Many banks are getting close. Countrywide is now offering a 5.70% APY 9-month CD. AmTrustDirect and Western Financial Bank started offering 5.65% APY 12-month CDs this week. World Savings is currently offering a 5.76% APY special 3-month CD that can be renewed at the same rate for another 3 months.
Even though the CD rates have risen considerably, there continues to be little if any premium for longer term CDs. In fact, many short term CDs have higher yields than the long term CD yields. This can be seen with Countrywide, VirtualBank and World Savings. The only reason these long term CD rates would make sense is if interest rates would start to fall. The Fed did give some hints that the rate hikes may be coming to an end. However, many expect a couple more rate hikes. One economist interviewed by USA Today predicts the funds rate will go to 5.75%. So it seems these savings rate increases will likely continue for several months.
The Chartway Credit Union's 8% 8-month CD deal continues and is available for those who meet membership requirements and are able to get referrals. Feel free to request referrals in this Chartway CD referral post.
Due to the many new 3-month and 9-month CD rate specials, I decided to add 3-month and 9-month CDs to my list. Also, I did some pruning. Several banks have not kept up in the rate hikes, so I've removed them from my list. I still kept several with subpar rates. I try to keep banks or credit unions that have some feature that may compensate for the rate. For example, I include Netbank primarily due to its sign-up bonuses. If you don't have much to deposit, a bonus can be an important factor in deciding on a new bank.
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 June 24th, June 17th, June 10th, June 3rd, May 27th and May 20th.
As of July 1, 2006
Savings Accounts/Money Market Accounts:
- BankUnited - 5.25% (min $5K), my post
- Presidential - 5.12% (min $5K, only first $35K receives this rate), offers 4.50% checking, my post
- HSBC Direct - 5.05%, offers checking, (rate history), my post
- AmboyDirect - 5.05%, my post
- Domestic Bank - 5.05% MMA (min $2.5K), my post
- Corus Bank - 5.02% MMA (min $10K to open)
- Citibank - 5.00%, requires checking account, my post
- OneUnited - 5.00% (min $10), my post
- Heritage Bank Online - 4.88% (min $1K), my post
- UmbrellaBank.com - 4.85% MMA (min $1K), offers checking, my post
- Zions Bank - 4.81% (min $1K)
- EmigrantDirect - 4.80%, my post, (rate history)
- GMAC Bank - 4.80% MMA (min $500), my post
- CapitalOne/Costco - 4.80% MMA (min $5K, Costco members only, $50 deal for exec. members)
- FirstFedDirect - 4.78% (min $1K) (closed to CA residents), my post
- CapitalOne - 4.75% (MMA has same rate, but with checks and ATM. $100 min.), my post
- Ascencia Bank - 4.75% (min $50), my post
- Western Financial Bank - 4.60% MMA, offers checking, my post
- VirtualBank - 4.60% (min $100), offers checking, my post ($20 bonus)
- UFB Direct - 4.50%, (5.01% $50K+) offers checking, my post
- Countrywide - 4.50% (min $1K), (5.25% $50K+) my post
- Self-Help Credit Union - 4.48% MMA (min $500), my post
- ING Direct - 4.35%, my post ($25 bonus), (rate history)
- MetLife Bank - 4.25% MMA (min $5K), my post ($50 bonus)
- EverBank - 4.01% ($1.5K min), 5.51% 3-mo checking account promo, my post
- 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 - 3.00% (min $1K to avoid fees/$5K for APY), my post (5.00%/$50 bonus)
3-Month Certificates of Deposit:
- World Savings - 5.76% (withdraw at 3 mo or 6 mo) (min $10K), branch-only, my post
- Western Financial Bank - 5.25% ($100 min)
- FirstFedDirect - 5.13% (min $10K), my post
- UmbrellaBank.com - 5.10% (min $1K)
- EverBank - 5.10% ($1.5K min)
- UFB Direct - 5.10% (min $8K)
- GMAC Bank - 5.06% (min $500), my post
