Dedicated to Deposits: Deals, Data, and Discussion

Bank Deal Summary for November 4, 2006

POSTED ON BY

The CD rate slide continued this week at several banks and credit unions. Money market account rates are holding, but CD rates, especially long-term CD rates, are declining. CD rates dropped at AmTrustDirect, GMAC Bank, Everbank, Countrywide, Metlife and Pentagon FCU. Even World Savings' 4-month internet CD special had a rate drop from 5.56% to 5.51% APY. When that special first came out on October 12th it had a rate of 5.61% APY.

This rate slide may not last long. News yesterday indicate signs of a stronger economy and a tighter job market. Expectations of a cut in the fed funds rate have been pushed out later into next year.

A new higher rate came out this week for Series I Savings Bonds, however, it's still disappointing at 4.52%. The inflation component came back to a more normal value of 3.10% (vs. 1.00% for the last 6 months). However, the Treasury continues to keep the fixed rate component low at 1.4%. So the composite rate is only 4.52% (see post). Even with the tax advantages of the I Bond, it's hard to get excited about this when you can get 5.50% at an E-LOAN savings account.

With many banks dropping CD rates, E-LOAN is now even more on top with many of its long-term 5.75% CDs (see post). And it's 5.50% savings account remains the best savings account deal.

One nationwide 6% CD was lost this week when Kaiser Federal Bank ended its 6% APY 1-year CD. Finding a six-percent CD continues to get tougher. Everbank still has its 6.01% 3-month promo (see post). Digital Credit Union is still offering its 6% APY 16-month CD (see post).

There were a few good local CD deals this week. For long-term CDs, Team and Wheel is offering a 6.33% 60-month CD (see post). A Missouri credit union is offering a 6.14% APY 24-month CD (see post). And a San Antonio credit union is offering a 10% APY 10-month CD with a maximum deposit cap of $2.5K (see post). For a complete list of these recent local CD deals, refer to my local CD list below. Remember that many of these deals don't last long. Please check if the rate is still active at the bank or credit union's website. If you see that a deal has ended, a comment is much appreciated.

There were also some good checking account bonuses this week. A $250 Bank of America bonus was briefly available this week. It ended on Tuesday. However, there are still several $100+ bonuses available at Bank of America (see post). Those in parts of South Carolina can get a $250 checking account bonus at South Carolina Federal Credit Union (see post). For nationally available deals, Chase came out with a $100 checking account bonus (see post). And Citibank's $200 checking account bonus is still available (see post).

Thanks to all who have helped by leaving comments or sending emails on rate updates. Sorry I can't post on all of your suggestions.

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. The top lists include banks and credit unions with broad availability and with minimums of $10K or less. Previous weekly summaries are available for Oct 28th, Oct 21th, Oct 14th, Oct 7th, Sept 30th and Sept 23rd.

As of November 4, 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:

16-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 Banks/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


Comments
4 Comments.
Comment #1 by Anonymous posted on
Anonymous
Bank of America's High Yield CD has been advertised recently. It's at 5.00% APY, min $10k. (rate is ~4.90-5.10%apy depending what state you open... ie. NY vs IL). http://www.bankofamerica.com

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Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info on these BofA CD's. I have more information on these here. I see the rate has gone down a little since this post. It had been up to 5.20% in some states.

1
Comment #3 by Anonymous posted on
Anonymous
How reliable are the esavings account such as eloan and others. Is it save to invest in those or stick with the traditional boa, wachovia, citibank, etc..

1
Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
This Bankrate.com article describes the laws related to bank errors which banks must abide by. And online banks are required to meet these same laws.

Both online and brick-and-mortar banks make mistakes, and often you'll find that you have to call to resolve the problems at brick-and-mortar banks. This would be the same at online banks. The latest widespread mistake was made by E-LOAN (see post).

In my opinion, a federally insured bank or credit union that's online is just as safe as a brick-and-mortar one. The most important thing is to regularly check your transaction history and statements.

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