Bank Deals Blog - December 2007


Comments (9)
The Ten Best Bank Deals for Savers in 2007
Monday, December 31, 2007 - 7:07 PM

I thought it would be fun to make my own best-of-2007 list. Looking back at the best bank deals of 2007 may also be somewhat useful. Most of these deals have long ended, but banks often repeat similar deals in the future. Also, for those who participated in these deals, we can share what we learned to see if the deals really were worthwhile. Sometimes the extra work or hassles they required negated much of the benefits.

I'm sure some of you might have different opinions on what you considered as the best. I've probably forgotten some of them. Feel free to comment on your opinions. You can find a full list of my 2007 posts here. Some of my criteria for the best deals included: 1) very high interest rate or large bonus, 2) nationwide availability, 3) easy application process, 4) little or no hoops to jump through. Those with large savings would probably have different opinions than those with smaller balances. If you only have $5K to put into an account, you'll probably like a $250 bonus more than a 7% yield.

1) Pentagon Federal Credit Union's 6.25% CDs - PenFed started 2007 with these very high rates on certificates with terms from 3 to 7 years. Some thought the 3 years were too long a term to lock in your money. But with today's rate environment, 3 years doesn't seem too bad. I considered this deal as #1 not only because of the high yield but also because of the easy membership and the easy online account opening process. It looks like we won't be seeing similar deals at PenFed in 2008. The highest yield CD now is only 5.25% APY for a 7-year term.

2) FNBO Direct's 6% online savings account promotion - FNBO Direct launched this promo on May 1st and kept it going as they advertised until the end of September. Their online savings account remains one of the most competitive no-minimum savings accounts. I know many people had problems with their intrusive email requests and the account had some issues like slow ACH transfers. But their high yield (during and after the promo) combined with decent online savings account features earned them this #2 spot (post).

3) State Bank of Toledo's 6.01% reward checking account - High yield reward checking accounts took off in 2007, and State Bank of Toledo ">offered the best deal for this type of account. It had a very high yield, no balance cap and it was offered nationwide. The rate has recently been lowered to 5.01% and a cap of $70K has been added, but considering the rate environment, these changes were reasonable and the 6.01% APY did last for over 6 months. It's still not known if these reward checking accounts can maintain rates above the best online savings accounts. Banks continue to launch new reward checking accounts. I just reported on a new one with no balance cap and nationwide availability at this post.

4) Agriculture Federal Credit Union's 6% 10-month CD - This CD special only lasted 5 days, but the high rate, easy eligibility and the easy online application made this a top deal. They also had some good CD deals in 2006 so maybe we'll see more in 2008.

5) Justice Federal Credit Union's 6.25% 2-year CD - The main reason I listed this CD special below PenFed and AFCU is that qualifying for membership and applying for the CD weren't as easy.

6) UmbrellaBank's 5.50% money market promotion - The 5.50% promo was started in late April and was guaranteed to last through 2007. After 2 days, the terms changed and it was only guaranteed to last through July. For those who applied before the change, they were able to get the long rate lock. UmbrellaBank's money market standard rate remains competitive with a 5% APY. They also had a 6% 3-month promotion on its Green Day Savings Account. The current rate of this promo is 5.50% APY.

7) EverBank's 6.01% 3-month promotion on its checking and money market accounts - The shorter term and the $100K/$50K balance caps made this deal less desirable than the above savings account promotions. Also, EverBank has several other issues. The new promo rate is 5.51% APY (see post).

8) HSBC Direct's 6% online savings account promotion - This promo started at the end of January and lasted until the end of April. The shorter term and the new-money requirement made this less of a deal than FNBO Direct's promo. I put this under EverBank's deal since for most people it was less than 3 months. HSBC Direct was much better for those with large savings.

9) Bank of America's rewards credit card $250 bonus - This promo was one of the best credit card bonuses of the year. Like many of these bonuses, some people have had trouble receiving the bonus, but as this SD thread indicates, many have been successful.

10) Citibank's $200 checking account bonus - This one appears to be still available. There are some hoops to jump through and Citibank accounts have issues. Plus, several readers have had problems with Citibank bonuses. But I've received my $200 from an older promotion (after some emails) and others have had success.

Honorable Mention:

SECU Credit Union's 9%+ 7-month CD promotion - Most of the time you see a bank or credit union advertising a very high yield for a CD, there's almost always a low deposit cap. A 10% CD may sound great, but if you can only put in $1K, you won't earn much especially if it has a short term. This SECU CD had a very high $200K cap. It actually was a 5% CD with an immediate 2.50% bonus. Qualifying for membership wasn't easy for those outside of Maryland so I didn't include it in the top ten. Also, it ended very quickly since the deal was so good. Some other similar 2007 local CD deals that allowed large balances included an 8% 108 day CD at an Idaho CU (see post) and a 7.79% 5-month CD at an Oregon CU (see post).

Important News of 2007

The subprime mess and the credit crunch caused problems at many financial institutions in 2007. Countrywide made headlines in August with its problems. It was good news for depositors. Since August, Countrywide Bank has offered very high yields on its savings account and short term CDs (see post).

NetBank became the first major bank to go under from the subprime mess (see post). We may see many more banks go under in 2008. We also saw several credit unions be placed into conservatorship under the NCUA. Huron River Area Credit Union (which had offered 6% CDs and provided easy membership) was placed into conservatorship in February. The conservatorship was an attempt to save the credit union, but it failed. The credit union was liquidated in November (see post).

With the mortgage and credit problems threatening the health of the economy, the fed lowered rates three times in the last 4 months of 2007 lowering the target federal funds rate from 5.25% to 4.25%.

We're ending the year seeing the effects of these fed rate cuts with lower CD and savings account rates. So I'm afraid we'll see far fewer 6-percent-plus savings account and CD deals in 2008. But I'm confident we'll see more good deals.

Happy New Year!
Comments (64)
High-Yield Reward Checking Account at First Arkansas Bank and Trust
Monday, December 31, 2007 - 10:32 AM

Update 12/02/10: The top rate is scheduled to fall to 3.03% APY for balances up to $25K effective 1/4/2011. See the bottom of the post for more information.

First Arkansas Bank & Trust (FABaT) has a reward checking account called Kasasa Cash that pays 3.50% APY on balances up to $50K and refunds ATM fees worldwide if the following monthly requirements are met: 1) 10 point of sale debit card transactions, 2) one monthly direct deposit or ACH auto debit or make one online bill payment, 3) receive e-statements, and 4) sign in to your online banking account. If these are not met, the rate falls to 0.05%. The minimum opening balance is $100. There are no minimum balance requirements or monthly fees.

The bank has set up a special website with more details on this account. Some noteworthy points from their FAQ include:

  • No free checks
  • All account holders receive the reward yield during the first statement cycle
  • They will email you at the end of each statement cycle to notify you if you have qualified for the reward yield
  • All ATM refunds will be automatically credited at the end of the statement cycle if all requirements have been met
  • No limits on ATM refunds
  • ATM fees assessed anywhere in the world are refunded
  • DBAs (sole-proprietorship accounts), non-profit organizations, governmental units and funds held by a fiduciary may use this account

Update 8/11/09: Arkansas residents only Readers have reported being told by the bank's CSR that they are no longer accepting out-of-state applications effective 8/10/09. I've also confirmed this at CheckingFinder.com and Kasasa.com. Only Arkansas zip codes are accepted.

Update 7/04/09: I asked the bank CSR about being rejected for having too many ChexSystem inquiries. When you apply for a bank account, they typically make a ChexSystem inquiry. I was told that they reject new applicants who have more than 4 ChexSystem inquiries in the last 6 months.

Bank Overview

FABaT is larger than many banks offering reward checking so this may help it keep the high rate longer. However, it's still not a large bank. It has 208 employees, $480 million in assets and $356 million in deposits based on 9/30/07 data. It has 25 branches in Arkansas.

The bank is FDIC insured (Certificate # 16849). It was established in 1949. The bank has a 4 out of 5 star rating (sound) at Bankrate and a 5 out of 5 star rating (superior) at BauerFinancial. Both are based on 9/30/07 data.

Other High Yield Reward Checking Accounts

To find reward checking accounts in other areas of the nation or to learn more about these accounts, please refer to my High Yield Checking website.

Edit 4/18/09: Added worldwide ATM fee refunds in description and fixed reward checking link.

Rate History:

  • 01/04/11: 3.03% APY up to $25K; 0.50% over
  • 12/02/09: 3.50% APY up to $35K; 0.50% over; only 1 account per customer allowed (see post for more info)
  • 11/03/09: 3.50% APY up to $50K; 0.50% over
  • 08/10/09: They stopped accepting applications outside of Arkansas.
  • 07/01/09: 4.44% APY up to $50K; 1.01% over; 0.05% base rate
  • 06/23/09: They stopped accepting applications from California.
  • 05/01/09: Changed name from FirstNet Checking to Kasasa Cash
  • 02/07/08: 4.44% APY up to $50K; 1.76% APY over; 0.05% base rate (review of change)
  • 12/31/07: 6.06% APY on all balances; 0.05% base rate
Leave a comment
5.15% 5-Month / 5.00% 18-Month CD at a Massachusetts Bank (Hyde Park Savings).
Monday, December 31, 2007 - 9:20 AM

Update 1/12/08: These CD specials have ended. Please check the bank's website for the latest rates and specials.

