Bank Deals Weekly Summary for June 5, 2010

The unemployment numbers released yesterday were weaker than had been expected. Robert Reich makes the case that we're falling into a double-dip recession. With these issues and with the dollar strengthening against the Euro as Europe's debt crisis continues, the Fed will have more reasons to keep its record low Fed funds rate target. The chance of a Fed funds rate hike by December has been going down based on the implied probability of the Fed funds futures. The probability has fallen from 42% two weeks ago to 37%.

Three banks failed yesterday bringing the year's total to 81. Two of the banks were small, but one of the three, TierOne Bank in Nebraska, was sizable with $2.8 billion in assets and 69 offices in NE, IA and KS. The FDIC arranged for Great Western Bank to assume all deposits even those above the FDIC limit. One of the small banks that failed, Arcola Homestead Savings Bank in Illinois, didn't have a buyer. Thus, the FDIC will be mailing checks of the insured deposits. The third bank that failed was First National Bank in Mississippi. The most interesting aspect of this closure was Bankrate's safe and sound rating of this bank: 4 stars (sound) based on 12/31/09 data. Failed banks typically have a 1-star Bankrate rating at the time of closure.

We released another new feature to DepositAccounts.com. It's a discussion forum, and it's replacing the Open Discussion Thread and the Notices section. The forum was designed from scratch with many hooks to help in the reporting and reviewing of bank deals. I described many of the forum features in yesterday's announcement.

Savings Account Rates

The top non-promo rate without a balance limitation fell from 1.85% to 1.60% APY this week. That was the yield drop of the money market account at Fort Knox Federal Credit Union for its $50K tier. The two higher non-promo rates both have balance caps: SmartyPig's 2.15% savings account is capped at $50K and AmericaNet/Evantage's 2.00% Mega Money Market Account is capped at $35K. The sister of these two banks, Redneck Bank, has stopped accepting applications for its Mega Money Market Account.

At least we have several banks and credit unions maintaining 1.50% APY on their savings and/or checking accounts. The tough question is which of these will be able to maintain this rate through the year. Based on history, my guess is Alliant Credit Union. The bank Clear Sky Accounts doesn't have quite the history of Alliant, but it has kept a very competitive savings account since it was launched in January 2009.

It's not quite 1.50%, but Capital One Direct Banking's InterestPlus Online Savings Account is close. The yield is 1.40% for Costco members. Plus, if you maintain at least $15K, you can qualify for another 0.14%. However, it does have some downsides. I did another review of this account this week.

Rate Hikes:

1. None

Rate Cuts:

1. Fort Knox FCU Money Market Account - 1.60% $50K+ (was 1.85%)

Certificate of Deposit Rates

There weren't many CD rate cuts this week. The largest one came at Broadway Federal which had the best 2-year CD with a 2.53% APY. The yield fell to 2.02% APY this week.

For those looking for 24-month or 18-month CDs, Alliant Credit Union continues to offer top rates for both: 2.25% APY for the 24-month CD and 2.00% APY for the 18-month CD.

Another good CD deal that continues is the 1.95% APY 14-month CD special at North American Savings Bank.

The best nationwide 5-year CD continues to be at Melrose Credit Union with a 3.29% APY. However, don't forget that Melrose has a harsh early withdrawal penalty. You might want to consider sacrificing 0.30% on the yield for Ally Bank's 2.99% APY 60-month CD which has the most friendly early withdrawal penalty of only 60 days of interest (see review). This deal is getting more publicity. The NYT Bucks blog reported on this deal on Wednesday.

Reward Checking Accounts

I didn't report on any new reward checking accounts this week. However, I did another review of an account that I first reported on in 2008. The reward checking account pays 5.01% APY on balances of up to $25K. It's offered by Texas Citizens Bank which serves the Houston metro area

Another reward checking account that continues to be a good deal is at Bank of the Sierra which offers 4.09% APY on balances up to $25K. I did another review of this along with its companion reward savings account that pays 2.09% APY on balances of up to $25K. For those with $50K of savings, you can earn 4.09% APY on the $25K in the checking and 2.09% APY on the $25K in the savings. You have to ensure you meet the reward checking qualifications. Otherwise the entire $50K will earn only 0.12%. Bank of the Sierra used to offer its reward checking account nationwide. It's now only available to residents of CA and WV (I and a reader speculate about why WV is included).

