Dedicated to Deposits: Deals, Data, and Discussion

Best Bank Account Interest Rates - Summary for Week Ending April 13, 2014

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The big drop in the stock market last week reminds us of the benefits of deposit accounts, even when interest rates are low. However, the stock market downturn isn’t good news for savers, even for those who don’t own any stocks. A tanking stock market often is the result of disappointing economic news, and that will give the Fed another reason to delay rate hikes. Also, many investors will leave the stock market when it starts to tank. That money is moved to safe places like money market funds, Treasuries and deposit accounts. That will push down the interest rates. That’s what happened last week. The 30-year Treasury yield reached a 9-month low.

Another thing to push down rates last week was the release of the FOMC minutes which indicated that rates will likely stay low for a longer time than what analysts were saying right after the last FOMC meeting. As I had thought, the markets were putting too much into Chairman Yellen’s press conference which suggested rate hikes could begin as soon as early 2015. Based on the FOMC statement changes, it sure seemed that we would be lucky to get rate hikes in late 2015. The FOMC minutes confirmed that the Fed is favoring a longer wait before hiking rates.

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 0.03% last week
  • 6-month: 0.06% up from 0.05% last week
  • 2--year: 0.37% down from 0.43% last week
  • 5--year: 1.58% down from 1.71% last week
  • 10-year: 2.63% down from 2.74% last week
  • 30-year: 3.48% down from 3.59% last week

Fed funds futures' probability of rate hike by:

  • Jan 2015: 12% down from 16% last week
  • Apr 2015: 30% down from 41% last week
  • Jul 2015: 61% down from 75% last week
  • Oct 2015: 86% down from 94% last week

Savings & Checking Account Rates

Last week was another quiet week in the savings and money market accounts that I track below. There were no rate changes.

The number of institutions offering a non-promo 1% savings or money market account continues to be 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.

Out of the above five, the accounts at Connexus Credit Union and SmartyPig have the longest history of top rates.

Reward Checking Accounts

Last week was also a quiet week for the nationally available reward checking accounts. None of the institutions that I track below changed their rates.

There was one addition. I learned that Peoples National Bank of Southern Illinois is offering a Kasasa Cash account. The bank is currently allowing people from any state to apply online. Unfortunately, it’s not a rate leader with a 2.01% APY. Also, its balance cap of $10K is disappointing. Nevertheless, it’s always nice to see a new nationally available reward checking account. It’s a sizable community bank with close to $1 billion in assets so hopefully the bank will keep this reward checking account nationally available for the long-term.

There continues to be six banks and credit unions in my table below offering reward checking yields of 2.00% or above for balances of at least $15,000. Since Peoples National Bank’s Kasasa Cash account has a $10,000 balance cap, it didn’t boost this number.

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:

  • Peoples National Bank Kasasa Cash - 2.01% (up to $10K) 0.40% ($10K+)

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 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 April 13, 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
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
Capital One 3600.80% ($100K) 0.75% ($50K)360 Checking
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+)Kasasa Cash
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
Peoples National Bank2.01% (up to $10K) 0.40% ($10K+)Kasasa Cash 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
First American Bank1.50% (up to $15K) 0.15% ($15K+)Everyday Rewards Checking
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
4 Comments.


Comment #2 by Anonymous posted on
Anonymous
The Fed bailed out the banks and propped up the stock market, failing to stimulate the economy in a meaningful way. As a result, employment is dismal and the so-called "recovery" is hesitant at best. All the Fed did was transfer wealth on a scale yet to be measured.

16
Comment #3 by Robert (anonymous) posted on
Robert
I-bonds are a better rate than bank accounts, if you don't mind your money being tied up for a year and have less than $10,000 per person to save.  New inflation rate in April will be 1.83% http://www.mymoneyblog.com/savings-i-bonds-may-2014.html

4
Comment #4 by Anonymous posted on
Anonymous
#3,  I think you meant 1.83% or possibly higher in May not April.  The fixed rates are too low for me.  I am not interested anymore.

1
Comment #5 by Robert (anonymous) posted on
Robert
Yes, I mean May. 

3