Bank Deals Weekly Summary for April 3, 2010

Comments (4)
Apr 3, 2010 - 8:29 PM by Ken Tumin

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

I hope everyone is having a pleasant Easter weekend. There were not many notable bank related news stories this pre-Easter week. The most notable news story came on Friday when the Labor Department released its March employment report. It had some encouraging news. As described by Bloomberg:

yields on 10-year Treasuries and the dollar advanced after employers added the most jobs in three years, boosting optimism that the economic recovery is accelerating.

The quicker the economy recovers and unemployment declines, the sooner we'll see the Fed raise interest rates and the sooner we'll see higher deposit rates.

The FDIC took Good Friday off. No bank were closed. Instead of a bank failure summary, I reviewed states that have been free of bank failures in the last few years. Two notable states on this list are Massachusetts and Tennessee.

Savings Account Rates

Several banks and credit unions released new rates for April, and unfortunately, most of the rates were lower. Alliant Credit Union's savings account rate cut is now official. At least the checking account rate didn't fall as much. The checking account now has the same 1.50% APY as the savings account.

For those in New York City, there's a hot money market deal at Metropolitan National Bank which is offering a 2.00% APY guaranteed to 12/31/10 (see review).

In the rate change list below I've included some nationwide reward checking accounts. I have a discussion on these in the section below.

Rate Hikes:

  1. None

Rate Cuts:

  1. Consumers CU Reward Chk - 3.59% (was 4.09%)
  2. First New England FCU Reward Chk - 3.10% (was 4.10%)
  3. Southern Community Bank Reward Chk - 3.00% (was 4.00%)
  4. EBSB Direct Savings - 1.55% (was 1.67%)
  5. Alliant CU Savings - 1.50% (was 2.00%)
  6. Alliant CU Checking - 1.50% (was 1.75%)
  7. Peoples Bank Savings - 1.45% (was 1.45%)
  8. Connexus CU MMA - 1.49% $100K+ (was 1.75%)
  9. Nationwide Bank MMA - 1.30% (was 1.35%)
  10. Discover Bank MMA - 1.25% $10K (was 1.30%)
  11. Union Federal Savings - 1.10% (was 1.15%)
  12. ADB Bank Savings - 1.05% (was 1.40%)
  13. Intervest MMA - 0.90% $2.5K (was 0.99%)

Certificate of Deposit Rates

The disappointing CD news this week was at Pentagon Federal Credit Union which lowered most of its long-term CD rates by 50 basis points. However, not all credit unions lowered their CD rates in April. Melrose Credit Union continues to offer top rates on all of its terms, and Northrop Grumman FCU raised some of its long-term CDs.

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

Best Nationwide CD Deals as of 4/03/10: Also listed are savings account promos with rate guarantee periods. The full list of nationwide CD rates is farther down.

  1. 2.25% 3-mo money market/checking promo at EverBank (account review)
  2. 2.07% 12-mo CD at Melrose Credit Union (account review)
  3. 2.00% 12-mo CD at Southeast Financial FCU (account review)
  4. 2.50% 15-mo IRA-only CD at Dime Savings Bank (account review)
  5. 1.95% 15-mo CD at Franklin Synergy Bank (account review)
  6. 2.25% 24-mo CD at Alliant CU (account review)
  7. 3.00% 26/49-mo CD Package at SunTrust Bank (account review)
  8. 3.60% 60-mo CD at Apple FCU (account review)
  9. 3.55% 60-mo CD at Melrose CU (account review)
  10. 2.99% 60-mo Small-Penalty CD at Ally Bank (account review)
  11. 4.25% 84-mo IRA CD/4.00% CD at Navy FCU - Limited Membership (account review)
  12. 4.06% 84-mo CD (min $175K) at USAA Bank (account review)