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

• The New DepositAccounts.com Discussion Forum
• Three Banks Failed Today Including TierOne Bank in Nebraska
• Giving Thanks this Memorial Day and Looking Back at May 1940

Savings/Checking Accounts - Nationwide

• Update on the Huckabay's Internet Banks and Their Top Rates
• SmartyPig Gift Card for a Graduation Gift
• Capital One Direct Banking Review

CD Deals - National

• The Best CD Rate is Not Always the Best Deal
• Potential Issues of Step-Up Certificates of Deposit
• Top CD Rates at Connexus Credit Union - Easy Membership

Checking/Savings Bonuses

• Update on Chase Checking Account Bonus & ACH Transfers

Reward Checking Accounts

• Update on the Best Reward Checking Account in Houston Texas
• High-Yield Savings Account for Bank of the Sierra Reward Checking Customers - CA & WV Only

CD and Money Market Deals - Local

• Competitive CD Rates at Anderen Bank in Florida - Local Only
• Top CD and Reward Checking Rates at Crossroads Bank in Southwest IL - Local Only
• Competitive 18-Month Special CD at Investors Community Bank in WI - Local Only
• Top CD and Checking Account Rates at Industrial Credit Union in MA - Local Only
• Competitive 14-Month CD Special at Mansfield Bank in MA - Local Only

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 5, 2010

Checking/Savings/Money Market Accounts:

• Best Reward Checking Account Rates (Nationwide & by State)
• Best Savings Account Rates (Nationwide & by State)
• Best Money Market Rates (Nationwide & by State)
• Best Checking Account Rates (Nationwide & by State)

• Noteworthy Accounts Available Nationwide:

• EverBank - 2.25% ($5K min), 3 mo promo rate up to $50K (1.26% stnd) account review
• SmartyPig - 2.15% (min $25, max $50K) withdrawal restrictions, account review
• AmericaNet/Evantage Bank - 2.00% (up to $35K, 1% over) account review
• Fort Knox FCU - 1.60% MMA (min $50K)
• Incredible Bank - 1.53% Checking ($1K min) account review
• SFGI Direct - 1.51% ($25 min), NOT accepting new customers, account review
• Palladian PrivateBank - 1.50% (min $10K) account review
• 1st Constitution Direct - 1.50% (min $10K) New accounts only (1.25% $10K+ stnd) account review
• Acacia Federal Savings Bank - 1.50% Savings guaranteed to 7/4/2010
• Acacia Federal Savings Bank - 1.50% Checking (min $5K) account review
• NewDominion Bank - 1.50% (min $1.5K)
• Clear Sky Accounts - 1.50% account review
• Alliant Credit Union - 1.50% (min $100), account review
• Ready Saver - 1.50% account review
• Peoples Bank - 1.45% ($10K min) account review
• Newtown Savings Bank - 1.40%, account review
• Capital One/Costco - 1.40% InterestPlus Savings ($5K min) quarterly bonuses for $15K+, account review
• Sallie Mae Bank - 1.40% (Upromise rewards) account review
• Discover Bank - 1.35% Savings (min $500) account review
• Capital One - 1.35% InterestPlus Savings ($2.5K min) quarterly bonuses for $15K+, account review
• American Express Bank - 1.30%, account review
• Colorado Federal Savings Bank - 1.30% ($2.5K min) account review
• Ally Bank - 1.29% MMA account review
• First Trade Union Bank - 1.25% ($2.5K min) account review
• CNB Bank Direct - 1.25% account review
• Nationwide Bank - 1.25% MMA (min $1K) account review
• DollarSavingsDirect - 1.20% ($1K min) account review
• WTDirect - 1.16% ($10K min) account review

• Noteworthy Accounts - Local Only

• Dupaco Community CU - 2.17% ($100K-$150K) (2.68% $200K+) in IL & WI
• Georgia Primary Bank - 2.15% MMA (min $100K) in GA
• Mid America Bank & Trust Company - 2.02% (min $10K) in MO

3-Month Certificates of Deposit:

• Best 3-Month CD Rates (Nationwide & by State)

• Noteworthy Accounts Available Nationwide:

• Fort Knox FCU - 1.40% (min $500) (1.65% $100K+)
• RiverLand CU - 1.00% (min $1K)
• Southeast Financial FCU - 1.00% (min $500) account review
• Danversbank - 1.00% (4 mo) (min $500) account review

• Noteworthy Accounts - Local Only

• Self Reliance New York FCU - 1.75% (min $500) in NYC
• Atlanta Postal CU - 1.50% (min $2K) in GA

6-Month Certificates of Deposit:

• Best 6-Month CD Rates (Nationwide & by State)

