Best Bank Account Interest Rates - Summary for Week Ending January 12, 2013

This was a slow week in economic news. Attention is starting to turn to the debt ceiling which has the potential of damaging the economy. This is just one of several downside risks for the economy this year. Calculated Risk blog has an interesting review of the economic risks along with forecasts for 2013. In summary, even if there are some compromises in Washington, the economy is likely to look a lot like 2012. In addition, the Fed will almost surely continue its ultra easy policies.

The concerns over the debt ceiling contributed to lower Treasury yields this week. But yields weren't much lower than last week. Treasury yield changes over the last week 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: 0.09% same as last week
• 2--year: 0.25% down from 0.26% last week
• 5--year: 0.78% down from 0.81% last week
• 10-year: 1.87% down from 1.90% last week
• 30-year: 3.04% down from 3.10% last week

Fed funds futures' probability of rate hike by:

• Jan 2015: 62% up from 61% last week
• Apr 2015: 65% down from 74% last week

We had our first 2013 bank and credit union failure this week. A tiny Wisconsin credit union failed on Monday, and a small Washington State bank failed on Friday. There were a total of 51 bank failures and 15 credit union failures in 2012. I have more details in my review of the 2012 bank failures.

Savings & Checking Account Rates

This was a slow week in savings account rate changes. Only one bank on my list cut rates, and that was TIAA Direct which lowered its savings and money market yield from 1.25% to 1.00% APY. TIAA Direct also announced a change that's more worrisome. Effective February 9th, it's limiting ACH withdrawals intiated at TIAA Direct to $5,000 per day. I have more details in this blog post.

I did a review of 2012 rate trends this week. I found it interesting that we saw little decline in the average rate of internet savings and money market accounts. There were a few internet banks that had big cuts (like HSBC and CNB Bank Direct), but there were also some banks that raised rates. As I described in the review, internet savings and money market accounts are starting to look more attractive than many CDs.

For those with large balances, the best non-promo deal continues to be at Connexus Credit Union which has a money market account that pays 1.15% APY for balances of at least $100K. The next best are the four internet banks with money market accounts that continue to pay 1.05% APY.

Two internet banks are offering 1.25% APY, but these are promo rates. You can also get 1.10% APY at AmericaNet Bank and its two sister banks, but all three have a $35K balance cap.

Reward Checking Accounts

There were no changes this week on my list of nationally available reward checking accounts. However, there continues to be several reward checking accounts that are only local deals that had cuts in their rates and/or balance caps. Thanks to the readers who have reported on these in the reward checking forum.

We may see more rate and balance cap cuts this year. It's not only the awful interest rate environment, but lower debit card interchange revenue may also push down rates. This week I posted about news of lower interchange revenue in the third quarter of 2012.

One new thing I did to the list this week is highlighting the reward checking accounts that have balance caps of at least $25K. As you can see, there aren't many with decent rates. However, there are still many local deals with balance caps of $25K and yields over 2.00%. 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 rate table guide should be useful. If you're new to reward checking, please refer to my blog post, 10 Common Traits of High-Yield Reward Checking.

Rate Hikes:

1. None

Rate/Balance Cap Cuts:

1. TIAA Direct Savings/MMA - 1.00% [was 1.25%]

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

• One Bank and One Credit Union Closed by Regulators
• Forum Highlights: Navy Fed IRAs, Coping with ZIRP and Credit Card Rewards
• Deposit Account Rate Trends of 2012
• Deposit Rate Survey and Commentary for January 2013
• Five Financial Lessons from 2012

Savings/MMA - National

• TIAA Direct Cuts Rates and Announces New Limits on ACH Withdrawals
• New Internet Banks Often Neglect ACH Transfers - Why This Is a Mistake

CD Deals/Resources - National

• Survey of the Best CD Rates for January 11, 2013
• 17-Month CD Special at Northern Bank & Trust Company - Online Application
• Special 15-Month CD Rate at USAlliance FCU - Easy Membership
• Long-Term CD Rates Fall at Navy Federal But Remain Competitive

Checking/Savings/CC Bonuses

• BB&T Offers Another $100 Checking Account Bonus

Reward Checking Accounts

• Drop in Debit Card Interchange Revenue and Effect on Reward Checking

CD and Money Market Deals - Local

• Top Long-Term CD Rates at Gesa Credit Union - Washington State
• Competitive CD Rates at Keesler Federal Credit Union in Mississippi
• Best CD in America has a Rate Cut - Navy Army Community CU in Texas - Local Only

Posts from Previous Weeks

• Archive of 2013 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 January 12, 2013

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:

