Bank Deals Weekly Summary for February 22, 2009

Comments (17)
Feb 22, 2009 - 11:05 AM by Ken Tumin

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

There were a few bits of good news last week for savers. There was only one bank failure on Friday (see post). This is down from previous Fridays when 3 to 4 banks had failed. For rates, GMAC Bank actually raised its 12-month CD rate from 2.85% to 2.90% APY.

Unfortunately, bad news was more common last week for savers. A good lesson about the risks of foreign CDs was apparent with the SEC charges against Stanford International Bank (see post). With these types of scandals and the stock market nearing multi-year lows, the safety of US federally insured deposit accounts is attracting a lot of money. This along with falling loan demand continues to pressure interest rates down.

Savings Accounts

One thing should be noted is that rates would be lower if it weren't for competition. We need to help this competition by moving our money to the banks and credit unions that are offering the best rates. With yesterday's rate leaders slashing rates, it may appear to be a hopeless effort. Just remember that banks are hoping we'll give up chasing the high rates.

The only problem with rate chasing is dealing with teaser rates. It's not too bad if the bank remains competitive after the teaser rate is over. But when the rate is slashed to a very low rate, it becomes very frustrating. Some examples of banks with teaser rates that had major rate cuts include UFB Direct (Traveler Savings 4% to 1.05%), H&R Block Bank (MMA 3.25% to 1.75%) and iGObanking (checking 3.80% to 1.25%).

Dollar Savings Direct's savings account may soon fall in the same category as above. The savings account rate fell again this week. The rate fell from 3.05% to 2.65% APY. The rate had been 4% APY from October 2008 through much of January 2009.

The question for now is how low will the deposit rates go. A disturbing event this week was the rate cut at ING Direct. Its Orange Savings Account rate fell to under 2% (2.20% to 1.85% APY). I don't remember ING Direct savings account rate ever being this low. Even during the early part of this decade, the rate was 2% APY, and that was a time when ING Direct had a lot less online banking competition.

Here's the long list of last week's rate cuts:

Rate Hikes:
  1. None
Rate Drops:
  1. Union Federal Savings - 2.75% (was 3.05%)
  2. Mutual Bank savings 3mo promo - 2.65% (was 2.75%)
  3. Zions Internet MMA - 2.56% (was 2.66%)
  4. Amegy MMA - 2.45% $10K+ (was 2.55%)
  5. Salem Five Direct chk - 2.25% $100K+ (was 2.50%)
  6. UmbrellaBank MMA - 1.70% (was 1.90%)
  7. Imperial Capital chk - 1.75% (was 1.85%)
  8. Imperial Capital MMA - 2.25% $100K+ (was 2.35%)
  9. iGOchecking - 1.25% (was 1.50%)
  10. UFB Direct Traveler Savings - 1.05% (was 1.10%)
  11. Dollar Savings Direct - 2.65% (was 3.05%)
  12. Emigrant Direct - 2.05% (was 2.40%)
  13. Bank Provident Online - 2.65% (was 2.80%)
  14. CNB Bank Direct - 3.00% (was 3.20%)
  15. WTDirect - 2.16% $10K+ (was 2.51%)
  16. ING Direct Savings - 1.85% (was 2.20%)
  17. HSBC Direct Savings - 2.25% (was 2.45%)
  18. Bank of Internet Savings - 2.80% (was 3.00%)
  19. Bank of Internet Checking - 1.40% (was 1.60%)
  20. Flagstar MMA - 2.75% (was 3.00%)
  21. Century Bank Direct Savings - 2.74% (was 3.04%)
  22. Century Bank Direct MMA - 2.59% (was 2.82%)
  23. Century Bank Direct Chk - 2.34% (was 2.59%)
  24. H&R Block Bank MMA - 1.75% $50K+ (was 3.25%)
  25. 1st Constitution Bank 3mo MMA promo - 3.00% (was 3.50%)
  26. Union Federal Savings - 2.80% (was 3.05%)
  27. iGObanking - 2.50% (was 2.81%)
  28. Corus MMA - 2.54% (was 2.60%)
  29. ETrade Complete Savings - 2.15% (was 2.50%)
  30. Doral Bank Direct - Now restricted to NY, NJ & CT
Certificate of Deposit Rates

Just like savings account rates, CD rates also continue to decline. There were a couple of minor exceptions (like at GMAC Bank), but the overall trend has been falling rates. The best deals continue to be at credit unions. Remember that many credit unions tend to change rates are the start of each month. So if you're thinking about locking into a CD, next week would be better than waiting for the first week in March.