• Noteworthy Accounts Available Nationwide:

• Connexus CU - 1.50% (min $500) account review
• Southeast Financial FCU - 1.40% (min $500) account review
• Fort Knox FCU - 1.40% (min $500) (1.65% $100K)
• RiverLand CU - 1.25% (min $1K)
• Aurora Bank FSB - 1.25% (min $1K)
• Northrop Grumman FCU - 1.21% (min $40K), account review
• Discover Bank - 1.15% (min $2.5K)
• Country Bank for Savings - 1.15% (min $500) account review
• Ally Bank - 1.14%

• Noteworthy Accounts - Local Only

• Self Reliance New York FCU - 1.97% (min $500) in NYC
• Luther Burbank Savings - 1.90% (5-mo) (min $10K) in SoCal, account review
• Fayetteville Bank - 1.76% (min $500) (1.92% $100K+) in TX
• Atlanta Postal CU - 1.75% (min $2K) in GA
• Industrial Credit Union - 1.70% (min $1K) in MA
• Greer State Bank - 1.60% (min $5K) internet only, in SC
• Blueharbor Bank - 1.40% (7-mo) in NC

9-Month Certificates of Deposit:

• Earthstar Bank - 1.35% (min $500)
• AmTrust Direct - 1.25% (min $1K)
• EBSB Direct - 1.25% (may be limited New England & NY State) (10-mo) (min $1K) account review

• Noteworthy Accounts - Local Only

• Self Reliance New York FCU - 2.02% (min $500) in NYC
• Greer State Bank - 1.65% (min $5K) internet only, in SC

12-Month Certificates of Deposit:

• Best One-Year CD Rates (Nationwide & by State)

• Noteworthy Accounts Available Nationwide:

• North American Savings Bank - 1.95% (14-mo) (min $1K)
• First City Bank - 1.80% (min $1K) account review
• Franklin Synergy Bank - 1.80% (15-mo) (min $1K) account review
• Melrose CU - 1.76% (min $5K) account review
• Connexus CU - 1.75% (min $500) account review
• Alliant Credit Union - 1.75% (min $25K) account review
• Fort Knox FCU - 1.70% (14-mo) (min ?)
• CNB Bank Direct - 1.65% (shown at the bank's online banking login page)
• Southeast Financial FCU - 1.65% (min $500) account review
• Acacia Federal Savings Bank - 1.65% (15-mo) (min $500) account review
• Golf Savings Bank - 1.59% (15-mo) (min $10K) account review
• Bank of Internet - 1.54% (min $1K) account review
• NewDominion Bank - 1.51% (min $3K) account review
• RiverLand CU - 1.50% (min $1K)
• Delta Community CU - 1.50% (min $1K) account review
• Discover Bank - 1.50% (min $2.5K) account review
• Ally Bank - 1.50% (min $0) account review
• Choice Financial - 1.45% (13 mo) (min $5K) add-on feature, account review
• Northrop Grumman FCU - 1.43% (min $40K), account review
• Wilshire State Bank - 1.40% (min $10K), liquid features, account review
• Country Bank for Savings - 1.40% (15-mo) (min $500) account review
• Ally Bank - 1.35% (11-mo) (min $0) No-Penalty CD
• Northwest FCU - 1.05% (min $500) add-on, account review

• Noteworthy Accounts - Local Only

• Self Reliance New York FCU - 2.33% (min $500) in NYC
• Progressive Credit Union - 2.12% in NYC
• Industrial Credit Union - 2.00% (min $1K) in MA
• Atlanta Postal CU - 2.00% (min $2K) in GA
• Atlas Savings & Loan Assoc. - 1.92% (IRA-only) (1.77% non-IRA)(min $2.5K) in NYC
• Fayetteville Bank - 1.92% (min $500) (2.07% $100K+) in TX
• Chartway FCU - 1.90% (min $10K) with chk, in parts of VA, GA, RI, NC, TX, FL, OH & NH
• Prudential Savings Bank - 1.81% (13-mo) (min $5K) in Philadelphia
• Park Sterling Bank - 1.75% (min $1K) in NC

18-Month Certificates of Deposit:

• Best 18-Month CD Rates (Nationwide & by State)

• Noteworthy Accounts Available Nationwide:

