Best Bank Account Interest Rates - Summary for Week Ending September 3, 2011

On Friday we saw more bad signs for the economy and for future deposit rates. This excerpt from Bloomberg sums it up well:

Treasury 30-year bond yields fell to the lowest since January 2009 after a government report showed no jobs were added in August, reinforcing concern the U.S. economy has slowed, which may prompt additional stimulus by the Federal Reserve.

The 10-year Treasury yield actually fell below 2.00% by the time Friday ended. The details of these yield changes can be seen below (Numbers are based on Yahoo bond rate data)

Treasury Yields:

• 5--year: 0.86% down from 0.93% last week
• 10-year: 1.99% down from 2.19% last week
• 30-year: 3.30% down from 3.53% last week

Fed funds futures' implied probability for a higher rate by:

• Data not available at CME Group FedWatch on 9/3/2011

Savings & Checking Account Rates

There were only a few banks on my list to cut rates this week. For money market accounts, Sallie Mae Bank cut its yield from 1.15% to 1.10%, and EverBank cut its yield from 0.81% to 0.76%. It's disappointing to see EverBank cutting rates again when its yield was already well below 1 percent.

With the Fed's mid-2013 pledge and with a possible QE3 in the works, 1 percent may not be the bottom for savings account rates. If you want to hedge your bets, Capital One still has its promotion in which they're guaranteeing 1.01% APY for one year on its Interest Online Checking Account (see my review). This is not quite a nationwide deal. The online checking account isn't available in areas where Capital One has branches.

Reward Checking Accounts

Two banks on my list cut their reward checking rates this week, and one announced cuts that will take effect in October. The reader wayward reported in this forum thread that Consumers Credit Union will be cutting its second and third tier rates on October 1st. This reward checking account is unique in that it has 3 rate tiers. For the first tier, it pays 4.09% APY for balances up to $10K. That will remain the same. For the second tier, it pays 1.59% APY for portion of the balance from $10K to $25K. In October, that's falling to 0.56%. Currently, if you have a balance of $25K, the blended APY is 2.59% which is very competitive these days. In October, this blended APY will fall to 1.97%.

I'm sorry to see this rate cut, but I commend Consumers Credit Union for notifying its customers a month before the rate cut takes effect. It's a shame that we don't see more banks and credit unions announce rate cuts like this.

Two other banks on my list had a more straightforward rate cut. Community Bank of Pleasant Hill and Community Bank of Raymore both cut their top APY from 2.51% to 2.01% for balances up to $25K.

As shown above, the 2% APY for balances up to $25K is becoming more common for reward checking accounts. Hopefully we won't see it go any lower.

If you're looking for a reward checking account, be sure to use our reward checking rate table to find one in your state. Please refer to my rate table guide to learn how to use the rate tables.

If you're new to reward checking, my recent post, 10 Common Traits of High-Yield Reward Checking, should come in handy.

Rate Hikes:

1. None

Rate Cuts:

1. Consumers CU Reward Checking - 4.09% (up to $10K) 0.56% ($10K-$25K) 0.35% ($25K+) effective Oct 1st [currently 4.09% (up to $10K) 1.59% ($10K-$25K) 0.76% ($25K+)]
2. Community Bank of Pleasant Hill Reward Checking - 2.01% up to $25K (was 2.51%)
3. Community Bank of Raymore Reward Checking - 2.01% up to $25K (was 2.51%)
4. Sallie Mae Bank MMA - 1.10% (was 1.15%)
5. EverBank MMA - 0.76% (was 0.81%)

Certificate of Deposit Rates

My recap of CD rate changes and the list of CD deals will now be in my Friday surveys of the best CD rates. My Saturday recaps will now focus on banking news of the week and liquid accounts.

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

Banking News/Resources

• Two More Georgia Banks Fail
• Banks Planning New Account Fees
• Virtual Bank Continues Under New Bank
• 6 Ways to Enjoy Life - For Free

Savings/Checking Accounts - Nationwide

• No new posts

CD Deals - National

• CD Rate Increases at Melrose Credit Union

Checking/Savings/CC Bonuses

• Checking Bonus and CD Special at Members Plus Credit Union in MA - Local Only

Reward Checking Accounts

• Survey of the Best Free Reward Checking Accounts in Phoenix Arizona

CD and Money Market Deals - Local

• Survey of the Best CD Rates for September 2, 2011
• Top 3-Year CD Rate at Randolph Bank - Available in NC, SC, GA, VA, TN & FL
• Top Long-Term CD Rates at American Heritage FCU in Philadelphia - Local Only
• Special 51-Month CD at Clinton Savings Bank - MA Only
• Special 6-Month CD Rate at Your Community Credit Union in Texas - Local Only

Posts from Previous Weeks

• Archive of 2011 Posts

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.

