Bank Deals Weekly Summary for March 14, 2009

Comments (4)
Mar 14, 2009 - 4:36 PM by Ken Tumin

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

For a change, Friday was quiet with no bank closures. It's the first Friday without a bank failure since January 9th. The number of bank failures went from 6 in January to 10 in February. So far in March, we've only had one failure. I doubt this will be a trend, but at least it's a little bit of good news.

Savings Account Rates

I'm afraid it's the same old news on rates. Rate cuts continue. Some banks continue to surprise me in how low they intend to cut rates. When you think they've reached the bottom, they cut some more. After ETrade Complete Savings account fell below 2%, I thought it may stay put for a while. No luck. ETrade cut its rate this week to 1.70% APY. Some online savings accounts are now falling below 1%. WaMu lowered its rate to 0.85% and M&T Bank cut its e-Money Market rate to 0.75%.

The best rate now for an online savings account is at SmartyPig with a 3.25% APY. This is not the typical savings account. It's designed to be a social savings tool in which you set goals. They've made some improvements since it was launched in early 2008 to make it easier to use for those with large balances, but it still appears to have some issues. On the plus side, the rates have remained very competitive for the last year. Accounts at SmartyPig are held by the FDIC-insured West Bank (see review).

I mentioned this last week, but it's worth repeating. With all banks cutting rates, it may seem hopeless to switch now just for what may be a temporary hike in interest rates. Just remember that this is what banks are hoping people will think. Competition is an important factor that is preventing rates from falling to near zero percent. The more we are willing to move our money, the more competition there will be.

Below is the long list of rate cuts that have occurred this week.

Rate Hikes:
  1. None
Rate Cuts:
  1. First Trade Union Savings - 3.04% (was 3.20%)
  2. Flagstar MMA - 2.40% (was 2.65%)
  3. Heartland Bank Direct - 2.30% (was 2.55%)
  4. Union Federal Savings - 2.40% (was 2.50%)
  5. Century Bank Direct Savings - 2.19% (was 2.39%)
  6. Century Bank Direct MMA - 2.09% (was 2.29%)
  7. UmbrellaBank MMA - 2.15% $1K+ (was 2.20%)
  8. Discover MMA - 2.00% to 2.20% (was 2.05% to 2.30%)
  9. ETrade Savings - 1.70% (was 1.95%)
  10. Imperial Capital MMA - 1.55% to 2.15% (was 1.75% to 2.25%)
  11. E-LOAN Savings Plus - 1.40% $10K+, 1.70% $50K+ (was 1.65%, 1.95%)
  12. M&T Bank eMM - 0.75% (was 1.01%)
  13. WaMu Savings - 0.85% (was 1.00%)
  14. CNB Bank Direct - 2.80% (was 3.00%)
  15. GMAC Bank Savings - 2.50% (was 2.65%)
  16. GMAC Bank MMA - 2.00% (was 2.15%)
  17. Mutual Bank MMA 3mo promo - 2.35% (was 2.65%)
  18. Emigrant Direct Savings - 1.80% (was 2.00%)
  19. Capital One/Costco Savings - 2.06% $10K+ (was 2.33%)
  20. Capital One Savings - 2.01% $10K+ (was 2.27%)
  21. Broadway Federal Bank - 3.05% (was 3.56%)
  22. FNBO Direct Savings - 2.15% (was 2.40%)
  23. Presidential - 2.25% up to $35K, 1.50% over (was 2.60%, 2.40%)
  24. Corus MMA - 2.36% (was 2.44%)
  25. Citibank Ultimate Savings - 2.00% (was 2.10%)
  26. ShoreBank Savings - 2.80% (was 3.15%)
Certificate of Deposit Rates

Short-term CD rates appeared to decline more this week than long-term CD rates. For example, GMAC Bank cut its 12-month CD rate yesterday from 2.95% to 2.85% APY, but its 36-month CD rate went up from 3% to 3.25% APY. I doubt we'll see a significant trend of rising long-term CD rates any time soon. But perhaps the widespread rate cuts are nearing an end.

