Best Bank Account Interest Rates - Summary for Week Ending January 28, 2012
The big news story this week was the Fed and its late-2014 rate "pledge". The FOMC policy statement changed from "exceptionally low levels for the federal funds rate at least through mid-2013" to "exceptionally low levels for the federal funds rate at least through late 2014". This technically isn't a guarantee that rates will stay near zero until late 2014. However, Bernanke suggested in his press briefing that it would likely take a dramatic improvement in the economy for this to be revised. The economy continues to improve but as described in the Calculated Risk blog, it's sluggish growth.
You can see below in how the news from the Fed affected Treasury yields. The 10-year Treasury yield is once again below 2.00%. The summary of the yields is shown below (Numbers are based on Yahoo bond rate data and the CME Group FedWatch.)
Treasury Yields:
- 6-month: 0.07% up from 0.06% last week
- 2--year: 0.21% down from 0.23% last week
- 5--year: 0.75% down from 0.88% last week
- 10-year: 1.89% down from 2.02% last week
- 30-year: 3.06% down from 3.10% last week
Fed funds futures' implied probability for a higher rate by:
- July 2013: 12.8% down from 21.8% last week
- Sept 2013: 12.8%
The number of bank failures are picking up. There were four on Friday. The total number of bank failures this year is now up to seven.
Savings & Checking Account Rates
Only two banks on my list cut rates this week. That's not too bad, but I'm worried next week may be worse as the new month starts and after the banks have time to factor in the new Fed policy.
The top savings account yield remains 1.15%. This is offered by Flagstar Bank and the two internet divisions of New York Community Bank, My Banking Direct and AmTrust Direct. It should be noted that 1.15% is a promotional yield for these three banks. The highest non-promotional yield continues to be 1.10% at Incredible Bank and UFB Direct.
Reward Checking Accounts
The reward checking accounts continue to hold up better than the savings accounts. This was another week with no rate cuts on my short list of nationally available reward checking accounts. Some of these have been around now for over four years. I reviewed the history of some of these old ones this week.
The 4.00% club remains the same with 3 institutions paying 4% APY on balances up to $25K. If you don't live near one of these three institutions, be sure to check our reward checking rate table. This can be used to find accounts available nationwide and accounts with higher rates in your state. If you're new to these tables, my new rate table guide should be useful, and if you're new to reward checking, my blog post, 10 Common Traits of High-Yield Reward Checking, should also be useful.
Rate Hikes:
- None
Rate Cuts:
- Clear Sky Accounts Savings - 0.95% [was 1.00%]
- CNB Bank Direct Savings - 0.85% [was 0.90%]
Certificate of Deposit Rates
My recap of CD rate changes and the list of CD deals will now be in my survey of the best CD rates. This recap 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- Strategy Secrets of Extreme Savers
- Four Banks in Florida, Tennessee & Minnesota Closed by Regulators
- Raising Awareness of the Effects of the Fed's Policies
- Fed's Late-2014 Interest Rate Pledge: What Can Savers Do?
