Bank Deals Weekly Summary for May 29, 2010

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May 29, 2010 - 7:42 PM by Ken Tumin

Deposit rates may be low, but at least we don't have to worry about declines like what was seen in the stock market in May. The Dow lost 8% which was its worst May since 1940. For those who are history buffs, you might remember May 1940. That was the month that the Nazis invaded France, Belgium, Luxembourg and the Netherlands. By the end of May, France was on the verge of defeat. That must have been quite a shock to Wall Street. The Dow plunged 22% in May 1940. About 18 months later the U.S. would officially enter the war. The debt crisis that Greece and Europe are experiencing seems very minor as compared to the crisis of May 1940.

One reason why I wanted to mention this bit of history is in the spirit of Memorial Day to honor those who sacrificed their lives to ensure our nation's security and freedom. The second reason is that it puts things in perspective. Our national and global economy may have problems, but we're not facing the threats that existed in May 1940. Just like it did before, the economy will improve and deposit rates will rise.

Savings Account Rates

I'm afraid that $500 WTDirect savings account promotion didn't last long. It started on Thursday May 20th, and it ended on the morning of Monday May 24th. I'm glad many readers were able to get in on the promo before it ended. I'm also glad several readers are reporting good customer service at WTDirect.

WTDirect's standard rates haven't been the best, but they do have some nice internet bankings features that make for a useful hub account. I described the hub account concept and the internet banking features needed for a good hub account in this post on the best internet banks to use as your hub account.

One small bit of good news is that Alliant Credit Union will be maintaining its very competitive 1.50% APY on its savings account and High Rate Checking Account through June. I confirmed this when I called Alliant this week. Alliant was offering a $50 bonus for opening this High Rate Checking Account. Unfortunately, this bonus has expired, but as I described in this post, there's a lot to like about this checking account.

Rate Hikes:

  1. None

Rate Cuts:

  1. SFGI Direct Savings Account - 1.51% (was 1.65%)
  2. First Trade Union Bank High & Mighty Svg - 1.25% (was 1.50%)
  3. FNBO Direct Savings - 1.10% (was 1.25%)

Certificate of Deposit Rates

A few rate leaders such as EverBank and EBSB Direct cut their CD rates this week. On the plus side, an old rate leader, Melrose Credit Union, had a surprise rate hike on all of its CD terms. Its two most competitive CDs are its 1.76% APY 12-month CD and its 3.29% APY 60-month CD.

I hope we'll see more of these types of rate hike surprises at other banks and credit unions in the weeks ahead. With a new month starting next week, we may be seeing many rate changes especially at credit unions.

With our current interest rate environment, you may be wondering if you should continue your CD ladders with long-term CDs. I reviewed some alternatives to CD ladders this week with the pros and cons.

Reward Checking Accounts

I reported on two new reward checking accounts this week with yields of 3.50% APY and 3.81% APY. Both are local deals. We lost another 4% nationwide reward checking account this week. I reported on Monday that First Bank & Trust in South Dakota is limiting its 4% easygrow reward checking account to residents of SD, ND, MN, NE and IA. In early May I reported on four banks offering nationwide reward checking accounts paying 4% for balances of at least $25K. We're now down to two. We may not have many 4% nationwide reward checking accounts, but there are still many offering rates between 3% and 4%. I just reported on a new one with a 3.50% APY in this May 20th post.

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 29, 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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