Bank of America has been offering some decent deals on its 9-month Risk Free CDs and its 12-month online CDs. Rates vary by state. For certain states, I've seen rates as high as 2.50% APY for the 9-month CD and 2.75% APY for the 12-month CD.

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. 2.50% 9-mo Risk-Free CD at Bank of America - not all states (account review)
  2. 3.00% 6-mo CD at Navy FCU (account review)
  3. 3.00% 11-mo CD at Connexus CU (account review
  4. 3.19% 12-mo CD at Melrose CU (account review)
  5. 3.15% 12-mo & 4% 48-mo CD at Alliant CU (account review)
  6. 4.00% 60-mo CD at MACU - small penalty (account review)
  7. 4.00% 60-mo CD at Pentagon FCU (account review)
I also posted on some good CD deals from banks and credit unions that don't offer accounts nationwide. The best deal this week was the 5% 11-month CD at Advantis Credit Union in Oregon. Maximum deposit was $50K, so this could mean earning over $900 more than you would earn in a 3% CD. Unfortunately, the special is ending today. These hot CD deals pop up every so often, and they never last long. I don't have any more of these 5% CD deals, but there are still a few decent local deals. Refer to the recap below for the full list. Here are some of the best deals to note.
  1. 4.00% 12-mo CD at Self Reliance New York FCU (account review)
  2. 3.29% 6-mo CD & 3.87% 15-mo CD at Progressive CU in NY, NY (account review)
  3. 3% 9-mo CD & 4.25% 5-yr CD at First Priority CU in MA (account review)
  4. 3.10% 12-mo Add-On CD at Nara Bank in CA, NY, NJ (account review)
  5. 3.29% 12-mo CD at Community Bank of Nevada (account review)
  6. 3.66% 12-mo CD at South Jersey FCU (account review)
  7. 4.84% 60-mo & 3.29% 9-mo CD at a Credit Union in MD (account review)
  8. 4.50% 60-mo CD & 4% 39-mo CD at Urban Trust Bank in FL & MD (account review)
Reward Checking Accounts

I posted on three new reward checking accounts this week. The best deal of these 3 is at Bank2 which is offering a 5.01% APY on balances of up to $25K. There's an online application, and it's available nationwide. In addition, it has a rate guarantee until 1/1/2010 (see review).

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 28th, Feb 22nd, Feb 14th, Feb 7th, Feb 1st, Jan 24th, Jan 10th, Jan 3rd, Dec 27th, Dec 20th and Dec 13th.

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 March 14, 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)

Update 3/15/09: Added Danverbank into the savings account and 3-mo CD list.

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

Anonymous - #1, Saturday, March 14, 2009 - 5:56 PM

In the Bank Account Alternatives section, I wonder if Ford Interest Advantage account deserves a place. They are a checking account just like GE Interest Plus and they are presnetly offering 3.82% APY for >$50,000 balance. I admit that Ford is on much shakier ground than GE and that's what explains the higher interest rate.


1
Anonymous

Anonymous - #2, Monday, March 16, 2009 - 12:21 AM

Ford Interest Advantage is an unsecured debt offering. It is neither an insured account nor a money market mutual fund. It should be looked upon like investing in a corporate debt instrument that is more liquid than a corporate bond (which requires finding a buyer if you want to sell). The rating and credit quality are the same as a bond depending on the company's financial standing. I had invested in both the GM Demand Notes and Ford Interest Advantage programs a few years ago, but closed out both accounts.


1
Ratfink

Ratfink (anonymous) - #3, Monday, March 16, 2009 - 4:37 PM

MetroBank (www.metrobank-na.com) currently has a promotion for Money maket accounts through the month of April. 3.3% APY. (actual interest rate is 3.2511 compounded daily.) I'm not sure if you have to put in $100,000 to get this rate. MetroBank has 10 branches in the Houston Texas area and 4 in the Dallas Texas area. This promotion is not mentioned on their web page. You''l have to ask for it. I think you have to leave the account active for 3 months.


1
Anonymous

Anonymous - #4, Thursday, March 19, 2009 - 9:27 AM

Bank of America online (http://www.bankofamerica.com/deposits/checksave/index.cfm?template=cd_riskfree) has today lowered their 9-month CD to 2.25% from 2.5%.


1

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