Dedicated to Deposits: Deals, Data, and Discussion

Best Bank Account Interest Rates - Summary for Week Ending January 26, 2014

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The first FOMC meeting of the year is scheduled for next Tuesday and Wednesday. That will be Bernanke’s last FOMC meeting as chair. The expectation is that the Fed will continue its bond-buying tapering without any changes even though December’s jobs report was weaker than expected. Calculated Risk blog has a useful FOMC preview which describes why tapering is likely:

GDP is above projections, the unemployment rate below, and inflation close to projections. So the data supports additional tapering.

Long-term Treasury yields declined this week due to investor fears over global economic growth. The 10-year yield fell to 2.75% which is the lowest that it has been since November. One exception to the decline is the short-term Treasury Bills. The 1-month yield increased from 0.01% to 0.04%. The primary reason for this appears to be concern over the potential for another standoff in Congress over the debt ceiling.

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: 0.04% up from 0.01% last week
  • 6-month: 0.06% down from 0.07% last week
  • 2--year: 0.37% down from 0.40% last week
  • 5--year: 1.58% down from 1.64% last week
  • 10-year: 2.75% down from 2.84% last week
  • 30-year: 3.64% down from 3.75% last week

Fed funds futures' probability of rate hike by:

  • Jan 2015: 24% down from 31% last week
  • Apr 2015: 44% down from 57% last week
  • Jul 2015: 69% down from 81% last week
  • Oct 2015: 87% down from 94% last week

The second bank failure of 2014 occurred last Friday. The Bank of Union in El Reno, Oklahoma was closed by state regulators.

Savings & Checking Account Rates

This was another quiet week for savings and money market rate changes. There were no rate changes in my table below.

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 also quiet week for reward checking accounts with no rate changes in the table below. However, like in my last weekly recap, one institution was removed from the table. It was reported that INOVA Federal Credit Union is no longer opening accounts for those who live outside the states that are in its market area. Thus, it no longer qualifies as a nationally available account. That’s disappointing since INOVA had the best reward checking account that was nationally available.

With the removal of INOVA, the best nationally available reward checking account is now at Lake Michigan Credit Union which continues to offer a reward checking account with a 3.00% APY on balances up to $15K. This 3% APY has held since October 2011.

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:

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

Rate Hikes:

  • None

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 CD and Money Market Deals - Local
  • Nothing new this week
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 26, 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
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 Ryan L (anonymous) posted on
Ryan L
I will stay satisfied with LMCU for now.  Be nice to see rates increase some time.

3
Comment #2 by Anonymous posted on
Anonymous
Can someone help me ? I haven't kept up here in a few months.

Ive got an Ally CD coming due and just found out they no longer give the extra .25%. Is there a back post someone could direct me to that mentions this ?

Im leaning toward just sending the money to penfed for a 5 year CD I guess at 3%.




Thanks, I usually keep up with this blog better than I have the last few months.

3
Comment #3 by Anonymous posted on
Anonymous

7
Comment #5 by Hoody posted on
Hoody
Seems the "fed" has decided to go down to 65B per month, so who knows, maybe these slight uptick rates will continue, abit slow, but up which is better than what we seen last 4 to 5 years.

Who knows maybe by Sept we see 4%ers again for long terms at some places.

If Pen and Navy don't cut rates too badly next time around it may well be a sign.

2
Comment #6 by Anonymous posted on
Anonymous
Sorry, but the Feds fund rate will not change and that means continued poor returns for most savers.

1