Best Bank Account Interest Rates - Summary for Week Ending February 2, 2013

In its first meeting of 2013, the Fed decided to stay the course with no policy changes from its December meeting. The Fed did note some economic weakness since December, but it attributed the weakness to "transitory factors". That was similar to how economists viewed the unemployment and GDP reports this week. Both were a bit weak, but it didn't change the trend of sluggish growth. The CR weekly summary described the Q4 GDP report:

the underlying details were better than the headline number and most analyst shrugged off the slight contraction as a combination of "one-off drags".

Like the GDP report, the January employment report wasn't as bad as it sounded:

The headline number for the employment report was a little below expectations, but the upward revisions to previous months more than offset the disappointment.

The data still points to sluggish growth, but as CR points out, "it appears the outlook is improving". That helps explain the stock market rise this week and the higher Treasury yields, especially in the longer maturities. The 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 0.27% last week
• 5--year: 0.86% up from 0.85% last week
• 10-year: 2.02% up from 1.95% last week
• 30-year: 3.22% up from 3.13% last week

Fed funds futures' probability of rate hike by:

• Jan 2015: 61% up from 59% last week
• Apr 2015: 69% down from 73% last week

This was another 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

The big disappointment this week for savings accounts was Alliant Credit Union. Its savings account rate fell from 0.80% to 0.70%. Alliant's High Rate Checking yield also fell by 10 bps. Its rate is now 0.65%.

There were more rate cuts this week at Acacia Federal Savings Bank. Just one week after the last cuts, Acacia Federal slashed its Metro Checking rate from 0.80% to 0.50%, and it reduced its money market account rate from 0.80% to 0.70%. Since the Metro Checking account rate is now only 0.50%, I removed it from the list. As I mentioned when I first reported on this 1.00% yield, Acacia Federal has done this before with top rates only being temporary.

Silvergate Bank's online savings account didn't last long. I first reported on it on January 14th. The account is no longer listed on the bank's website. They are still offering online CDs, but the online savings account info has been removed from the public website. It had a fairly competitive yield of 0.90%, but that's not enough for a new internet bank. There are too many uncertainties with new internet banks. The online banking features are often weak, and the rates often fall within a year.

ING DIRECT is now officially Capital One 360. The brand name was changed on February 1st. ING Direct's website now redirects visitors to CapitalOne360.com. Nothing else was changed this week. Let's hope the savings and checking accounts remain at least fairly competitive.

We continue to 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

The three-week streak of no rate cuts ended this week. Several banks and credit union cut their reward checking rates. The good news is that the rate cuts didn't affect the rate leaders in my list of nationally available reward checking accounts. The banks and credit unions that had rate cuts already had low rates.

One change wasn't a rate cut, but a balance cap reduction. Actually, it was an addition of a balance cap. Bank of Internet USA added a $150K balance cap to its Rewards Checking Account. Only balances up to $150K can earn 1.25% APY. Anything over $150K earns no interest. Previously, all balances earned 1.25% APY if the monthly requirements were met. Even though this rate was low compared to other reward checking accounts, the lack of a balance cap made this account attractive to many savers. It's less attractive now, but at least the balance cap is relatively large compared to other reward checking accounts. The 1.25% APY has held for more than 18 months. Let's hope this balance cap reduction will make it easier for the bank to maintain the 1.25% APY.

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.

Removal:

1. Silvergate Bank Online Savings - 0.90% (min $1K)
2. Acacia Federal Metro Checking - 0.50%

Rate Hikes:

1. None

Rate/Balance Cap Cuts:

