Bank Deals Weekly Summary for April 17, 2010

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Apr 17, 2010 - 7:23 PM by Ken Tumin

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

April had been quiet for bank failures, but that changed yesterday when 8 banks were closed. Banks failed in Michigan, Florida (3), Massachusetts, California (2) and Washington State. The FDIC was able to find buyers for all but the Michigan Bank, Lakeside Community Bank. In that case, the FDIC is closing the bank and mailing checks on Monday.

In some previous cases the FDIC has been able to keep the bank opened for another month to give depositors time to find another checking account. This also allows checks to clear and direct deposits to be changed. The only thing the FDIC did for the closure of Lakeside was to arranged for all government direct deposits to be redirected to another bank.

Fortunately, this type of failure is rare and for most cases another bank takes over the failed bank. The only concern for depositors are rate cuts on existing CDs. The banks that took over the other 7 banks haven't said what their plans are regarding existing CD rates. If you had a CD with a bank that has failed, please leave a comment about what the acquiring bank decided.

March CPI numbers were released this week, and inflation as measured by CPI remains tame. Low inflation gives the Fed more reasons to wait on rate hikes.

With March CPI, we can derive the next I-Bond inflation component that will start in May. It'll be only 1.54%. It's currently 3.06%. We'll have to wait to May before we'll know the next fixed rate.

There was another well-written commentary about the unfairness and hardships experienced by savers in this low-rate environment. It was published in the New York Times and describes how savers are essentially bailing out banks and borrowers:

Meanwhile, with little public attention, those consumers who acted responsibly, the ones who refrained from buying houses they could not afford and did not take out home equity loans to finance consumption, but instead saved their money for a rainy day, must feel like losers.

Last week I reviewed the major enhancements at DepositAccounts.com. I'm happy to report we released some additional features that should help you better compare rates and find banks.

Savings Account Rates

Capital One did something that has been rare these days. It raised its savings account rates for the second time this month. Its InterestPlus Savings account APY increased from 1.30% to 1.35%. It was also nice to see a big reduction of savings account rate cuts this week.

I did new reviews of two rate leaders this week. It has been over 5 months since I first reported on Incredible Bank and its high-yield checking account. Its 1.74% APY continues to be very competitive. The other rate leader is the Ready Saver Account which has been 2.00% APY since July 2009. I received some new info from the bank's CSR on this account. Unfortunately, the CSR did admit that the rate is expected to fall in the next few months.

Rate Hikes:

  1. CapitalOne/Costco InterestPlus Savings - 1.40% (was 1.35%)
  2. CapitalOne InterestPlus Savings - 1.35% (was 1.30%)

Rate Cuts:

  1. Palladian Private Bank Savings - 1.50% (was 1.55%)

Certificate of Deposit Rates

This month has been tough on CD rates. Several CD rate leaders such as PenFed and Melrose Credit Union have made significant rate cuts. I'm afraid there were a few more this week with rate cuts at Southeast Financial FCU, Doral Bank and Country Bank for Savings.

Fortunately, we have a new credit union on the list that has recently made it easy to qualify for membership. It's Fort Knox FCU, and it's offering several competitive CD rates. They also have a bonus rate for Jumbo CDs (see my review).

One little bit of good news was at Ally Bank which increased its 11-month no-penalty CD rate from 1.35% to 1.40% APY. It's not much, but for those tired of seeing their savings account rates being cut each week, this is a way to stop the cuts while not being locked into low rates for a long term period.

I still think Ally Bank's 5-year CD is a better deal due to its small 60-day early withdrawal penalty. Those concerned about the possibility that Ally may increase the penalty on existing CDs should review my post on this issue.

Reward Checking Accounts

I reviewed two new reward checking accounts this week with rates of 4.00% and 4.51% APY. This week I also took a look at how a couple of reward checking accounts have compared to savings accounts in the last few years. Rates have fallen for both types of accounts, but reward checking account rates have held up better than savings account rates.

To see all of the high yield reward checking accounts available throughout the nation, please refer to the reward checking section of DepositAccounts.com.

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

Banking News

Savings/Checking Accounts - Nationwide

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 under $100,000. 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 April 17, 2010

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:
  • Noteworthy Accounts - Local Only

3-Month Certificates of Deposit:

  • Noteworthy Accounts Available Nationwide:
  • Noteworthy Accounts - Local Only

6-Month Certificates of Deposit:

  • Noteworthy Accounts Available Nationwide:
  • Noteworthy Accounts - Local Only

9-Month Certificates of Deposit:

  • Noteworthy Accounts - Local Only

12-Month Certificates of Deposit:

  • Noteworthy Accounts Available Nationwide:
  • Noteworthy Accounts - Local Only

18-Month Certificates of Deposit:

  • Noteworthy Accounts Available Nationwide:
  • Noteworthy Accounts - Local Only

24-Month Certificates of Deposit:

  • Noteworthy Accounts Available Nationwide:
  • Noteworthy Accounts - Local Only

36-Month Certificate of Deposit:

  • Noteworthy Accounts Available Nationwide:
  • Noteworthy Accounts - Local Only

48-Month Certificate of Deposit:

  • Noteworthy Accounts Available Nationwide:
  • Noteworthy Accounts - Local Only

60-Month Certificate of Deposit:

  • Noteworthy Accounts Available Nationwide:
  • Noteworthy Accounts - Local Only

84-Month Certificate of Deposit:

  • Noteworthy Accounts - Local Only

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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