Bank Deals Weekly Summary for May 1, 2010

Comments (1)
May 1, 2010 - 7:29 PM by Ken Tumin

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

The Fed had their third meeting of 2010 on Wednesday. There was some hope for a language change in their policy statement that would replace "exceptionally low/extended period" with something less extreme. At the very least there were hopes that another FOMC member would join with Thomas Hoenig to vote for such a change. That did not happen. All FOMC members except Hoenig voted to continue the same policy statement. This Calculated Risk blog post looks into the question of how long is an "extended period". CR suggests that rate hikes will probably not begin until early 2011. However, based on the fed funds futures, there's over a 50% chance that there will be a rate hike by the November FOMC meeting.

Friday was another busy day for the FDIC with 7 bank closures. Three of the banks that failed were based in Puerto Rico. These 3 were costly closures. The FDIC's Deposit Insurance Fund (DIF) took a hit of $5.28 billion. The FDIC was able to find buyers for all 7 banks, and all deposits, except for some brokered deposits, were assumed by the acquiring banks. There was also a credit union liquidation this week.

The total number of bank failures for the year is now 64. Credit unions are holding up much better with only 6 liquidations so far this year (my bank failure review).

Savings Account Rates

The number of rate cuts have gone down. Hopefully, we're near a bottom. However, we may see more cuts from the rate leaders. One of the rate leaders, Incredible Bank, notified its customers that it will be reducing its checking account rate from 1.74% to 1.53% APY on May 3rd.

We did have one bank increase rates this week. Sallie Mae Bank raised the rate of its new online savings account from 1.25% to 1.40% APY.

Rate Hikes:

  1. Sallie Mae Bank Savings - 1.40% (was 1.25%)

Rate Cuts:

  1. Incredible Bank Checking - 1.53% eff 5/3 (was 1.74%)
  2. Grand Yield Direct Savings - 1.15% (was 1.25%)

Certificate of Deposit Rates

With a new month starting and with the Fed continuing to keep its low rate pledge, we may see more rate cuts next week. There were a few banks and credit unions that have already cut rates. These include Navy FCU, Delta Community CU, Apple FCU and Country Bank for Savings. These had been CD rate leaders.

North American Savings Bank ended its two hot CD specials which included a 2.05% 10-month CD and a 2.65% 17-month CD. It has a new CD special, but I wouldn't call it a hot deal with a 1.95% APY for a 14-month term.

There was some good news this week for those looking for top CD rates. Broadway Federal increased the rate of its 2-year online CD from 2.02% to 2.53% APY. This is available nationwide (see review). I came across another credit union with easy membership. It's RiverLand Credit Union, and you can join via an association. CD rates are as high as 3.50% APY for a 60-month term (see review).

Reward Checking Accounts

I reviewed two new reward checking accounts this week with rates of 4.01% APY and 4.25% APY. One downside to the 4.25% account is that it only applies to balances up to $10K. The vast majority of reward checking accounts have a $25K cap, but the $10K caps are becoming more common. That's another way banks can cut back on the interest they pay out.

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

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. 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 May 1, 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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Anonymous

Anonymous - #1, Monday, May 3, 2010 - 10:36 AM

Ready saver dropped to 1.75% as of May 1 2010.


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