Hyde Park Savings Bank is offering a special 5.15% APY 5-month internet CD. The minimum deposit is $1,000. It's only available online, and it's not available at the bank's branches. Funding can be done with an electronic funds transfer (ACH). The online application states that you must be a Massachusetts resident.

The bank is also offering a 5% APY 18-month certificate that's called the Triangle 18 Month Bump Rate Certificate of Deposit. The minimum deposit is $10,000. A minimum of 3 withdrawals per statement cycle in a Triangle Interest Checking Account is required to obtain the 5% APY. This certificate can be opened online or at a branch. Please see the rate table for more details.

I last posted on this bank in September when the 5-month internet special had a yield of 5.50%. In that post, a reader mentioned some additional details in the comments. He was told that the rate locks as soon as you do the online application and fund by ACH. There's no credit hard pull in the CD application process (so it shouldn't affect your credit score).

The bank is FDIC insured (certificate # 90160). It also has DIF insurance to provide protection for deposits over the FDIC limits. The bank was established in 1871. It has $988 million in assets and $822 million in deposits. It has a 4 out of 5 star safe & sound rating (sound) at Bankrate.com based on 9/30/07 data.
Leave a comment
5.33% 60-Month / 5.12% 12-Month CD at a New Jersey CU (Garden Savings).
Monday, December 31, 2007 - 8:54 AM

Update 1/12/08: The CD rates have gone down. Please refer to the bank's website for the latest rates.

Garden Savings FCU has some competitive rates on its share certificates. The top yield is 5.33% APY for a 5-year term. Other yields include a 5.22% APY for 3 and 4 year terms and 5.12% APY for 12, 18 and 24 month terms. The minimum deposit is $500. These same rates are also available for IRA certificates.

My last report on this credit union was in September when it was offering a special 5.75% CD.

Membership is open to those who live, work, worship, or attend school in Newark, Elizabeth, or Jersey City. In addition, you can be eligible to join via Select Employer Groups and via family. Please refer to their membership page for more details. Membership requires a minimum deposit of $5 into the share savings account.

Branches are located in Parsippany, Newark, Whippany, Montville and Morristown, NJ. The credit union is federally insured by the NCUA (Charter # 18710). It has $165.4 million in assets and 16,108 members.
Leave a comment
5.20% 9-Month CD at a California CU (USE).
Monday, December 31, 2007 - 8:41 AM

USE Credit Union is offering a special 5.20% APY 9-month certificate. The minimum deposit is $5,000 of new money. A $100 minimum deposit in a USE Checking Account is required. They do offer free checking with free checks.

Membership is open to to all who live, work, or worship in Alameda, Sacramento, San Diego, Santa Clara, or Yolo County. Also eligible to join are employees, students or alumni of the University of California and California University System. Employees and members of several organizations are also eligible. One organization with easy membership is KPBS, Public Broadcasting Station, San Diego, CA. Please see the credit union's Membership page for more details. Membership requires a minimum $5 deposit in the Ownership Share savings account.

Branches are located in San Diego, Chula Vista, La Mesa, La Jolla, Berkeley, Davis, Sacramento and San Jose. The credit union is federally insured by the NCUA (Charter # 60801). It has $859.9 million in assets and 75,306 members.
Leave a comment
5.15% 12-Month / 5.05% 5-Month CD at a California CU (San Mateo).
Sunday, December 30, 2007 - 6:02 PM

San Mateo Credit Union continues to offer some nice special certificates, but the rates continue to go down. The 12-month term is now 5.15% APY (was 5.25%) and the 5-month term is now 5.05% APY (was 5.50%)

The minimum deposit is $10,000 of new money. The maximium deposit is $100,000. Unlike before, these seem to be available at all of their branches.

Last month the 5-month CD yield was 5.75% and the 12-month CD yield was 5.50%.

Membership is open to those who live, work or attend school in San Mateo County, California. You can also be eligible via select employee groups and via family. Please see their Membership page for details. Membership requires a one-time fee of $10.

Branches are located in Redwood City, San Mateo, South San Francisco and Daly City. The Westlake branch is located in Daly City. The credit union is federally insured by the NCUA (Charter # 62736). It has $613.6 million in assets and 62,655 members.

Edit 1/5/08: Updated the rates and links.
Comments (5)
High-Yield Reward Checking Account at a Multi-State CU (Altra)
Sunday, December 30, 2007 - 5:57 PM

Update 4/1/11: The top yield has fallen to 2.50% APY. Refer to the bottom of the post for the rate history.

Altra Federal Credit Union has a reward checking account called Altra Plus A+ Checking that pays 2.50% APY on balances up to $25,000 (0.50% for over) and refunds ATM fees (up to $20/cycle) if the following monthly requirements are met: 1) 10 check card purchases, 2) one direct deposit of at least $50, 3) access online banking, and 4) receive eStatements. If these are not met, the rate falls to 0.25%. There are no monthly fees or minimum balance requirements.

The credit union also provides an electronic funds transfer feature. Standard transfers are free with this reward checking account.

Membership is open to anyone who lives, works, studies or worships in parts of La Crosse, Wisconsin; Winona, Minnesota; Smith County, Texas; and Montgomery County, Tennessee. You can also be eligible if you have an immediate family member who meets the above qualifications. Please see the credit union's Membership page for other ways to be eligible to join. Membership requires a minimum deposit of $5 in the basic saving account.

Branches are located in Clarksville, Tennessee; Fort Smith, Arkansas; Trenton, New Jersey; Tiffin, Ohio; Tyler, Texas; Pueblo, Colorado; Lexington and Paintsville, Kentucky; La Crescent and Winona, Minnesota; and La Crosse and Onalaska, Wisconsin. The credit union is federally insured by the NCUA (Charter # 24077). It has $542.5 million in assets and 53,001 members.

Other High Yield Reward Checking Accounts

For more information on reward checking accounts, please refer to one of these posts: reward checking overview, list of reward checking accounts around the nation, and the best checking account post.

Rate History:

  • 04/01/11: 2.50% APY up to $25K
  • 07/02/10: 3.00% APY up to $25K
  • 05/01/10: 3.25% APY up to $25K; 0.50% over
  • 09/01/09: 3.50% APY up to $25K, 0.75% over
  • 05/01/09: 4.00% APY up to $25K
  • 03/01/09: 4.25% APY up to $25K
  • 02/01/09: 4.50% APY up to $25K
  • 03/31/08: 5.05% APY up to $25K
  • 12/30/07: 6.06% APY up to $25K, 1.00% over, 0.25% base

Edit 12/30/08: ACH debit no longer listed on website.

Leave a comment
5.23% 60-Month / 5.13% 24-Month CD at a Massachusetts CU (Telephone Workers')
Sunday, December 30, 2007 - 5:54 PM

Telephone Workers' Credit Union is offering high rates on its certificates of deposit. The yields include 5.23% APY for a 60-month term, 5.18% APY for a 48-month term and 5.13% APY for terms from 12 to 36 months. The minimum deposit is $1,000 for terms of 18 months and shorter, and $500 for the longer terms. These are also available as an IRA CD.

Membership is open to anyone who lives, works, or attends school in one of dozens of towns in the Greater Boston area or in one of several neighborhoods inside Boston. Please see the Membership Eligibility page for the full details. Membership requires a minimum $5 deposit into the share savings account.

Branches are located in Boston, Braintree and Stoneham, MA. The credit union is federally insured by the NCUA (Charter # 67541). It has $522.8 million in assets and 27,141 members.

Credit for this find goes to the FW CD thread.
Leave a comment
5.20% 60-Month CD at a New Mexico CU - Easy Membership (US New Mexico).
Sunday, December 30, 2007 - 4:36 PM

Update 1/5/08: Rates have gone down. Please refer to the credit union's website for the latest rates.

U.S. New Mexico FCU is offering a 5.20% APY 60-month share certificate. The minimum deposit is $1,000. An additional 0.25% is added for a minimum deposit of $100,000. CD rates can also be increased for additional account relationships. The same rates are also provided for IRA certificates.

Membership is open to members of Keep New Mexico Beautiful Association. Anyone can join this association regardless of age or geographic location. The minimum association membership cost is $15. For more details of the credit union's field of membership, please refer to the credit union's Who-Can-Join page. Credit union membership requires a minimum deposit of $5 into the savings account.

Branches are located in Albuquerque and Bernalillo, New Mexico. The credit union is federally insured by the NCUA (Charter # 808). It has $507.9 million in assets and 52,817 members.

