Dedicated to Deposits: Deals, Data, and Discussion

Best Bank Account Interest Rates - Summary for Week Ending March 23, 2014

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The second FOMC meeting of the year took place last week with the new Fed Chair Janet Yellen. When the meeting statement first came out, it appeared to be more bad news for savers waiting for higher rates. The committee decided to remove the unemployment rate threshold in the rate hike decision. That suggested that the Fed will have an easier time to delay the start of the rate hikes. However, Chairwoman Yellen surprised the market in her post-meeting press conference by suggesting that rates could rise after only six months after tapering ends. That became the most important driver of the markets, and it pushed up Treasury yields and the Fed fund futures probabilities. Those futures are showing a much higher probability of rate hikes in 2015. For example, the implied probability of a rate hike by July 2015 went up from 61% to 81% over the last week.

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: 0.05% same as last week
  • 6-month: 0.08% same as last week
  • 2--year: 0.45% up from 0.36% last week
  • 5--year: 1.73% up from 1.55% last week
  • 10-year: 2.75% up from 2.65% last week
  • 30-year: 3.61% up from 3.59% last week

Fed funds futures' probability of rate hike by:

  • Jan 2015: 25% up from 15% last week
  • Apr 2015: 52% up from 33% last week
  • Jul 2015: 81% up from 61% last week
  • Oct 2015: 96% up from 83% last week

Savings & Checking Account Rates

This was another quiet week in terms of rate changes in the savings and money market accounts that I track below. There was just one rate change.

First Trade Union Bank’s High-Yield Savings account yield fell from 1.00% to 0.95%. It was only 3 months ago when First Trade Union Bank first increased this yield from 0.70% to 1.00%. Previously, the rate had remained at 0.70% for over 18 months. Based on this history, I’ll be surprised if this 0.95% will hold for long.

The number of institutions offering a non-promo 1% savings or money market account is now five. SFGI Direct is the latest one in this club with its 1.01% APY savings account. Three of those five are MySavingsDirect savings account, the 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. Note, I exclude EverBank and Salem Five Direct. Only new customers can earn over 1% at these banks.

Reward Checking Accounts

The only rate changes this week for the nationally available reward checking accounts were at Redneck Bank and its two sister banks (AmericaNet and Evantage). Their rate cut that they first announced in February took effect last week. The yield fell from 2.00% to 1.50% for balances up to $10K.

One reward checking account that I reported on last week isn’t nationally available, but the bank has recently expanded eligibility to include more states. It’s the Kasasa Cash account at Frontier Bank in Iowa. When I first reported on it, only 3 states were eligible. That has been increased to 12. The account has a 3.05% APY for balances up to $20K which makes it an even better deal than INOVA Federal Credit Union’s Ovation Checking.

There continues to be only seven banks and credit unions in my table below offering reward checking yields of 2.00% and over for balances of at least $15K.

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:

  • none

Rate/Balance Cap Cuts:

  • Redneck Bank Rewards Checking - 1.50% (up to $10K) [was 2% (up to $10K)]
  • AmericaNet Bank Rewards Checking - 1.50% (up to $10K) [was 2% (up to $10K)]
  • Evantage Bank Rewards Checking - 1.50% (up to $10K) [was 2% (up to $10K)]
  • First Trade Union Bank Savings - 0.95% [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 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 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 March 23, 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
MySavingsDirect1.00%savings account - account review
iGObanking.com1.00% ($100K) 0.75% ($75K) 0.50% ($25K)savings account (no check writing) account review
SmartyPig1.00%savings account - account review
Salem Five Direct1.00%savings, for new customers only
First Trade Union Bank0.95% ($2.5K)FT High-Yield Savings, account review
GE Capital Retail Bank (formerly MetLife)0.95%Savings
Incredible Bank0.95% ($2.5K min)MMA account review
CIT Bank0.95% ($25K) 0.90% ($100)savings account, 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
Palladian Private Bank0.90% (min $10K)savings account
Ally Bank0.87%savings
Ally Bank0.85%MMA
Discover Bank0.85% (min $500)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
American Express Bank0.80%savings account, 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
Clear Sky Accounts0.70% (max $250K)savings account, account review
Alliant Credit Union0.70% (min $100)savings account, account review
Nationwide Bank0.66% (min $1K)MMA
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 Union4.09% (up to $10K) 0.20% ($10K-$25K) 0.10% ($25K+)Rewards Checking - with cc requirements
INOVA Federal Credit Union3.00% (up to $20K) 0.15% ($20K+)Ovation Checking (not available to PA residents)
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+)Kasasa Cash Checking
First American Bank2.00% (up to $15K) 0.15% ($15K+)Everyday 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
Redneck Bank1.50% (up to $10K) 0.50% (over $10K+)Redneck Rewards Checking
AmericaNet Bank1.50% (up to $10K) 0.50% ($10K+)AmericaNet Rewards Checking
Evantage Bank1.50% (up to $10K) 0.50% ($10K+)Evantage 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
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
First New England Federal Credit Union1.01% (up to $15K) 0.10% ($15K+)extra 1% w/relationship
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
Ally Financial Demand Notes1.35%Ally Demand Notes review
Duke Energy PremierNotes1.25% rate for $50K+Duke Energy PremierNotes review
Ford Interest Advantage1.10% rate for $50k+Ford Interest Advantage review
GE Interest Plus1.05% 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 #2 by Hoody posted on
Hoody
NFCU rates held at the same point today.

4
Comment #3 by Hoody posted on
Hoody
just talked to a rep, said things are not looking good for next week, so if your on the fence, best get at it.

4