Best Bank Account Interest Rates - Summary for January 8, 2011

When I first saw the employment report yesterday, I thought it looked very promising with a drop in the unemployment rate from 9.8% to 9.4%. Before the Fed starts hiking rates, we're going to need to see some big reductions in the unemployment rate. This drop in unemployment was a step in the right direction, but it turns out the news was mixed. According to this Washington Post article:

The improvement, however, reflected not only people finding jobs but also a nearly equal number giving up and dropping out of the workforce. Employers added only 103,000 jobs to their payrolls, an improvement from November yet too few to keep up with population growth.

And in testimony at a Senate committee meeting on Friday, Bernanke repeated the projections that "it could take four to five more years for the job market to normalize fully." Nevertheless, the signs of economic growth continue, and this may be the reason for the change in the Fed funds future charts. The charts are showing the implied probability of a higher Fed funds rate by next December at 55.3% which is up from 47.2% from last week.

The FDIC was back in action after the holidays with the first bank closures for the new year. Two small banks were closed on Friday: one in Florida and one in Arizona. How will 2011 compare to 2010 in terms of bank closures? I reviewed this topic in my review of 2010 bank failures.

Savings Account Rates

The big disappointment for the week was the rate cut at SmartyPig. Its savings account rate dropped from 1.75% APY to 1.35% APY for balances up to $50K. I had hoped its balance cap and its other unique features would have allowed it to remain as a rate leader. Apparently, BBVA Compass has other ideas.

AmericaNet Bank and Evantage Bank are now the only ones offering 1.75% APY for a non-promo rate. This applies to balances up to $35K. These both are small banks that are owned by the same family. They've done a good job in the last two years in remaining rate leaders.

Rate Hikes:

1. None

Rate Cuts:

1. SmartyPig Savings - 1.35% up to $50K (was 1.75%)

Certificate of Deposit Rates

With the start of the new month, I was worried we would see many CD rate cuts, but for the CDs that I include in my short lists, most banks and credit unions held their rates the same. This includes rate leaders like Connexus Credit Union, Melrose Credit Union, America's Credit Union and CNB Bank Direct. PenFed was one of the few that did reduced CD rates in January. However, those who were able to reserve CDs last September are now receiving CD yields as high as 5.00%.

For those who are looking for decent rates on CDs, it's not easy. Even finding a 3.00% APY is difficult. The only institution that's offering a 3.00% 5-year CD that's available nationwide is Connexus Credit Union. However, as I described in my review, it requires an active checking account. If 5 years is too long for you, it's also offering top yields on its 6-month and 12-month CDs. Like the 5-year CD, these also require an active checking account. One thing that makes this requirement less onerous is that Connexus does offer a free reward checking account.

Reward Checking Accounts

Not only is it tough to find 3% CDs, it's also becoming difficult finding 3% reward checking accounts. As I described on Thursday, we now only have two banks with nationally available reward checking accounts with yields of 3% for balances up to $25K. We lost one when the bank cut its rate to 2.25%, and we lost another when the bank started limiting new accounts to Illinois and Missouri. If you want rates higher than 3% for balances up to $25K, you'll need to look within your state. There are still some local deals with yields that range from 4.00% to 5.00%.

To find reward checking accounts available nationwide or to find those that are only available in your state, please refer to the reward checking section of DepositAccounts.com.

Recap for the Week - Links to This Week's Posts

Banking News/Resources

• A Florida Bank and an Arizona Bank Closed by Regulators
• FDIC Rate Restrictions - Past and Future Impact?

