Best Bank Account Interest Rates - Summary for Week Ending January 26, 2013

Will we see a big rise in interest rates this year? Based on what the Fed has said and the continued sluggish economic growth, it seems unlikely. However, there are some signs of changes. In a CNBC interview, George Soros told CNBC that he "expects interest rates to jump this year as soon as there are clear signs the economy is on the mend." Of course "experts" have been wrong before in predicting Treasury yield spikes. The most famous example was in 2011 from Bill Gross, the fund manager of the world's largest bond fund.

George Soro's interview wasn't the only sign that we may see changes this year. There were signs this week that both the U.S. and Global economy are improving. According to Bloomberg:

Treasury 10-year note yields rose the most since the first week of the year as the European Central Bank said banks will repay more of its loans than forecast and a strengthening housing market reduced the haven appeal of U.S. government debt.

We may see more signs next week. The employment report for January is scheduled for release on Friday. Also, the Fed is having its first FOMC meeting of 2013 on Tuesday and Wednesday. Although no significant Fed announcement is expected, any changes in the FOMC statement that suggest better-than-expected conditions could pull in expectations of future rate hikes.

I don't want to sound pessimistic, but let's not forget many of the false alarms over the last three years that raised our hopes that rate hikes were within a year away. As I mentioned last week, there are many risks this year to economic growth, with many coming from Washington. Even with the House vote to suspend the debt limit last week, there are still risks of a government shutdown and a large fiscal contraction that will come later this year.

As mentioned above, there were big gains this week in 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: 0.09% up from 0.08% last week
• 2--year: 0.27% up from 0.25% last week
• 5--year: 0.85% up from 0.76% last week
• 10-year: 1.95% up from 1.84% last week
• 30-year: 3.13% up from 3.03% last week

Fed funds futures' probability of rate hike by:

• Jan 2015: 59% same as last week
• Apr 2015: 73% up from 71% last week

This was a quiet week for both the FDIC and the NCUA. No banks or credit unions failed this week. So far this year there have been two bank closures and one credit union liquidation.

Savings & Checking Account Rates

This was a busy week for savings and money market rate cuts. Ally, Sallie Mae and Incredible Bank reduced the rates on their savings and money market accounts. None of these, however, had the largest cut. That came from Acacia Federal Savings Bank which slashed the yield of its Metro Checking and money market account from 1.00% to 0.80%. This 1.00% yield had lasted for over eight months. As I mentioned when I first reported on this 1.00% yield, Acacia Federal doesn't have a history of being a long-term rate leader. Also, it was announced last year that Customers Bancorp was going to acquire Acacia Federal. Acquisitions have rarely been good news for savers. Let's hope Capital One's acquisition of ING DIRECT will be the exception.

With this week's rate cuts, we now have only two banks on top of the list with non-promo yields of 1.05% without small balance caps. Those two are MyBankingDirect and Union Federal Savings Bank. Only Connexus Credit Union's money market account has a higher yield (1.15%), but this requires a $100K minimum balance and an active checking account.

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 third straight week with no rate changes on my list of nationally available reward checking accounts. However, there was one positive change to the list. I added First Financial Bank's Kasasa Cash account. The bank has an online application that the bank says can be used by people in any state. Thanks to DA member 51hh for reporting on this in the forum. This Kasasa Cash account currently pays 3.00% APY for balances up to $15K. It matches Lake Michigan Credit Union's Max Checking account with the same top rate and balance cap.

If you want larger balance caps, you'll probably have to settle for lower rates. I did an updated review of one reward checking account that still has a $50K balance cap. It's Harborstone Credit Union, and its reward checking account, called BreakFree Checking, offers 2.02% APY for balances up to $50K. It's not nationally available, but everyone in Washington State, in the military and in the civil service are eligible to join. I have more info about this credit union in my blog post. Readers also commented in that post about their experiences with this credit union.

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. First Financial Bank Reward Checking (Kasasa Cash) - 3.00% (up to $15K) 0.25% (over $15K)

Rate Hikes:

1. None

Rate/Balance Cap Cuts:

1. Incredible Bank MMA - 1.01% [was 1.05%]
2. Sallie Mae Bank MMA - 0.95% [was 1.05%]
3. Ally Bank MMA/Savings - 0.90% [was 0.95%]
4. Acacia Federal Metro Checking - 0.80% [was 1.00%]
5. Acacia Federal MMA - 0.80% [was 1.00%]

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

• Forum Highlights: Online Banking Outages, Sneaky Reward Checking Changes and Debit Card Fraud
• Why Bankers Will Increasingly Say,'May I Take Your Order?'

Savings/MMA - National

• Discover Bank's Cashback Checking Account To Be Launched Soon
• CDs or Savings Accounts in Today's Low-Rate Environment?

CD Deals/Resources - National

• Survey of the Best CD Rates for January 25, 2013
• Comparison of Long-Term CD Rates After Early Withdrawal Penalties - January 2013

Checking/Savings/CC Bonuses

• BB&T $125 Checking Account Bonus
• Checking Account Bonus & CD Special at Trustco Bank in Some States

Reward Checking Accounts

• Updated Review of Harborstone's Reward Checking Account

CD and Money Market Deals - Local

• Special IRA CD Rates at Dime Savings Bank in New York
• Top 7-Year CD Rate at Amplify Credit Union in Austin

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 26, 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)
• Union Federal Savings Bank - 1.05% MMA (min $2.5K) account review
• MyBankingDirect - 1.05% (min $5K)
• Incredible Bank - 1.01% MMA ($2.5K min) account review
• CIT Bank - 1.00% ($25K) 0.90% ($0) Savings, 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)
• Sallie Mae Bank - 0.95% MMA account review
• SFGI Direct - 0.94% account review
• AloStar Bank of Commerce - 0.91% ($50K) 0.50% ($0) MMA Advantage
• American Express Bank - 0.90%, account review
• Silvergate Bank - 0.90% (min $1K) Savings
• Ally Bank - 0.90% MMA/savings
• 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
• GE Capital Retail Bank (formerly MetLife) - 0.85% (min $10K) Savings
• Sallie Mae Bank - 0.85% Savings account review
• 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
• Acacia Federal - 0.80% MMA (min $25K), account review
• Acacia Federal - 0.80% Metro Checking, account review
• Nationwide Bank - 0.76% MMA (min $1K)
• 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+)
• First Financial Bank - 3.00% (up to $15K) 0.25% ($15K+) Kasasa Cash
• 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 25, 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)