Bank Deals Weekly Summary for July 3, 2010

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• Discussion Forum Sweepstakes
• Savings Account Rates
• Rate Hikes
• Rate Cuts
• Certificate of Deposit Rates
• 4.00% 5-Year CD Available Nationwide?
• Reward Checking Accounts
• Recap for the Week - Links to This Week's Posts
• Checking/Savings/Money Market Accounts
• 3-Month Certificates of Deposit
• 6-Month Certificates of Deposit
• 9-Month Certificates of Deposit
• 12-Month Certificates of Deposit
• 18-Month Certificates of Deposit
• 24-Month Certificates of Deposit
• 36-Month Certificate of Deposit
• 48-Month Certificate of Deposit
• 60-Month Certificate of Deposit
• 84-Month Certificate of Deposit
• Various Deposit Account Deals
• Bank Account Alternatives

Happy Fourth of July! I hope the Fourth of July will be more enjoyable for you than reviewing our interest rate environment. June's unemployment report was released Friday. The good news is that the numbers don't point to a double dip recession. However, it appears job growth is going to be slow, and the Fed won't be in any rush to hike rates. The chance of a Fed rate hike before the end of the year continues to drop. The Fed funds futures are now showing the implied probability of a higher Fed funds target rate by December at 12.9% which is down from last Saturday when it was 16.8%

If you're waiting for the $250K deposit insurance limit to be made permanent, you're going to have to wait some more. This provision is in the current financial reform bill which passed the House this week, but it didn't make it through the Senate. It looks like the Senate vote won't occur until mid-July.

It appears the FDIC started the holiday weekend early. There were no bank failures on Friday. We saw a total of 86 bank failures in this first half of 2010. Last year at this time we were at 52. The NCUA was more active this week with the liquidation of one credit union which brings the total number of credit union liquidations this year to 10.

Discussion Forum 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. July 15th is the last day to enter. Please refer to the announcement post for the full details.

Savings Account Rates

Three of the banks on the top savings account list reduced rates this week. For savings accounts without balance restrictions, the top rates are currently around 1.50% APY. You can still get around 2.00% at SmartyPig, AmericaNet and Evantage Bank. However all three have balance caps.

Rate Hikes:

1. None

Rate Cuts:

1. Bank of the Sierra Reward Checking - 3.09% (was 4.09%)
2. Peoples Bank Savings - 1.30% (was 1.45%)
3. Newtown Savings Bank - 1.30% (was 1.40%)
4. Nationwide Bank MMA - 1.20% (was 1.25%)

Certificate of Deposit Rates

Many banks and credit unions reduced their CD rates this week. We lost two 1-year CD rate leaders. Incredible Bank stopped offering its 2% 12-month internet CD, and First City Bank cut its 12-month CD rate from 1.80% to 1.50% APY. Melrose Credit Union now has the best 1-year CD rate of 1.76% APY which is closely followed by Alliant Credit Union with a 1.75% APY for its Jumbo CD which requires a minimum $25K.

Most of the rate cuts came from the long-term CDs. There were several 5-year CDs with rates that fell below 3.00% this week. The best 5-year CD continues to be at Melrose Credit Union which has a 3.29% APY. The best deal in my opinion continues to be at Ally Bank. Its 5-year CD rate isn't great at 2.94% APY, but the big benefit is that it only has a 60-day interest early withdrawal penalty. As I described yesterday, this has many advantages.

4.00% 5-Year CD Available Nationwide?

There is one institution that is still offering a 4.00% APY 5-year CD. It's being offered at the Police and Fire Federal Credit Union (PFFCU) in Philadelphia. A reader commented that anyone can qualify for membership by joining an association that's open to all. Several readers have been successful in joining the credit union. However, there are reports that the credit union may change their policies regarding this association (see post).

There are some credit unions that have been enthusiastic about attracting members from outside their original market area. They clearly specify the organizations that can be joined to allow persons to qualify for membership. These credit unions include PenFed, Alliant and Northwest. However, there are some credit unions that have not been enthusiastic about new members from outside their market area. PFFCU might be an example of this.