Savings/Checking Accounts - Nationwide

• SmartyPig Quietly Cuts its Savings Account Rate

CD Deals - National

• Special 14-Month IRA CD at Apple Federal Credit Union - Easy Membership
• Wilshire State Bank's Installment Savings Account

Checking/Savings Bonuses

• $100 Checking Account Bonus at Union Bank in Select California Branches
• PNC Bank's $100 Checking Account Promotion in Certain States

Reward Checking Accounts

• Top CD & Reward Checking Rates at Tinker FCU in Oklahoma - Local Only
• Updates to the List of Nationally Available Reward Checking Accounts
• Top Reward Checking and 5-Year CD Rates Continue at RCB Bank in KS & OK - Local Only

CD and Money Market Deals - Local

• BBVA Compass Adds Monthly Fees to Build-to-Order Checking
• Top 7-Year CD Rate at West Town Savings Bank in Illinois
• Why Police and Fire FCU CD Rates Have Been So High
• High CD Rates Continue at the Exclusive Progressive Credit Union in New York City
• Competitive Long-Term CD Rates at Danversbank in MA - Local Only
• Top Long-Term CD Rates at South Jersey Federal Credit Union - 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.

Rates as of January 8, 2011

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 - 2.01% ($5K min), 3-mo promo rate up to $50K (1.06% ongoing) account review
• AmericaNet/Evantage Bank - 1.75% (up to $35K, 1% over) account review
• The Morrill and James Bank - 1.51% Checking (min $1.5K) account review
• Flagstar Direct - 1.50% 4-mo promo (0.85% ongoing) account review
• SFGI Direct - 1.41% (min $500 to open) account review
• Ready Saver - 1.35% account review
• Incredible Bank - 1.35% Checking ($1K min) account review
• SmartyPig - 1.35% (min $25, max $50K) withdrawal restrictions, account review
• Sallie Mae Bank - 1.30% (Upromise rewards) account review
• Clear Sky Accounts - 1.30% account review
• American Express Bank - 1.30%, account review
• Capital One/Costco - 1.30% InterestPlus Savings ($5K min) quarterly bonuses for $10K+, account review
• H&R Block Bank - 1.25% MMA (min $50K) account review
• Discover Bank - 1.25% Savings (min $500) account review
• Capital One - 1.25% InterestPlus Savings ($1K min) quarterly bonuses for $10K+, account review
• Hudson City Savings Bank - 1.25% (min $2.5K)
• WTDirect - 1.21% ($10K min) account review
• CNB Bank Direct - 1.20% account review
• Alliant Credit Union - 1.15% (min $100) account review
• Zions Bank - 1.11% ($1K min)
• Colorado Federal Savings Bank - 1.10% ($2.5K min) account review
• DollarSavingsDirect - 1.10% ($1K min) account review
• ING Direct - 1.10% Orange Savings
• Ally Bank - 1.09% MMA account review

• Noteworthy Accounts - Local Only

• Mid America Bank & Trust Company - 1.54% (min $10K) in MO
• Affinity Bank (formerly Atlanta Business) - 1.40% MMA (min $100K) in GA
• Solera National Bank - 1.25% (min $100) in CO

3-Month Certificates of Deposit:

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

• Noteworthy Accounts Available Nationwide:

• Self-Help CU - 1.01% (min $500) account review
• Fort Knox FCU - 1.00% (min $500)
• TotalBank - 0.85% e-CD (min $1K)
• Virtual Bank - 0.75% (min $10K)
• Ally Bank - 0.64%

• Noteworthy Accounts - Local Only

• Self Reliance New York FCU - 1.45% (min $500) in NYC
• Bank of Georgetown - 1.40% (4-mo w/relationship) (min $1K) in Washington DC metro
• NavyArmy FCU - 1.30% (min $100K) in South TX

6-Month Certificates of Deposit:

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

• Noteworthy Accounts Available Nationwide:

• Connexus CU - 1.50% Active checking required, account review
• America's Credit Union - 1.25% (min $25K)
• Aurora Bank FSB - 1.10% (min $1K)
• Colorado Federal Savings Bank - 1.10% ($5K min)
• Virtual Bank - 1.06% (min $10K)
• OneWest Bank - 1.05% (min $1K)
• Ally Bank - 1.04%