• Citibank - 4.07% (min $200) (max $5K) requires secured credit card, account review
• Alliant Credit Union - 2.00% (min $25K) account review
• CNB Bank Direct - 1.85% (shown at the bank's online banking login page)
• Pacific Mercantile Bank - 1.82% IRA-only (min $7.5K) account review
• Southeast Financial FCU - 1.80% (min $500) account review
• Fort Knox FCU - 1.80% (min $500) (2.05% $100K+)
• RiverLand CU - 1.75% (min $1K)
• Acacia Federal - 1.75% (min $500)
• Discover Bank - 1.60% (min $2.5K), account review
• AmTrust Direct - 1.60% (min $1K) account review
• USAA Bank - 1.51% (min $1K) (1.86% $175K min) account review

• Noteworthy Accounts - Local Only

• First Community Bank - 2.50% (min $1K) in IL
• Self Reliance New York FCU - 2.40% (min $500) in NYC
• Co-op Credit Union - 2.15% (min $1K) in WI
• Midstate Federal Savings - 2.10% (19-mo) (min $10K) in Baltimore, MD, account review
• El Paso Area Teachers FCU - 2.07% (min $50K) in TX
• Alma Bank - 2.00% in NY
• Greer State Bank - 1.95% (min $5K) in SC

24-Month Certificates of Deposit:

• Best Two-Year CD Rates (Nationwide & by State)

• Noteworthy Accounts Available Nationwide:

• Fort Knox FCU - 2.30% (23-mo) (min ?)
• America's CU - 2.25% (29 mo) (min $500) account review
• Alliant Credit Union - 2.25% (min $25K) account review
• Wings Financial CU - 2.17% (min $500) Limited Membership, account review
• CNB Bank Direct - 2.15% (min $25K) (shown at the bank's online banking login page)
• Tennessee Commerce Bank - 2.05% (min $2.5K)
• Broadway Federal - 2.02% (min $1K)
• Southeast Financial FCU - 2.00% (min $500) account review
• Bank of Internet - 2.00% (min $1K)
• Ally Bank - 1.94% step-up CD

• Noteworthy Accounts - Local Only

• Self Reliance New York FCU - 2.69% (min $500) in NYC
• Sovereign Bank (TX) - 2.52% (min $25K) in TX
• Dupaco Community CU - 2.46% (27-mo) (min $5K) in IL, WI & IA
• Alma Bank - 2.30% in NY
• Atlanta Postal CU - 2.25% (min $2K) in GA
• Atlas Savings & Loan Assoc. - 2.22% (min $2.5K) in NYC
• Montauk Credit Union - 2.15% in NYC

36-Month Certificate of Deposit:

• Best 3-Year CD Rates (Nationwide & by State)

• Noteworthy Accounts Available Nationwide:

• EBSB Direct - 2.75% (may be limited New England & NY State) (min $1K) account review
• Broadway Federal - 2.53% (min $1K)
• RiverLand CU - 2.50% (min $1K)
• Tennessee Commerce Bank - 2.50% (min $2.5K)
• Acacia Federal Savings Bank - 2.50% (min $500) account review
• Clear Sky Accounts - 2.50% (30-mo) (min $5K)
• Pentagon Federal CU - 2.50% (min $1K), account review
• Alliant Credit Union - 2.50% (min $25K) account review
• Wings Financial CU - 2.42% (min $500) Limited Membership, account review
• Bank of Internet - 2.42% (min $1K)
• Fort Knox FCU - 2.40% (min $500) (2.65% $100K+)
• Hudson City Bank - 2.35% (min $5K) account review
• Air Force FCU - 2.35% (min $25K) membership restrictions account review
• Northrop Grumman FCU - 2.33% (min $40K), account review
• USAA Bank - 2.30% (min $1K) (2.61% $175K min) account review

• Noteworthy Accounts - Local Only

• Police & Fire Credit Union - 3.00% (min $500) in PA
• Anderen Bank - 2.90% (min $1K) (3% $100K) in FL
• Atlas Savings & Loan Assoc. - 2.56% (IRA-only) (min $2.5K) in NYC
• First Federal - 2.55% (min $20K) online app for residents of SC, NC, GA & FL
• Qualtrust FCU - 2.53% (min $1K) in TX
• Montauk Credit Union - 2.50% in NYC

48-Month Certificate of Deposit:

• Best 4-Year CD Rates (Nationwide & by State)

• Noteworthy Accounts Available Nationwide:

• Acacia Federal Savings Bank - 3.00% (min $500) account review
• Alliant Credit Union - 3.00% (min $25K) account review
• Bank of Internet - 2.92% (min $1K)
• Hudson City Bank - 2.85% (min $5K) account review
• Pentagon Federal CU - 2.76% (min $1K), account review
• Fort Knox FCU - 2.60% (min $500) (2.85% $100K+)
• Wings Financial CU - 2.47% (min $500) Limited Membership, account review