I have two examples of how credit unions can make it difficult for out-of-state people to join even when they have easy-to-join associations in their fields of membership. One is Golden Plains Credit Union in Kansas. For a little while, people from outside of Kansas could join Golden Plains via an association and open its 6.01% reward checking account (it's still at 6.01%!). However, Golden Plains limited their reward checking account to only members who are Kansas residents.

MidWest America Federal Credit Union is another example. For a while people were able to join MidWest America via an association and open its 7.01% reward checking account (rate has fallen). The credit union changed the eligibility to require not only the association membership but also to require that you live within a certain distance from one of their branches.

PFFCU is a sizable credit union with over $3 billion in assets. So there's no reason why they can't follow Alliant and Penfed in accepting out-of-market applicants who qualify. Hopefully, PFFCU won't add barriers to membership or to opening their high-yield accounts like Golden Plains and MidWest America did. We'll have to keep an eye on PFFCU. If you applied at PFFCU, please leave a comment about how it went.

Reward Checking Accounts

I only reported on one new reward checking account this week. It's a reward checking account available at River Region Credit Union in Missouri. It has a 4.00% APY on balances up to $20K. I also did an updated review of a bank that's one of the few that are still offering 5% APY on balances up to $25K. Its name is Southern Bank, and it has branches in Arkansas and Missouri. I first reported on its 5% account in June 2009.

I wish more institutions were able to keep rates and balance caps high like Southern Bank. I reviewed one in Austin Texas that made some unfortunate changes. United Heritage Credit Union launched its reward checking account in mid 2007 with a 6.01% APY on balances up to $25K. Like many reward checking accounts, the rate has fallen. It's now 3.01% APY. In addition to cutting rates, it also stopped offering new accounts in early 2009. The nice thing about United Heritage is that it kept the 3.01% APY on balances up to $25K for existing account holders. The credit union recently started to allow new accounts again. However, those new accounts will only earn 3.01% APY on balances up to $10K.

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

• 10 Things to Look for In a Bank
• Rare Friday Without a Bank Failure - Update of States with No Recent Bank Failures
• Survey of Online Personal Finance Managers

Savings/Checking Accounts - Nationwide

• New Debit Card Cash Back Policy at PerkStreet Financial

CD Deals - National

• Update on Ally Bank's CD Deal and ACH Links
• Update on Membership Eligibility and CD Rates at PFFCU
• Incredible Bank's Hot 1-Year CD Deal is Over - Alternatives?
• Competitive CD Rates at Woodlands Commercial Bank - Available Nationwide

Checking/Savings Bonuses

• ING Direct's Independence Day Promotions - July 1st and 2nd Only
• Checking Account Bonus of up to $125 at Banco Popular - CA, FL, IL, NY & NJ

Reward Checking Accounts

• High-Yield Reward Checking Account at River Region Credit Union in MO - Local Only
• Top CD and Reward Checking Rates at Southern Bank in MO & AR
• United Heritage Credit Union in Texas Reopens Rewards Checking with Lower Cap and More Requirements

CD and Money Market Deals - Local

• Top CD, Money Market and Reward Checking Rates at Grand Bank in NJ - Local Only
• Top CD and Savings Account Rates at Harvest Community Bank in NJ - Local Only
• Special 27-Month CD with Bump Feature at Olympia Federal Savings in Washington State - Local Only
• Top Short-Term CD Rates and a Basic Reward Checking Account at Continental Bank in PA - Local Only
• Top CD & IRA CD Rates at Visions FCU in New York State - Local Only
• Top 30-Month and 60-Month CD Rates at SchoolsFirst FCU in CA - Local Only
• Top Long-Term CD Rates Continue at Police and Fire FCU in PA
• Competitive CD Rates at Security Service FCU in TX & CO - 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 July 3, 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
• 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
• Acacia Federal Savings Bank - 1.50% Checking (min $5K) account review
• Alliant Credit Union - 1.50% (min $100), account review
• Ready Saver - 1.50% account review
• NewDominion Bank - 1.40% (min $1.5K)
• Clear Sky Accounts - 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
• Newtown Savings Bank - 1.30%, account review
• Peoples Bank - 1.30% ($10K min) account review
• Ally Bank - 1.29% MMA account review
• CNB Bank Direct - 1.25% account review
• DollarSavingsDirect - 1.20% ($1K min) account review
• Nationwide Bank - 1.20% MMA (min $1K) account review
• WTDirect - 1.16% ($10K min) account review