Thanks to the reader who emailed me info on this credit union.
Leave a comment
Bank Deals Weekly Summary for December 29, 2007
Saturday, December 29, 2007 - 6:00 PM

Quick Link for Rates, Recap of this week's posts

There was no Christmas gift from Pentagon Federal Credit Union this week for savers. In previous years, PenFed introduced its high yield certificate specials right before the start of the New Year. Last year at this time, the top CD yield was 6.25% APY for terms of 3 years and over. But this year the highest rate is only 5.25% APY, and that's only for the 7-year term. The 5-year CD yield is 5.00% APY which was up only 5 basis points from last month. The 3 and 4 year rates remain at 4.75% APY. On the positive side, PenFed will be adding a 2% cash back for groceries on its cash back credit card which already has 5% cash back on gas and 1.25% cash back on everything else. There are also some nice deals for loans (see post).

Other than PenFed, it was a quiet holiday week for bank rates with few savings account and CD rate changes. Rates continued to trend downward. Banks and credit unions that lowered CD rates included EverBank, IndyMac, Imperial Capital, Apple Bank for Savings and Navy FCU.

One nice surprise for CD rates was at Ascencia Bank which increased its 6-month and 12-month CD rates to 5.11% APY and 5.03% APY. I added Pacific Mercantile Bank to the nationwide CD list with its 5.10% APY 12-month CD (see post). I also added Alliant Credit Union to the CD list. They're offering a 12-month and 24-month CD with a yield of 5.15% APY. I first reported on these CDs on December 3rd. These rates have become more competitive as other credit unions and banks have lowered their CD rates. Alliant Credit Union is one of the few credit unions with easy membership.

Another credit union with easy membership is Patelco Credit Union which continues to offer a special 5.50% APY 9-month CD. Starting next Tuesday (1/1/2008), Patelco should officially be federally insured by the NCUA (see post). I hope this CD special will continue into the new year.

For long term CD rates, KeyDirect continues to offer very competitive rates with yields of 5.25% APY for 30 to 47 month terms and for 5 and 6 year terms, 5.50% APY for 7 to 9 year terms and 5.70% APY for a 10 year term. Unfortunately, KeyDirect CDs are not available in 13 states.

High yield reward checking accounts continue to pop up as more banks launch these. I reported on several new ones this week with yields of 6.01% APY. Most continue to be local deals. There are a few that are available nationally with yields of 6.01% APY. However, the list is shrinking. A couple of weeks ago, State Bank of Toledo lowered its 6.01% APY to 5.01% APY. This week, Provident Credit Union lowered its 6.01% APY to 5.51% APY. It still remains to be seen if these high yield reward checking accounts can maintain rates significantly higher than online savings accounts.

Recap for the Week

CD Deals - National

Credit Card Deals

Reward Checking Accounts - Local

CD and Money Market Deals - Local

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. The top lists include banks and credit unions with broad availability and with minimums around $10K or less. Previous weekly summaries are available for Dec 22nd, Dec 15th, Dec 8th, Dec 1st, Nov 24th, Nov 17th, Nov 10th, Nov 3rd and Oct 27th.

Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Special rates, Local checking/savings, Bank alternatives CD Rates: 3 Mo CDs, 6 Mo CDs, 9 Mo CDs, 12 Mo CDs, 18 Mo CDs, 24 Mo CDs, 36 Mo CDs, 48 Mo CDs, 60 Mo CDs, 84 Mo CDs, CDs by state Comments: read and discuss

As of December 29, 2007

Checking/Savings/Money Market Accounts:


3-Month Certificates of Deposit:

6-Month Certificates of Deposit:

9-Month Certificates of Deposit:

12-Month Certificates of Deposit:

18-Month Certificates of Deposit:

24-Month Certificates of Deposit:

36-Month Certificate of Deposit:

48-Month Certificate of Deposit:

60-Month Certificate of Deposit:

84-Month Certificate of Deposit:

High Yield Checking Accounts with Conditions - Open to All

Checking and Saving Accounts at Local Banks/Credit Unions

CD Specials at Local Credit Unions/Banks Over the Last Month


Terms of 60 Months and Over

Terms of 24 Months to Under 60 Months

Terms of 12 Months to Under 24 Months

Terms of Under 12 Months

Bank Account Alternatives


Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)
Leave a comment
5.48% 60-Month / 5.17% 24-Month CD at a Texas CU (InvesTex).
Friday, December 28, 2007 - 4:45 AM

InvesTex Credit Union is offering some competitive certificate rates. The top yields include 5.48% APY for a 60-month term, 5.38% APY for a 48-month term, 5.27% APY for a 36-month term and 5.17% APY for a 24-month term. These rates require a minimum deposit of $50,000. Rates are 25 basis points lower for a minimum deposit of $1,000. The same rates are available for IRA certificates.

Membership is open to those who live or work in parts of the Houston, Texas area. Please see their Who-Can-Join page for the full details. Membership requires a minimum deposit of $5 into the Primary Share savings account.

Branches are located in Houston, Spring and Humble, Texas. The credit union is federally insured by the NCUA (Charter # 67637). It has $65.8 million in assets and 15,012 members.

Thanks to the reader who mentioned this credit union in the finding-the-best-deals post.
Comments (6)
No Longer Available: 3.25% Reward Checking Account at a MA/ME Bank (Butler)
Friday, December 28, 2007 - 4:42 AM

Update: Butler Bank was acquired by Peoples United Bank which is no longer offering a reward checking account.

Butler Bank has a reward checking account called Butler Advantage Checking which pays 3.25% APY for balances up to $40,000 (0.35% above) and refunds ATM fees (up to $10/month) if the following monthly requirements are met: 1) 10 debit card purchases, 2) one direct deposit or automated debit, and 3) receive eStatements with Online Banking. If these are not met, the rate falls to 0.15%. The minimum opening balance is $25. First order of checks is free.

It appears a branch visit is required to open the account. Please check with the bank to see if there are any other restrictions. Branches are located in Lowell and Andover, Massachusetts, and in Kennebunk, Maine. The bank is FDIC insured (Certificate # 26619). It has $220 million in assets and $197 million in deposits.

Other High Yield Reward Checking Accounts

For more information on reward checking accounts, please refer to one of these posts: reward checking overview, list of reward checking accounts around the nation, and the best checking account post.

Rate History:
11/01/09: 3.25% APY up to $40K
04/01/09: 3.50% APY up to $40K; 0.35% over; 0.15% base rate
09/01/08: Balance cap scheduled to fall from $50K to $40K. APY for above $40K falls from 1.01% to 0.35%
07/29/08: Top yield was 4.00% APY.
04/01/08: Top yield was 4.50% APY.
12/28/07: Top yield was 6.01% APY at the time of the first post.

Edit 12/30/08: Corrected APY above $40K (now 0.35%)

Comments (6)
New PenFed Certificate Rates Released
Thursday, December 27, 2007 - 7:55 AM

Pentagon Federal Credit Union continued its practice of raising certificate rates before the start of the new year. Unfortunately, the new higher rates aren't as good as previous years even when factoring in the new rate environment. The highest yield is 5.25% APY, but this requires a 7-year term. The 5-year term has a yield of 5.00% APY which is just 5 basis points higher than the previous 4.95% APY. The rates for the shorter terms didn't change.

PenFed's money market certificate page had a mistake regarding the 5-year certificate. In the top promotion area of the page, it listed the 5-year yield as 5.25%. However, the rate table listed the 5-year yield of 5.00%. I've confirmed that only the 7-year term has the 5.25% APY.

With the current rate environment, I can understand a 5.25% yield compared to last year's 6.25% yield, but I had thought they would have this yield apply to terms from 3 to 7 years. Last year the 6.25% yield applied to terms from 3 to 7 years. My source did say that they intend to smooth out the certificate demand for 2008. Since 7-years is a very long term for most people, I'm sure they won't see a spike this time. As you can see in my last week's rate summary, you can get better 5-year and 7-year CD rates at other banks and credit unions.

One important note regarding a 7-year term is that the penalty for early withdrawals is much more severe than the early withdrawal penalty for the shorter terms. The 7-year penalty is up to one year of interest. If the certificate is closed before one year, the penalty is all of the interest that has been earned. The 5-year penalty is only up to 180 days of interest.

PenFed Overview

I have more details on PenFed's certificates and on joining PenFed in this September PenFed post.

Other PenFed Deals

As I mentioned last week, PenFed has other good deals. These include low rate auto loans and a cash back credit card which will soon give 2% cash back on groceries in addition to 5% on gas and 1.25% on all other purchases.

PenFed also has very competitive home equity loan rates. The lowest fixed rate is 4.99% APR for terms up to 10 years. As this blog article describes, home equity loans can be useful to consolidate high interest debt such as credit cards. However, this requires a high level of responsibility. Another advantage of HEL's is that thay are tax deductible. This Bankrate article has some useful details regarding tax deductability of home equity loans.
Comments (6)
3.01% Reward Checking Account at a Massachusetts Bank (Haverhill)
Wednesday, December 26, 2007 - 8:11 AM

Update 3/28/09: The top yield has fallen to 3.01% APY. Refer to the bottom of the post for the rate history.

Haverhill Bank has a reward checking account that pays 3.01% APY on balances up to $50,000 (1.01% for over) and refunds ATM fees if the following monthly requirements are met: 1) 10 debit card transactions, 2) one direct deposit or ACH auto debit, 3) access online banking, and 4) receive electronic statements. If these are not met, the rate falls to 0.15%.