1. First Tech FCU Dividend Rewards Checking - 1.78% (up to $10K) 0.16% ($10K+) [was 1.78%/0.25%]
2. Community Bank or Raymore Rewards Checking - 1.75% (up to $10K) 0.35% ($10K+) [was 1.75%/0.50%]
3. Heritage Bank eCentive Checking - 1.41% (up to $25K) 0.10% ($25K+) [was 1.51%/0.10%]
4. First New England FCU Rewards Checking - 1.25% (up to $15K) 0.10% ($15K+) [was 1.52%/0.10%]
5. Bank of Internet USA Rewards Checking - 1.25% (up to $150K) 0.00% ($150K+) [was 1.25% for all balances]
6. Legence Bank Kasasa Cash - 1.05% (up to $25K) 0.25% ($25K+) [was 1.50%/0.25%]
7. Alliant Credit Union Savings - 0.70% [was 0.80%]
8. Alliant High Rate Checking - 0.65% [was 0.75%]
9. Acacia Federal Metro Checking - 0.50% [was 0.80%]
10. Acacia Federal MMA - 0.70% [was 0.80%]

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

• ING DIRECT Is Now Capital One 360
• Forum Highlights: Rate Cuts, Hackers Hit CUs and Unemployment Trends
• Fed Stays the Course, Cites a Pause in Growth
• Can Debit Card Purchases be Hit by the New Credit Card Checkout Fees?
• Retirement Debate: To Downsize or Not?

Savings/MMA - National

• Top HSA Rate at Pacific Community Credit Union - Easy Membership

CD Deals/Resources - National

• Survey of the Best CD Rates for February 1, 2013
• CD Rate Hike at Barclays - Review of Barclays Online CDs

Checking/Savings/CC Bonuses

• Special CD & Checking Deals at Melrose Cooperative Bank in MA - Local Only
• Cash Bonus for Louisiana's Best Reward Checking at Home Federal Bank

Reward Checking Accounts

• Bank of Internet USA's New Rewards Checking Balance Cap
• Review of First Financial Bank's Kasasa Cash and Saver Accounts

CD and Money Market Deals - Local

• 2-Year IRA CD Special at South Florida FCU - Local Only
• Competitive 1-Year CD Rate at The National Republic Bank of Chicago
• Competitive 1-Year CD Rate at CapitalSource Bank in California
• Top CD and IRA CD Rates in South Texas at Security First Credit Union

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 February 2, 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)
• MyBankingDirect - 1.05% (min $5K)
• Union Federal Savings Bank - 1.05% MMA (min $2.5K) account review
• Incredible Bank - 1.01% MMA ($2.5K min) 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
• CIT Bank - 1.00% ($25K) 0.90% ($0) Savings, 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
• Ally Bank - 0.90% MMA/savings
• American Express Bank - 0.90%, account review
• Incredible Bank - 0.88% Checking ($1K min) account review
• Sallie Mae Bank - 0.85% Savings account review
• GE Capital Retail Bank (formerly MetLife) - 0.85% (min $10K) Savings
• FNBO Direct - 0.85% Savings
• Capital One 360 - 0.85% ($100K) 0.80% ($50K) 360 Checking
• Colorado Federal Savings Bank - 0.85% ($2.5K min) account review
• UFB Direct (BofI Federal) - 0.80% MMA/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)
• Capital One 360 - 0.75% 360 Savings
• Acacia Federal - 0.70% MMA (min $25K), account review
• Alliant Credit Union - 0.70% (min $100) Savings account review
• Alliant Credit Union - 0.65% 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)
• First Financial Bank - 3.00% (up to $15K) 0.25% ($15K+) Kasasa Cash
• 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) 0.16% ($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) 0.35% ($10K+)
• Connexus Credit Union - 1.75% (up to $25K) 0.50% ($25K+) Xtraordinary Checking
• BankFirst Financial Services - 1.50% (up to $50K) 0.25% ($50K+)
• Heritage Bank - 1.41% (up to $25K) 0.10% ($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% (up to $150K) 0.00% ($150K+)
• Bank of Blue Valley - 1.25% (up to $15K) 0.10% ($15K+), $1K/month debit card req (account review)
• First New England Federal Credit Union - 1.25% (up to $15K) 0.10% ($15K+) (extra 1% w/relationship)
• North Country Savings Bank - 1.05% (up to $25K) 0.75% ($25K+)
• Legence Bank - 1.05% (up to $25K) 0.25% ($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 February 1, 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

• Investment Discussion Forum

• 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)