• Noteworthy Accounts - Local Only

• Dupaco Community CU - 2.12% ($100K-$150K) (2.63% $200K+) in IL & WI
• Mid America Bank & Trust Company - 2.02% (min $10K) in MO
• Georgia Primary Bank - 1.95% MMA (min $100K) in GA

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)
• Danversbank - 1.00% (4 mo) (min $500) account review
• Southeast Financial FCU - 0.75% (min $500) account review

• Noteworthy Accounts - Local Only

• Self Reliance New York FCU - 1.65% (min $500) in NYC
• Atlanta Postal CU - 1.50% (min $2K) in GA
• Bank of Georgetown - 1.40% (4-mo) (min $1K) in Washington DC metro

6-Month Certificates of Deposit:

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

• Noteworthy Accounts Available Nationwide:

• Fort Knox FCU - 1.40% (min $500) (1.65% $100K)
• RiverLand CU - 1.25% (min $1K)
• Aurora Bank FSB - 1.24% (min $1K)
• Northrop Grumman FCU - 1.17% (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%
• Southeast Financial FCU - 1.00% (min $500) account review
• Connexus CU - 1.00% (min $500) account review

• Noteworthy Accounts - Local Only

• Luther Burbank Savings - 1.90% (5-mo) (min $10K) in SoCal, account review
• Self Reliance New York FCU - 1.85% (min $500) in NYC
• Fayetteville Bank - 1.66% (min $500) (1.82% $100K+) in TX
• Industrial Credit Union - 1.65% (min $1K) in MA
• Atlanta Postal CU - 1.60% (min $2K) in GA

9-Month Certificates of Deposit:

• Earthstar Bank - 1.30% (min $500)
• AmTrust Direct - 1.25% (min $1K)
• Discover Bank - 1.15% (min $2.5K)

• Noteworthy Accounts - Local Only

• Self Reliance New York FCU - 1.90% (min $500) in NYC
• Miami Postal Service CU - 1.76% (min $5K) in Miami, FL
• Habib American Bank - 1.50% (min $1.5K) in CA

12-Month Certificates of Deposit:

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

• Noteworthy Accounts Available Nationwide:

• Melrose CU - 1.76% (min $5K) account review
• Alliant Credit Union - 1.75% (min $25K) account review
• Franklin Synergy Bank - 1.75% (15-mo) (min $1K) account review
• North American Savings Bank - 1.75% (14-mo) (min $1K)
• Fort Knox FCU - 1.70% (14-mo) (min ?)
• CNB Bank Direct - 1.65% (shown at the bank's online banking login page)
• Sallie Mae Bank - 1.55% (no min) 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)
• Discover Bank - 1.50% (min $2.5K) account review
• First City Bank - 1.50% (min $1K) account review
• Ally Bank - 1.49% (min $0) account review
• Golf Savings Bank - 1.49% (min $10K) account review
• Choice Financial - 1.45% (13 mo) (min $5K) add-on feature, account review
• Country Bank for Savings - 1.40% (15-mo) (min $500) account review
• Northrop Grumman FCU - 1.36% (min $40K), account review
• Ally Bank - 1.35% (11-mo) (min $0) No-Penalty CD
• Delta Community CU - 1.35% (min $1K) account review
• Southeast Financial FCU - 1.30% (min $500) account review
• Wilshire State Bank - 1.15% (min $10K), liquid features, account review
• Northwest FCU - 1.00% (min $500) add-on, account review
• Connexus CU - 1.00% (min $500) account review