As is common for reward checking accounts in Massachusetts, this one has a high cap of $100K in which you can earn the high yield. The average cap is $25K.

It appears that a branch visit is required to open an account. Branches are located in the MA cities of Haverhill and Bradford. The bank is FDIC insured (Certificate # 26411).

Other High Yield Reward Checking Accounts

For more information on reward checking accounts, please refer to one of these posts: reward checking overview, list of reward checking accounts around the nation, and the best checking account post.

Rate History:
03/15/09: 3.01% up to $50K; 1.01% over $50K
12/25/08: 3.51% up to $50K; 1.51% over $50K
03/31/08: 4.50% up to $50K; 2.50% over $50K
12/26/07: 6.01% up to $100K; 1.01% over $100K
Leave a comment
5.22% 24-Month CD at a Texas/New Mexico CU (FirstLight).
Wednesday, December 26, 2007 - 8:09 AM

Update 1/19/08: The rate has gone down to 5.22% APY. Please refer to the credit union's website for the latest rates.
Update 1/5/08: The rate has gone down to 5.38% APY.

FirstLight Federal Credit Union is offering a 24-month share certificate with a yield of up to 5.48% APY for a $100K minimum deposit. Lower yields are available for smaller deposits including a 5.38% for a $50K minimum, 5.27% for a $25K minimum and 5.17% for a $500 minimum. These are also available in an IRA and Business certificate.

Membership is open to anyone living, working or worshiping in El Paso County, Dona Ana County or the Fort Bliss community. Please see their Join-Us page for more details. Membership requires a $2 fee and a minimum deposit of $5 into the share savings account.

Branches are located in El Paso, Texas and La Cruces, New Mexico. The credit union is federally insured by the NCUA (Charter # 10174). It has $508.9 million in assets and 90,253 members.
Leave a comment
5.30% 60-Month CD at an Indiana CU (Pro Fed).
Wednesday, December 26, 2007 - 8:05 AM

Pro Fed Credit Union is offering a 5.30% APY 60-month share certificate. The minimum deposit is $10,000. This is also available in an IRA certificate. There's also a 5.30% APY 36-month Soaring Eagle Certificate Special. The minimum deposit is $1,000. The rate increases each 6-months from 4.52% to 6.09%. The average yield is 5.30% APY. This special CD is only available to Eagle association members.

Membership is open to anyone 50 years of age or older through the Pro Fed Eagles Association. Membership into this association is available to those who live in parts of Indiana, Ohio and Michigan. Credit union membership is also open to Select Employee Groups and those who live, work or worship in parts of Allen County. Please refer to the Join Pro Fed page for more details.

Branches are located in the Indiana cities of Fort Wayne, Angola, Auburn, Bluffton, Columbia City, Decatur and Kendallville. The credit union is federally insured by the NCUA (Charter # 17012). It has $244.3 million in assets and 45,359 members.
Comments (3)
3.51% Reward Checking Account at a New Jersey Bank (Heritage Community)
Wednesday, December 26, 2007 - 8:01 AM

Update 8/08/09: The top yield has fallen to 3.51% APY. Refer to the bottom of the post for the rate history.

Heritage Community Bank has a reward checking account that pays 3.51% APY on balances up to $25,000 (1.01% above $25K) and refunds ATM fees if the following monthly requirements are met: 1) 10 debit card point of sale transactions, 2) one direct deposit or ACH auto debit, 3) access online banking, and 4) receive electronic statements. If these are not met, the rate falls to 0.25%. The minimum initial deposit is $50. There are no minimum balance requirements or monthly service charges regardless if the above requirements are met.

It appears that a branch visit is required to open an account. The bank is located in Randolph, New Jersey. It's a small bank that was just established in 2006. It's FDIC insured (Certificate # 58213).

Other High Yield Reward Checking Accounts

For more information on reward checking accounts, please refer to one of these posts: reward checking overview, list of reward checking accounts around the nation, and the best checking account post.

Rate History:
07/31/09: 3.51% APY up to $25K
01/30/09: 4.01% APY up to $25K
02/11/08: 5.01% APY up to $25K
12/26/07: 6.01% APY up to $25K
Comments (5)
5.10% 12-Month CD at Pacific Mercantile Bank
Monday, December 24, 2007 - 8:28 AM

Update 9/20/08: The latest 12-month CD yield is 4.50% APY. Please check the bank's website for the latest rates.

Pacific Mercantile Bank is offering a 5.10% APY 12-month certificate of deposit. The minimum deposit is $10,000.

From the online application it appears available to people in any state. The application must be printed, signed and mailed in with a copy of your driver’s license. The CD can be funded by check or wire transfer. The application also allows for a formal trust and a payable-on-death trust account.

More CD details are listed in the truth-in-savings disclosure. One unique feature is that you're allowed to make 3 deposits into the account before maturity if your account has a term of six months or longer. Other CD details include: early withdrawal penalty of 90 days of interest for the 12-month CD, 10 days grace period at maturity, and interest compounded daily.

Branches are located in California. The bank is FDIC insured (Certificate # 34940). It doesn't have the best rating at Bankrate with a 2 out of 5 star safe & sound rating (below peer group).
Leave a comment
5.10% 24-Month / 5.10% 60-Month CD at a Washington State CU (NW Plus).
Monday, December 24, 2007 - 8:25 AM

Update 2/2/08: CD rates have fallen again. Please check the credit union's website for the latest rates.

Update 1/19/08: Rates have fallen. Title has been changed to include the new yield of 5.10% APY for 24 to 60 month terms. Please refer to the credit union' website for the latest rates.

NW Plus Credit Union is offering some competitive rates on its certificates of deposit. The top yield is 5.35% APY on terms from 24 to 60 months for a minimum deposit of $50,000. Lower yields are available for smaller deposits. These rates are also available for IRA certificates.

Membership is open to anyone who lives, works or worships in Washington State. Please refer to their who-can-join page for the full details.

Branches are located in the Washington State cities of Everett, Arlington, Stanwood, Burlington and Edmonds. The credit union is federally insured by the NCUA (Charter # 67262).
Leave a comment
5.35% 15-Month CD at a Virginia/DC Credit Union (State Department).
Monday, December 24, 2007 - 8:19 AM

Update 2/09/08: The CD rates have fallen. Please check the credit union's website for the latest rates.

State Department Federal Credit Union (SDFCU) is offering a special 5.35% APY 15-month share certificate. The minimum deposit is $5,000, and it must be new money.

The credit union also has a new-member special until the end of December. You can choose either a 7% APY 12-month CD with a minimum and maximum deposit of $1,000, or a 7% APR loan with a term of 12 months and a $1,000 min/max. Since the CD is capped at $1K, it'll only earn you about $20 over a 5% account.

SDFCU's field of membership is primarily employer-based. In addition to the US Department of State, there are about a hundred other employers listed.

SDFCU's headquarters is in Alexandria, Virginia. Branches are located in Virginia, Maryland and Washington D.C. The credit union is federally insured by the NCUA (Charter # 435). It has $879.7 million in assets and 65,712 members.
Comments (4)
Bank of America $100 Credit Card Bonus
Monday, December 24, 2007 - 8:16 AM

Update 1/10/08: This promotion seems to have ended. The promo page is no longer available.

This promotion is not the hot $250 deal that came out last July, but it's better than what Bank of America has on it's credit card page. Here's the $100 application page. Sign up for this Bank of America Rewards American Express Credit Card and receive a $100 statement credit after making a purchase totaling $25 within 45 days of the account open date. The credit card has no annual fee. Credit for this find goes to this FW thread. Note, some people have reported problems with the online application. The Help Center of the application states that you can also apply by phone (1-800-932-2775). Be sure to mention priority code FAB49I.

Below are some of the terms and conditions listed for this promo.
§§ To qualify for this offer, your new account must be used to make any purchase, balance transfer or cash advance transaction totaling $25 excluding any transaction fees, if applicable within 45 days of the account open date. Limit one (1) statement credit per new account. The Bank of America Rewards American Express Card credit card offer is subject to application approval by FIA Card Services, N.A. After qualifying transaction(s), a $100 credit will appear on your Bank of America Bank of America Rewards American Express Card credit card statement. Allow 8-12 weeks from qualifying to receive the promotional credit.

Note that the promotional page is at applyonlinenow.com instead of BankofAmerica.com. This seems to be a standard credit card application site used by Bank of America. If you click on the apply-now button at this Bank of America credit card page it'll take you to a similar applyonlinenow.com webpage.

Bank of America also has a $100 checking account bonus that still seems to be available. Please refer to this post for more info, and please refer to my recent Bank of America deals page for more deals.
Comments (4)
5.85% 7-Month CD at a Massachusetts CU (Stoneham Municipal Employees).
Sunday, December 23, 2007 - 9:01 AM

Update 12/27/07: The special CD rate has been reduced to 4.85% APY.

