Dedicated to Deposits: Deals, Data, and Discussion

Bank Deals Weekly Summary for June 7, 2008

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

This was a good week for those looking for savings account promotions. HSBC Direct was the first to launch a promotion on its online savings account. HSBC is guaranteeing 3.50% APY through 8/15/08. Before this promo, the online savings account had a yield of 3.05% APY. It's nice to see a new promo even though the 3.50% yield isn't anything too exciting. At least it doesn't require a new account or new money (see post).

This promo should help increase the competition in online savings accounts. One bank that already has raised its online savings account yield to 3.50% is ShoreBank. It had previously been 3.30% before this week (see post).

There's a more attractive online savings account promotion at the small bank 1st Constitution Direct. This bank is offering 4.00% APY on all balances guaranteed for 3 months from account opening. The only problem with this account is that after the promotion period, the account goes back to a tiered account which requires $10,000 to earn a decent yield. On the plus side, there are no minimum balance requirements or monthly fees (see post).

Two other nice savings account rate increases this week occurred at EverBank which raised its ongoing money market yield from 2.76% to 3.06% APY. Its 3-month intro yield remains at 4.01% APY. Zions Bank raised the yield on the lower tiers of its Deseret MMA. The lowest tier with a minimum $2.5K now has a yield of 3.25% APY (was 2.53% APY).

Another bit of positive news this week was at Alliant Credit Union which kept the yield on its savings account at 4.00% APY. This 4.00% APY should remain through June.

On the downside, Countrywide Bank lowered the rate on its savingslink account from 3.80% to 3.75% APY. Indymac Bank kept the rate of its E-Money Market account at 3.85% APY, but it raised the minimum balance that qualifies for this rate from $1K to $10K. Balances under $10K now only earn 1.35% APY. This is the same thing that Indymac did several months ago to its Internet First Rate MMA.

5% Certificate of Deposit Yields

Indymac Bank came out with a new internet CD special this week with a yield of 4.15% APY for an 18-month term. They still have their 10-month special which has a yield of 4.05% APY (see post).

Even though Alliant Credit Union kept its savings account yield the same, it lowered the yield on its CDs. The top yield for a $25K deposit dropped from 4.15% to 3.90% APY for terms of 12 to 24 months (see post).

National City is once again extending its CD promotion. The last promotion was scheduled to end after today. National City's promo page hasn't changed yet, but I called National City today, and I was informed that the top yield for terms of 30 to 48 months will fall from 4.75% to 4.50% APY (4.25% without a checking). However, the top yields for terms from 13 to 29 months will remain at 4.00% APY (3.75% without a checking). More details about these CDs are available in this post.

The Wall Street Journal reported yesterday that National City Bank entered into a non-public "memorandum of understanding" with federal regulators, effectively putting the bank on probation (see MarketWatch article). I don't think they're close to failure, but as I always recommend, make sure you stay below the FDIC insurance limits.

OnBank increased the rates on its online CDs this week. It also added several long term CDs. OnBank has the top CD on my list for terms of 24 and 48 months. The most competitive yields range from 3.85% APY for an 18-month term to 4.85% APY for a 60-month term. OnBank is an internet division of M&T Bank which is a large New York bank with a 4 star rating (sound) at Bankrate based on 12/31/07 data. For those looking for competitive long-term CD rates at a strong bank, this is one option. I have more details on OnBank in this post.

There continues to be some good long-term CD deals. Wachovia increaed the yield of its featured 60-month CD in some states to 5% APY. For other states the yield is 4.75% APY. Wachovia also has some competitive rates on featured CDs with shorter terms (see post)

NASA FCU came out with a 5% APY 55-month CD special with a minimum deposit of $25K. This is one of the credit unions that anyone can join (see post).

More Nationally Available Reward Checking Accounts

A new resource for reward checking accounts was launched this week at CheckingFinder.com. It lists several reward checking accounts from around the US, and it allows you to apply online through their website. I've checked with four of the banks listed and confirmed that you can apply through CheckingFinder without coming into a branch. The yields range from 5.36% to 6.01%. I now have 20 banks and credit unions with nationally available reward checking accounts. Please refer to this High Yield Checking webpage to see the full list. This CheckingFinder is far from a comprehensive list of reward checking accounts. I have many more listed in my High Yield Checking website. I now have a total of 205 banks and credit unions listed from most states.

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

Banking News

Savings and Money Market Deals - 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 31st, May 24th, May 17th, May 10th, May 3rd, Apr 26th, Apr 19th, Apr 12th and Apr 5th.

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 June 7, 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
Comment #1 by Sofa King Frustrated (anonymous) posted on
Sofa King Frustrated
AARP Savings today made all Jumbo Money Market Account interest rates the same.

How generous of AARP Savings to keep accounts opened prior to May 24 at a higher rate for just two weeks.

F*ck AARP Savings!

(Thanks, BG, for yet another detailed weekly update.)

P.S. Should AARP Savings lower their Jumbo MMA some more, I pray there is a mass withdrawal of all the money deposited into AARP Savings after the word of their 4.75% rate spread around the Internet. That would show these Internet banks that you just can't advertise 4.75% and then so quickly drop the rate. Some banks offer 3-month rate guarantees.

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