Dedicated to Deposits: Deals, Data, and Discussion

Bank Deals Weekly Summary for May 17, 2008

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

In the last few weeks there were signs that deposit rates may have bottomed. A few savings account rates had inched up, and CD rates, especially long term CD rates, were going up at several banks. There was a little bit of a pull-back this week.

Countrywide Bank reduced rates on its Savingslink account and on many CD terms. The new savingslink yield is 3.80% APY for balances over $10K (was 4.00%). Countrywide had yields over 4 percent on many of its CD terms from 12 months to 60 months. Now, the only ones above 4% are the 48 and 60-month terms which have a yield of 4.20% APY. GMAC Bank also reduced its CD rates. Most of its rate cuts were on its shorter term CDs. The largest drop was the 12-month CD rate which fell from 4.10% to 3.65% APY.

Other online banks which cut its savings account rates include Citibank, WTDirect and AmTrustDirect. Some of the banks that cut CD rates include IndyMac, Discover, and UFB Direct.

Savings Accounts Recap

The top savings account by far continues to be at AARP Financial Savings Center (see post). Its Jumbo money market account rate is still at 4.75% APY and its no-minimum savings account rate is still at 4.50% APY. AARP membership is required.

After AARP, 4% is the next highest non-promo savings account rate. The 3 institutions offering this include Alliant Credit Union, Corus Bank and Indymac Bank. My preference goes to Alliant Credit Union's savings account which has the smallest minimum balance requirement, a long history of competitive rates, and an ACH transfer system (see post).

The rate is not quite 4%, but Capital One's Online Savings Account is close at 3.75% APY. I did my first review of this account yesterday.

Certificate of Deposit Rates Recap

Even though a few banks cut their CD rates this week, several increased rates. Imperial Capital Bank did a large rate hike on its 6, 9 and 12-month terms. Its 9-month CD almost made it to the top of my 9-month CD list until I saw E-LOAN had added new CD terms. E-LOAN's new 9-month CD has a yield of 3.80% APY. E-LOAN also added 1-month and 2-month terms, but I'm not sure why anyone would choose these over E-LOAN's savings account which has a higher yield.

IndyMac reduced the rate of its 12-month internet special CD to 4.10% APY, so now Alliant Credit Union is alone on top with its 4.15% APY CD with a minimum deposit of $25,000.

National City has again extended its CD promotion. Plus, they added shorter terms to the promo. From their online website, they're now offering 5% APY on a 36-month term when you also have a checking account (4.75% without a checking). In some states the minimum term was advertised as only 30 months (see post).

Several banks continue to offer decent long term yields. With high inflation, banks are probably anticipating higher rates in the next year or two. KeyDirect is offering a 5% APY 60-month CD. Wachovia, E-LOAN and Capital One are offering 4.75% APY on their 60-month CDs.

Reward Checking Recap

I added 7 more local reward checking accounts this week (see recap below). Only one has a 6% yield. New 6% reward checking accounts are getting harder to find, but many banks and credit unions continue to maintain their 6% reward checking yield.

I added one more bank to my list of reward checking accounts available nationwide. It's Capital Bank, and its reward checking pays 5.01% APY for balances up to $25K. I first reported on this over a year ago in April 2007 (see post). So they have a fairly long history of maintaining this rate.

For a list of all reward checking accounts (including ones available nationwide), please see my new High Yield Checking website.

Banking News Recap

I first reported on the bank failure at ANB Financial on May 9th. One this blog's readers happened to be a customer of ANB Financial, and was generous to give his report of his experience and some lessons learned (see post). If you have over $100K at any one bank, make sure you review the lessons learned.

A reader just noted this recent Wall Street Journal article on ANB Financial. The article describes how brokered deposits allowed the bank to fund rapid real-estate lending which created a lot of risk.

Recap for the Week - Links to This Week's Posts

Banking News

Savings and Money Market Accounts - National

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 May 10th, May 3rd, Apr 26th, Apr 19th, Apr 12th, Apr 5th, Mar 29th, Mar 22nd and Mar 15th.

Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Reward Checking, 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 May 17, 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
2 Comments.
Comment #1 by Michleshevski (anonymous) posted on
Michleshevski
If Countrywide dropped their savings rate, you can bet IndyMac will do the same thing.

Thanks again, BG!

1
Comment #2 by exclue (anonymous) posted on
exclue
FYI:
Provident emailed the following on
5/16...

We wanted to let you know that we will change the online savings account yield to 3.50% APY* effective on May 19, 2008. Provident will still have one of the best yields in the country

1