- VirtualBank - 5.02% (min $10K), my post ($20 bonus)
- Corus Bank - 5.02% (min $10K)
- ETrade Bank - 5.00% (min $1K), my post
- EmigrantDirect - 5.00% (min $1K)
- Self-Help Credit Union - 4.84% (min $500), my post
6-Month Certificates of Deposit:
- World Savings - 5.76% (withdraw at 3 mo or 6 mo) (min $10K), branch-only, my post
- VirtualBank - 5.55% (min $10K), my post ($20 bonus)
- Citibank - 5.50% (min $500), 6% for Texas, my post
- Corus Bank - 5.48% (min $10K)
- ETrade Bank - 5.46% (min $1K), my post
- UmbrellaBank.com - 5.45% (min $1K)
- UFB Direct - 5.45% (min $8K)
- Countrywide - 5.40% (min $10K), my post
- GMAC Bank - 5.35% (min $500), my post
- Ascencia Bank - 5.35% (min $500), my post
- AmTrustDirect - 5.32% (min $1K) my post
- World Savings - 5.31% (5 months) (min $10K), new funds only, my post
- FirstFedDirect - 5.26% (min $10K), my post
- EverBank - 5.22% ($1.5K min)
- NetBank - 5.05% (min $1K)
- EmigrantDirect - 5.00% (min $1K)
- ING Direct - 5.00%, my post
- Self-Help Credit Union - 4.96% (min $500), my post
- ebank - 4.75% (min $1K), 5.00% for ePremium checking customers
- MetLife Bank - 4.75% ($1K min)
- Western Financial Bank - 4.50% ($100 min)
9-Month Certificates of Deposit:
- Countrywide - 5.70% (min $10K), my post
- Western Financial Bank - 5.60% ($100 min)
- UmbrellaBank.com - 5.50% (min $1K)
- AmTrustDirect - 5.45% (min $1K) my post
- FirstFedDirect - 5.42% (min $10K), my post
- GMAC Bank - 5.40% (min $500), my post
- EverBank - 5.30% ($1.5K min)
- VirtualBank - 5.30% (min $10K), my post ($20 bonus)
- ING Direct - 5.10%, my post
- EmigrantDirect - 5.00% (min $1K)
12-Month Certificates of Deposit:
- Western Financial Bank - 5.65% ($100 min)
- AmTrustDirect - 5.65% (min $1K) my post
- Countrywide - 5.65% (min $10K), my post
- ebank - 5.60% (min $1K), 5.85% for ePremium checking customers
- GMAC Bank - 5.56% (min $500), my post
- ETrade Bank - 5.56% (min $1K), my post
- UmbrellaBank.com - 5.55% (min $1K)
- UFB Direct - 5.55% (min $8K)
- Corus Bank - 5.55% (min $10K)
- FirstFedDirect - 5.51%, (min $10K) my post
- Digital CU - 5.50% (11 month) (min $1K), my post
- BankUnited - 5.50% (min $5K), my post
- Melrose CU - 5.46% (min $5K) my post
- NetBank - 5.45% (min $1K), my post ($100 bonus)
- VirtualBank - 5.45% (min $10K), my post ($20 bonus)
- GTE FCU - 5.38% (min $500) my post
- Ascencia Bank - 5.35% (min $500), my post
- Self-Help Credit Union - 5.33% (min $500), my post
- Mutual Bank - 5.35% (min $2.5K) my post
- ING Direct - 5.25%, my post
- EverBank - 5.35% ($1.5K min)
- MetLife Bank - 5.05% ($1K min)
- EmigrantDirect - 5.00% (min $1K)
18-Month Certificates of Deposit:
- AmTrustDirect - 5.65% (min $1K) my post
- Countrywide - 5.65% (min $10K), my post
- ebank - 5.60% (min $1K), 5.85% for ePremium checking customers
- CapitalOne/Costco - 5.57% (min $5K, Costco members only)
- GMAC Bank - 5.56% (min $500)
- ETrade Bank - 5.56% (min $1K), my post
- Mutual Bank - 5.40% (min $5K) my post
36-Month Certificate of Deposit:
- AmTrustDirect - 5.65% (min $1K) my post
- Countrywide - 5.65% (min $10K), my post
- GMAC Bank - 5.60% (min $500)
- ebank - 5.60% (min $1K), 5.85% for ePremium checking customers
- ETrade Bank - 5.56% (min $1K), my post
- Melrose CU - 5.56% (min $5K) my post
- Self-Help Credit Union - 5.55% (min $500), my post
- Pentagon Federal CU - 5.31% (min $1K), my post
- Agriculture FCU - 5.25% (min $1K), my post
48-Month Certificate of Deposit:
- Melrose CU - 5.67% (min $5K) my post
- AmTrustDirect - 5.65% (min $1K) my post
- Countrywide - 5.65% (min $10K), my post
- GMAC Bank - 5.60% (min $500)
- ebank - 5.60% (min $1K), 5.85% for ePremium checking customers
- Self-Help Credit Union - 5.57% (min $500), my post
- USA FCU - 5.33% (min $1K) my post
