Bank Deals Weekly Summary for June 19, 2010

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Jun 19, 2010 - 6:45 PM by Ken Tumin

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The next Fed meeting starts on Tuesday with a policy statement on Wednesday. As this Barron's article describes, everyone is anticipating the same statement from the Fed about rates, "exceptionally low levels of the federal funds rate for an extended period." In fact, there's even talk that Thomas Hoenig, who has voted against this language in the last 3 FOMC meetings, may change his vote this time. With inflation continuing to remain low (consumer prices fell 0.2% in May) and with weak employment growth, the chance of a Fed rate hike by the end of the year continues to decline. This can be seen in the Fed funds futures which show the implied probability of a higher Fed funds target rate by December at 27.2% which is down from last Saturday when it was 31.5%.

Some good news for savers came out this week. The conference committee in Congress that's working to merge the financial reform bills agreed to add in a provision that would make permanent the standard $250,000 deposit insurance limit. Currently, the $250K limit is scheduled to return to $100K after December 31, 2013. According to the Los Angeles Times

The final version of the legislation is expected to pass by July 4, and the decision Tuesday by House and Senate members of the committee essentially guarantees that the increase in the industry-paid deposit insurance fund will become law.

The provision also retroactively increases the deposit insurance to $250K to the start of 2008. That would help many IndyMac depositors who lost half of their uninsured deposits when IndyMac failed in July 2008. It will also help those who were depositors at four smaller banks that failed in early 2008 (see post).

One bit of news related to DepositAccounts.com is that we have started a sweepstakes to encourage more participation in our new discussion forum. You can win up to $250 by just posting reviews in our Bank and Credit Union Reviews forum. Please refer to the announcement post for the full details.

Savings Account Rates

There weren't many savings account rate cuts this week. There was one rate cut on the High and Mighty Savings Account from First Trade Union Bank. The top rate is now 1.00% APY which is neither high nor mighty.

Rate Hikes:

  1. None

Rate Cuts:

  1. First Trade Union Bank High & Mighty Savings - 1.00% (was 1.25%)

Certificate of Deposit Rates

Incredible Bank continues to offer its hot 12-month CD deal. The blended APY is 2.00% which is the average of the 1.75% APY that's in effect for the first 6 months followed by 2.25% APY that's in effect for the second 6 months. I wrote a review of this Incredible Bank CD last Sunday.

Two past 1-year CD rate leaders cut their rate this week. North American Savings Bank reduced its 14-month CD from 1.95% to 1.75% APY, and Franklin Synergy Bank reduced the yield on its 15-month CD from 1.80% to 1.75% APY.

The best 60-month CD available nationwide continues to be at Melrose Credit Union with a 3.29% APY. The best rate for banks with nationwide 5-year CDs continues to be Hudson City Bank and Acacia Federal Savings Bank which both have a 3.15% APY. Ally Bank's 60-month CD is 20 basis points lower at 2.95% APY. This lower rate may be worth it due to Ally's small early withdrawal penalty of only 60 days of interest (see review).

Reward Checking Accounts

I only reported on one new reward checking account this week. It's a reward checking account available at Shell Federal Credit Union in Houston. The rate and balance cap are not the best: 3.08% APY on balances up to $20K.

I reviewed the application process of ViewPoint Bank which continues to offer the best nationwide reward checking rate with the largest balance cap: 4.00% APY on balances up to $50K. A reader had emailed me the problems that he experienced in the application. ViewPoint Bank doesn't make it easy for those who apply online and can't come into a branch.

To find both reward checking accounts local to you and those available nationwide, 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 June 19, 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

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
Anonymousjt

Anonymousjt (anonymous) - #1, Saturday, June 19, 2010 - 7:45 PM

if sfgi is not accepting new customers why bother to list? used them when they were at 2.20


-5
Anonymousjyt

Anonymousjyt (anonymous) - #2, Wednesday, June 23, 2010 - 12:17 PM

keep those thumbs down comming  must be from the igneous formation people who lost their welfare check at party poker  dial up rules


1
Anonymousjt

Anonymousjt (anonymous) - #3, Wednesday, June 23, 2010 - 3:27 PM

keep those thumbs down comming  have a bet as to who will get the most 50 big ones riding


1

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