Rates as of September 3, 2011

Checking/Savings/Money Market Accounts:

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

• How to View Rates for Your State

• Noteworthy Accounts Available Nationwide:

• UFB Direct (Bank of Internet) - 1.30% Savings account review
• Incredible Bank - 1.25% MMA ($2.5K min) account review
• AmTrustDirect - 1.25% (min $10K, max $150K) promo rate
• MyBankingDirect - 1.25% (min $5K) promo rate
• Capital One/Costco - 1.16% InterestPlus Savings ($10K min, includes 10% quarterly bonus) 1.06% (w/o bonus) account review
• Alliant Credit Union - 1.15% (min $100) account review
• ING Direct - 1.15% ($100K) 1.10% ($50K) Electric Orange Checking
• Capital One - 1.11% InterestPlus Savings ($10K min, includes 10% quarterly bonus) 1.01% (w/o bonus) account review
• SFGI Direct - 1.11% (not accepting new accounts) account review
• Incredible Bank - 1.11% Checking ($1K min) account review
• SmartyPig - 1.10% (min $25, max $50K) withdrawal restrictions, account review
• Discover Bank - 1.10% Savings (min $500) account review
• Sallie Mae Bank - 1.10% MMA account review
• Colorado Federal Savings Bank - 1.05% ($2.5K min) account review
• CNB Bank Direct - 1.05% account review
• Clear Sky Accounts - 1.04% (max $250K) account review
• Capital One - 1.01% Checking (rate guaranteed for 1 yr) account review
• ING Direct - 1.00% Orange Savings
• American Express Bank - 1.00%, account review
• Ally Bank - 0.99% MMA account review
• airbanking.com - 0.95% Savings
• Hudson City Savings Bank - 0.90% (min $2.5K)
• EverBank - 0.76% MMA ($5K min)

Reward Checking Accounts:

• Best Reward Checking Account Rates for a $10,000 Balance - Nationally Available
• Best Reward Checking Account Rates for a $25,000 Balance - Nationally Available

• How to View Rates for Your State

• Noteworthy Accounts Available Nationwide:

• Consumers Credit Union - 4.09% (up to $10K) 0.56% ($10K-$25K) 0.35% ($25K+) effective Oct 1st
• Lake Michigan Credit Union - 4.00% (up to $15K) 0.00% ($15K+)
• ABCO Federal Credit Union - 2.52% (up to $25K) 0.50% ($25K+)
• Pacific Resource Credit Union - 2.27% (up to $15K) 0.61% ($15K+)
• Provident Credit Union - 2.26% (up to $25K) 0.31% ($25K+)
• First New England Federal Credit Union - 2.03% (up to $15K) 0.25% ($15K+) (extra 1% w/relationship)
• Atlantic Coast Bank - 2.01% (up to $15K) 0.50% ($15K+)
• Community Bank of Raymore - 2.01% (up to $25K) 0.50% ($25K+)
• Community Bank of Pleasant Hill - 2.01% (up to $25K) 0.50% ($25K+)
• Connexus Credit Union - 2.00% (up to $25K) 0.50% ($25K+)

Certificates of Deposit:

• Best CD Rates (Nationwide & by State)
• Best IRA CD Rates (Nationwide & by State)

• How to View Rates for Your State

• Survey of the Best CD Rates for September 2, 2011 (Nationwide & Local)

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

• GE Interest Plus - 1.30% rate for $50k+
• Ford Interest Advantage - 1.25% rate for $50k+, Ford Interest Advantage review
• Vanguard Tax-Exempt Money Market Fund - 0.06% 7-day yield
• Vanguard Prime Money Market Fund - 0.03% 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
• PayPal Money Market Fund has ended effective 7/29/11
• FW Thread on Treasury Bills
• I Savings Bonds for 2011, I Bond Article, I Bonds as CD Alternatives

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