Best Bank Account Interest Rates - Summary for Week Ending August 11, 2012

This was a quiet week for economic news, but the few economic releases this week showed some slight improvements. That and a little slowdown in the bad news of Europe's debt crisis helped push Treasury yields higher. That may also be reducing the chance that the Fed will announce QE3 at its September meeting. I'm seeing more speculation that the Fed may choose other types of action rather than more bond buying. It appears that some of the other possible actions could have less impact to savers.

Most all Treasury yields went up this week. Also up are the expectations of a Fed funds rate hike in 2014 and 2015. The Fed funds futures are showing a 73% probability of a rate hike in January 2015. That's up from 53% last week. The summary of Treasury yields and the expectation of future Fed funds rates are shown below. Numbers are based on Yahoo bond rate data and the CME Group FedWatch.

Treasury Yields:

• 6-month: 0.12% same as last week
• 2--year: 0.26% up from 0.23% last week
• 5--year: 0.70% up from 0.66% last week
• 10-year: 1.62% up from 1.56% last week
• 30-year: 2.73% up from 2.64% last week

Fed funds futures' probability of rate hike by:

• Jul 2014: 45% up from 37% last week
• Jan 2015: 73% up from 53% last week

No banks failed this week. The number of bank failures for 2012 remains at 40. There was one tiny credit union that failed, and the news about this closure is interesting.

Savings & Checking Account Rates

This was another week with no rate cuts on my list of top nationally available savings and money market accounts.

Another little bit of good news was a rate increase at UFB Direct (division of Bofi Federal Bank). Its money market account yield went up from 1.25% to 1.30%. This APY applies to balances up to $250,000. There's a $10 monthly fee for balances that fall below $5,000.

I'm surprised to see UFB Direct increase its rate. It first launched this money market account in late May with a 1.15% APY. It then raised the yield to 1.25% in late June, and now to 1.30% in early August. It appears they're intent to be the rate leader. The question that's hard to answer is whether they're intent to be a rate leader over the long run. As you can see in my rate history review, I wouldn't be surprised if we see this money market rate fall considerably next year.

Reward Checking Accounts

Like the savings accounts, the reward checking accounts on my list also had no rate cuts this week. These are reward checking accounts that are nationally available.

To find the highest reward checking rates and balance caps in your state or nationwide, please refer to our reward checking rate table. 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:

1. UFB Direct MMA - 1.30% [was 1.25%]

Rate/Balance Cap Cuts:

1. None

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

• Deposit Rate Survey and Commentary for August 2012
• Could You Get Stuck With Your Parent's Nursing Home Bill?

Savings/MMA - National

• Benefits of Short-Term CDs Over Money Market Accounts?
• Another Money Market Rate Hike at UFB Direct
• Rate History of UFB Direct, CIT Bank, Incredible Bank & Other Top Internet Accounts

CD Deals/Resources - National

• Survey of the Best CD Rates for August 10, 2012
• Useful CD Tip: Partial Early Withdrawal Without a Penalty
• Comparison of Long-Term CD Rates After Early Withdrawal Penalties - August 2012

Checking/Savings/CC Bonuses

• $100 Checking Account Promotion at First Midwest Bank

Reward Checking Accounts

• No new posts

CD and Money Market Deals - Local

• Higher CD Rates at Privately Insured Credit Unions
• Competitive 5-Year CD Rate at Mid American Credit Union in Kansas
• Top CD Rates at Cecil Bank in Maryland - Local Only

Posts from Previous Weeks

• Archive of 2012 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 August 11, 2012

