Dedicated to Deposits: Deals, Data, and Discussion

Bank Deals Weekly Summary for February 3, 2007

POSTED ON BY

After HSBC's 6% promotion started, the week went down hill for savers. Pentagon Federal Credit Union ended its 6.25% CDs on Thursday. The best that you can get now is 6% for a long 7-year term (see post). I'm also disappointed in Citibank which dropped the rate on its e-Savings account from 5% to 4.75% APY (see post). And we lost another money market rate leader this week. Superior Savings of New England ended its 5.50% money market account for new customers.

The highest rate on a money market account now goes to Geauga Savings Bank with a 5.45% APY savings account for balances over $25K. This account has many downsides. The only good point is that the bank is guaranteeing this rate till July 15th (see post).

Note, I did not include HSBC Direct as the leader of the savings accounts even though they're offering 6% APY (see post). I might have included it if it were available for all deposits, not just new deposits. There is the issue with the rate being a promotional rate that's almost certainly will fall after 4/30. However, it's rare for banks to guarantee rates on money market accounts for any length of time. If you're deciding on a new bank, be sure to consider a bank's rate history. You can see my previous weekly summaries to help with this.

I also added a new online bank called Direct Huntington that is offering a 5.30% APY savings account with a $1K minimum. It's good to see more competition, but you may want to wait on this one. It currently has many downsides (see post).

The Fed not only held rates steady this week, but it indicated signs that we may not see a rate cut through this year (see post). In the past several weeks, this view of the economy has led to higher rates on CDs at many banks. There were small CD rate hikes this week at AmTrustDirect, Netbank, E-LOAN and GMAC Bank. Many of the rate hikes are in the one-year and longer-term CDs. It seems like the yield curve's inversion is ending. Money market account rates are trending down while longer term CD rates are trending up.

On Monday we may see a nice CD promo at Navy FCU. NFCU's service reps have indicated that they'll be coming out with a 6% APY 15-month CD with a $8K minimum deposit. NFCU currently has a 6.25% 7-year CD for a $20K minimum deposit. The only bad thing about NFCU is that not everyone can join. You must have some connection to the Navy. Please refer to my Navy FCU 6% CD post for more info.

Another good deal at a multi-state credit union is at Farmers Insurance Group FCU which is offering a 6.25% APY 1-year CD. Like NFCU it has branches in many states. Unfortunately, their field of membership is even more restrictive than NFCU's (see post).

One note on CD deals, I'm seeing more questionable websites lately that are advertising bank-like certificates with very high rates. If you're looking for a CD with safety in mind, I highly recommend you choose FDIC insured banks or NCUA insured credit unions. Please see my FDIC/NCUA post to find out how to confirm a website belongs to a federally insured institution.

For local CD deals, please refer to the local CD list. You may notice that this list is much shorter than last week's list. I only list the deals from the current month and the previous month since most deals are so time limited. I do try to include a few good deals from older months when I can confirm they're still active. I'm afraid I don't have time to go through all old deals. Also, I may miss a recently expired new deal. Please check with the bank or credit union's website to confirm availability. If you find any that are out-of-date, a comment would be appreciated.

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 around $10K or less. Previous weekly summaries are available for Jan 27th, Jan 20th, Jan 13th, Jan 6th, Dec 30th, Dec 23rd (short version), Dec 16th and Dec 9th.

As of February 3, 2007

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:

14/15-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 / Large Balances - 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

Bank Account Alternatives

Comments
2 comments.
Comment #1 by Anonymous posted on
Anonymous
Aagghh, penfed ends their promo just as I was about to get 25k to sink into it. Curse you Penfed!

This blog is amazing, more useful than all of the financial advising magazines put together. Thanks for all your hard work.

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Comment #2 by Anonymous posted on
Anonymous
World Savings has a new 5.45% 10 month web special CD. $10k minimum

1