Dedicated to Deposits: Deals, Data, and Discussion

Bank Deals Weekly Summary for May 3, 2008

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

As expected, the Fed made a quarter of a percentage point rate cut this week. If economic conditions don't worsen, this may be the last cut. So we could be at a rate bottom. Even though some savings account rates fell this week, many banks began increasing their CD rates. Expectations for higher rates in the future continues to grow (see post).

Savings Accounts Recap

Several banks and credit unions decreased their savings account rates after the Fed rate cut. The rate leader from last month, Alliant Credit Union, reduced the yield on its savings account from 4.35% to 4.00% APY. The second place rate leader, SmartyPig also reduced its savings account yield. It's now 3.90% APY (down from 4.30%). So this places EverBank on top with the intro yield of 4.01% APY. So this places IndyMac's E-Money Market Account on top. [Update 5/4/08: I had used an old Indymac link which still showed 4.05%. Link is now updated.]

Other banks that cut their online savings account yields include Nationwide, Beverly, Amegy, UFB Direct and Grand Yield Direct.

We may have a new savings account leader, but I'm going to hold off this week until we can get more information. On Friday afternoon, I posted on AARP Financial Savings Center which is offering a money market account with a yield of 4.75% APY and a no-minimum savings account with a yield of 4.50% APY. AARP membership is required. The deposits are held by banks and are FDIC insured, but the accounts are managed by a company that's not a bank. It's similar to how UFB Direct is set up (see post).

CD Rates Recap

Many banks on my list increased their CD rates this week. Most increases were on the longer terms, but the increases are making their way to 1-year terms. Some notable new CD rates include GMAC's 4.10% APY 12-month CD, AmTrustDirect's 3.70% APY 12-month CD, iGoBanking's 4.00% APY 24-month CD, Wachovia's 4.75% 60-month CD, E-LOAN's 4.60% APY 60-month CD, Pentagon FCU's 4.50% APY 60-month CD and Capital One's 5.75% APY 10-year Jumbo CD.

Alliant Credit Union cut the rate from 4.40% to 4.15% APY on its $25K certificate for terms of 12 to 17 months. On the positive side, the CD rate for a $1K minimum on terms from 18 to 24 months increased from 3.75% to 4.00% APY.

National City once again extended its 5% 48-month CD promotion (see post).

The best short term CD deal continues to be at Xceed Financial Credit Union which continues to offer a 5% APY 5-month CD with a $25K maximum deposit (see post).

Reward Checking Recap

My list of reward checking accounts available nationwide grew by one this week. Coulee Bank in Wisconsin is allowing out-of-state people to open accounts by mail. It's another 6.01% APY reward checking account with a $25K cap. I first reported on it in August 2007, so it has a track record (see post).

There were two rate drops on the nationwide list this week. West Texas National Bank cut its rate from 6.01% to 5.01% APY, and Connexus Credit Union made yet another cut to its reward checking account. The rate is now down to 3.51% APY. I first reported on Connexus in April 2007. Perhaps this is a sign that these accounts may not be so profitable for the banks over the long term (at least when their rates are so high).

I added 5 more local reward checking accounts this week (see recap below). Most of the new ones are launching with rates of around 5% or below. I'm not seeing many new 6% ones. Two of the ones that I reported on this week have no balance caps which can be very nice for those with large balances. Unfortuantely, the yields are lower (4.25% and 4.01% APY).

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

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 Apr 26th, Apr 19th, Apr 12th, Apr 5th, Mar 29th, Mar 22nd, Mar 15th, Mar 8th and Mar 1st.

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 3, 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)

[Edit 5/4/08: Updated link and yield for Indymac's e-Money Market. The old link was still showing 4.05% apy rather than 4.00% apy.]


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Comments
Comment #1 by Bill Millvill (anonymous) posted on
Bill Millvill
Banking Guy rocks!

1
Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
I'm afraid Xceed's 5% CD special appears to have ended. It's no longer listed on Xceed's website.

1