Best Bank Account Interest Rates - Summary for Week Ending March 9, 2013

The big economic news this week was the February employment report. U.S. employers added more jobs than expected, and the unemployment rate fell to 7.7 percent, the lowest since December 2008. How will this change the Fed's policy? There is still a long way to go. We'll need to see several months of improving employment rate before the Fed even begins to think about removal of QE and higher rates. In addition, the economy will continue to face headwinds due to Washington and high gas prices. So a long string of months with improving job growth may not happen in 2013.

The February jobs report and other good economic news this week pushed up Treasury yields. According to Bloomberg, "Treasury 10-year note yields had their biggest weekly gain in a year." 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% down from 0.11% last week
• 2--year: 0.24% up from 0.22% last week
• 5--year: 0.88% up from 0.72% last week
• 10-year: 2.04% up from 1.84% last week
• 30-year: 3.26% up from 3.06% last week

Fed funds futures' probability of rate hike by:

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

One small Georgia bank failed on Friday. That's the fourth bank to fail this year, and the first in Georgia. At this time last year, there had been 13 bank failures in the nation and three in Georgia. As you can see, the pace of bank failures continues to go down.

Savings & Checking Account Rates

Only one savings account on my list had a rate cut. Salem Five Direct's eOne Savings Account yield fell from 1.00% to 0.90%. It should be noted that this is only for new customers. If you're an existing customer, you'll need to review your statements or contact Salem Five customer service to see your current rate.

I reported on two new savings account deals this week, but both are primarily local deals. First, EBSB Direct is offering 1.17% APY on its money market account for balances of at least $50K. This money market account used to be available to all of New England and New York. However, I was told this is now only available to MA residents.

The second deal may be available nationwide if you work at it. PacTrust Bank in SoCal is offering a 1.25% APY for a $250K minimum and a 1.00% APY for a $100K minimum. In addition, they're guaranteeing these rates through 2013. A branch visit may be required, but some readers are reporting being allowed to open the account by mail with a notarized signature form.

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 a quiet week for nationally available reward checking accounts with no rate changes. However, there was one big change. I added a new nationally available account. It's the Ultimate Checking Account from Great Lakes Credit Union. The account takes the top spot with a 4.00% APY. However, the balance cap is only $10K, so I don't consider this a hot deal. The credit union isn't clear about how anyone can qualify for membership. I have more details in my account review.

I missed one noteworthy reward checking rate drop last Saturday. It's not a nationally available account, but it had been tied for the top reward checking rate in the nation for a $25K balance cap. It's the Free High-Interest Checking at Coppermark Bank in Texas and Oklahoma. The yield was slashed in March from 4.00% to 1.25% APY. With this rate cut, Southwest Airlines FCU's LUV Reward Checking is now the lone leader of reward checking accounts with a 4.00% APY for balances up to $25K. You can even use a credit card instead of a debit card to meet the monthly requirements. I just wish it didn't have such a narrow field of membership.

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. Great Lakes Credit Union reward checking - 4.00% (up to $10K) 0.05% ($10K+)

Rate Hikes:

1. None

Rate/Balance Cap Cuts:

1. Salem Five Direct eOne Savings (new customers) - 0.90% [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

• Fourth Bank Failure of the Year: Frontier Bank, LaGrange, Georgia
• Ally Financial Scores Poorly on Fed's Stress Test - Effect on Ally Bank?
• Rep. Campbell Talks With DepositAccounts.com on the Risks of the Fed's Monetary Policy
• Account-to-Account Transfers: Improved, But a Work in Progress

Savings/MMA - National

• No new posts this week

CD Deals/Resources - National

• Survey of the Best CD Rates for March 8, 2013
• My Experience with Ally Bank's Loyalty Rewards Program for CD Renewals
• Higher 1-Year CD Rates and Top 7-Year CD Rate at Air Force FCU

Checking/Savings/CC Bonuses

• No new posts this week

Reward Checking Accounts

• Update on Great Lakes Credit Union's Reward Checking Account
• Reward Checking Rate Leader Slashes Rate

CD and Money Market Deals - Local

• Savings Account Special With Guaranteed Rates at PacTrust Bank in SoCal
• Special 7-Month CD Rate at Washington Federal in Western States
• Top Money Market Account Rate at EBSB Direct - MA 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 9, 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
• 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)
• MyBankingDirect - 1.05% (min $5K)
• Incredible Bank - 1.01% MMA ($2.5K min) account review
• Union Federal Savings Bank - 1.00% MMA (min $2.5K) account review
• CIT Bank - 1.00% ($25K) 0.90% ($100) 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
• 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
• Salem Five Direct - 0.90% savings, for new customers only
• Incredible Bank - 0.88% Checking ($1K min) account review
• American Express Bank - 0.85%, account review
• Colorado Federal Savings Bank - 0.85% ($2.5K min) account review
• Capital One 360 - 0.85% ($100K) 0.80% ($50K) 360 Checking
• FNBO Direct - 0.85% Savings
• GE Capital Retail Bank (formerly MetLife) - 0.85% ($25K) 0.80% ($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
• UFB Direct (BofI Federal) - 0.80% MMA/savings 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
• Acacia Federal - 0.70% MMA (min $25K), 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+)
• 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) 0.16% ($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) 0.35% ($10K+)
• Community Bank of Pleasant Hill - 1.75% (up to $10K) 0.35% ($10K+)
• Pacific Resource Credit Union - 1.75% (up to $15K) 0.50% ($15K+)
• 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+)
• First New England Federal Credit Union - 1.25% (up to $15K) 0.10% ($15K+) (extra 1% w/relationship)
• 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% (up to $150K) 0.00% ($150K+)
• Legence Bank - 1.05% (up to $25K) 0.25% ($25K+)
• 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 March 8, 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)