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

Fed Chairman Bernanke gave a two-day testimony for Congress this week, and it was clear that he's in full support of QE3 continuation. Chairman Bernanke also warned Congress that the sequester cuts could be a headwind to economic growth. The sequester cuts did take effect on Friday, and they may continue for a while due to the Washington gridlock.

In addition to the sequester, downbeat European data contributed to a large decline in Treasury yields. The yield of the 10-year note declined the most in one week since November. 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: 0.11% same as last week
• 2--year: 0.22% down from 0.24% last week
• 5--year: 0.72% down from 0.82% last week
• 10-year: 1.84% down from 1.96% last week
• 30-year: 3.06% down from 3.17% last week

Fed funds futures' probability of rate hike by:

• Jan 2015: 45% down from 62% last week
• Apr 2015: 55% down from 74% last week

This was another week without a bank failure. The pace of bank failures has fallen considerably. So far this year there has only been three. By this time last year there had been twelve bank failures.

Savings & Checking Account Rates

In a pleasant surprise for the start of a month, we didn't see any rate cuts on my list of nationally available savings and money market accounts.

If you want a rate lock, you can get 1.25% guaranteed for six months at EverBank. That's the highest rate you can get on a money market account. Of course, this is only a promo rate. After the first six months, the rate falls to the ongoing rate (which is currently 0.76%). Another downside with this promo is that the balance that qualifies for the 1.25% rate is capped to $50K for the money market account and $100K for the checking. Also, it's only available for new customers.

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. Three other banks that were tied with MyBankingDirect had rate cuts over the last month. MyBankingDirect's 1.05% 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 also a quiet week for nationally available reward checking accounts, but there was one rate cut. Heritage Bank reduced the top yield of its reward checking account, the eCentive account, from 1.41% to 1.31%. The balance cap remains at $25K. Heritage Bank has been cutting this rate at the start of every month since December.

Some of the old reward checking accounts like the eCentive account at Heritage Bank have seen significant rate cuts over the last year. Most of these have rates that are not much above 1%. However, there are still a few old reward checking accounts with rates closer to 2%. It's hard to justify the reward checking accounts when the rates get close to 1% when you can get internet savings accounts that pay around 1.00% without any monthly requirements or balance caps.

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. Heritage Bank eCentive reward checking - 1.31% (up to $25K) [was 1.41% (up to $25K)]

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 and NCUA Fourth Quarter Reports & Institution Health Ratings
• Bernanke: Stock Market Gains Have Benefited Some Savers
• What to Say In Your Goodbye Letter to Your Loved Ones

Savings/MMA - National

• Discover Bank Adds Mobile Check Deposit

CD Deals/Resources - National

• Survey of the Best CD Rates for March 1, 2013
• PenFed CD Rates Will Be Falling in March
• Comparison of Long-Term CD Rates After Early Withdrawal Penalties - February 2013

Checking/Savings/CC Bonuses

• Several Notable $150 Checking Account Bonuses

Reward Checking Accounts

• No new posts this week

CD and Money Market Deals - Local

• Top Money Market and CD Rates at Live Oak Bank - North Carolina Only
• Top CD and IRA CD Rates in Florida at City County Credit Union
• First Green Bank's Special 2-Year Flex CD in Florida - Usefulness of Flex CDs?

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 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
• 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
• 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% ($100) Savings, account review
• Union Federal Savings Bank - 1.00% MMA (min $2.5K) account review
• Salem Five Direct - 1.00% savings, for new customers only
• Sallie Mae Bank - 0.95% MMA account review
• SFGI Direct - 0.94% account review
• ableBanking - 0.92% MMA (min $1K)
• AloStar Bank of Commerce - 0.91% ($50K) 0.50% ($0) MMA Advantage
• Ally Bank - 0.90% MMA/savings
• 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
• 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:

• 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% (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) 0.35% ($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 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)