Best Bank Account Interest Rates - Summary for Week Ending March 16, 2013

The second FOMC meeting of the year is scheduled for Tuesday and Wednesday next week. Chairman Bernanke will also be holding a press briefing following the FOMC policy statement release on Wednesday. It should be another uneventful meeting. No policy changes are expected.

According to the CR summary for the week, "this was another week of solid economic data." The only exception was the big drop in consumer sentiment.

The Labor Department released February CPI numbers on Friday. According to USA Today, "A spike in gas prices drove a measure of U.S. consumer costs up in February by the most in more than three years. But outside the gain in fuel costs, inflation was mostly modest." As mentioned in the CR summary, "with this level of inflation and the current high level of unemployment", the Fed will likely "keep the pedal to the metal".

In addition to the decline in consumer sentiment, more global economic worries offset the positive U.S. economic news to push down Treasury yields this week. 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: 0.24% same as last week
• 5--year: 0.83% down from 0.88% last week
• 10-year: 1.99% down from 2.04% last week
• 30-year: 3.22% down from 3.26% last week

Fed funds futures' probability of rate hike by:

• Jan 2015: 56% up from 55% last week
• Apr 2015: 65% down from 74% last week

This was another week without a bank failure. The number of bank failures this year in the nation remains at four. At this time last year, there had been 13 bank failures. As you can see, the pace of bank failures continues to go down.

Savings & Checking Account Rates

I'm not sure what sparked the rate cuts, but there were quite a few this week. Five banks reduced their internet money market or savings account rates. The most noteworthy rate cut was at Ally Bank which reduced its savings and money market rate from 0.90% to 0.84%.

Also noteworthy were two banks that cut their money market rates below 1.00%. TIAA Direct reduced its savings and money market yield from 1.00% to 0.92%. The last cut was about two months ago when the yield fell from 1.25% to 1.00%. This account remains closed to new customers. After these rate cuts, TIAA Direct won't have to worry about too much demand if they decide to open it up for new customers.

The other bank that dropped below 1.00% is Union Federal Savings Bank. Its money market account yield fell from 1.00% to 0.95%. It was less than a month ago when its yield fell from 1.05% to 1.00%. So I wouldn't be surprised if we see more rate cuts in the coming months.

The best non-promo rate for large balances continues to be Connexus Credit Union's Y.E.S. Money Market. It has a 1.15% APY for balances over $100K and 1.00% APY for balances of $50K to under $100K. The downside is that it requires an active checking account with direct deposit.

The highest rate without a checking requirement and without balance caps continues to be MyBankingDirect's money market account. It still has a 1.05% APY. This APY has held since June 2012. Its rates have been remained near the top of my list since June 2011.

Reward Checking Accounts

This was another quiet week for nationally available reward checking accounts with no rate changes. Most of the reward checking accounts are only local deals, and we have seen many more changes on these accounts. Unfortunately, most of the changes have been rate and balance cap cuts. You can keep up on these changes in the DA reward checking forum.

I came close to adding a new reward checking account, but the account turned out to be limited to residents of only five states. It's the Kasasa Cash account at Community Financial Services Bank, and it pays 3.05% APY on balances up to $20K. I reviewed this account on Thursday.

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. Union Federal Savings Bank MMA - 0.95% [was 1.00%]
2. TIAA Direct MMA/Savings - 0.92% [was 1.00%] (existing customers)
3. ableBanking MMA - 0.85% [was 0.92%]
4. Ally Bank MMA/Savings - 0.84% [was 0.90%]
5. Acacia Federal MMA - 0.50% (min $25K) [was 0.70%] (removed from list)

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

• FDIC's Consumer News: Deposit Insurance, Stopping Payments and Safe Mobile Banking
• Forum Highlights: Ally Cuts, PenFed ATM Cards and Credit Score Bill
• When Retirement is A Year Away

Savings/MMA - National

• Do Internet Banks Offer Enough Advantages?

CD Deals/Resources - National

• Survey of the Best CD Rates for March 15, 2013
• Top 5-Year CD Rate at The National Republic Bank of Chicago

Checking/Savings/CC Bonuses

• Up to $200 Checking Account Bonus at BMO Harris Bank in Some States

Reward Checking Accounts

• New Kasasa Cash and Saver Accounts with Top Rates at CFSB

CD and Money Market Deals - Local

• Special 13-Month CD at Premier America Credit Union
• Higher CD Rates at Department of Commerce FCU in Washington DC
• Top CD and IRA CD Rates at Doral Bank New York - 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 March 16, 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
• 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)
• Incredible Bank - 1.01% MMA ($2.5K min) account review
• SmartyPig - 1.00% ($50K max), account review
• Barclays - 1.00% Savings account review
• CIT Bank - 1.00% ($25K) 0.90% ($100) Savings, account review
• Sallie Mae Bank - 0.95% MMA account review
• Union Federal Savings Bank - 0.95% MMA (min $2.5K) account review
• SFGI Direct - 0.94% account review
• TIAA Direct - 0.92% MMA/Savings (not accepting new customers) account review
• AloStar Bank of Commerce - 0.91% ($50K) 0.50% ($0) MMA Advantage
• Salem Five Direct - 0.90% savings, for new customers only
• 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% ($25K) 0.80% ($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
• American Express Bank - 0.85%, account review
• ableBanking - 0.85% MMA (min $1K)
• Ally Bank - 0.84% MMA/savings
• 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
• 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:

• Great Lakes Credit Union - 4.00% (up to $10K) 0.05% ($10K+) Ultimate Checking
• Belvoir FCU - 3.25% (up to $15K) 0.05% ($15K+) CUXcel Checking
• 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% ($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) 0.35% ($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+)
• Avidia Bank - 1.36% (up to $25K) 0.05% ($25K+)
• Heritage Bank - 1.31% (up to $25K) 0.10% ($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 March 15, 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)