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Best Bank Account Interest Rates - Summary for July 1, 2014

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Best Bank Account Interest Rates - Summary for July 1, 2014

There are more indications that the Fed will finally start raising rates sometime in 2015. The latest sign came from Federal Reserve Bank of San Francisco President John Williams who gave a speech to bankers on Monday. According to this Reuters article, he told "reporters that he still believes a rate rise will not be appropriate until the second half of 2015." That’s consistent with the rate projections released after the last FOMC meeting.

As we have seen over the last few years, it doesn’t take much for the Fed to push out its planned rate hikes. If the economy runs into trouble, the Fed won’t hesitate to delay rate hikes. As time goes on, the chance increases that we’ll have another recession or stock market correction before the Fed substantially increases rates. If that happens, it’ll be bad for the economy. This was described in this Yahoo! Finance article:

The Bank for International Settlements — the Swiss-based financial institution that acts as a counterparty to national central banks — has declared that stock markets are in a "euphoric" state and has urged central banks globally to begin tightening [increasing] interest-rate policies now while economies are growing rather than wait for another recession, when it will be too late.

We’ll have to hope that the economy won’t experience with any significant downturn in the next couple of years before the Fed starts to hike rates. If the Fed waits too long, a recession could come before the first rate hike, and that could push out the first rate hike for years.

The longer-term Treasury yields fell last week. Below is a summary of the changes in Treasury yields and in the fed fund futures’ probabilities over the last week. The following numbers are based on Daily Treasury Yield Curve Rates and the CME Group FedWatch.

Treasury Yields:

  • 1-month: 0.02% up from 0.01% last week
  • 6-month: 0.06% up from 0.04% last week
  • 2--year: 0.45 down from 0.50% last week
  • 5--year: 1.64% down from 1.71% last week
  • 10-year: 2.54% down from 2.63% last week
  • 30-year: 3.36% down from 3.44% last week

Fed funds futures' probability of rate hike by:

  • Jan 2015: 12% down from 16% last week
  • Apr 2015: 34% down from 39% last week
  • Jul 2015: 67% down from 73% last week
  • Oct 2015: 89% down from 93% 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.

There was just one addition. I added the money market account offered by Digital Credit Union. It’s not a great deal, but it does pay a rate of up to 0.80%.

The number of institutions offering a non-promo 1% savings or money market account remains at five. Out of these five, the accounts at Connexus Credit Union and SmartyPig have the longest history of top rates. Note, I exclude EverBank and Salem Five Direct. Only new customers can earn over 1% at these banks.

Reward Checking Accounts

Last week was also a quiet week for the nationally available reward checking accounts. There were no rate changes.

In the previous week, State Bank of Toledo cut the top yield of its Hometown Reward Checking from 1.00% to 0.90%. Since this has fallen below 1.00%, I’m removing it from the table. Reward checking accounts provide little benefit for savers if they don’t have rates that exceed internet savings account rates.

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. Please note that one of these institutions, INOVA Federal Credit Union, will be adding requirements to its reward checking account in July that will make it harder to qualify for the high rate.

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 reward checking, please refer to my blog post, 10 Common Traits of High-Yield Reward Checking.

Certificate of Deposit Rates

I’ve gone back to publishing my CD survey as a separate post. Please refer to my survey of the best CD rates. This recap will focus on banking news of the week and liquid accounts.

Best Nationally Available MM, Savings and Checking Accounts

Additions:

  • Digital Credit Union MMA - 0.80% ($100K) 0.65% ($50K)

Removals:

  • State Bank of Toledo Reward Checking - 0.90% (up to $25K) [was 1.00% (up to $25K)]

Rate Hikes:

  • none

Rate/Balance Cap Cuts:

  • none

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 June 30, 2014

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
EverBank1.40% (6mo intro rate) 0.61% ongoing rateMMA/Checking - account review
Connexus Credit Union1.15% ($100K) 1.00% ($50K) 0.75% ($20K)MMA - active chk required
Quorum Federal Credit Union1.05%HighQ Savings Account
SFGI Direct1.01%savings account, account review
MySavingsDirect1.00%savings account - account review
iGObanking.com0.90% ($100K) 0.90% ($75K) 0.90% ($25K)New accounts and new money only, account review
SmartyPig1.00%savings account - account review
Salem Five Direct1.00%savings, for new customers only
Synchrony Bank (formerly GE Capital Retail Bk)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
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
First Trade Union Bank0.85% ($2.5K)FT High-Yield Savings, account review
Union Federal Savings Bank0.85% (min $2.5K)MMA account review
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
Synchrony Bank (formerly GE Capital Retail Bk)0.85%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
Digital Credit Union0.80% ($100K) 0.65% ($50K)MMA
MyBankingDirect0.80% (min $5K)MMA
ableBanking0.80% (min $250)MMA
Discover Bank0.80% (min $100K) 0.70% ($2.5K) MMA, account review
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
FNBO Direct0.65%checking account
Alliant Credit Union0.65%Checking (req's elec. dep & e-stmts) account review
Incredible Bank0.59% ($1K min)checking, account review

Reward Checking Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
Consumers Credit Union5.09% (up to $10K) 0.20% ($10K-$25K) 0.10% ($25K+)Rewards Checking - $1K debit card requirements
Consumers Credit Union4.09% (up to $10K) 0.20% ($10K-$25K) 0.10% ($25K+)Rewards Checking - debit and cc requirements
Consumers Credit Union3.09% (up to $10K) 0.20% ($10K-$25K) 0.10% ($25K+)Rewards Checking - debit with NO 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
Flanagan State Bank2.25% (up to $10K) 0.25% ($10K+)Kasasa Cash
Security Bank2.05% (up to $15K) 1.00% ($15K-$25K) 0.30% ($25K+)Security Bonus Checking
XCEL Federal Credit Union2.01% (up to $15K) 0.30% ($15K+)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) 0.25% ($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

Certificates of Deposit:

Bank Account Alternatives - NOT FDIC Insured

InstitutionRatesNotes
Ally Financial Demand Notes1.25% rate for $50k+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
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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