Dedicated to Deposits: Deals, Data, and Discussion

Bank Deals Weekly Summary for April 12, 2008

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Quick Link for Rates, Recap of this week's posts

We lost two 4% online savings accounts this week. OneUnited reduced its savings account yield from 4.00% to 3.60% APY, and Century Bank Direct reduced its savings account yield from 4.01% to 3.61% APY. There aren't many 4% savings accounts left. The only three banks offering non-promo full-access 4%+ savings accounts are Countrywide, Indymac and Corus Bank. Alliant Credit Union remains on top of the list with its 4.35% APY savings account.

Other online banks that cut savings and money market account rates this week include Bank of Internet, Capital One, Beverly National Bank, Savings Square, Zions, Rainer Pacific, Citibank, AmtrustDirect and Virtual Bank. The last 3 of these have been big disappointments. Citibank's Ultimate Money Account yield is now only 2.70% APY, AmtrustDirect's e-Money Market yield is now only 2.40% APY (for under $25K) and VirtualBank's eMoney Market yield is now only 2.02% APY (for under $25K). These are making ING Direct look like a rate leader.

Reward Checking Accounts

We lost another 6% nationwide reward checking account this week. Heartland Community Bank reduced its top yield from 6.01% to 5.06% APY. The top yield applies to the first $30K which is a little above the typical $25K cap. On the positive side, I've added a new nationwide reward checking to the list. It's at West Texas National Bank which has a 6.01% APY, $25K cap reward checking account. I first posted on it last December. Just recently a reader notified me that they're allowing out-of-state applications, and I confirmed it this week. One thing important to note is that all of these banks and credit unions which are offering these reward checking accounts are small, and they're prone to policy changes regarding account opening. Credit unions have removed membership qualifications and both banks and credit unions have changed their new account policies to require a branch visit. So make sure to contact the institution before you apply to ensure the policies that I've reported are still valid. If they inform you of a change, please leave a comment, and I'll update the post.

For the latest nationwide reward checking list, please see below. I also have this list in a table format at my new High Yield Checking Deals website. This website's home page has a table with a full list of reward checking accounts that I've posted on over the last 2 years.

One thing I added to this website are reward checking statistics. Every time I update the table, these stats are updated. Currently, I have a total of 157 reward checking accounts in the table. The average yield is 5.27% APY, and the average balance cap is $35,510. As time goes forward, these stats will provide insights about how well the reward checking rates are holding up. A 5.27% average is much higher than the average online savings account yield. I don't have this number, but I would guess it's around 3%. The average reward checking yield has been declining and I'm sure it'll continue to decline, but if it can maintain a 2% lead over the online savings accounts, the balance caps and the extra hassles might be worth it.

Other High Yield Checking Account Options

For those who don't want the extra work and the small balance caps of the reward checking accounts, there are still some decent non-reward checking options. In my opinion, the two best ones that still have decent yields are from Bank of Internet and Salem Five Direct.

Bank of Internet's Senior Checking still has a 3.75% APY for all balances. You have to be 50 or above to qualify. In addition to the high yield, it has many perks including free checks and ATM fee reimbursements. The checking accounts available for those under 50 have a little lower yield and lack some of the perks, but they're still very competitive (see review for more info).

Salem Five Direct is the other good choice for a high yield non-reward checking account. The yield is lower than BofI, but it's still very competitive. It ranges from 3% APY for balances under $10K to 3.50% APY for balances over $100K. Like BofI, there are no monthly fees (see review for more details).

Both of the above lack an ACH transfer service that allows you to intiate electronic transfers to external accounts. If you want a checking account with this service, some options include Charles Schwab, ING Direct, HSBC Direct and UnivestDirect. These have much lower rates (range from 1.75% to 2.26% APY) and all but Charles Schwab's checking lack paper checks. ING Direct's checking does have higher yield for large balances over $50K.

Top CD Rates

The good news this week was that Capital One came out with a 5.50% CD available nationwide. The bad news is that it requires a term of at least 7 years (see post).

National City once again extended its CD promotions. They're still offering a special 5% APY 48-month CD and a 4.25% APY 24-month CD. The yields without a checking account are 25 basis points less (see post).

For a one year term the best deal for those with $25K is still at Alliant Credit Union with their 4.40% APY CD. You can also get this for terms up to 17 months (see post).

The best short term CD deal continues to be at Xceed Financial Credit Union with a 5% APY 5-month CD with a maximum deposit cap of $25K. A reader reported that this special is scheduled to end on April 15th, so if you don't live near a branch, you may be out of luck (see post).