Best Local CD Deals as of 4/03/10: 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. 2.30% Money Market Account (min $100K) at Georgia Primary Bank in Atlanta (account review)
  2. 2.00% MMA with rate guaranteed to 12/31/10 in NYC (account review)
  3. 2.02% 11-mo CD at First Citizens Bank in South FL (account review)
  4. 2.00% 11-mo CD at First Citizens Bank in SoCal (account review)
  5. 2.06% 12-mo CD w/chk at Chartway FCU in VA, GA, RI, NC, TX, FL & NJ (account review)
  6. 2.01% 13-mo CD at Prudential Savings Bank in PA (account review)
  7. 2.50% 22-mo & 2.00% 13-mo CD at Fort Knox FCU in KY (account review)
  8. 2.90% 25-mo CD at Legacy Bank in Milwaukee (account review)
  9. 3.20% 44-mo CD at Crescent Bank & Trust in Louisiana (account review)
  10. 3.75% 48-mo CD at Garden Savings FCU in NJ (account review)
  11. 4.00% 60-mo CD at PFFCU in Philadelphia (account review)
  12. 3.50% 60-mo CD at City National Bank in NY, NJ & PA (account review)
  13. 3.56% 72-mo CD at Broadway Federal Bank in Los Angeles (account review)
  14. 4.25% 10-year Flex-CD at First Choice CU in Florida (account review)

Reward Checking Accounts

As you can see above, several institutions that have been offering nationwide reward checking accounts cut rates this week. The three mentioned above were on my list of top reward checking accounts. These were institutions that had been offering 4%+ reward checking accounts for over two years, but even with the rate cuts, they're holding up much better than online savings accounts.

There are still many reward checking accounts with yields of 4%+. Most are local deals or being offered at credit unions with limited membership. I reported on such a credit union this week. The credit union offers a 4.01% reward checking account for balances up to $25K. Membership is primarily limited to federal employees. The other reward checking account that I mentioned doesn't have a 4% rate, but it does have a very high balance cap of $100K. The yield is 3.29% which is quite good for an account with this cap

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

CD Deals - National

Savings/Checking Accounts - Nationwide

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 3, 2010

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:

3-Month Certificates of Deposit:

  • Noteworthy Accounts Available Nationwide:

6-Month Certificates of Deposit:

  • Noteworthy Accounts Available Nationwide:

9-Month Certificates of Deposit:

12-Month Certificates of Deposit:

  • Noteworthy Accounts Available Nationwide:

18-Month Certificates of Deposit:

  • Noteworthy Accounts Available Nationwide:



24-Month Certificates of Deposit:

  • Noteworthy Accounts Available Nationwide:

36-Month Certificate of Deposit:

  • Noteworthy Accounts Available Nationwide:

48-Month Certificate of Deposit:

  • Noteworthy Accounts Available Nationwide:

60-Month Certificate of Deposit:

  • Noteworthy Accounts Available Nationwide:

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, Monday, April 5, 2010 - 7:14 AM

I disagree, respectfully, with Banking Guy's thinking as expressed in the opening of this article. We will not see interest rates rise without first experiencing inflation. And inflation is never good for us savers. Equally important, the additional "inflatodollars" of interest we might receive will boost our marginal tax rates. This leaves us with less buying power twice over. And at the bottom line it is the buying power we have, and not the number of dollars we have, that matters.

The best possible scenario for savers is deflation, accompanied by very very low interest rates. In that circumstance our taxes on interest approach zero, while our saved dollars are able to buy more and more. With deflation our savings gain buying power without our having to pay a tax penalty. The fact deflation is anathema to the Federal Reserve is just another manifestation of their all out, pedal to the metal, war on us savers. We are, to them, creepy, detestable, scum. We are also their piggy bank!


1
Anonymous

Anonymous - #2, Monday, April 5, 2010 - 4:38 PM

I read a newspaper article a few years ago about how deflation was considered far more worse than inflation.  Deflation brings with it lower real estate values (oh the horror!), lower wages, reduced business activity, more unemployment (similar to what a recession brings about too).  Deflation could also lead to a depression which could bring about a severe economic downturn.  Medical costs, education costs,and government spending would all trend downward for the first time since the 1930s.


1
Anonymous

Anonymous - #3, Monday, April 5, 2010 - 8:49 PM

I don't see Devon Bank (Chicago) on the rate cut list.  Is it because it's local?

Also, can Devon be added to the RCA Illinois list?  Your new setup makes it easy to compare with other Illinois banks/CUs.  Thanks!!


1
Anonymous

Anonymous - #4, Tuesday, April 6, 2010 - 7:10 AM

I agree with the thought that deflation is good for savers.  I guess more specifically, for retirees living on the interest from their savings.  The earlier post never said deflation was good for the economy in general.  Deflation creates winners and losers, just like inflation does.  For those who already have money in the bank, e.g., retirees, deflation increases the value of their savings without their having to earn interest on which tax is owed.  On other people it might not confer the same benefits.  I think the government is opposed to deflation because its tax take shrinks under deflation.  There is nothing worse for government than lower tax revenue coming in.


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