• Noteworthy Accounts - Local Only

• Self Reliance New York FCU - 2.22% (min $500) in NYC
• Industrial Credit Union - 1.85% (min $1K) in MA
• Library of Congress FCU - 1.85% (min $500) in Washington DC
• Fayetteville Bank - 1.82% (min $500) (1.97% $100K+) in TX
• Atlanta Postal CU - 1.80% (min $2K) in GA
• Progressive Credit Union - 1.76% in NYC
• Habib American Bank - 1.75% (min $1.5K) in CA (0.25% less in NY/NJ)
• Park Sterling Bank - 1.75% (min $1K) in NC
• Chartway FCU - 1.75% (min $10K) with chk, in parts of VA, GA, RI, NC, TX, FL, OH & NH
• Atlas Savings & Loan Assoc. - 1.71% (IRA-only) (1.66% non-IRA)(min $2.5K) in NYC
• Prudential Savings Bank - 1.71% (13-mo) (min $5K) in Philadelphia

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
• Air Force FCU - 2.20% (min $25K) (2.25% $100K+) membership restrictions 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
• Fort Knox FCU - 1.80% (min $500) (2.05% $100K+)
• RiverLand CU - 1.75% (min $1K)
• Ally Bank - 1.64% (no min)
• Discover Bank - 1.60% (min $2.5K), account review
• AmTrust Direct - 1.60% (min $1K) account review
• Acacia Federal - 1.55% (min $500)
• USAA Bank - 1.51% (min $1K) (1.86% $175K min) account review
• Southeast Financial FCU - 1.40% (min $500) account review

• Noteworthy Accounts - Local Only

• Self Reliance New York FCU - 2.33% (min $500) in NYC
• Habib American Bank - 2.20% (min $1.5K) in CA (0.20% less in NY/NJ)
• Co-op Credit Union - 2.15% (min $1K) in WI
• El Paso Area Teachers FCU - 1.91% (min $50K) in TX
• Greer State Bank - 1.85% (min $5K) in SC

24-Month Certificates of Deposit:

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

• Noteworthy Accounts Available Nationwide:

• Fort Knox FCU - 2.25% (23-mo) (min ?)
• Alliant Credit Union - 2.25% (min $25K) account review
• CNB Bank Direct - 2.15% (min $25K) (shown at the bank's online banking login page)
• Wings Financial CU - 2.07% (min $500) Limited Membership, account review
• Bank of Internet - 2.00% (min $1K)
• Ally Bank - 1.94% step-up CD
• Southeast Financial FCU - 1.50% (min $500) account review

• Noteworthy Accounts - Local Only

• Self Reliance New York FCU - 2.69% (min $500) in NYC
• First Community Bank - 2.50% (22-mo) (min $1K) in IL
• Habib American Bank - 2.50% (min $1.5K) in CA (0.25% less in NY/NJ)
• Dupaco Community CU - 2.36% (27-mo) (min $5K) in IL, WI & IA
• Library of Congress FCU - 2.20% (min $5K) in Washington DC
• Montauk Credit Union - 2.15% in NYC
• Atlanta Postal CU - 2.10% (min $2K) in GA
• Alma Bank - 2.10% in NY
• Atlas Savings & Loan Assoc. - 2.07% (min $2.5K) in NYC

36-Month Certificate of Deposit:

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

• Noteworthy Accounts Available Nationwide:

• RiverLand CU - 2.50% (min $1K)
• Alliant Credit Union - 2.50% (min $25K) account review
• Bank of Internet - 2.42% (min $1K)
• Acacia Federal Savings Bank - 2.40% (min $500) account review
• Fort Knox FCU - 2.40% (min $500) (2.65% $100K+)
• Sallie Mae Bank - 2.40% (no min) account review
• Air Force FCU - 2.35% (min $25K) membership restrictions account review
• Wings Financial CU - 2.32% (min $500) Limited Membership, account review
• USAA Bank - 2.30% (min $1K) (2.61% $175K min) account review
• Hudson City Bank - 2.25% (min $5K) account review
• Pentagon Federal CU - 2.25% (min $1K), account review
• Northrop Grumman FCU - 2.20% (min $40K), account review