- FOMC Statement: Exceptionally Low Rates At Least Through Late 2014
- No new posts this week
- Top CD Rates in Houston Continue at SPCO Credit Union - Local Only
- Competitive CD Rates at Our Community Credit Union - WA State Only
- Top CD Rates in Colorado at Mountain View Bank of Commerce - Local Only
- New Special 9-Month CD Rate at Miami Postal Service Credit Union - Local Only
- Special RMB CD Rates at Bank of China in New York City - Local Only
- Competitive CD Specials at Central Bank in MN & Southwest FL - Local Only
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)
- Noteworthy Accounts Available Nationwide:
- Flagstar Bank - 1.15% savings (4-month promo) promo review
- MyBankingDirect - 1.15% (min $5K) promo rate
- AmTrustDirect - 1.15% (min $5K) promo rate
- UFB Direct (Bank of Internet) - 1.10% Savings account review
- Incredible Bank - 1.10% MMA ($2.5K min) account review
- SFGI Direct - 1.01% account review
- Incredible Bank - 1.01% Checking ($1K min) account review
- Alliant Credit Union - 1.00% (min $100) Savings account review
- Alliant Credit Union - 0.95% Checking (req's elec. dep & e-stmts) account review
- airbanking.com - 0.95% Savings
- One United Bank - 0.95% ($100K) 0.85% ($1K) E-Money Market
- Clear Sky Accounts - 0.95% (max $250K) account review
- Capital One/Costco - 0.93% InterestPlus Savings ($10K min, includes 10% quarterly bonus) 0.85% (w/o bonus) account review
- Sallie Mae Bank - 0.90% MMA account review
- ING Direct - 0.90% ($100K) 0.85% ($50K) Electric Orange Checking
- American Express Bank - 0.90%, account review
- Nationwide Bank - 0.90% MMA (min $1K)
- Discover Bank - 0.90% Savings (min $500) account review
- Sallie Mae Bank - 0.85% Savings account review
- Colorado Federal Savings Bank - 0.85% ($2.5K min) account review
- CNB Bank Direct - 0.85% account review
- Ally Bank - 0.84% MMA/savings account review
- ING Direct - 0.80% Orange Savings
- HSBC Advance - 0.80% Savings
- Capital One - 0.77% InterestPlus Savings ($10K min, includes 10% quarterly bonus) 0.70% (w/o bonus) account review
- Capital One - 0.75% Checking (rate guaranteed for 1 yr) account review
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
- Noteworthy Accounts Available Nationwide:
- Consumers Credit Union - 4.09% (up to $10K) 0.56% ($10K-$25K) 0.35% ($25K+)
- Lake Michigan Credit Union - 3.00% (up to $15K) 0.00% ($15K+)
- Bank of Blue Valley - 3.00% (up to $25K) 0.55% ($25K+), $1K/month debit card req (account review)
- INOVA Federal Credit Union - 3.00% (up to $20K) 0.30% ($20K+)
- ABCO Federal Credit Union - 2.52% (up to $25K) 0.50% ($25K+)
- Pacific Resource Credit Union - 2.27% (up to $15K) 0.50% ($15K+)
- Provident Credit Union - 2.26% (up to $25K) 0.31% ($25K+)
- First New England Federal Credit Union - 2.03% (up to $15K) 0.10% ($15K+) (extra 1% w/relationship)
- Community Bank of Pleasant Hill - 2.01% (up to $25K) 0.50% ($25K+)
- Community Bank of Raymore - 2.01% (up to $25K) 0.50% ($25K+)
- Atlantic Coast Bank - 2.01% (up to $15K) 0.50% ($15K+)
- Connexus Credit Union - 2.00% (up to $25K) 0.50% ($25K+)
- Heritage Bank - 1.71% (up to $25K) 0.10% ($25K+)
- Avidia Bank - 1.66% (up to $25K) 0.10% ($25K+)
- State Bank of Toledo - 1.51% (up to $25K) 0.50% ($25K+)
- North Country Savings Bank - 1.50% (up to $50K) 0.75% ($50K+)
- West Texas National Bank - 1.26% (up to $25K) 0.25% ($25K+)
- Bank of Internet USA - 1.25% APY (all balances)
Certificates of Deposit:
- Best CD Rates (Nationwide & by State)
- Best IRA CD Rates (Nationwide & by State)
- Survey of the Best CD Rates for January 27, 2012 (Nationwide & Local)
Various Deposit Account Deals
- Bank Promotions
- 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 - 1.25% rate for $50k+, Ford Interest Advantage review
- GE Interest Plus - 1.20% rate for $50k+
- Vanguard Prime Money Market Fund - 0.04% 7-day yield
- Vanguard Tax-Exempt Money Market Fund - 0.01% 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
- Series I Savings Bonds for November 2011, I Bond Article, I Bonds as CD Alternatives
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