Stoneham Municipal Employees FCU is offering a special 5.85% APY 7-month certificate of deposit. The minimum deposit is $5,000, and it requires new money. There's also a special 5.01% APY 5-month CD with a $1,000 minimum deposit.

In addition to employees of Stoneham Township and a few other MA townships, membership is open to members of the "Friends of the Stoneham Public Library." Please refer to the credit union's membership page for more details. According to the The Friends website, membership into The Friends is open to all. The cost of membership is $10. Membership into the credit union requires a minimum deposit of $5 into the regular share savings account.

Branches are located in Stoneham and Wilmington, Massachusetts. The credit union is federally insured by the NCUA (Charter # 15393). It's a small credit union with $21.1 million in assets and 3,266 members so I doubt they'll be able to keep this special too long if they get a lot of demand.
Leave a comment
5.35% 6-Month CD at a North Carolina Bank (Carolina Premier).
Sunday, December 23, 2007 - 8:58 AM

Carolina Premier Bank is offering a special 5.35% APY 6-month certificate of deposit. The minimum deposit is $5,000, and the maximum is $37,500. The 5.35% yield requires opening a new checking account. Without the checking the yield is 5.15% APY.

This special appears to require a branch visit. The bank is located in Charlotte, North Carolina. The bank is FDIC insured (Certificate # 58516). It's a new bank that was just established in August.

Thanks to the reader who emailed me info on this special.
Comments (2)
Bank Deals Weekly Summary for December 22, 2007
Saturday, December 22, 2007 - 8:32 AM

Quick Link for Rates, Recap of this week's posts

The effect of December 11th's Fed rate cut continued to be felt this week as many online banks cut their savings account and CD rates. Savings and checking account rate cuts occurred this week at HSBC, Emigrant Direct, Salem Five, Apple Bank for Savings (Grand Yield Direct), M&T Bank, KeyDirect and UnivestDirect.

There are still a few banks and credit unions with some decent CD rates. For short term CDs, Countrywide is still offering 5.50% APY on 3 and 6 month terms (see post). Indymac Bank is offering 5.40% APY on 3 and 4 month tersm (see post). Patelco Credit Union is still offering 5.50% APY on a 9-month term. Although they're currently not federally insured via NCUA, they are scheduled to be NCUA insured starting January 1st, 2008 (see post).

For long term CD rates, Northrop Grumman Federal Credit Union raised the rate on its 60-month term CD. The yield is 5.32% APY for a minimum deposit of $40,000. For more details on this credit union, please refer to this previous post.

Credit Union of Georgia continues to offer high long term rates with the top rate of 5.38% APY for minimum deposit of $50K. Please refer to this previous post for more credit union details.

Doral Bank Direct, the new internet bank, is still offering high yields on its online CDs which only have a $1,000 minimum deposit. Yields range from 5.25% APY on 6-month CDs to 5.10% APY on longer term CDs (see post).

The best CD deals may start in about a week at Pentagon Federal Credit Union. The start of every year, PenFed offers some excellent CD rates. For example, last year they offered 6.25% APY on terms from 3 to 7 years. I'm sure many had wished they had invested more in these CDs last year. The new CD rates in January won't be close to 6.25%, but I've been told they should be over 5% (see post).

Recap for the Week

Savings and Checking Accounts - National

CD Deals - National

Checking and Savings Account Bonuses

Reward Checking Accounts - Local

CD and Money Market Deals - Local

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. The top lists include banks and credit unions with broad availability and with minimums around $10K or less. Previous weekly summaries are available for Dec 15th, Dec 8th, Dec 1st, Nov 24th, Nov 17th, Nov 10th, Nov 3rd, Oct 27th and Oct 20th.

Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Special rates, Local checking/savings, Bank alternatives CD Rates: 3 Mo CDs, 6 Mo CDs, 9 Mo CDs, 12 Mo CDs, 18 Mo CDs, 24 Mo CDs, 36 Mo CDs, 48 Mo CDs, 60 Mo CDs, 84 Mo CDs, CDs by state Comments: read and discuss

As of December 22, 2007

Checking/Savings/Money Market Accounts:


3-Month Certificates of Deposit:

6-Month Certificates of Deposit:

9-Month Certificates of Deposit:

12-Month Certificates of Deposit:

18-Month Certificates of Deposit:

24-Month Certificates of Deposit:

36-Month Certificate of Deposit:

48-Month Certificate of Deposit:

60-Month Certificate of Deposit:

84-Month Certificate of Deposit:

High Yield Checking Accounts with Conditions - Open to All

Checking and Saving Accounts at Local Banks/Credit Unions

CD Specials at Local Credit Unions/Banks Over the Last Month


Terms of 60 Months and Over

Terms of 24 Months to Under 60 Months

Terms of 12 Months to Under 24 Months

Terms of Under 12 Months

Bank Account Alternatives


Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)
Comments (4)
HSBC Direct Lowers Savings Account Rates - Offers More CDs
Friday, December 21, 2007 - 7:20 AM

Online banks continue to cut rates. HSBC Direct just recently lowered the rate on its online savings account from 4.50% to 4.25% APY. HSBC's online savings account hasn't held up well since the Fed started cutting rates. They were quick to drop the rate to 4.50%. Now the account is only 15 basis points above ING Direct's Orange Savings. The only thing we can hope for is another savings account promotion like they did last January. Please refer to my previous post for more details on the savings account.

HSBC Direct has improved their CD offerings. They're now advertising 6 and 9 month online CDs. Unfortunately, their rates are not that great with the top yield of 4.70% APY for a 6-month term and a minimum deposit of $25,000. For a $5,000 minimum the yield is 4.55% APY. The 9-month CD has yields of 4.55% APY for a $25,000 minimum and 4.45% APY for a $5,000 minimum. I haven't looked at their online CD management system, but they claim an online application and the ability to instantly transfer the funds at CD maturity to your other HSBC accounts. If you want easy online CD management, ING Direct is a better option. ING Direct is actually more competitive with rates of 4.70% APY for terms of 6, 9 and 12 months, with no minimum deposit requirements.

For other recent savings account rate drops, please refer to my last weekly rate summary.
Comments (8)
2.01% Reward Checking Account at a Texas Bank (West Texas National)
Friday, December 21, 2007 - 7:18 AM

Update 1/09/09: The top yield has fallen to 2.01% APY. Refer to the bottom of the post for the rate history.

West Texas National Bank is offering a reward checking account called Ultimate Checking. It pays 2.01% APY on balances up to $25,000 (0.50% for over) and refunds ATM fees if the following monthly requirements are met: 1) 10 check card transactions, 2) one direct deposit or ACH auto debit or one online bill pay, and 3) access online banking with electronic statements. If these are not met, the rate falls to 0.25%. The checking account remains a free account with free online bill pay regardless of meeting the above requirements.

Update 4/08/08: According to the banking rep, you can apply online without having to come into a branch. At the end of the online application, you'll need to print out and mail in the signature card. Also, you'll need to mail in a copy of your driver's license and second form of ID along with your check for the initial deposit.

It appears that a branch visit is required to open this account. The bank is headquartered in Midland, Texas. In addition to Midland, branches are located in Alpine, Terlingua, Crane, Denver City, Kermit, Pecos and Seminole. The bank is FDIC insured (Certificate # 22957).

Rate History:
01/09/09: 2.01% APY for up to $25K; 0.50% for above; 0.25% if req's are not met
11/01/08: 4.01% APY
04/30/08: 5.01% APY
12/21/07: 6.01% APY for up to $25K; 0.85% for above; 0.51% if req's are not met
Leave a comment
5.50% 60-Month / 5.25% 24-Month CD at a Maryland CU (Prince George's Community)
Friday, December 21, 2007 - 7:17 AM

Prince George's Community FCU is still listing competitive certificate rates. The yields for the 60-month, 24-month and 12-month terms are 5.50% APY, 5.25% APY and 5.13% APY. The two longer terms CDs have a $1,000 minimum deposit and the 12-month term has a $500 minimum. These are also available as IRA certificates.

My last report on this credit union was in August when they were offering a 5.92% 60-month CD.

Membership is open to those who live, work, worship or volunteer in Prince George's County, Maryland. There's also a few select employee groups. Please refer to their membership page for more details. A minimum $50 deposit into the share savings account is required for membership.

The credit union is federally insured by the NCUA (Charter # 18271). It has $93.5 million in assets and 12,626 members.
Comments (13)
PenFed's Special January CD Rates and Other Planned Promotions
Thursday, December 20, 2007 - 6:06 PM

Pentagon Federal Credit Union (PenFed) has a history of starting off the new year with excellent long-term CD rates. Last year it was offering a yield of 6.25% APY for terms of 3 years and longer. I've heard that PenFed's board of directors has approved the rates for January. I wasn't told specific rates, but I was told they'll be over 5%. I have a feeling they'll be closer to 5% than 6%. In addition to today's lower rate environment, PenFed seems to be planning to keep the rates more even through the year so they don't have large spikes in demand. However, they might still have some certificate sales later in the first and second quarter depending on demand.

PenFed's Cash Back Reward Credit Card

Another change I was told about for January is in their Visa Platinum Gas Cash Reward credit card. I was told that they're adding 2% cash back for groceries on top of the 5% cash back for gas and 1.25% cash back on all other purchases.