Refer to the list below for a few of the best nationwide CD deals. The full list of nationwide CD rates is farther down.
  1. 3.50% 6-mo CD at Navy FCU (account review)
  2. 3.25% 12-mo & 3.75% 24-mo Add-On CD at Northwest FCU (account review)
  3. 3.15% 12-mo CD at Alliant CU (account review)
  4. 3.00% 16-mo CD at Dollar Savings Direct (account review)
  5. 4.15% 48-mo, 4.39% 60-mo CD at Pentagon FCU (account review)
  6. 4.50% 60-mo CD at Mountain America CU (account review)
I also posted on some good CD deals from banks and credit unions that don't offer accounts nationwide. Refer to the recap below for the full list. Here are some of the best deals to note:
  1. 3.83% Savings Account thru Aug 2009 at Anchor Bank in WA (account review)
  2. 3.53% 6-mo Liquid CD at Uniti Bank in CA (account review)
  3. 3.15% 8-mo CD (up to 3.65%) at Canyon State CU in AZ (account review)
  4. 3.50% 15-mo CD at Amalgamated Bank in NY, NJ, DC & CA (account review)
  5. 3.56% 3 to 12-mo Internet CDs at Hanmi Bank in CA (account review)
  6. 4.17% 17-mo CD ($70K max) at South Jersey FCU (account review)
  7. 4.75% 60-mo CD at Community One FCU in Las Vegas (account review)
Reward Checking Accounts

I posted on six new reward checking accounts this week with two of these six offering over 5% APY. I don't think we can expect these rates to remain above 5%, but history has shown these rates are remaining significantly higher than online savings account rates. For those who want to keep under a $100K in liquid accounts, reward checking remains a good alternative to online savings accounts.

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

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

Banking News

Savings/Checking 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 Feb 14th, Feb 7th, Feb 1st, Jan 24th, Jan 10th, Jan 3rd, Dec 27th, Dec 20th, Dec 13th, Dec 6th and Nov 29th.

Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Reward Checking, 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 February 22, 2009

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:

Various Deposit Account Deals


High Yield Reward Checking Accounts - Open to All


Recent CD Specials at Local Credit Unions and Banks


Bank Account Alternatives


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

Post a CommentComments
In order of date posted. - Sort by votes
Anonymous

Anonymous - #1, Sunday, February 22, 2009 - 12:43 PM

How come you never posted the CD rates for Stanford International Bank? I never knew that they were paying 10% on 5 year CDS and 5% on short term CDs. Enough with the credit unions....focus more on the offerings of international banks.


1
Anonymous

Anonymous - #2, Sunday, February 22, 2009 - 1:35 PM

One thing to note about rate chasing. I have been doing that and now I can't open any new accounts at many banks. They do a chexsystems pull and it shows I have too many inquiries.


1
Michael

Michael (anonymous) - #3, Sunday, February 22, 2009 - 3:30 PM

How many Chex Systems inquiries does it take to be counted as too many, where then you'd be refused a new account opening? (How many did you do before you were refused please?)

Hanmi Bank is still offering their 3.43% 1-year flexible CD, which allows a few withdrawals, but you must leave $10,000 minimum in the account or else pay an early termination penalty. Why is this account not listed in the Weekly Summary?

Thank you, Banking Guy, for another great Weekly Summary. With all of the rate drops almost daily now, your Weekly Summary Report must be a lot more work than ever.


1
Michael

Michael (anonymous) - #4, Sunday, February 22, 2009 - 3:37 PM

I'm sorry, Banking Guy. The Hanmi 6-month (I meant to say 6-month and not 1-year) Flexible CD is mentioned in your Weekly Summary.


1
Anonymous

Anonymous - #5, Sunday, February 22, 2009 - 4:34 PM

ChexSystems allows one free report per year.

Perhaps everyone should get a copy, just like they should with their regular credit reports.


1
Anonymous

Anonymous - #6, Sunday, February 22, 2009 - 4:59 PM

(Anonymous, at 10:43 AM, February 22, 2009)

TROLL!


1
Anonymous

Anonymous - #7, Sunday, February 22, 2009 - 8:23 PM

To the BG: Thanks for the weekly summaries. They are appreciated more than you know.


1
Esther

Esther (anonymous) - #8, Sunday, February 22, 2009 - 9:13 PM

To Anonymous at 2:59 p.m., Feb 22nd:

I believe you meant to type "Droll" instead of "Troll."


1
Anonymous

Anonymous - #9, Monday, February 23, 2009 - 1:08 AM

To Esther,
Actually, I believe the term "troll" is correct. It refers to someone who posts on a forum website with the intent to incite "an incident" by starting an argument. The person presents some kind of argument that causes others in the forum to take sides on the issue.