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 (BofI Federal) - 1.30% MMA account review
• TIAA Direct - 1.25% MMA/Savings (not accepting new customers) account review
• EverBank - 1.25% MMA/Checking (6mo intro rate) 0.76% ongoing rate, account review
• Incredible Bank - 1.05% MMA ($2.5K min) account review
• CIT Bank - 1.05% ($25K) 0.90% ($0) Savings, account review
• MyBankingDirect - 1.05% (min $5K)
• Union Federal Savings Bank - 1.05% MMA (min $2.5K) account review
• SmartyPig - 1.00% ($50K max), account review
• Barclays - 1.00% Savings account review
• Acacia Federal - 1.00% Metro Checking, account review
• Acacia Federal - 1.00% MMA (min $25K), account review
• SFGI Direct - 0.91% account review
• One United Bank - 0.90% ($100K) 0.85% ($1K) E-Money Market
• ING Direct - 0.90% ($100K) 0.85% ($50K) Electric Orange Checking
• Sallie Mae Bank - 0.90% MMA account review
• Ally Bank - 0.89% MMA/savings
• Incredible Bank - 0.88% Checking ($1K min) account review
• Clear Sky Accounts - 0.85% (max $250K) account review
• Colorado Federal Savings Bank - 0.85% ($2.5K min) account review
• American Express Bank - 0.85%, account review
• ableBanking - 0.85% MMA (min $1K)
• CNB Bank Direct - 0.80% account review
• Alliant Credit Union - 0.80% (min $100) Savings [falls to 0.80% June 1st] account review
• Discover Bank - 0.80% Savings (min $500) account review
• ING Direct - 0.80% Orange Savings
• UFB Direct (BofI Federal) - 0.80% Savings account review
• Sallie Mae Bank - 0.80% Savings account review
• Nationwide Bank - 0.76% MMA (min $1K)
• Alliant Credit Union - 0.75% Checking (req's elec. dep & e-stmts) [falls to 0.75% June 1st] account review
• Salem Five Direct - 0.75% savings

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 - 3.09% (up to $5K) 0.20% ($5K-$25K) 0.10% ($25K+)
• Lake Michigan Credit Union - 3.00% (up to $15K) 0.00% ($15K+)
• ABCO Federal Credit Union - 2.52% (up to $25K) 0.50% ($25K+)
• Capital Educators Federal Credit Union - 2.50% (up to $10K) 0.20% ($10K+)
• Provident Credit Union - 2.26% (up to $25K) 0.21% ($25K+)
• BankFirst Financial Services - 2.00% (up to $50K) 0.50% ($50K+)
• INOVA Federal Credit Union - 2.00% (up to $20K) 0.15% ($20K+)
• Pacific Resource Credit Union - 1.75% (up to $15K) 0.50% ($15K+)
• Community Bank of Pleasant Hill - 1.75% (up to $10K) 0.50% ($10K+)
• Community Bank of Raymore - 1.75% (up to $10K) 0.50% ($10K+)
• Connexus Credit Union - 1.75% (up to $25K) 0.50% ($25K+) Xtraordinary Checking
• Heritage Bank - 1.71% (up to $25K) 0.10% ($25K+)
• First New England Federal Credit Union - 1.52% (up to $15K) 0.10% ($15K+) (extra 1% w/relationship)
• Legence Bank - 1.50% (up to $25K) 0.25% ($25K+)
• Bank of Blue Valley - 1.50% (up to $15K) 0.20% ($15K+), $1K/month debit card req (account review)
• Avidia Bank - 1.36% (up to $25K) 0.05% ($25K+)
• West Texas National Bank - 1.26% (up to $25K) 0.25% ($25K+)
• Bank of Internet USA - 1.25% (all balances)
• North Country Savings Bank - 1.15% (up to $50K) 0.75% ($50K+)
• State Bank of Toledo - 1.00% (up to $25K) 0.15% ($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 August 10, 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 - NOT FDIC Insured

• Duke Energy PremierNotes - 1.50% rate for $50K+, Duke Energy PremierNotes review
• Ford Interest Advantage - 1.10% rate for $50k+, Ford Interest Advantage review
• GE Interest Plus - 1.10% rate for $50k+
• Vanguard Prime Money Market Fund - 0.05% 7-day yield
• Vanguard Tax-Exempt Money Market Fund - 0.02% 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 Bond Purchases from May thru Oct 2012, I Bond Article, I Bonds as CD Alternatives

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