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Best Bank Account Interest Rates - Summary for Week Ending January 19, 2014

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Last Thursday the Labor Department released December CPI data which showed no signs of inflation pressures based on the core CPI with energy and food excluded. Core CPI increased 1.7% in 2013. That’s down from 1.9% in 2012, and it’s below the Fed’s 2% inflation target. Higher gas prices in December caused the overall CPI to rise by 0.3%, but that’s not a concern for the Fed.

There is growing belief that inflation will become more important than unemployment in the Fed’s decision about the zero interest rate policy (ZIRP). It’s not a worry about high inflation, but low inflation that’s below the Fed’s 2% target. So even if the unemployment rate reaches the Fed’s threshold of 6.5%, low inflation may cause the Fed to push out rate hikes.

The Fed will be holding its first FOMC meeting of 2014 on January 28-29, and it’s widely expected that the Fed will continue tapering by reducing bond purchases by $10 billion. If the Fed keeps that up, the bond purchase program would end by fall of this year. Then we’ll be waiting for the Fed to start rate hikes which could take awhile if inflation remains low.

More weaker-than-expected economic data this week caused long-term Treasury yields to decline. 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% same as last week
  • 6-month: 0.07% up from 0.06% last week
  • 2--year: 0.40% up from 0.39% last week
  • 5--year: 1.64% same as last week
  • 10-year: 2.84% down from 2.88% last week
  • 30-year: 3.75% down from 3.80% last week

Fed funds futures' probability of rate hike by:

  • Jan 2015: 31% same as last week
  • Apr 2015: 57% up from 53% last week
  • Jul 2015: 81% up from 76% last week
  • Oct 2015: 94% up from 84% last week

The first bank failure of 2014 occurred last Friday. DuPage National Bank in West Chicago was closed by the OCC.

Savings & Checking Account Rates

This was a quiet week for savings and money market rate changes. Only one internet bank in the table below changed its rate. Salem Five Direct increased its eOne Savings account rate from 0.80% to 0.90%. However, this rate is only for new customers. Salem Five Direct doesn’t publicly disclose the rate that existing customers receive.

One change I missed last week was at Ally Bank. Its savings account rate is now higher than its money market rate. In the previous week, the savings account rate increased from 0.85% to 0.87%, but the money market rate held steady at 0.85%. This is the first time in several years that these two accounts had different rates.

The number of institutions offering a non-promo 1% savings or money market account remains at six. SFGI Direct is the latest one in this club with its 1.01% APY savings account. 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

This was another quiet week for reward checking accounts with no rate changes in the table below. However, I removed one institution. It was reported that Money One Federal Credit Union is no longer opening accounts for those who live outside Maryland, Virginia or Washington DC. Thus, it no longer qualifies as a nationally available account.

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.

Removals:

  • Money One Federal Credit Union Reward Checking (no longer nationally available)

Rate Hikes:

  • Salem Five Direct Savings (new customers) - 0.90% [was 0.80%]

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
  • Nothing new this week
CD Deals/Resources - National Checking/Savings/CC Bonuses Reward Checking Accounts
  • Nothing new this week
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 19, 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
Salem Five Direct0.90%savings, for new customers only
Ally Bank0.87%savings
Ally Bank0.85%MMA
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
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
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)


Related Posts

Comments
3 comments.
Comment #1 by pjaskate posted on
pjaskate
NFCU CD RatesLong-Term Certificate Rates3 Year1.44%1.45%1.44%1.45%1.49%1.50%1.49%1.50%1.54%1.55%4 Year1.93%1.95%1.93%1.95%1.98%2.00%1.98%2.00%2.03%2.05%5 Year2.42%2.45%2.42%2.45%2.47%2.50%2.47%2.50%2.52%2.55%6 Year2.62%2.65%2.62%2.65%2.66%2.70%2.66%2.70%2.71%2.75%7 Year2.96%3.00%2.96%3.00%3.00%3.05%3.00%3.05%3.05%3.10%

3
Comment #2 by Sperry8 posted on
Sperry8
The rate for Salem Five for existing customers is .6%.  As well, I spoke with them and they will not honor the higher rate for new money - solely for new customers.  Stupid bank imo.

6