- Pentagon Federal CU - 5.32% (min $1K), my post
- Agriculture FCU - 5.25% (min $1K), my post
60-Month Certificate of Deposit:
- Agriculture FCU - 6.00% (min $1K), my post
- Melrose CU - 5.82% (min $5K) my post
- AmTrustDirect - 5.65% (min $1K) my post
- Countrywide - 5.65% (min $10K), my post
- ETrade Bank - 5.61% (min $1K), my post
- GMAC Bank - 5.60% (min $500)
- ebank - 5.60% (min $1K), 5.85% for ePremium checking customers
- Self-Help Credit Union - 5.59% (min $500), my post
- Pentagon Federal CU - 5.32% (min $1K), my post
84-Month Certificate of Deposit:
- Countrywide - 5.65% (min $10K), my post
- Pentagon Federal CU - 5.32% (min $1K), my post
High Rates with Conditions - Open to All
- 10% Savings Account for kids ($500 max)
- 5.59% 6-month CD with $40K min
- 5.51% 3-month intro rate on checking account
- 5.25% Savings Account with $50K min
- 5.00% Money Market with $100K min
- 5.00% Money Market with $100K min
Checking and Saving Accounts at Local Credit Unions
- 5.25% no-minimum online savings account (New York)
- 5.15% Savings Account (Massachusetts)
- 5.00% Money Market Account (Wisconsin)
- 5.00% savings account (Pennsylvania)
- 5.00% Money Market Account (New York)
CD Specials at Local Credit Unions/Banks Over the Last Two Months
Terms of 60 Months and Over
- 6.43% 60-Month CD at a Virginia CU (Fort Belvoir)
- 6.00% 60-Month CD at a Florida Bank
- 6.00% 60-Month CD at a Vermont CU
- 6.00% 60-Month CD at a Virginia CU
- 5.50% 60-Month CD at a Virginia CU (5 bump-ups)
Terms of 24 Months to Under 60 Months
- 6.27% 48-Month CD at a Virginia CU (Fort Belvoir)
- 6.17% 36-Month CD at a Wyoming CU
- 6.00% 36-Month CD at a Colorado CU
- 6.00% 30-Month CD at a Philadelphia Bank (Asian Bank)
- 5.96% 48-Month CD at a Washington DC CU
- 5.90% 27-Month CD at a California CU
- 5.86% 31-Month CD at a South Dakota CU
- 5.80% 36-Month CD at a Massachusetts CU
- 5.75% 36-Month CD at a Florida Bank
- 5.75% 24-Month CD at a Florida CU
- 5.75% 24-Month CD at a Philadelphia Bank (Asian Bank)
- 5.60% 24-Month CD at a Georgia Bank
- 5.50% 36-Month CD at a New York Bank
Terms of 12 Months to Under 24 Months
- 10.00% 12-Month CD at a Massachusetts Bank ($1K Max)
- 10.00% 12-Month CD at a Wisconsin CU ($1K Max)
- 10.00% 12-Month CD at a Massachusetts Bank ($1K Max)
- 8.30% 12-Month CD at a Texas CU ($2K Max)
- 6.50% 12-Month CD at a South Dakota CU
- 6.00% 13-Month CD at a Colorado CU
- 6.00% 18-Month CD at a Washington State Bank
- 6.00% 18-Month CD at a California CU
- 5.85% 20-Month CD at a Nevada CU
- 5.78% 12-Month CD at a Georgia Bank
- 5.75% 16-Month CD at California Banco Popular
- 5.75% 12-Month CD at a Florida CU
- 5.75% 18-Month CD at a Florida Bank
- 5.75% 15-Month CD at a Georgia Bank
- 5.75% 12-Month CD at a Massachusetts CU
- 5.65% 14-Month CD at a Maryland CU
- 5.64% 18-Month CD at a Florida CU
- 5.60% 23-Month CD at a Indiana CU
- 5.60% 18-Month CD at a Massachusetts Bank
- 5.55% 12-Month CD at a Georgia Bank
- 5.55% 15-Month CD at a Massachusetts CU
- 5.55% 15-Month CD at a California CU (open to all)
- 5.55% 13-Month CD at a Georgia Bank
- 5.54% 13-Month CD at a California CU
- 5.50% 12-Month CD at a Georgia Bank
- 5.50% 18-Month CD at a Iowa CU
- 5.50% 18-Month CD at a New Jersey/Pennsylvania Bank
- 5.50% 12-Month CD at a California Bank
- 5.50% 15-Month CD at a Florida Bank
- 5.50% 13-Month CD at a Florida Bank
- 5.50% 13-Month CD at a Indiana CU
- 5.50% 13-Month CD at a New Hampshire CU
- 5.50% 12-Month CD at a South Dakota CU
- 5.50% 12-Month CD at a Massachusetts Bank
- 5.50% 13-Month CD at a Pennsylvania CU
- 5.50% 12-Month CD at a Colorado Bank
- 5.50% 12-Month CD at a Texas Bank
- 5.50% 12-Month CD at a California Bank
- 5.50% 12-Month CD at a California Bank
- 5.50% 12-Month CD at a Virginia CU