• Salem Five Direct - 1.25% savings, for new customers only (~0.75% for existing customers)
• EverBank - 1.25% MMA/Checking (6mo intro rate) 0.76% ongoing rate, account review
• Connexus Credit Union - 1.15% ($100K) 1.00% ($50K) 0.75% ($20K) active chk required
• Redneck Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• AmericaNet Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• Evantage Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• Sallie Mae Bank - 1.05% MMA account review
• Union Federal Savings Bank - 1.05% MMA (min $2.5K) account review
• MyBankingDirect - 1.05% (min $5K)
• Incredible Bank - 1.05% MMA ($2.5K min) account review
• CIT Bank - 1.00% ($25K) 0.90% ($0) Savings, account review
• Acacia Federal - 1.00% MMA (min $25K), account review
• Acacia Federal - 1.00% Metro Checking, account review
• Barclays - 1.00% Savings account review
• SmartyPig - 1.00% ($50K max), account review
• TIAA Direct - 1.00% MMA/Savings (not accepting new customers) account review
• ableBanking - 0.96% MMA (min $1K)
• Ally Bank - 0.95% MMA/savings
• SFGI Direct - 0.94% account review
• AloStar Bank of Commerce - 0.91% ($50K) 0.50% ($0) MMA Advantage
• Sallie Mae Bank - 0.90% Savings account review
• American Express Bank - 0.90%, account review
• Incredible Bank - 0.88% Checking ($1K min) account review
• Colorado Federal Savings Bank - 0.85% ($2.5K min) account review
• ING Direct - 0.85% ($100K) 0.80% ($50K) Electric Orange Checking
• FNBO Direct - 0.85% Savings
• Clear Sky Accounts - 0.80% (max $250K) account review
• Discover Bank - 0.80% Savings (min $500) account review
• Alliant Credit Union - 0.80% (min $100) Savings account review
• UFB Direct (BofI Federal) - 0.80% MMA/savings account review
• Nationwide Bank - 0.76% MMA (min $1K)
• One United Bank - 0.75% ($100K) 0.70% ($25K) 0.65% ($1K) E-Money Market
• Alliant Credit Union - 0.75% Checking (req's elec. dep & e-stmts) account review
• ING Direct - 0.75% Orange 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+)
• Money One Federal Credit Union - 3.01% (up to $10K) 0.51% (over $10K)
• Lake Michigan Credit Union - 3.00% (up to $15K) 0.00% ($15K+)
• Capital Educators Federal Credit Union - 2.50% (up to $10K) 0.20% ($10K+)
• ABCO Federal Credit Union - 2.12% (up to $25K) 0.30% ($25K+)
• Redneck Bank - 2.00% (up to $10K) 0.50% (over $10K)
• AmericaNet Bank - 2.00% (up to $10K) 0.50% (over $10K)
• Evantage Bank - 2.00% (up to $10K) 0.50% (over $10K)
• INOVA Federal Credit Union - 2.00% (up to $20K) 0.15% ($20K+)
• First Tech Federal Credit Union - 1.78% (up to $10K) 0.21% ($10K+)
• Provident Credit Union - 1.76% (up to $25K) 0.11% ($25K+)
• Connexus Credit Union - 1.75% (up to $25K) 0.50% ($25K+) Xtraordinary Checking
• Community Bank of Raymore - 1.75% (up to $10K) 0.50% ($10K+)
• Community Bank of Pleasant Hill - 1.75% (up to $10K) 0.50% ($10K+)
• Pacific Resource Credit Union - 1.75% (up to $15K) 0.50% ($15K+)
• First New England Federal Credit Union - 1.52% (up to $15K) 0.10% ($15K+) (extra 1% w/relationship)
• Heritage Bank - 1.51% (up to $25K) 0.10% ($25K+)
• Legence Bank - 1.50% (up to $25K) 0.25% ($25K+)
• BankFirst Financial Services - 1.50% (up to $50K) 0.25% ($50K+)
• Avidia Bank - 1.36% (up to $25K) 0.05% ($25K+)
• West Texas National Bank - 1.26% (up to $25K) 0.25% ($25K+)
• Bank of Blue Valley - 1.25% (up to $15K) 0.10% ($15K+), $1K/month debit card req (account review)
• Bank of Internet USA - 1.25% (all balances)
• North Country Savings Bank - 1.05% (up to $25K) 0.75% ($25K+)
• 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 January 11, 2013 (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

• Ally Financial Demand Notes - 1.75%, Ally Demand Notes review
• 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 - 0.01% 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 Bond Purchases from Nov 2012 thru Apr 2013, I Bond Article, I Bonds as CD Alternatives

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