If you want a short term CD that's easy to open and has a decent yield, ING Direct is a good option. ING raised its 9-month CD yield this week to 3.25% APY. It's not the best yield, but it is near the top for a 9-month term. I've opened a few ING Direct CDs a couple of years ago, and I have yet to find a better online CD management system.

Many bank and credit union CD and IRA promotions are scheduled to end on tax day (April 15th). So you only have Monday and Tuesday to take advantage of these.

Rates will likely continue to fall so please check with the institutions to make sure the rates that I've posted are still available. If they're not, please leave a comment.

Recap for the Week

Banking News

CD Deals - National

Checking/Savings Account Bonuses

Reward Checking Accounts

CD and Money Market Deals - Local

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 Apr 5th, Mar 29th, Mar 22nd, Mar 15th, Mar 8th, Mar 1st, Feb 23rd, Feb 16th and Feb 9th.

Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Special rates, Local checking/savings, Bank alternatives CD Rates: 3 Mo CDs, 6 Mo CDs, 9 Mo CDs, 12 Mo CDs, 18 Mo CDs, 24 Mo CDs, 36 Mo CDs, 48 Mo CDs, 60 Mo CDs, 84 Mo CDs, CDs by state Comments: read and discuss

As of April 12, 2008

Checking/Savings/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:

24-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 Yield Reward Checking Accounts - Open to All

Checking and Saving Accounts at Local Banks/Credit Unions

CD Specials at Local Credit Unions/Banks Over the Last Month


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


Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)

Related Posts

Comments
20 comments.
Comment #1 by singlepap@gmail.com (anonymous) posted on
singlepap@gmail.com
7.5% insured is still possible at TDAmeritrade; it does require special instructions. Because of negative counter-comments, people on this website fell behind on this exceptional deal. Elsewhere, people treated info responsibly and completed the offer. Kindly do not inquire unless you have liquid 30k or 60k or 90k. This offer is almost dead

1
Comment #2 by Horatio (anonymous) posted on
Horatio
I, for one, cannot wait until "this offer is dead," as you said.

Once it is dead, we readers to this great blog will no longer have to read your incessant (and unwanted) TDAmeritrade postings, where you are forcing people to have to personally email you for information.

Once it is dead, you will hopefully go away and never ever return with a posting about this TDAmeritrade thing.

Readers of this great blog (thanks again to Banking Guy) are here for information about FDIC & NCUA insured accounts. That's it. If we wanted information about non-FDIC and non-NCUA insured accounts, we would go to the blogs that cover that.

What part of "Bank Deals" in the title bar do you not get?

Thank you.

P.S. Any posting where one has to email the poster for more information is not welcome.

1
Comment #3 by Anonymous posted on
Anonymous
7.50% Ha. I know about a 9.50% deal at TDAmeritrade.

The 7.50% deal is for suckers only.

1
Comment #4 by singlepap@gmail.com (anonymous) posted on
singlepap@gmail.com
Horatio, this is FDIC-insured! My post helps those, who are looking to lock-in substantially more than 4 or 5% offered elsewhere. How did you help people with your post three times the size?

P.S. Go back a week and see Banking Guy's comment on the subject. Who asked you?

1
Comment #5 by Horatio (anonymous) posted on
Horatio
Who asked YOU, SinglePap?

1
Comment #6 by Rebecca (anonymous) posted on
Rebecca
9.5% is chump change. I know about a 14.25% deal at TDAmeritrade.

Email me for the details:

WasteOfEveryonesTime(at)WeKnowWhySinglePa****tillSingleSinceHeIsAnnoying(dot)com

1
Comment #7 by singlepap@gmail.com (anonymous) posted on
singlepap@gmail.com
Those who wanted 7.5% FDIC-insured. And they got it. The only comments that came from them were "thanks, couldn't have done it without you"

1
Comment #8 by singlepap@gmail.com (anonymous) posted on
singlepap@gmail.com
rebecca, i was left to nurse twins post-01'. That didn't make me a worse person, or unconstructive

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Comment #9 by Zephyr (anonymous) posted on
Zephyr
Poem:

There is a man named Singlepap.
He loves to repeatedly post about TDAmeritrade crap.
Many have kindly asked him to stop.
One even went so far to facetiously say dead he wanted him to drop.
He inspires such negative feelings because he reposts the same thing over and over and over.
I say stop the repeated postings and enjoy a nice piece of chocolate made by Russell Stover.