1
Anonymous

Anonymous - #10, Monday, February 23, 2009 - 1:18 AM

Regarding the comment about ING Direct dropping to below 2% now. It did drop to around 2% back in the middle of 2003 when the Fed was pushing rates down in an attempt to avoid a recession after the 9/11 incident. But, the short term T-bill rate never approached zero percent back in 2003 as it is doing now. In fact, the 3 month T-bill rate of near zero percent currently is the first time that it has ever happened for that security. The one thing that I also noticed is that mortgage rates have NOT dropped down to the levels seen back in 2003 (especially with those ARM rates that they used to advertise). Cars can be financed with 0% so why can't homes be as well? Of course, the answer is because they couldn't afford to do that and would have to make up the difference through high service fees, credit card interest rates, and other ways of making money.


1
Esther

Esther (anonymous) - #11, Monday, February 23, 2009 - 8:38 AM

Isn't it possible that the "Stanford" posting at the top was an attempt to amuse others by ridiculous behavior, which is the definition of being "Droll"?

In other words, maybe he or she was being sarcastic?

Of course the poster doesn't want Bank Guy to post more on uninsured international banks and less on NCUA insured domestic credit union accounts.


1
Anonymous

Anonymous - #12, Monday, February 23, 2009 - 10:20 AM

"In other words, maybe he or she was being sarcastic?
Of course the poster doesn't want Bank Guy to post more on uninsured international banks and less on NCUA insured domestic credit union accounts."
By Esther, at 6:38 AM, February 23, 2009

Now we don't know that for sure, do we?
When posting on the internet, a lot is lost in translation and too much left to interpretation.

And as another posted commented:
I did mean "TROLL"


1
Mitch

Mitch (anonymous) - #13, Monday, February 23, 2009 - 1:22 PM

Banking Guy, thanks as always for the updates. Have either you or any of the readers had experience with ADB Bank in Cedar City, Utah? I see that as of today, they continue to offer a 3.15% APY on their money market account,which offers the limited check-writing privilege. No minimum balance appears to be required. Just wondering if this outfit has a history of offering teaser rates.


1
exclue

exclue (anonymous) - #14, Tuesday, February 24, 2009 - 1:31 PM

ING Direct rates went as low as 1.8% in July 2003. They were back up to 2.0% in August 2003.


1
Anonymous

Anonymous - #15, Tuesday, February 24, 2009 - 4:20 PM

I got an email today from FNBO Direct stating their savings rate was being lowered to 2.4


1
Anonymous

Anonymous - #16, Wednesday, February 25, 2009 - 4:32 PM

I was the guy who posted about the chexsystem pulls. I don't know how many is too many but have most recently been declined by etrade and provident direct. When I called them, they say something to the effect that I have too many inquiries on the report they pull. I wouldn't have so many if these banks wouldn't slash the rate after I open an account but the reps don't understand/care. I did many of the reward checking accts so that's the bulk of my hits I imagine.


1
Anonymous

Anonymous - #17, Wednesday, February 25, 2009 - 7:21 PM

It would appear that opening accounts at too many banks is treated the same if you opened a lot of credit card accounts and your credit report shows too many inquiries. They can reject you because they think you have got too much of a credit line and can default. But bank accounts don't involve lending money and the chance of a default.


1

Add Your Comment


Post a Comment

Featured Savings Account
Nationwide Savings Accounts
Related Posts
Best Bank Account Interest Rates - Summary for Week Ending February 11, 2012Best Bank Account Interest Rates - Summary for Week Ending February 11, 2012
Best Bank Account Interest Rates - Summary for Week Ending February 4, 2012Best Bank Account Interest Rates - Summary for Week Ending February 4, 2012
Best Bank Account Interest Rates - Summary for Week Ending January 28, 2012Best Bank Account Interest Rates - Summary for Week Ending January 28, 2012
Best Bank Account Interest Rates - Summary for Week Ending January 21, 2012Best Bank Account Interest Rates - Summary for Week Ending January 21, 2012
Best Bank Account Interest Rates - Summary for Week Ending January 14, 2012Best Bank Account Interest Rates - Summary for Week Ending January 14, 2012
Best Bank Account Interest Rates - Summary for Week Ending January 7, 2012Best Bank Account Interest Rates - Summary for Week Ending January 7, 2012
Best Bank Account Interest Rates - Summary for Week Ending December 31, 2011Best Bank Account Interest Rates - Summary for Week Ending December 31, 2011
Best Bank Account Interest Rates - Summary for Week Ending December 24, 2011Best Bank Account Interest Rates - Summary for Week Ending December 24, 2011
Useful Resources