- 5.47% 13-Month CD at a California CU (The Golden 1)
- 5.44% 12-Month CD at a Washington DC CU
- 5.40% 12-Month CD at a Chicago Bank
- 5.40% 15-Month CD at a Massachusetts Bank
- 5.35% 12-Month CD at a Missouri Bank
Terms of Under 12 Months
- 10.00% 3-Month CD at a Georgia Bank ($10K Max)
- 8.00% 8-Month CD at a California CU ($5K Max)
- 8.00% 8-Month CD at a Multi-State CU ($8K Max)
- 7.00% 6-Month CD at a California CU ($5K Max)
- 7.00% 7-Month CD at a California CU ($7K max)
- 7.00% 7-Month CD at a California CU ($7K Max)
- 6.25% 6-Month CD at a Michigan CU
- 6.17% 6-Month CD at a Massachusetts CU
- 6.17% 9-Month CD at a Delaware CU
- 6.00% 6-Month CD a Citibank Texas
- 6.00% 6-Month CD at a California CU ($5K Max)
- 6.00% 6-Month CD at a Virginia CU
- 6.00% 7-Month CD at a Vermont CU
- 6.00% 6-Month CD at a California CU
- 6.00% 7-Month CD at a Nevada CU
- 5.80% 5-Month CD at a Tennessee Bank
- 5.75% 9-Month CD at a Georgia Bank
- 5.61% 9-Month CD at a South Carolina CU
- 5.58% 8-Month CD at a Florida Bank (open to all)
- 5.51% 11-Month CD at a Wisconsin Bank
- 5.51% 7-Month CD at a Texas Bank
- 5.50% 7-Month CD at a Virginia Bank
- 5.50% 8-Month CD at California Banco Popular
- 5.50% 9-Month CD at a Maryland Bank
- 5.50% 10-Month CD at a Chicago Bank
- 5.50% 9-Month CD at a New Hampshire Bank (open to all)
- 5.50% 9-Month CD at a Georgia Bank
- 5.50% 7-Month CD at a Georgia Bank
- 5.50% 9-Month CD at a Virginia CU
- 5.50% 11-Month CD at a Texas Bank
- 5.50% 9-Month CD at a Massachusetts Bank
- 5.50% 11-Month CD at a Florida CU
- 5.50% 6-Month CD at a Virginia Bank
- 5.45% 11-Month CD at a California CU
- 5.40% 10-Month CD at a Nebraska Bank
- 5.40% 7-Month CD at a Tennessee Bank
- 5.38% 6-Month CD at a Washington State Bank (Variable Rate)
- 5.37% 6-Month CD at a Multi-State CU (Open to All)
- 5.35% 9-Month CD at a California Bank
- 5.34% 9-Month CD at a Florida CU
- 5.33% 9-Month CD at a North Dakota Bank
- 5.30% 9-Month CD at a Massachusetts Bank (open to all)
- 5.30% 6-Month CD at a California Bank
- 5.30% 11-Month CD at Compass Bank
- 5.22% 6-Month CD at a California CU
- 5.20% 9-Month CD at a Massachusetts Bank
Savings Account/CD Alternatives
Featured Accounts
Useful Resources
Nationwide Savings Accounts
Mark Stone (anonymous) - #1, Saturday, July 1, 2006 - 8:34 PM
Ken - Thanks for the weekly update. Great stuff...as usual.
latex_salesman (anonymous) - #2, Sunday, July 2, 2006 - 7:38 AM
Boy they keep you busy....
I like the 5.5% HSBC.
I still have my 5.51% Everbank special - but after that I want to see some 6%....
:o)
latex_salesman (anonymous) - #3, Sunday, July 2, 2006 - 7:39 AM
sorry - meant 5.05%... wishful thinking !
vectro (anonymous) - #4, Sunday, July 2, 2006 - 11:07 AM
The present phenomenon where long-term investments yield a lower interest rate than short-term ones is called an inverted yield curve, and usually presages a recession.
This shows up in all kinds of fixed-income investments: treasuries, bonds, CDs, etc. It happens because borrowers who normally borrow long-term view that as too risky and so instead borrow short-term (at a higher price).
As usual, Wikipedia has a good article on this topic:
http://en.wikipedia.org/wiki/Yield_curve
Banking Guy (anonymous) - #5, Sunday, July 2, 2006 - 2:33 PM
We might see Everbank's intro rate go up to 6.01% soon. Everbank introduced the 5.01% intro rate at the start of the year. The 5.51% intro rate was started in the second quarter. So perhaps we'll see 6.01% in the third quarter. Unfortunately, it's only for new customers.
Thanks vectro for the info on the inverted yield curve. The inversion seems to be getting larger. Hope this doesn't lead to a recession.
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