• Noteworthy Accounts - Local Only

• Bayer Heritage FCU - 3.69% (min $500) in WV, OH & SC
• Police & Fire Credit Union - 3.50% (min $500) in PA
• LOMTO FCU - 3.14% in NYC
• Qualtrust FCU - 3.04% (min $1K) in TX
• Texas Citizens Bank - 3.01% (min $10K) one-time bump, in TX
• CEF Credit Union - 2.90% (min $500) in IL & CA
• Montauk Credit Union - 2.75% in NYC

60-Month Certificate of Deposit:

• Best 5-Year CD Rates (Nationwide & by State)

• Noteworthy Accounts Available Nationwide:

• Melrose CU - 3.29% (min $5K) account review
• Connexus CU - 3.25% (min $1K) account review
• Acacia Federal Savings Bank - 3.25% (min $500) account review
• Hudson City Bank - 3.15% (min $5K) account review
• EverBank - 3.06% ($1.5K min) account review
• RiverLand CU - 3.00% (min $1K)
• BankUnited - 3.00% (min $5K) account review
• Pentagon Federal CU - 3.00% (min $1K), account review
• Mountain America CU - 3.00% (min $1K) account review
• OneWest Bank - 3.00% (min $5K) account review
• Dime Savings Bank - 3.00% (min $500) account review
• USAA Bank - 3.00% (min $1K) (3.31% $175K min) account review
• Fort Knox FCU - 3.00% (min $500) (3.55% $100K+)
• Ally Bank - 2.99% (min $0) account review
• Northrop Grumman FCU - 2.99% (min $40K), account review
• Wings Financial CU - 2.98% (min $500) Limited Membership, account review
• Apple FCU - 2.90% (min $50K) account review

• Noteworthy Accounts - Local Only

• Ohio Valley Community CU - 4.02% (min $1K) in OH
• Police & Fire Credit Union - 4.00% (min $500) in PA
• Bayer Heritage FCU - 3.94% (min $500) in WV, OH & SC
• LOMTO FCU - 3.56% in NYC
• City National Bank - 3.50% (min $500) in NY, PA, NJ
• Qualtrust FCU - 3.30% (min $1K) in TX
• Montauk Credit Union - 3.25% in NYC
• MainStreet Bank - 3.25% (min $500) in VA
• First Federal - 3.25% (min $1K) online app for residents of SC, NC, GA & FL
• CEF Credit Union - 3.05% (min $500) in IL & CA

84-Month Certificate of Deposit:

• Navy FCU - 3.75% ($20K min) restrictions to membership, account review
• Broadway Federal - 3.56% (72-mo) (min $1K)
• USAA Bank - 3.55% (min $1K) (3.86% $175K min) account review
• Pentagon Federal CU - 3.51% (min $1K), account review
• Apple FCU - 3.45% (min $50K) (3.90% 10yr) account review
• Discover Bank - 3.25% (min $2.5K) (3.50% 10yr) account review
• Bank of America DOW - 3.02% (10-yr) (min $1K) account review
• Third Federal - 3.00% (6-yr) (min $500) account review

• Noteworthy Accounts - Local Only

• Montauk Credit Union - 3.75% in NYC
• West Town Savings Bank - 3.56% (min $1K) in Chicagoland

Various Deposit Account Deals

• Checking/Savings Account Bonuses
• Best IRA CD rates, local and nationwide deals
• Latest CD and Savings Account Deals with No Major Deposit Limitiations

High Yield Reward Checking Accounts - Open to All

• Reward Checking Accounts Available Nationwide

Recent CD Specials at Local Credit Unions and Banks

• Best Deals and CD Rates by State

Bank Account Alternatives

• GE Interest Plus - 1.70% rate for $50k+
• Vanguard Tax-Exempt Money Market Fund - 0.15% 7-day yield
• Paypal Money Market Fund - 0.12% 7-day yield (1% cashback debit MasterCard)
• Vanguard Prime Money Market Fund - 0.06% 7-day yield
• Fidelity Money Market Fund - 0.02% 7-day yield (reviews on Fatwallet)
• Fidelity Municipal Money Market Fund - 0.01% 7-day yield
• TIAA-CREF Money Market Fund - 0.00% 7-day yield
• FW Thread on Treasury Bills
• I Bonds for 2009, I Bond Article, I Bonds as CD Alternatives

Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)