Best Bank Account Interest Rates - Summary for Week Ending January 19, 2013

There were a few positive economic reports this week. New housing starts had a strong jump and weekly unemployment claims fell sharply. However, the debt ceiling fears continue to be a headwind for the economy even with the latest plans to temporarily extend the debt limit. As explained in this WaPo article, "We have three chances within three months of somehow shutting down the government, having a default or having a fiscal contraction." Even if compromises are made in Washington this year, the best we can hope for is another year of sluggish growth and nothing to convince the Fed to change its zero-interest-rate policy (ZIRP).

Government inflation numbers are also making it easy for the Fed to maintain ZIRP. December inflation data was released on Wednesday, and the inflation numbers were below the Fed's target.

There is a chance that a U.S. default on its debt could cause interest rates to spike. However, as we learned in 2011, a debt ceiling showdown and a credit rating downgrade can cause rates to fall. As this Barrons article warns, "even if the U.S. credit rating is downgraded, don't expect a big jump in interest rates."

For another week the concerns over the debt ceiling contributed to slightly lower Treasury yields. The 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: 0.08% down from 0.09% last week
• 2--year: 0.25% same as last week
• 5--year: 0.76% down from 0.78% last week
• 10-year: 1.84% down from 1.87% last week
• 30-year: 3.03% down from 3.04% last week

Fed funds futures' probability of rate hike by:

• Jan 2015: 59% down from 62% last week
• Apr 2015: 71% up from 65% last week

The second bank failure of the year occurred on Friday. 1st Regents Bank in Minnesota was closed by state regulators, and the FDIC arranged for First Minnesota Bank to assume all deposits.

Savings & Checking Account Rates

This was a slow week in savings account rate changes with no rate changes. I added two new banks to the list. The first is Silvergate Bank which recently started a nationwide online savings account with a competitive yield of 0.90%. As is typical when banks launch internet accounts, the ACH bank-to-bank transfer service is weak.

The other new bank added to the list is GE Capital Retail Bank. This bank completed its acquisition of MetLife Bank's online deposits business. The online savings account remains the same. I noticed that the savings account rate is now somewhat competitive with a 0.85% APY for balances of at leat $10K. So I decided to add it to the list.

With two additions, I thought it was a good time to do some pruning. I decided to remove One United Bank's E-Money Market account. Its top rate is now only 0.75%, and that requires a minimum balance of $100K. Balances under $25K only earn 0.65%.

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

This was the second week with no rate changes 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.

As I mentioned last week, I'm now highlighting the reward checking accounts that have balance caps of at least $25K. There are only 11 of these on the list. Nine have a $25K balance cap, one has a $50K cap and one has no balance cap. The one without a balance cap is the Rewards Checking account at Bank of Internet USA. Its 1.25% APY isn't much higher than the internet savings account APYs. On the positive side, this yield has held since July 2011.

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.

Additions:

1. Silvergate Bank Savings - 0.90% [min $1K]
2. GE Capital Retail Bank (formerly MetLife) Savings - 0.85% [min $10K]

Removals:

1. One United Bank E-Money Market - 0.75% [min $100K], 0.70% [min $25K], 0.65% [min $1K]

Rate Hikes:

1. None

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

• Second Bank Failure of the Year: 1st Regents Bank in Minnesota
• Forum Highlights: FICO Score, CapOne Bonus and CD Alternatives
• Growth of Credit Union ATM and Shared Branch Networks
• MetLife Bank is Now GE Capital Retail Bank
• Is a Retirement Coach Right For You?

Savings/MMA - National

• What Truly Matters to ING DIRECT Customers? Many Say Interest Rates
• Online Savings Account and CDs at Silvergate Bank

CD Deals/Resources - National

• Survey of the Best CD Rates for January 18, 2013

Checking/Savings/CC Bonuses

• Free Kindle Fire HD Checking Account Bonus at BBVA Compass
• Checking Account $100 Bonus Continues at Sound Credit Union - WA Only

Reward Checking Accounts

CD and Money Market Deals - Local

• Top CD & IRA CD Rates at Visions FCU in Parts of NY, NJ & PA
• Checking Rate and Cash Promotions at Oritani Bank in New Jersey - 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 19, 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:

• EverBank - 1.25% MMA/Checking (6mo intro rate) 0.76% ongoing rate, account review
• Salem Five Direct - 1.25% savings, for new customers only (~0.75% for existing customers)
• Connexus Credit Union - 1.15% ($100K) 1.00% ($50K) 0.75% ($20K) active chk required
• Evantage Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• AmericaNet Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• Redneck Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• Incredible Bank - 1.05% MMA ($2.5K min) account review
• MyBankingDirect - 1.05% (min $5K)
• Union Federal Savings Bank - 1.05% MMA (min $2.5K) account review
• Sallie Mae Bank - 1.05% MMA account review
• TIAA Direct - 1.00% MMA/Savings (not accepting new customers) 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
• CIT Bank - 1.00% ($25K) 0.90% ($0) Savings, 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
• Silvergate Bank - 0.90% (min $1K) Savings
• American Express Bank - 0.90%, account review
• Sallie Mae Bank - 0.90% Savings account review
• Incredible Bank - 0.88% Checking ($1K min) account review
• GE Capital Retail Bank (formerly MetLife) - 0.85% (min $10K) Savings
• FNBO Direct - 0.85% Savings
• ING Direct - 0.85% ($100K) 0.80% ($50K) Electric Orange Checking
• Colorado Federal Savings Bank - 0.85% ($2.5K min) account review
• UFB Direct (BofI Federal) - 0.80% MMA/savings account review
• Alliant Credit Union - 0.80% (min $100) Savings account review
• Discover Bank - 0.80% Savings (min $500) account review
• Clear Sky Accounts - 0.80% (max $250K) account review
• Nationwide Bank - 0.76% MMA (min $1K)
• ING Direct - 0.75% Orange Savings
• Alliant Credit Union - 0.75% Checking (req's elec. dep & e-stmts) 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

• 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+)
• INOVA Federal Credit Union - 2.00% (up to $20K) 0.15% ($20K+)
• Evantage Bank - 2.00% (up to $10K) 0.50% (over $10K)
• AmericaNet Bank - 2.00% (up to $10K) 0.50% (over $10K)
• Redneck Bank - 2.00% (up to $10K) 0.50% (over $10K)
• First Tech Federal Credit Union - 1.78% (up to $10K) 0.21% ($10K+)
• Provident Credit Union - 1.76% (up to $25K) 0.11% ($25K+)
• 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
• 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+)
• BankFirst Financial Services - 1.50% (up to $50K) 0.25% ($50K+)
• Legence Bank - 1.50% (up to $25K) 0.25% ($25K+)
• 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)
• Bank of Blue Valley - 1.25% (up to $15K) 0.10% ($15K+), $1K/month debit card req (account review)
• 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 Limitations

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)