Dedicated to Deposits: Deals, Data, and Discussion

Bank Deals Weekly Summary for July 26, 2009

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

I'm afraid it has been yet another week of falling deposit rates. This CNN article does a good job describing this interest rate environment. In addition to Bernanke's remarks on Tuesday which he indicated that the Fed intends to keep interest rates low for an extended period, there are other issues that are putting downward pressure on rates. As the CNN article describes, more people are putting their money into banks, and banks have been reluctant to make a lot of new loans as the recession drags on. Without new loans, there's less of a need to attract deposits.

Savings Account Rates

One thing that is helping to prevent rates from falling too much is competition. Banks continue to launch new internet accounts, and they often launch with very competitive rates. I just posted on SFGI Direct yesterday. It's offering a 2.25% APY no-minimum online savings account. Capital One came out with a new account for Costco customers called InterestPlus Online Savings. It's offering a 1.85% APY for balances over $5K along with a 10% quarterly bonus on interest earned when you maintain a minimum average balance of $15,000 (see post). With new internet banks and new internet savings accounts, the question that many are asking is if it's worthwhile to open yet another savings account. Such rate chasing can be costly, and it may not mean much in the long run. However, if we give up any rate chasing, it'll make it easier on the banks to continue to cut rates.

Most would prefer to find that one perfect bank or credit union that'll keep their rates competitive for the long run. It's not perfect, but Alliant Credit Union does have a history of offering very competitive rates on its savings account. They change rates at the start of each month, and for most of this year, we've seen rate cuts for each new month. It appears this trend may be over. A FW members has reported being told that Alliant will be maintaining their 2.00% APY into August (see account review).

Below is the list of rate changes this week. There weren't any rate hikes, but there were a few new savings accounts.

New Accounts:
  1. SFGI Direct Savings - 2.25% (new)
  2. Connexus CU MMA - 2.25% (new)
  3. Peoples Bank Savings - 2.02% (new)
  4. Capital One/Costco Interest Plus Savings - 1.85% (new)
Rate Drops:
  1. American Express Savings - 1.85% (was 2.00%)
  2. Corus Bank MMA - 1.85% (was 1.90%)
  3. iGObanking Savings - 1.81% (was 1.91%)
  4. Flagstar MMA - 1.80% (was 1.90%)
  5. AmTrustDirect e-MM - 1.75% $10K+ (was 2.00%)
  6. Danvers Bank Savings - 1.65% (was 2.05%)
  7. EBSB Direct Savings - 1.55% (was 1.75%)
  8. Capital One/Costco MMA - 1.50% (was 1.60%)
  9. Zions Bank MMA - 1.46% (was 1.51%)
  10. Mutual Bank MMA - 1.37% (was 1.43%)
  11. Discover Bank MMA - 1.30% $2.5K+ (was 1.50%)
  12. Capital One MMA - 1.30% (was 1.40%)
  13. Choice Financial Savings - 1.26% to 1.76% (was 1.76% to 2.26%)
  14. UnivestDirect Savings - 1.25% (was 1.50%)
  15. OneUnited Savings - 1.01% to 1.35% (was 1.51%)
Certificate of Deposit Rates

Like savings accounts, it was a bad week for CDs. CD rates fell across all maturities. Next week is the last week of July, and many credit unions may lower their CD rates in August. NASA FCU has a July special with a very competitive 50-month 4.00% CD (see post). Connexus Credit Union has a competitive 12-month CD with a 2.50% APY (see post). Both of these credit unions allow people from any state to join and open accounts.

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

Best Nationwide CD Deals as of 7/26/09: 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. 2.50% 3-mo savings account promo at 1st Constitution Direct (account review)
  3. 2.50% 3-mo savings account promo at ProvidentNJ Direct (account review)
  4. 2.50% 12-mo CD at Connexus CU (account review)
  5. 2.30% 12-mo & 2.40% 18-mo Flex CD with Liquid Features at Wilshire State Bank (account review)
  6. 2.75% 24-mo CD at Southeast Financial FCU (account review)
  7. 4.00% 50-mo CD at NASA FCU (account review)
  8. 3.91% 60-mo CD at Melrose CU (account review)
  9. 3.50% 60-mo CD at iGObanking (account review)
Best Local CD Deals as of 7/26/09: 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. 5.00% 6-mo CD ($25K max) at Tyndall CU in Panhandle FL (account review)
  2. 2.50% 6-mo CD ($25K max) at STC Capital Bank in Chicago (account review)
  3. 2.50% 7-mo CD & 3% 13-mo CD at Members First CU in NH/MA (account review)
  4. 3.00% 9-mo CD at Bartow County Bank in GA (account review)
  5. 2.25% 8-mo CD at Northfield Bank in NY & NJ (account review)
  6. 3.05% 12-mo CD at Self Reliance New York FCU (account review)
  7. 2.84% 12-mo CD at Fort Bragg FCU in NC (account review)
  8. 2.75% 12-mo CD & 2.50% 9-mo CD at American Momentum Bank in TX & FL (account review)
  9. 2.50% 13-mo CD at Umpqua Bank in WA, OR & N. CA (account review)
  10. 3.25% 24-mo CD at Jefferson Financial CU in Louisiana (account review)
  11. 3.10% 24-mo CD & 2.50% 6-mo CD at CoreFirst Bank at CO & KS (account review)
  12. 2.75% 24-mo CD & 3.50% 48-mo & 2.75% 12-mo CD at Montauk CU in NY (account review)
  13. 4.07% 60-mo CD at United Community CU in IL & MO (account review)
  14. 4.00% 60-mo CD at Fidelity Bank of Florida (account review)
  15. 3.90% 60-mo CD at RBC Bank in Southeast US (account review)
Reward Checking Accounts

With many savings accounts with rates falling below 2%, at least we have reward checking accounts with most still offering rates above 3%. They are more of a hassle than savings accounts, but at least they give savers some choices. I reported on four new reward checking accounts this week with rates ranging from 3.25% to 4.01% APY (see below). One of these is being offered nationwide at Peoples Bank in North Carolina. The rate is currently 3.35% APY for balances up to $50K.

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

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 July 26, 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)

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