One nice feature of this Penfed Visa Platinum card is that you are credited with cash rewards each month instead of having to wait for $50 or more to accrue in your account. The card has no annual fee.

Note, you will incur a hard credit inquiry by applying for this credit card and for joining Penfed. It has been mentioned that Penfed doesn't initiate a new hard pull for 60 days after it does a hard pull. So if you sign up for the card within 60 days of joining, you may only be hit with one hard pull.

Auto Loans

The new rate environment should be helpful for those looking for loans. Auto loan rates are planned to fall to 4.99% APR for terms up to 60 months on used cars and 72 months on new cars. These current auto loan rates are 5.29% APR.

PenFed Membership

Qualifying for PenFed membership and purchasing their CDs are easy. For these details and my experience with PenFed, please refer to my Pentagon FCU review.
Leave a comment
5.20% 36-Month CD at a Texas Credit Union (SACU).
Thursday, December 20, 2007 - 8:49 AM

San Antonio Federal Credit Union (SACU) has some competitive certificate rates with a yield as high as 5.25% APY for a 3 year term. The 5.25% yield requires a $90K minimum deposit. The yield for a $10K minimum is 5.20% APY, and the yield for a $1,000 minimum is 5.15% APY. The 24-month CD has a yield 5 basis points lower, and the 12-month CD has a yield 15 basis points lower.

The credit union is still offering 6.01% on its reward checking account called mY Generation Checking. I have more info on this reward checking account in this September post.

Membership is open to those who work for government or financial institutions in San Antonio or those in college in San Antonio. You can also be eligible via Select Employer Groups in San Antonio and in Houston and via family. Please refer to their membership application page for more details. Membership requires a minimum $5 deposit into the share savings account.

Branches are located in both Houston and San Antonio. The credit union is federally insured by the NCUA (Charter # 24382). It's a large credit union with $2.3 billion in assets and 242,218 members.
Comments (7)
4.00% Reward Checking Account at a Michigan CU (United Financial)
Thursday, December 20, 2007 - 8:45 AM

Update 4/04/10: The top yield has fallen to 4.00% APY. Refer to the bottom of the post for the rate history.

United Financial Credit Union is offering a reward checking account that pays 4.00% APY on balances up to $25,000 (0.25% for over) and refunds ATM fees if the following monthly requirements are met: 1) 12 debit card transactions (must be signature based with a minimum $5 purchase), 2) one bill payment using Net Pay, 3) direct deposit and 4) Virtual Branch with E-statements.

Membership is open to those who reside, work or worship in Saginaw, Bay or Midland County, Michigan. Please see their membership page for details. This page also states retirees are eligible. Membership requires a minimum deposit of $25 into the Savings Plus account.

Branches are located in Saginaw, Chesaning and Freeland, MI. The credit union is federally insured by the NCUA (Charter # 61657). It has $93.2 million in assets and 13,397 members.

More Info on High Yield Reward Checking Accounts

For more information on reward checking accounts, please refer to one of these posts: reward checking overview, list of reward checking accounts around the nation, and the best checking account post.

Rate History:
04/01/10: 4.00% APY for up to $25K
11/08/09: Debit card purchases must be signature based and a minimum of $5
03/01/09: 5.00% APY for up to $25K; 0.25% for above
01/01/09: 5.00% APY for up to $25K; 0.50% for above
03/31/08: 5.00% APY for up to $25K;
12/20/07: 6.00% APY for up to $25K; 1.00% for above

Comments (2)
5.30% 3-Month Brokered CD at TD Ameritrade
Thursday, December 20, 2007 - 8:42 AM

Update 1/26/08: The latest funding deadline for this CD is 2/1/08.

TD Ameritrade is offering a special 5.30% APY 3-month brokered certificate of deposit. The minimum deposit is $10,000 and the maximum is $100K. The interest rate is 5.20%.

According to the promotion instructions you open your TD Ameritrade account online, fund the account with at least $10,000 by 1/11/08, they'll email you an access code, and then you'll need to log in and open the CD by 1/14/08.

This is very similar to a CD promotion they had earlier in the year that I reported on last March. A reader asked about the small print which states "Brokered CDs have an extended settlement period of up to two weeks." Another reader provideed this information: "Being one of those deposit brokers, many CDs have a future settle date. Your funds wouldn't set idle with them, but you wouldn't wire them in until the settle date. This is because they end up being part of a much larger Master CD. The receiving bank only has to put one large CD on their books instead of numerous smaller ones."

Here's another important piece of the small print:
Brokered CDs available at TD AMERITRADE are deposit obligations of the issuing bank. As a bank obligation, the CDs, along with other deposits you may hold at the issuing bank, will be eligible for insurance by the FDIC. ... TD AMERITRADE will not be responsible for any insured or uninsured portion of the CD.

A general overview of brokered CDs is provided by Justin at the About's Banking/Loans blog. Here's a description of brokered CDs from the SEC site:
Although most investors have traditionally purchased CDs through local banks, many brokerage firms and independent salespeople now offer CDs. These individuals and entities, known as "deposit brokers", can sometimes negotiate a higher rate of interest for a CD by promising to bring a certain amount of deposits to the institution. The deposit broker can then offer these "brokered CDs" to their customers.

The main risk seems to be the potential loss if you need to sell before maturity. Instead of an early withdrawal penalty, you would sell the CD in the secondary market. The value that you can sell it for may be much less than you would expect. For short term CDs, this doesn't seem to be much risk.

Other TD Ameritrade Promotions

Promotions at TD Ameritrade seem to be very common. You may be able to take advantage of new brokerage account bonuses before opening this CD.

One promotion allows you to earn up to $300. Open the account by 1/31/08 and fund it with at least $25,000, you'll get $100. You'll also get 30 days of commission-free internet equity trades. An additional $100 can be earned by transfering $50K from another brokerage, and an additional $200 can be earned by transfering $100K from another brokerage.

There's also another $100 bonus for opening an account before 3/31/08 and funding by 12 monthly consecutive automatic electronic deposits of $50 or more. First $50 must be deposited within 30 days of opening account.

Thanks to the reader who emailed me info on this CD promotion.
Leave a comment
5.43% 15-Month CD at a Carolina CU Continues (Carolina Telco).
Thursday, December 20, 2007 - 8:39 AM

Update 1/18/08: The rates have fallen. Please check with the credit union's website for the latest rates.

Carolina Telco Federal Credit Union continues listing a special 5.43% APY 15-month share certificate. The minimum deposit is $25,000. There's also a special 5.38% APY 10-month certificate with a $10,000 minimum deposit. The credit union also has some very competitive long term IRA certificates. The highest yield is a 5.62% APY 46-month CD with a step-up option. My last report on these CDs was in October.

Membership is open to employees, independent contractors, or self-employed persons, who work regularly in the Telecommunications Services Industry in North Carolina or South Carolina. Please see the credit union's Eligibility page for more details. Membership requires a $1 fee and a minimum $25 deposit into your Prime Share Savings Account.

Branches are located in the North Carolina cities of Charlotte, Cornelius, Gastonia, and Raleigh, and in the South Carolina cities of Columbia, Greenville and Charleston. The credit union is federally insured by the NCUA (Charter # 23494). It has $306.4 million in assets and 34,605 members.
Comments (5)
High-Yield Reward Checking Account at an Illinois Bank (Liberty)
Wednesday, December 19, 2007 - 10:48 AM

Update 10/08/10: The top yield has fallen to 3.01% APY. Please see bottom of the post for the rate history.

Liberty Bank is offering a reward checking called eSmart Checking that pays 3.01% APY on balances up to $25,000 (1.01% for over) and refunds ATM fees (up to $20/month) if the following requirements are met: 1) 15 debit card purchases, 2) one direct deposit or automatic withdrawal, 3) one bill pay, and 4) receive electronic statements. If these are not met, the rate falls to 0.15%. Only $1 is required to open the account, and they offer the first 50 checks free. There are no monthly service charges, and bill pay is free.

Update 1/6/11: The online application at CheckingFinder.com now states that you must reside in either Illinois or Missouri to apply.

Update 6/16/08: I was informed by the bank that they now accept out-of-state applications. The "Apply Now" button on their eSmart Checking overview page links to the online application at CheckingFinder.com.

Branches are located in the Illinois cities of Alton, Godfrey and Bethalto. The bank is FDIC insured (Certificate # 33873).

Other Reward Checking Accounts

For other reward checking accounts in other parts of the country, please see my reward checking account page and my best checking account post. For a discussion of reward checking accounts and if the high yields can last, please refer to High Yield Reward Checking News and Reviews post.

