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Best Bank Account Interest Rates - Summary for Week Ending January 12, 2014

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The road to higher deposit rates has been long, but recently there have been economic signs that the road may become a little shorter. However, just like the last four years, bad economic news keeps returning. That happened again on Friday when the Labor Department released weaker-than-expected jobs report. With news like this the Fed won’t be in any hurry to accelerate tapering or to raise the Fed funds rate. If the economy does improve as the Fed expects, we’ll be lucky to see a rate hike in 2015.

The weaker-than-expected jobs report caused a big drop in Treasury yields. The change in Treasury yields and Fed funds futures in the last week are shown below. The following numbers are based on Daily Treasury Yield Curve Rates and the CME Group FedWatch.

Treasury Yields:

  • 1-month: 0.01% down from 0.02% last week
  • 6-month: 0.06% down from 0.10% last week
  • 2--year: 0.39% down from 0.41% last week
  • 5--year: 1.64% down from 1.73% last week
  • 10-year: 2.88% down from 3.01% last week
  • 30-year: 3.80% down from 3.93% last week

Fed funds futures' probability of rate hike by:

  • Jan 2015: 31% same as last week
  • Apr 2015: 53% down from 54% last week
  • Jul 2015: 76% down from 77% last week

We are still waiting for the first bank failure of 2014. The frequency of bank failures has been on the decline since 2010. The number of bank failures fell from 51 in 2012 to 24 in 2013. If that trend continues we may only average about one bank failure per month.

Savings & Checking Account Rates

We are starting to see some rate increases at internet banks. First SFGI Direct raised its savings account rate from 0.91% to 1.01% APY. Second, Ally Bank raised its savings and money market account rate from 0.85% to 0.87%. Hopefully, this will be the start of a trend for 2014. I doubt there will be a flood of higher rates. With the Fed determined to keep rates low, banks probably won’t be in a hurry to raise rates.

With SFGI Direct’s latest rate hike, the latest number of institutions offering a non-promo 1% savings or money market account is now six. Four of those six are First Trade Union Bank savings account, MySavingsDirect savings account, the new iGObanking.com money market account and the SmartyPig savings account. All of these are offering a 1.00% APY. The highest rate continues to be at Connexus Y.E.S. Money Market Account which has a top-tier APY of 1.15% for a $100K minimum balance. An important downside of this account is that it requires an active checking account and direct deposit.

Reward Checking Accounts

The last three weeks have been quiet for reward checking accounts, at least for the nationally available ones that I track below. None of these accounts had rate changes.

I just reported on one new reward checking account last week. It’s a Kasasa Cash account from First National Bank - Fox Valley. It has a competitive rate of 3.05% APY for balances up to $15K. Unfortunately, the bank is currently only accepting applications from Wisconsin residents.

The two best deals continue to be at two all-access credit unions. INOVA Federal Credit Union continues to offer a 3.00% APY on balances up to $20K, and Lake Michigan Credit Union continues to offer a 3.00% APY on balances up to $15K. At INOVA, the rate and balance cap have held since last June. At Lake Michigan, they’ve held since October 2011. Hopefully, they’ll hold steady through 2014.

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:

  • SFGI Direct savings - 1.01% [was 0.91%]
  • Ally Bank savings/MMA - 0.87% [was 0.85%]

Rate/Balance Cap Cuts:

  • None

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 Last Week's Posts

Banking News/Resources Savings/MMA - National CD Deals/Resources - National Checking/Savings/CC Bonuses Reward Checking Accounts CD and Money Market Deals - Local Posts from Previous Weeks

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 12, 2014

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
Connexus Credit Union1.15% ($100K) 1.00% ($50K) 0.75% ($20K)MMA - active chk required
EverBank1.10% (6mo intro rate) 0.61% ongoing rateMMA/Checking - account review
SFGI Direct1.01%savings account, account review
First Trade Union Bank1.00% ($2.5K)FT High-Yield Savings, account review
MySavingsDirect1.00%savings account - account review
iGObanking.com1.00% ($100K) 0.75% ($75K) 0.50% ($25K)money market account - account review
SmartyPig1.00%savings account - account review
Incredible Bank0.91% ($2.5K min)MMA account review
Bank5 Connect0.90% (min $100)online savings account (not available for MA and RI residents)
GE Capital Bank0.90%online savings account
Sallie Mae Bank0.90%MMA account review
Union Federal Savings Bank0.90% (min $2.5K)MMA account review
Barclays0.90%Savings account review
Redneck Bank0.90% (up to $35K) 0.50% (over $35K)MMA
AmericaNet Bank0.90% (up to $35K) 0.50% (over $35K)MMA
Evantage Bank0.90% (up to $35K) 0.50% (over $35K)MMA
CIT Bank0.90% ($25K) 0.85% ($100)savings account, account review
GE Capital Retail Bank (formerly MetLife)0.90%Savings
Palladian Private Bank0.90% (min $10K)savings account
Ally Bank0.87%MMA/savings
Discover Bank0.85% (min $500)savings account, account review
American Express Bank0.85%savings account, account review
Colorado Federal Savings Bank0.85% ($2.5K min)savings account, account review
Capital One 3600.85% ($100K) 0.80% ($50K)360 Checking
FNBO Direct0.85%savings account
GE Capital Retail Bank (formerly MetLife)0.85% ($10K)MMA
Mutual of Omaha Bank0.85% (min $25)MMA, account review
Sallie Mae Bank0.80%savings account, account review
Salem Five Direct0.80%savings, for new customers only
MyBankingDirect0.80% (min $5K)MMA
ableBanking0.80% (min $1K)MMA
Bank5 Connect0.76% (min $100)checking account (not available for MA and RI residents)
Bank of Internet USA0.75%MMA
Capital One 3600.75%360 savings account
Nationwide Bank0.71% (min $1K)MMA
Clear Sky Accounts0.70% (max $250K)savings account, account review
Alliant Credit Union0.70% (min $100)savings account, account review
Incredible Bank0.66% ($1K min)checking, account review
Alliant Credit Union0.65%Checking (req's elec. dep & e-stmts) account review

