Dedicated to Deposits: Deals, Data, and Discussion

Bank Deals Weekly Summary for September 13, 2008

POSTED ON BY

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

The streak of Friday bank failures is over. Before yesterday we had three Fridays in a row with a bank failure. Even without a bank failure, the credit crunch continues to be felt this week as worries grew over the survival of Lehman Brothers and WaMu. High level meetings between the Feds and top Wall Street Executives are underway today to try to resolve the crisis with Lehman Brothers (see WSJ article). WaMu's stock closed on Friday at $2.73, down 36% for the week, and there are rumors that JPMorgan Chase or Citigroup may buy WaMu (see LA Times article).

One thing good about WaMu's shaky financial condition is that it has been good for depositors. WaMu's 5% 12-month CD was an excellent deal, but unfortunately, these have ended. WaMu's website now shows the 12 and 13-month Online CDs with a yield of 4% APY. When WaMu first offered these 5% CDs in late August, it lasted from Saturday to Friday. The same thing happened last week. Perhaps they'll bring it back again later this month.

For those who worry about holding deposits in a shaky institution, be sure to keep your deposits under the FDIC limits, and for those who don't want to worry about account title issues and potential delays in accessing your money, just keep your deposits under $100,000. As we've seen in many of the recent bank failures including the large IndyMac failure, there are few if any downsides for fully FDIC-insured depositors when a bank fails. In fact, there can even be upsides in that you're given the opportunity for a penalty free withdrawal. Many readers have reported taken advantage of this at IndyMac Federal Bank. They were able to close their old IndyMac CD without penalty, and then they were able to get IndyMac to match WaMu's 5% for a new IndyMac Federal CD.

Certificate of Deposit Rates

WaMu wasn't the only bank to end its 5% deal. Ebank.com ended both its 5% 9-month CD and 5% checking account promotion. There weren't any new 5% short-term CDs this week, however, there are two left from previous weeks. The 5% 5-month CD at First New England FCU is still available (see post), and there's the 5% 12-month CD at Dime Savings Bank (see post). Both of these deals have downsides, so be sure to review the deals and check with the institutions before attempting to open an account.

Savings Account Rates

Banks have been raising their savings account rates, however, they're not making it easy for their customers. Instead of just raising rates on their existing savings or money market accounts, several banks have created new accounts with higher rates. E-LOAN and GMAC Bank were two examples this week. GMAC Bank started a new online savings account with a yield 55 basis points higher than its money market account (see post), and E-LOAN started the Savings Plus Account with tiered rates in which customers can earn up to 84 basis points more than they can earn on the standard online savings account (see post).

One bank raised its rate without creating a new account. It's the new Venture Bank Direct, and with the rate increase it joined the handful of internet banks offering 3.75% APY (see post).

Below is the list of rate changes for this week:

Rate Hikes:
  1. Venture Bank Direct - 3.75% APY (was 3.30%)
  2. GMAC Bank's New Acct - 3.55% APY (orig acct at 3.00%)
  3. E-LOAN's New Act - 3.01% to 3.85% APY tiers (orig acct at 3.01%)

Rate Drops:
  1. Corus Bank's MMA - 3.85% APY (was 4.00%)
Reward Checking Accounts

I only reported on one new reward checking account this week (see below), however, I reported on two banks that raised their reward checking yields to over 6%. Both allow applications to be submitted online by people in any state (see post). There are now 6 banks and credit unions that offer reward checking accounts yielding over 6% that are nationally available (see list).

For my full list of reward checking accounts around the nation, please refer to my High Yield Checking website.

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 Sep 6th, Aug 30th, Aug 23rd, Aug 16th, Aug 9th, Aug 2nd, Jul 26th, Jul 19th and Jul 12th.

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 September 13, 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

Recent CD Specials at Local Credit Unions and Banks


Bank Account Alternatives


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

Related Posts

Comments
Comment #1 by ctgottapee (anonymous) posted on
ctgottapee
note the hsbc direct savings 3.50% promo is scheduled ot end sat 9/15

they did extend it once before but nothing yet; they seem to be pushing moving the money to 3.55% short term cds

1