Rate History:

  • 04/26/10: 3.01% APY for under $25K; 1.01% APY for over $25K; 0.15% base rate
  • 11/04/09: 3.51% APY for under $25K
  • 08/19/09: 4.01% APY for under $25K, 1.25% APY for over $25K, 0.25% base rate
  • 04/16/09: 4.25% APY for under $25K, 1.25% APY for over $25K
  • 11/02/08: 4.50% APY for under $25K, 1.50% APY for over $25K
  • 06/10/08: 5.01% APY for under $25K
  • 03/21/08: 5.51% APY for under $25K
  • 12/19/07: 6.01% APY for under $25K, 2.01% APY for over $25K, 0.50% base rate
Comments (3)
5.64% 60-Month Jumbo CD at Huntington Bank - Nationally Available
Wednesday, December 19, 2007 - 10:45 AM

Huntington Bank is offering some very high rates on its Jumbo CDs. The top rates are 5.64% APY and 5.36% APY for the 5 and 4 year CDs with a $250,000 minimum deposit. The yields for a $100,000 minimum deposit are 5.28% APY and 5.00% APY.

From their online chat session, I received the following details of these 4 and 5 year Jumbo CDs:
  • Can be opened by phone and funded by mailing a check
  • 12 months of interest penalty for early withdrawal
  • 10 day grace period
  • At maturity, you can instruct them by phone to close the CD and send you a check (CSR wasn't sure about wire transfer and electronic funds transfers)
  • Available in an IRA
  • POD beneficiaries can be includedd (CSR didn't know how many could be listed)

On November 26th I reported on their 5.25% 7-month online CD promotion. This seems to have ended. Their current CD special is a 4.90% APY 14-month CD. These online promotions are not available to those in California. I forgot to ask about these Jumbo CDs.

Huntington started an online savings account early last year (see post) which like this CD is available nationally except for those in CA. The rate on the savings account was as high as 5.30% APY, but now it's only 4.60% APY.

Huntington Bank is FDIC insured (Certificate # 6560). It has $36.0 billion in assets and $25.4 billion in deposits. Bankrate's rating for this bank is 3 out of 5 stars (performing) based on 6/30/07 data.
Comments (5)
7.45% 9-Month CD at a Southern California CU - $7.5K Max (Patriots).
Wednesday, December 19, 2007 - 10:41 AM

Patriots Federal Credit Union is offering Pot-o-Gold Certificate of Deposit Specials for New Members. Top rates require direct deposit. These include a 8.53% APY 15-month CD with a $2,500 maximum deposit, a 7.45% APY 9-month CD with a $7,500 maximum deposit and a 6.39% APY 7-month CD with a $10,000 maximum deposit. The rates without direct deposit are 50 basis lower: 7.99%, 6.92% and 5.85% APY. Only one promo CD is allowed per new member.

This special doesn't seem to be listed at the credit union's website. A reader sent me email with these details.

The Direct Deposit rates don't apply until after a recurring direct deposit has occurred, the member notifies the CU and they verify it. Minimum direct deposit of $50 is required for the DD rate.

Update 12/20/07: Readers have mentioned additional details (Thanks!):
One must also open a checking account with a minimum $75 deposit. The checking account doesn't require direct deposit and there's no $6 monthly fee without it (although there's nowhere it says this in writing). The $75 checking account balance doesn't need to be maintained once the account is opened.

The best promo is the 9-month CD which will give you $137 over what you would earn if you had the $7.5K in a 5% account for those 9 months. The 15-month CD gives you an extra $109 and the 7-month CD gives you an extra $81.

My last report on this credit union was in December 4th when they were offering a 5.75% 12-month CD.

Membership is open to those who live or work in Southern California. You can also be eligible to join if you're a member or employee of eligible organizations or businesses. More info is provided at their history page. Membership requires a $10 fee. A minimum balance of $25 in your savings account is required for membership.

Update 1/11/08: The $10 membership fee is waived for this promotion.

The credit union is federally insured by the NCUA (Charter # 14785). It has $93.9 million in assets and 6,638 members. Bankrate.com gives them 3 out of 5 stars (performing) based on 6/30/07 data.

Thanks to the reader who emailed me info on this CD.
Comments (7)
Salem Five Direct Slashes eOne Rates
Tuesday, December 18, 2007 - 8:35 PM

Update 7/16/09: The eOne Checking rates were cut today. Top rate for balances over $100K fell from 1.55% to 0.85% APY. Rate for balances under $50K fell from 1.40% to 0.75% APY. On the plus side, they have a new savings account called eOne Savings with a rate of 1.55% APY on all balances.

Update 10/16/08: The rates were cut today. The yield for balances under $50K is now 2.75% APY.

Salem Five Direct slashed rates today on its eOne checking account. The bottom tiered rates were reduced by 60 basis points to 4.10%, 4.20% and 4.30% APY. The top tier rate went down by 50 basis point to 4.60% APY. Below is how the rates have changed since Salem Five launched eOne.

Tiers         Original  9/25/07    12/18/07   3/29/08   10/16/08
              APY       APY        APY        APY       APY
Under $10K:   5.00%     4.70%      4.10%      3.00%     2.75%
$10K-$25K:    5.10%     4.80%      4.20%      3.10%     2.75%
$25K-$50K:    5.10%     4.80%      4.20%      3.20%     2.75%
$50K-$100K:   5.20%     4.90%      4.30%      3.20%     3.05%
$100K-$1M:    5.30%     5.10%      4.60%      3.50%     3.35%

Note, there were a few rate changes between 12/18/07 and 3/29/08.


One good thing about Salem Five Direct is that they don't make frequent rate changes. So we can hope there won't be more cuts any time soon. If that happens, these rates may become more competitive as other banks continue to cut their rates.

Although these rate cuts make this account less appealing, it still has many nice features. The basic features include:
  • $25 bonus for enrolling in direct deposit
  • $100 initial deposit required
  • No monthly fee or minimum balance requirements
  • ATM refunds up to $15 per statement cycle
  • Unlimited checking transactions - first 25 are free
  • Free online bill pay and debit card
  • Account requires eStatements and is not available at Salem Five branches
  • No ACH system. External transfers can be initiated from your other banks.

I have more details of this account in this May post. Many readers have provided more details of this account in the comments. Below is a summary of these:
  • Hard pull from Equifax (slightly dings your credit score)
  • Postage-paid envelopes for deposits are provided for free
  • Poor support for Quicken. $5/month is charged for Intuit's Quicken Bill Pay service.
  • Good customer service that can be reached quickly
  • ATM cash withdrawal limit listed at $500
  • Little things can cause Salem to reject application such as a driver's license with an old address

Salem Five is FDIC insured (FDIC Certificate # 23296). Note that the FDIC page only lists the SalemFive.com URL and not SalemFivedirect.com. One thing to note, however, is that the toll-free number listed at Salem Five Direct is the same one listed at Salem Five.

Accounts with funds over the FDIC limit are privately insured by the Deposit Insurance Fund (DIF). DIF insurance applies to all Massachusetts state-chartered savings banks. A reader noted that Massachusetts had a number of banks fail in the 80's and not one person lost a penny in a DIF bank.

Checking Account Alternatives

Please see my the best checking account post for other alternatives. I'm afraid it's a little out-of-date.

Thanks to the readers who commented on this rate change.
Comments (1)
7.77% 7-Month CD at an Illinois Bank - $7.7K Max (Bridgeview).
Tuesday, December 18, 2007 - 6:52 PM

Update 1/19/08: The promotion is no longer listed at the bank's website. Please refer to the bank's website for the latest rates and promotions.

Bridgeview Bank is offering a special 7.77% APY 7-month CD. The minimum is $2,500, and the maximum is $7,777.77 per household. It's only for new customers, and a qualified checking account is required with direct deposit. Direct deposit must be established within 45 days or CD will be penalized by reducing the APY to 3.50%.

Bridgeview Bank had a 10% CD promotion in August with a $25K max. This new one isn't quite as good, but it's not too bad. With a 7.77% APY, a 7-month term and a $7,777 deposit, you'll make about $125 over what you would earn in a 5% account. So this is comparable to a checking account bonus.

Qualifying checking accounts include Preferred, Premimum or Prime Checking. The Prime Checking is the best deal, but it's only available to those over 50. The next best one is the Preferred Checking which only has a $500 minimum to avoid a monthly fee. Please see this bank's page for a comparison of these checking accounts. The checking account must remain open for 6 months to avoid a $25 closing fee.

Based on the last CD promotion, this one likely requires a branch visit. Branches are located in Chicago and several other cities in northeastern Illinois. The bank is FDIC insured (FDIC Certificate # 21122).

Thanks to FW member km who posted this special in the FW CD thread.
Leave a comment
5.45% 7-Month / 5.45% 11-Month CD at a Florida Bank (First Florida).
Tuesday, December 18, 2007 - 9:44 AM

First Florida Bank is offering a special CD with a yield of up to 5.45% APY for terms of 7 to 11 months. The minimum deposit is $15,000. The 5.45% yield is available for existing customers or those who open a checking or money market account at the time of opening the CD. Otherwise, the yield is 5.35% APY.

This special CD doesn't seem to be listed at the bank's website. A reader emailed me info on this, and I just called for additional details. The CSR said that it should be available at all of their branches. A branch visit is required. She didn't know how long this special CD would last.

Branches are located in Bonita Springs, Fort Myers, Naples, Port Charlotte, Venice and Winter Park, Florida. The bank is FDIC insured (Certificate # 35105).

