Bank Deals Weekly Summary for June 26, 2010

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Jun 26, 2010 - 2:09 PM by Ken Tumin

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The House and Senate conference committee passed the financial overhaul bill on Friday. The bill is scheduled for a vote in both houses of Congress next week. For savers, there are two provisions that are particularly noteworthy.

One provision that will help savers is the permanent increase in the standard federal deposit insurance to $250,000. This was set to return to $100,000 at the end of 2013. This provision also retroactively increases the limit to the start of 2008 so it will also help those who had uninsured deposits at IndyMac and a few other banks that failed in early 2008.

Another provision will likely not help savers who are heavy users of cash-back credit cards and high-yield reward checking accounts. The fees banks charge retailers for processing debit card transactions will be regulated by the Federal Reserve. Also, retailers would be allowed under the bill to offer discounts for cash purchases. These provisions were fought by both large and small banks and credit unions. Another provision could hit reward checking customers hard. It allows retailers to set a $10 minimum on credit cards purchases. It's possible that PIN-based debit card purchases may still be allowed since the fees are typically much less. However, many banks require signature-based debit card purchases as part of the monthly reward checking requirements.

The Fed had another of its FOMC policy meetings this week, and as expected it continues to say the same thing about rates: "exceptionally low levels of the federal funds rate for an extended period". In the statement, the Fed painted a less rosy picture of the economic environment as compared to April. So it looks like record low deposit rates will be around for a while. This can also be seen in the Fed funds futures which show the implied probability of a higher Fed funds target rate by December at 16.8%. This is way down from last Saturday when it was at 27.2%.

Discussion Forum and the Sweepstakes

On June 16th, we at DepositAccounts.com began 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.

One useful feature of the forum that I wanted to highlight is the capability to show the latest posts and threads. Links to these are located under the forum menu. Here's a quick summary of how these work:

  • Latest Threads - This is like how the old blog worked. The latest posts for all subforums are on top.
  • Latest Posts - If someone replies in a thread, that thread will be put on top. This allows you to see the latest posts regardless if the post is the start of a thread or just a reply to an existing thread.
  • Featured Threads - This works like the "Latest Threads" page but it only includes threads that have been given the "featured" status by moderators.

If you like the old blog format in which the entire post is shown and not just the headlines, you can view the forum this way. At the top of the above pages where it says "Show results as: Thread | Posts", click on the "Posts" link.

I hope these tips make the forum easier for you to read. If you have any questions or suggestions, please leave a comment in the site feedback section.

Savings Account Rates

There were no rate changes in the top savings accounts this week. It's nice to see a week without rate cuts. On another positive note, it was reported that Alliant Credit Union will be keeping the rate at 1.50% APY through July on its Savings and High Rate Checking accounts.

Rate Hikes:

  1. None

Rate Cuts:

  1. None

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 two weeks ago.

The best 60-month CD available nationwide continues to be at Melrose Credit Union with a 3.29% APY. Several banks cut rates on their long-term CDs. These included EverBank, Acacia Federal and Hudson City Bank. These banks' 5-year CD rates are now close to 3.00% APY. It's getting hard to find 5-year CD rates above 3.00%. These rate cuts are making Ally Bank's 5-year CD look like an even better deal. Ally's current 5-year CD rate of 2.95% APY is now very close to what these other banks are offering, and unlike these other banks, Ally's early withdrawal penalty is 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 TransPecos Banks in Texas with a 3.33% APY on balances up to $25K. The nice aspect of this bank is that it's currently offering the account via an online application to all those in Texas.

I reviewed the application process of Danversbank which is one of the very few banks that are offering a nationwide 4.00% reward checking account with at least a $25K balance cap (ViewPoint Bank is the other one). The application process is easy and quick. As I mentioned in the review, my only concern is that the 4% may not hold. This is based on the big rate cut that has occurred on their internet savings account. However, it does have a long history of top rates, so hopefully, the 4.00% will last.

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/Resources

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. 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 26, 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)

Edit 6/27/10: Clarified Danversbank balance cap


Post a CommentComments
In order of date posted. - Sort by votes
cookies and grape juice

cookies and grape juice (anonymous) - #1, Saturday, June 26, 2010 - 7:46 PM

tight wad told me that sfgi is offering 1.55 buy i do not see them listed any one have any info 5 thumbs up


-5
lady marmalade

lady marmalade (anonymous) - #2, Saturday, June 26, 2010 - 7:49 PM

at these rates i will take my chances with 8 percent from bp


-5
ogrady

ogrady (anonymous) - #3, Saturday, June 26, 2010 - 7:50 PM

sfgi not accepting applications at this time


-4
Anonymous

Anonymous - #4, Saturday, June 26, 2010 - 9:16 PM

Quote from banking guy - "One provision that will help savers is the permanent increase in the standard federal deposit insurance to $250,000...This provision also retroactively increases the limit to the start of 2008 so it will also help those who had uninsured deposits at IndyMac and a few other [failed] banks"

Excuse me, why should I, the taxpayer, pay for the greed and stupidity of uninsured depositers?


4
Anonymous

Anonymous - #5, Sunday, June 27, 2010 - 5:37 AM

right on  4 5 thumbs down


-3
Anonymous

Anonymous - #6, Sunday, June 27, 2010 - 6:19 AM

To Anonymous #4 & #5

The FDIC insurance pays for the deposits in the banks when a bank fail. Banks have to pay the premium for this insurance based on the amount of their deposits.  THE TAXPAYER DOES NOT PAY FOR THE INSURED OR UNINSURED DEPOSITS OF BANKS WHEN IT FAILS.  The savers actually pay for this insurance by receiving lower rates of interest on their savings etc.


7
Anonymous

Anonymous - #9, Sunday, June 27, 2010 - 11:45 AM

To #6:

 

IndyMac and those other 2008 failed banks were only paying the insurance premiums on the first $100,000. Why are we retroactively insuring the next $150,000 that was not being insured? Who do you think pays or loans the FDIC funding if enough banks were to fail and the insurance premiums cannot cover them all for awhile?


4
tomlawler

tomlawler - #10, Sunday, June 27, 2010 - 4:21 PM

I welcome the permanent $250,000 FDIC coverage.  As far as covering those back to 2008 for $250,000, I say fine.  IndyMac and other failing banks outright lied to some depositors about whether they were fully covered or not (with that kind of investment, however, I would have made doubly sure).  Hopefully it's a lesson learned by all.


3
Anonymous

Anonymous - #12, Tuesday, June 29, 2010 - 12:31 PM

I don't like the thread forum.  I just wanted to leave a rate change comment and didn't see where I could do that.

Newtown Savings USweep account is changing it name to NSB eSavings.  There will be a limit of 6 withdrawals a month and your linked account will need to be (re)verified.

They dropped their rate to 1.30% down from 1.40.

 


1
Anonymous

Anonymous - #13, Tuesday, June 29, 2010 - 1:40 PM

With the untimely death of WV Senator Robert C. Byrd, passage of this measure has been cast into doubt.  The announcement by Senator Russ Feingold that he will not support this legislation also has not helped.  The nail down of a new $250,000 limit is not assured.


3

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