• Noteworthy Accounts - Local Only

• Massena Savings and Loan - 2.56% IRA-only (min $2.5K) in NY
• Self Reliance New York FCU - 1.65% (min $500) in NYC
• Affinity Bank (formerly Atlanta Business) - 1.41% (min $1K) in GA
• Industrial Credit Union - 1.40% (min $1K) in MA
• NavyArmy FCU - 1.40% (min $100K) in South TX
• F&A Federal Credit Union - 1.40% (min $50K) in CA
• Fayetteville Bank - 1.26% (min $500) (1.41% $100K+) in TX

9-Month Certificates of Deposit:

• Dime Savings Bank - 1.65% (10-mo) (min $500) req active chk account review
• TotalBank - 1.15% e-CD (min $1K)
• Virtual Bank - 1.11% (min $10K)
• Easthampton Savings Bank - 1.10% (min $1K)
• OneWest Bank - 1.10% (min $1K)
• Discover Bank - 1.05% (min $2.5K)

• Noteworthy Accounts - Local Only

• Miami Postal Service CU - 1.76% (min $5K) in Miami, FL
• Self Reliance New York FCU - 1.70% (min $500) in NYC
• NavyArmy FCU - 1.45% (min $100K) in South TX

12-Month Certificates of Deposit:

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

• Noteworthy Accounts Available Nationwide:

• Connexus CU - 1.75% Active checking required, account review
• RTN Federal Credit Union - 1.55% (min $50K)
• America's Credit Union - 1.55% (13-mo) (min $25K)
• CNB Bank Direct - 1.50% (min $25K) (shown at the bank's online banking login page) account review
• Melrose CU - 1.41% (min $5K) account review
• Bank of Internet - 1.41% (min $1K) account review
• Salem Five - 1.35% (14-mo) (min $10K)
• North American Savings Bank - 1.35% (14-mo) (min $1K)
• Colorado Federal Savings Bank - 1.35% (min $5K)
• Alliant Credit Union - 1.30% (min $25K) account review
• Discover Bank - 1.30% (min $2.5K) account review
• Incredible Bank - 1.30% (min $10K)
• Sallie Mae Bank - 1.30% (no min) account review
• Ally Bank - 1.29% (min $0) account review
• Choice Financial - 1.25% (13 mo) (min $5K) add-on feature, account review
• Ally Bank - 1.20% (11-mo) (min $0) No-Penalty CD

• Noteworthy Accounts - Local Only

• Self Reliance New York FCU - 2.00% (min $500) in NYC
• NavyArmy FCU - 1.85% (min $100K) in South TX
• University of Iowa Community CU - 1.80% (15-mo) (min $100K) in Iowa
• Affinity Bank (formerly Atlanta Business) - 1.71% (min $1K) in GA
• Progressive Credit Union - 1.71% in NYC
• Barksdale Federal Credit Union - 1.61% (min $1K) in Louisiana
• Industrial Credit Union - 1.60% (min $1K) in MA
• Fayetteville Bank - 1.56% (min $100K) in TX

18-Month Certificates of Deposit:

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

• Noteworthy Accounts Available Nationwide:

• America's Credit Union - 1.65% (min $25K)
• CNB Bank Direct - 1.65% (min $25K) (shown at the bank's online banking login page) account review
• Alliant Credit Union - 1.55% (min $25K) account review
• Fort Knox FCU - 1.50% (min $500)
• Southern Community Bank & Trust - 1.50% (min $500) No-penalty
• Colorado Federal Savings Bank - 1.45% ($5K min)
• Aurora Bank FSB - 1.42% (min $1K)
• Acacia Federal - 1.40% (min $500)
• Ally Bank - 1.35% (no min)
• USAA Bank - 1.35% (min $1K) (1.70% $175K min) account review
• Discover Bank - 1.35% (min $2.5K), account review
• First Savings Bank Northwest - 1.28% unlimited add-on (min $500) account review

• Noteworthy Accounts - Local Only

• Massena Savings and Loan - 2.82% IRA-only (min $200) in NY
• Self Reliance New York FCU - 2.10% (min $500) in NYC
• Affinity Bank (formerly Atlanta Business) - 1.82% (min $1K) in GA
• Hyde Park Savings Bank - 1.60% Bump-up (min $1K) in MA
• Truliant Credit Union - 1.50% (17-mo) (min $1K) in NC, SC & VA