Reward Checking Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
Consumers Credit Union3.09% (up to $5K) 0.20% ($5K-$25K) 0.10% ($25K+)Rewards Checking
Money One Federal Credit Union3.01% (up to $10K) 0.51% ($10K+)Kasasa Cash
INOVA Federal Credit Union3.00% (up to $20K) 0.15% ($20K+)Ovation Checking
Lake Michigan Credit Union3.00% (up to $15K) 0.00% ($15K+)Max Checking
Great Lakes Credit Union3.00% (up to $10K) 0.05% ($10K+)Ultimate Checking
Belvoir FCU2.53% (up to $15K) 0.05% ($15K+)CUXcel Checking
Lee Bank2.50% (up to $15K) 0.50% ($15K+)CACHEChecking
Capital Educators Federal Credit Union2.50% (up to $10K) 0.20% ($10K+)High Yield Checking
Security Bank2.05% (up to $25K) 0.30% ($25K+)Security Bonus Checking
XCEL Federal Credit Union2.01% (up to $15K) 0.30% ($15K+)Redneck Rewards Checking
Redneck Bank2.00% (up to $10K) 0.50% (over $10K)Redneck Rewards Checking
AmericaNet Bank2.00% (up to $10K) 0.50% ($10K+)AmericaNet Rewards Checking
Evantage Bank2.00% (up to $10K) 0.50% ($10K+)Evantage Rewards Checking
ABCO Federal Credit Union1.76% (up to $25K) 0.20% ($25K+)Premiere Checking
Provident Credit Union1.76% (up to $25K) 0.11% ($25K+)Super Reward Checking
Connexus Credit Union1.75% (up to $25K) 0.31% ($25K+)Xtraordinary Checking
First Tech Federal Credit Union1.58% (up to $10K) 0.16% ($10K+)Dividend Rewards Checking
Aspire Federal Credit Union1.51% (up to $10K) 0.25% ($10K+)Kasasa Cash
Community Bank of Raymore1.50% (up to $10K) 0.10% ($10K+)Rewards Checking
Community Bank of Pleasant Hill1.50% (up to $10K) 0.10% ($10K+)Rewards Checking
West Texas National Bank1.26% (up to $25K) 0.25% ($25K+)Ultimate Checking
Heritage Bank1.26% (up to $25K) 0.10% ($25K+)eCentive Account
First New England Federal Credit Union1.25% (up to $15K) 0.10% ($15K+)extra 1% w/relationship
Bank of Blue Valley1.25% (up to $15K) 0.10% ($15K+)$1K/month debit card req (account review)
Bank of Internet USA1.25% (up to $150K) 0.00% ($150K+)Rewards Checking
BankFirst Financial Services1.25% (up to $25K) 0.15% ($25K+)Kasasa Cash
Avidia Bank1.06% (up to $25K) 0.05% ($25K+)eChecking
Legence Bank1.05% (up to $25K) 0.25% ($25K+)Kasasa Cash
North Country Savings Bank1.05% (up to $25K) 0.75% ($25K+)Advantage Checking
State Bank of Toledo1.00% (up to $25K) 0.15% ($25K+)Hometown Rewards Checking

Certificates of Deposit:

Various Deposit Account Deals

Bank Account Alternatives - NOT FDIC Insured

InstitutionRatesNotes
Duke Energy PremierNotes1.40% rate for $50K+Duke Energy PremierNotes review
Ally Financial Demand Notes1.35%Ally Demand Notes review
Ford Interest Advantage1.10% rate for $50k+Ford Interest Advantage review
GE Interest Plus1.10% rate for $50k+
Vanguard Prime Money Market Fund0.01% 7-day yield
Vanguard Tax-Exempt Money Market Fund0.01% 7-day yield
Fidelity Money Market Fund0.01% 7-day yieldreviews on Fatwallet
Fidelity Municipal Money Market Fund0.01% 7-day yield
TIAA-CREF Money Market Fund0.00% 7-day yield

Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)


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Comments
2 comments.
Comment #1 by cumulus posted on
cumulus
> Second, Ally Bank raised its savings and money market account rate
> from 0.85% to 0.87%.
>
The Online Savings rose to 0.87%, the money market remains at 0.85%.

2