Singlepap, I agree with Horatio. You have posted the same thing over 10 times now (I really lost count). We got it the first time. You are like a TV commercial that just won't go away. We are not idiots. We don't need to be told the same thing 10 times. If we didn't email you the first 5 times you posted about this TDAmeritrade stuff, we are not going to email you the 10th time.

Ciao!

1
Comment #10 by singlepap@gmail.com (anonymous) posted on
singlepap@gmail.com
You're the only people ever to surf thru here? Thanks for enlightment... All you can post is destructive. The entire population has to deposit 3% under, as you decide so

1
Comment #11 by Dr. Neil (anonymous) posted on
Dr. Neil
Hi Everyone,

I am a psychologist. I read this blog regularly.

I am speculating that Singlepap is posting so much due to his large need for attention. Perhaps he is lonely.

Posting replies to or about Singlepap is allowing him to derive pleasure. You will only make him want to post more.

You are building up his ego and fueling the fire for him to conduct endless postings.

The best course of action is to simply ignore Singlepap. Let him post as much as he wants. Eventually when he sees his postings are not inspiring the desired response, he will seek attention elsewhere.

Yes, ironically my posting is adding fuel to the fire. I see that.

Take pity on Singlepap. Forgive him his loneliness and weakness. Eventually, he will go off into the sunset if only no one responds to his repeated postings.

1
Comment #12 by singlepap@gmail.com (anonymous) posted on
singlepap@gmail.com
No disrespect re: your vocation. It's simplier, than your guess. Most people who read this - seek help re: highest deposit rate. Everyone who posted negatively - could use help of your sort.

1
Comment #13 by Anonymous posted on
Anonymous
Absolute hard credit pull by Alliant.

I opened my account on April 10, 2008.

I subscribe to a credit monitoring service.

I was notified on April 13, 2008 by my credit monitoring service that a change had been detected. I logged into my account and found that Alliant CU did a hard credit inquiry via Equifax.

Sad, but true.

I opened my account in person at an Alliant branch.

So, Banking Guy can now write that for sure a hard credit inquiry will be pulled by Alliant.

1
Comment #14 by CornHusker (anonymous) posted on
CornHusker
For Centruy Bank Direct, you still list their Savings rate, which is now lower than their MMA account, only bad thing is MMA need $1000 open fund, no minimum after that though, and you can access by check, ATM or Billpay

Their Checking is good rate too, I don't know any other checking have higher rate than this. (no counting those 10 ATM thing)

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Comment #15 by Banking Guy (anonymous) posted on
Banking Guy
About Alliant's hard pull, I've highlighted the mention of the hard pull in the comments. Thanks.

Thanks cornhusker for the note on Century Bank Direct. I'll need to start listing its MMA in the list.

1
Comment #16 by Anonymous posted on
Anonymous
Hi all,
Is it true that ING Direct will soon be charging a fee up to $40 for wire transfers? What dose this mean? is time to take all our money out of ING. Now I know why they have a 3.25%CD for 9mths. I guess they want to lock our funds in before everyone starts pulling out. Comments please. Thanks

1
Comment #17 by Banking Guy (anonymous) posted on
Banking Guy
I'm not familar with ING Direct's wire transfer fees. I've always used their ACH transfer systems for the savings account and CDs.

Do you want to use wire transfers instead of ACH transfers at ING Direct to reduce the loss of interest during the transfers?

1
Comment #18 by Floyd (anonymous) posted on
Floyd
Most banks charge for wire transfers now. I have seen some at $20 and some at $30. Haven't seen $40 yet until your post about ING.

ACH usually takes 2 to 3 business days, as you know.

Wire is same day, as you know.

Only you can decide if the immediate interest gained by the same-day posting is worth the wire transfer fee.

ING rates have dropped so much, yet they still have commercials all over the TV.

I am not a fan of ING anymore.

1
Comment #19 by Anonymous posted on
Anonymous
Thanks for the comments about ING. I was not sure about the difference between ACH and wire trans. NO!!! I rather wait the three days with ACH, what's the hurry, eh!
Keep up the good work banking guy!
Thanks again.

1
Comment #20 by Sam (anonymous) posted on
Sam
An error to correct: Investor Checking from Schwab does include paper checks (and the nicest checkbook cover I've seen - I almost want to use it with the Rewards checkbook I actually use).

I'm a Rewards convert until further notice, but if you want checking with interest, ACH, and paper checks, I think Schwab has to be right up there.

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