24-Month Certificates of Deposit:

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

• Noteworthy Accounts Available Nationwide:

• America's Credit Union - 2.05% (25-mo) (min $25K)
• CNB Bank Direct - 1.85% (min $25K) (shown at the bank's online banking login page) account review
• Fort Knox FCU - 1.75% (min $500)
• Alliant Credit Union - 1.70% (min $25K) account review
• Melrose CU - 1.66% (min $5K) account review
• Bank of Internet - 1.60% (min $1K)
• OneWest Bank - 1.60% (min $1K)
• Colorado Federal Savings Bank - 1.55% ($5K min)
• Ally Bank - 1.54% Raise Your Rate CD

• Noteworthy Accounts - Local Only

• Self Reliance New York FCU - 2.35% (min $500) in NYC
• First Peoples Community Credit Union - 2.20% (21-mo) (min $5K) in MD, PA & WV
• NavyArmy FCU - 2.15% (min $100K) in South TX
• Barksdale Federal Credit Union - 2.12% (min $1K) in Louisiana
• University of Iowa Community CU - 2.10% (25-mo) (min $100K) in Iowa
• Affinity Bank (formerly Atlanta Business) - 2.02% (min $1K) in GA

36-Month Certificate of Deposit:

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

• Noteworthy Accounts Available Nationwide:

• Fort Knox FCU - 2.25% (min $500)
• RTN Federal Credit Union - 2.25% (min $50K)
• Melrose CU - 2.17% (min $5K) account review
• America's Credit Union - 2.05% (min $25K)
• Andrews FCU - 2.00% (min $1K) account review
• OneWest Bank - 2.00% (min $1K)
• Navy Federal - 2.00% (30-mo) (min $10K) membership restrictions account review
• Bank of Internet - 1.91% (min $1K)
• Alliant Credit Union - 1.90% (min $25K) account review
• Acacia Federal Savings Bank - 1.85% (min $500) account review
• USAA Bank - 1.85% (min $1K) (2.15% $175K min) account review
• Colorado Federal Savings Bank - 1.85% ($5K min)
• Pentagon Federal CU - 1.75% (min $1K), account review
• Sallie Mae Bank - 1.75% (no min) account review

• Noteworthy Accounts - Local Only

• Sea Comm Federal Credit Union - 2.63% (min $1K) in Northern NY
• First Peoples Community Credit Union - 2.60% (39-mo) (min $5K) in MD, PA & WV
• Massena Savings and Loan - 2.56% (min $1K) in NY
• Barksdale Federal Credit Union - 2.43% (min $1K) in Louisiana
• Security Service FCU - 2.35% (min $100K) in TX & CO
• Affinity Bank (formerly Atlanta Business) - 2.32% (min $1K) in GA
• American Heritage Credit Union - 2.30% (min $1K) in PA
• Redding Bank in Commerce - 2.27% (min $100K) in Northern CA
• Montauk Credit Union - 2.25% in NYC
• Fort Bragg Federal Credit Union - 2.23% (min $25K) in NC

48-Month Certificate of Deposit:

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

• Noteworthy Accounts Available Nationwide:

• Fort Knox FCU - 2.55% (min $500)
• America's Credit Union - 2.55% (min $25K)
• Melrose CU - 2.42% (min $5K) account review
• Alliant Credit Union - 2.30% (min $25K) account review
• Self-Help CU - 2.28% (min $500) account review
• Pentagon Federal CU - 2.25% (min $1K), account review
• Hudson City Bank - 2.25% (min $5K) account review
• OneWest Bank - 2.25% (min $1K)
• EverBank - 2.23% ($1.5K min) account review
• Bank of Internet - 2.16% (min $1K)
• Acacia Federal Savings Bank - 2.10% (min $500) account review