• Noteworthy Accounts - Local Only

• Habib American Bank - 3.00% (min $1.5K) in CA (0.25% less in NY/NJ)
• Police & Fire Credit Union - 3.00% (min $500) in PA
• First Federal - 2.55% (min $20K) online app for residents of SC, NC, GA & FL
• Montauk Credit Union - 2.50% in NYC

48-Month Certificate of Deposit:

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

• Noteworthy Accounts Available Nationwide:

• Alliant Credit Union - 3.00% (min $25K) account review
• Bank of Internet - 2.92% (min $1K)
• Pentagon Federal CU - 2.76% (min $1K), account review
• Hudson City Bank - 2.75% (min $5K) account review
• Acacia Federal Savings Bank - 2.70% (min $500) account review
• Fort Knox FCU - 2.60% (min $500) (2.85% $100K+)
• OneWest Bank - 2.50% (min $5K) account review
• Wings Financial CU - 2.47% (min $500) Limited Membership, account review

• Noteworthy Accounts - Local Only

• Police & Fire Credit Union - 3.50% (min $500) in PA
• Bayer Heritage FCU - 3.17% (min $500) in WV, OH & SC
• LOMTO FCU - 3.00% in NYC
• CEF Credit Union - 2.76% (min $1K) 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
• Northrop Grumman FCU - 3.06% (min $40K), account review
• Hudson City Bank - 3.00% (min $5K) 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
• USAA Bank - 3.00% (min $1K) (3.31% $175K min) account review
• Sallie Mae Bank - 3.00% (no min) account review
• Fort Knox FCU - 3.00% (min $500) (3.25% $100K+)
• Wings Financial CU - 2.98% (min $500) Limited Membership, account review
• Acacia Federal Savings Bank - 2.95% (min $500) account review
• Ally Bank - 2.94% (min $0) account review
• EverBank - 2.80% ($1.5K min) account review
• Dime Savings Bank - 2.75% (min $500) account review
• OneWest Bank - 2.70% (min $5K) account review
• Connexus CU - 2.50% (min $1K) 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 - 3.43% (min $500) in WV, OH & SC
• Montauk Credit Union - 3.25% in NYC
• LOMTO FCU - 3.25% in NYC
• City National Bank - 3.25% (min $500) in NY, PA, NJ
• Qualtrust FCU - 3.04% (min $1K) in TX
• Capitol Credit Union - 3.04% (min $1K) in Austin, TX
• First Federal - 3.00% (min $1K) online app for residents of SC, NC, GA & FL
• CEF Credit Union - 3.00% (min $500) in IL & CA

84-Month Certificate of Deposit:

• Navy FCU - 3.66% ($20K min) restrictions to membership, account review
• USAA Bank - 3.55% (min $1K) (3.86% $175K min) account review
• Pentagon Federal CU - 3.51% (min $1K), account review
• Discover Bank - 3.25% (min $2.5K) (3.50% 10yr) account review
• Apple FCU - 3.20% (min $50K) (3.65% 10yr) account review
• Third Federal - 3.00% (6-yr) (min $500) account review
• Bank of America DOW - 2.86% (10-yr) (min $1K) account review

• Noteworthy Accounts - Local Only

• Montauk Credit Union - 3.75% in NYC
• West Town Savings Bank - 3.30% (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

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 - 0.15% 7-day yield (1% cashback debit MasterCard)
• Vanguard Prime Money Market Fund - 0.09% 7-day yield
• Fidelity Money Market Fund - 0.04% 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 2010, I Bond Article, I Bonds as CD Alternatives

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