Bank Deals Weekly Summary for June 13, 2009

Comments (2)
Jun 13, 2009 - 6:05 PM by Ken Tumin

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

Yesterday was another rare Friday without a bank failure. The big FDIC news this week was GMAC revealing that the FDIC is pressuring Ally Bank to reduce its deposit rates (see post). Several papers picked up on this news. A New York Times commentary stated:
And we as taxpayers should certainly be cheering on the F.D.I.C. in its attempts to persuade Ally to lower the costs it incurs in attracting deposits.

In the comments of that article, a reader left the following reply which I felt needed to be highlighted:
No one has paid any attention to the fact that retirees living on their savings are being forced by the Fed's policies to subsidize the earnings of banks as well as the mortgages of those who could not afford to buy their houses in the first place.

The FDIC should keep this in mind as it meddles in the deposit-rate decisions of banks.

Treasury yields hit a high on Wednesday with the 10-year note breaking 4% for the first time since October. Concerns over inflation have helped push yields higher. We'll have more info on inflation next week when the government releases the producer price index and the consumer price inflation (see Reuters article).

Inflation expectations and higher Treasury yields may be starting to have some effect on CD rates. In my rate table updates today, I noticed a few banks and credit unions offering higher long-term CD rates.

Savings Account Rates

Some long-term CD rates are rising, but I still don't see any rising-rate trend for savings accounts. There are many more cuts than rate hikes. One bit of good news is at 1st Constitution Direct which raised the standard rate on its Super Savings Account from 2.05% to 2.25% APY for balances over $10K. They continue to offer a special 2.50% APY for 3 months. 1st Constitution has done a good job over the last year in keeping their standard rate competitive (see account review).

Rate Hikes:
  1. 1st Constitution Direct Savings stnd rate - 2.25% (was 2.05%)
Rate Drops:
  1. Wilshire State Bank eLink Savings - 2.25% (was 2.75%)
  2. Corus Bank MMA - 2.09% (was 2.11%)
  3. CNB Bank Direct Savings - 2.00% (was 2.20%)
  4. Ally Bank MMA - 1.85% (was 1.90%)
  5. Discover Bank MMA - 1.50% $2.5K+ (was 1.75%)
  6. Schwab Bank Savings - 1.35% (was 1.75%)
  7. Intervest MMA - 1.75% $2.5K+ (was 1.80%)
  8. Flagstar MMA - 1.90% (was 2.00%)
  9. UmbrellaBank MMA - 1.80% (was 1.90%)
  10. OneUnited E-Savings - 1.51% (was 1.75%)
  11. Citibank Ultimate Savings - 1.40% (was 1.50%)
Certificate of Deposit Rates

As I mentioned above, I did notice a few banks and credit unions that increased rates on their long-term CDs. Two examples include US Bank raising its 59-month CD rate from 3.50% to 4.00% APY and EverBank raising its 60-month CD from 3.05% to 3.30% APY. For those looking for a 5-year CD, I still prefer PenFed over US Bank due to PenFed's less severe early withdrawal penalty. With the possibility of much higher interest rates in a couple of years, being able to break a low-interest-rate CD without too much of a penalty is an important factor.

Below are some of the best CD deals that are still active.

Best Nationwide CD Deals as of 6/13/09: Also listed are a few savings accounts with rate guarantee periods. The full list of nationwide CD rates is farther down.
  1. 3.01% 3-mo money market/checking promo at EverBank (account review)
  2. 3.01% 3-mo savings account promo at ProvidentNJ Direct (account review)
  3. 2.80% Money Market $100K+ Until 1/1/2010 at Wilshire State Bank (account review)
  4. 2.55% 3, 6, 9 & 12-mo CDs at TotalBank (account review)
  5. 2.50% 4-mo CD at Danvers Bank (account review)
  6. 2.52% 6-mo CD at Wilshire State Bank (account review)
  7. 2.30% 9-mo No-Penalty CD at Ally/GMAC Bank (account review)
  8. 3.03% 12-mo CD & 3.19% 24-mo CD at Melrose CU (account review)
  9. 2.87% 24-mo CD at Tennessee Commerce Bank (account review)
  10. 3.50% 36-mo CD & 4.00% 60-mo CD at Pentagon FCU (account review)
  11. 4.00% 59-mo CD at US Bank (account review)
Best Local CD Deals as of 6/13/09: Some of the best CD deals are from banks and credit unions that don't offer accounts nationwide. Refer to the recap section and the state index section to find all the recent local deals. Here are some of the best deals to note.
  1. 3.00% 6-mo CD at Coastal Carolina National Bank in South Carolina (account review)
  2. 2.75% 6-mo CD ($25K max) at STC Capital Bank in Chicago (account review)
  3. 2.50% 7-mo CD at Central Bank in Tampa, FL (account review)
  4. 2.80% 9-mo CD at Connex CU in CT (account review)
  5. 3.30% 13-mo CD at RockBridge Bank in GA - may be able to open by mail (account review)
  6. 3.25% 12-mo CD at Cornerstone Bank in GA (account review)
  7. 3.05% 12-mo CD at Self Reliance New York FCU (account review)
  8. 3.00% 12-mo & 2.60% 6-mo CD at LOMTO FCU in NY City (account review)
  9. 3.00% 18-mo CD at First Priority CU in MA (account review)
  10. 3.25% 24-mo CD at Jefferson Financial CU in Louisiana (account review)
  11. 3.10% 25-mo CD & 2.65% 6-mo CD at CoreFirst Bank at CO & KS (account review)
  12. 3.00% 25-mo CD at Broadway Bank in Chicago (account review)
  13. 4.50% 60-mo CD & 2.75% 12-mo CD at Urban Trust Bank in FL & MD (account review)
  14. 4.07% 60-mo CD at South Jersey FCU (account review)
Reward Checking Accounts

I reported on seven new reward checking accounts this week with rates ranging from 3.51% to 5.13% APY (see below). Banks continue to cut rates and reduce availability of these accounts. I'll be removing two banks on my nationwide list. Both have recently started to limit new accounts to their market areas. Even with recent rate cuts, the average reward checking account continues to offer rates much higher than the average online savings account. As I described in this post, if these accounts can attract the right mix of depositors, they should be able to maintain their lead over online savings accounts.

To see all of the high yield reward checking accounts available throughout the nation, please refer to my High Yield Checking website.

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

Banking News

Savings Accounts - National

CD Deals - National

Checking/Savings 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 at this page. 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 June 13, 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, Saturday, June 13, 2009 - 7:10 PM

The Money magazine article your hyperlink references is over 3 years old (March 23, 2006). It quotes rates of around 5% for money markets and over 5% for CD's. I think it is WAY out of date and should be removed. It is just SO disheartening looking at those rates we used to get compared to the next to nothing we get now !!!


1
Anonymous

Anonymous - #2, Saturday, June 13, 2009 - 8:00 PM

Well it is even more disheartening when I recall the 14% US Treasury 30 year bond rates that I could have locked into back in the early 1980's. And that was when gas cost just over $1 a gallon.


1

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