• Noteworthy Accounts - Local Only

• Barksdale Federal Credit Union - 2.89% (min $1K) in Louisiana
• Sea Comm Federal Credit Union - 2.75% (min $1K) in Northern NY
• LOMTO FCU - 2.63% in NYC
• The Napoleon State Bank - 2.58% (min $50K) in IN
• Police & Fire Credit Union - 2.50% (min $500) in PA
• First Community CU - 2.42% w/relationship (min $300) in MI

60-Month Certificate of Deposit:

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

• Noteworthy Accounts Available Nationwide:

• Connexus CU - 3.00% Active checking required, account review
• Melrose CU - 2.93% (min $5K) account review
• Fort Knox FCU - 2.75% (min $500)
• Salem Five - 2.75% (min $10K)
• Velocity Credit Union - 2.63% (min $1K) (2.73% IRA)
• EverBank - 2.61% ($1.5K min) account review
• Pentagon Federal CU - 2.50% (min $1K), account review
• Acacia Federal Savings Bank - 2.50% (min $500) account review
• OneWest Bank - 2.50% (min $1K)
• US Bank - 2.50% (59-mo) (min $1K)
• First Internet Bank - 2.40% (min $1K)
• Navy FCU - 2.40% ($20K min) (2.50% $100K+) restrictions to membership, account review
• Colorado Federal Savings Bank - 2.40% ($5K min)
• Ally Bank - 2.39% (min $0) account review
• Sallie Mae Bank - 2.35% (no min) account review
• USAA Bank - 2.34% (min $1K) (2.45% $175K min) account review

• Noteworthy Accounts - Local Only

• PEF Federal Credit Union - 3.29% (min $500)
• First Peoples Community Credit Union - 3.10% (min $5K) in MD, PA & WV
• LOMTO FCU - 3.10% in NYC
• Barksdale Federal Credit Union - 3.04% (min $1K) in Louisiana
• Police & Fire Credit Union - 3.00% (min $500) in PA
• Security Service FCU - 3.00% (min $100K) in TX & CO
• Sea Comm Federal Credit Union - 2.99% (min $1K) in Northern NY
• First Choice Bank - 2.90% (min $1K) in NJ
• F&A Federal Credit Union - 2.75% (min $50K) in CA
• Hudson Valley Credit Union - 2.75% (min $500) in NY State

84-Month Certificate of Deposit:

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

• Capital One - Costco - 3.05% 10yr (min $5K)
• Pentagon Federal CU - 3.00% 7yr (min $1K), account review
• Capital One Direct Banking - 3.00% 10-yr (min $5K)
• Navy FCU - 2.85% 7yr ($20K min) restrictions to membership, account review
• Discover Bank - 2.70% 7yr (min $2.5K) (3.00% 10yr) account review
• Apple FCU - 2.60% 7yr (min $500) (3.25% 10yr) account review
• USAA Bank - 2.60% 7yr (min $1K) (2.69% $175K min) account review

• Noteworthy Accounts - Local Only

• Security Service FCU - 3.50% 7yr (min $100K) in TX & CO
• Randolph-Brooks Credit Union - 3.45% 7yr (min $75K) in Central TX
• Montauk Credit Union - 3.00% 7yr in NYC
• Access National Bank - 3.00% 7yr (min $10K) in VA, DC & MD
• Anchor Mutual Savings Bank - 3.00% 8yr (min $500) in WA
• Cardinal Bank - 2.91% 6yr (min $1K) in VA, DC & MD

Various Deposit Account Deals

• Bank Deals Forum
• 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

• Ford Interest Advantage - 1.65% rate for $50k+, Ford Interest Advantage review
• GE Interest Plus - 1.45% rate for $50k+
• Vanguard Tax-Exempt Money Market Fund - 0.16% 7-day yield
• Paypal Money Market Fund - 0.12% 7-day yield
• Vanguard Prime Money Market Fund - 0.06% 7-day yield
• Fidelity Money Market Fund - 0.01% 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 & EE Savings Bonds for 2010, I Bond Article, I Bonds as CD Alternatives

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