First Florida Bank was recently included in TheStreet's article Six Florida Banks Depositors Should Worry About due to bad construction loans. However, being a subsidiary of Synovus Financial, a multibank holding company with $33.6 billion in assets, is mentioned as a major advantage.

The bank has a 2 out of 5 star rating (below peer group) at Bankrate.

Thanks to the reader who emailed me info on this special.
Comments (4)
Emigrant Direct Lowers Savings Account Rate - Spanish Version Remains at 5.05%
Tuesday, December 18, 2007 - 9:05 AM

Emigrant Direct lowered the yield on its online savings account from 4.75% to 4.65% APY. They had been offering 4.75% since late September.

Emigrant Bank's online bank targeting the Hispanic market, BancoFortuna, is still offering 5.05% APY. This is the same rate that EmigrantDirect had been offering for over a year before the Fed started cutting rates.

I first reported on BancoFortuna in May after this CNN article. As the article stated, Emigrant is targeting the Hispanic market. Perhaps it hasn't been as successful as they had planned so they're keeping the high yield.

BancoFortuna also provides an English equivalent page. I suppose this savings account is open to anyone in the US just like the savings account at EmigrantDirect. So if you're going to open an account at Emigrant Direct, I don't see any reason not to sign up here instead.

Thanks to Shrazzy who mentioned this latest rate cut in the finding-the-best-deals post.
Comments (19)
2.55% Reward Checking Account at a Washington State CU (Verity)
Tuesday, December 18, 2007 - 9:03 AM

Update 1/10/10: The top rate has fallen to 2.55% APY. See bottom of post for the rate history.

Verity Credit Union has a reward checking account called Cartwheel Checking that pays 2.55% APY on balances up to $10,000 (0.75% for over) and refunds ATM fees (up to $25 per cycle) if the following monthly requirements are met: 1) 12 debit card point-of-sale transactions, 2) receive electronic statements, and 3) access online banking. If these are not met, the rate falls to 0.10%. There are no monthly balance requirements or monthly service charges regardless of meeting the above requirements.

Two nice features of this reward checking account is the $40K cap which is higher than the average $25K cap and the lack of a direct deposit requirement.

Membership is open to anyone who lives, works, worships or attends school in Washington State. You can also qualify via Select Employee Groups. Most of these seem to be military related. Please refer to their Who-Can-Join page for more details. Membership requires a $5 fee and a minimum deposit of $5 in the share savings account.

Branches are located in Seattle, Auburn and Lynnwood. The credit union is federally insured by the NCUA (Charter # 68517). It has $341.2 million in assets and 25,091 members.

Thanks to the reader who emailed me info on this credit union.

More Info on High Yield Reward Checking Accounts

For more information on reward checking accounts, please refer to one of these posts: reward checking overview, list of reward checking accounts around the nation, and the best checking account post.

Rate History:
12/01/09: 2.55% APY up to $10K
05/05/09: 3.05% APY up to $10K; 0.75% over (Cartwheel checking), Velocity Checking appears to remains the same for existing customers. New Velocity Checking accounts are not available.
05/01/09: 3.05% APY up to $25K; 0.75% over
03/01/09: 3.50% APY up to $25K;
02/02/09: 3.50% APY up to $40K
12/01/08: 4.05% APY up to $40K
10/01/08: 4.50% APY up to $40K
07/01/08: 5.05% APY up to $40K. The yield for balances over $40K dropped from 2% to 1%.
06/01/08: Temporary promo with top yield of 6.75% APY.
12/18/07: The top yield was 6.01% APY.
Comments (2)
5.10% 5-Month Online CD at LaSalle Bank
Tuesday, December 18, 2007 - 8:58 AM

LaSalle Bank is offering a yield of 5.10% APY and a term of 5 months on its Online Manager's Special CD. The minimum deposit is $10,000. It's only available for consumer and small business accounts opened with funds not currently on deposit at LaSalle Bank. This is only available using their online application. It appears to be available to people in any state.

LaSalle is now part of Bank of America. They're still working on the change-over. According to this merger overview, LaSalle customers can use Bank of America's ATMs without fees, but they still can't use Bank of America's branches.

Bank of America has been offering some 4-month online CDs with decent rates. Current rates in most states seem to be under 5% (see post).

LaSalle is still offering a $100 checking account bonus that doesn't require direct deposit. I first mentioned this promotion in October. A reader in that post had some problems with LaSalle: "Online access is insanely quirky and tempermental. Customer service is often uninformed and misleading, and at best is waiting for Bank Of America to step in and clean things up." So keep this in mind if you try these LaSalle offers.

Bank of America also has a $100 checking account bonus for new checking account customers. Please refer to my Bank of America Checking bonus post for more details.
Leave a comment
5.30% 60-Month / 5.25% 48-Month CD at a Utah Credit Union (Utah Community).
Tuesday, December 18, 2007 - 8:56 AM

Update 2/2/08: CD rates have fallen again. Please check the credit union's website for the latest rates.

Update 1/19/08: The rates have fallen. Title modified with new rates: 5.30% APY 60-month, 5.25% APY 48-month and 5.20% APY 36-month. Please see credit union's website for latest rates.

Utah Community Credit Union has some high yields on its certificates. The high yields range from 5.15% APY for a 6-month term to 5.65% APY for a 60-month term. The other APYs include 5.30%, 5.40%, 5.50% and 5.55% for a 12, 24, 36 and 48 month term. The minimum deposit is $500. These are also available in an IRA.

Another nice thing about these CDs is that the early withdrawal penalty is only 90 days of interest. Long term CDs often have penalties of 180 days or more. According to their savings page you may be able to get higher yields on larger deposits, but I don't see any additional rates listed in their rate tables.

Membership includes anyone who lives, works, worships, or attends school in Utah, Wasatch, Juab, or Sanpete Counties. Please see the bottom of of their about page for more details. Membership requires a minimum deposit of $5 in your share savings account.

High CD rates seem to be rather common in Utah credit unions. Unfortunately, I haven't found any Utah credit unions with easy membership for those who live in other states.

Branches are located in Provo and several other Utah cities. The credit union is federally insured by the NCUA (Charter # 10709). It has $576.3 million in assets and 97,371 members.
Leave a comment
5.10% 17-Month CD at a New York Credit Union (DOT).
Tuesday, December 18, 2007 - 8:55 AM

DOT Federal Credit Union is offering a special 5.10% APY 17-month share certificate. The minimum deposit is $1,000. For an IRA, this special has a yield of 5.20% APY.

Membership is open to residents, workers and students of Dutchess, Ulster and Orange counties, New York. Please refer to their How-to-Join page for more details. Membership requires a $5 fee and a minimum deposit of $5 in the share savings account.

Branches are located in Poughkeepsie and Wassaic, New York. The credit union is federally insured by the NCUA (Charter # 731). It has $51.9 million in assets and 8,330 members.
Comments (3)
$100 Checking Account Bonus at Guaranty Bank
Monday, December 17, 2007 - 6:26 PM

Guaranty Bank is offering up to $100 for opening its Free & Easy Checking. The following is required:
  • The first $50 is awarded after 3 consecutive direct deposits of $75 or more
  • The second $50 is awarded after paying 3 bills using their Preferred BillPay before 1/31/08

The promotion ends on 12/31/07. It doesn't seem to be listed at their website. A reader mentioned this in the comments, and I called for further details. According to the CSR, they only do a ChexSystem check with no hard credit inquiry (Note, CSRs are often wrong on this). A branch visit is required.

I also asked about their Savings PayBack program which I first reported on in August. This allows you to earn $100/year by setting up monthly automatic transfers from your Guaranty checking to your Guaranty savings account. The CSR indicated that this program was no longer available. However, it's still on their website here. If you do go for the $100 checking bonus, you may want to also ask about this Savings PayBack program.

Guaranty Bank has over 175 branches, many in grocery stores, in five states including Wisconsin, Illinois, Michigan, Minnesota, and Georgia (see branch locator). The bank is FDIC insured (FDIC Certificate # 30003).

Thanks to the reader who mentioned this promotion in the finding-the-best-deals post.
Comments (12)
Indymac Bank Raises 4-Month CD Yield to 5.40%
Monday, December 17, 2007 - 8:42 AM

Indymac Bank raised the yield on its 4-month internet special from 5.35% to 5.40% APY. The minimum deposit is $5,000. The 3-month CD yield was also increased to 5.40% APY.

For more info on Indymac Bank and its CDs, please refer to this previous Indymac CD post.

Like Countrywide, Indymac Bank has been offering some very high short term rates since August when news of its mortgage problems started to make headlines. The Mercury News reported last week that S&P cut Indymac's credit rating to 'junk' level due to the housing problems. So it's definitely wise to stay under the FDIC limits. Please see my FDIC post for more info about what FDIC covers.

Bankrate.com gives Indymac 2 out of 5 stars (below peer group) based on 6/30/07 financial data. The bank is FDIC insured (FDIC Certificate # 29730).
Leave a comment
5.25% 9-Month CD at a Vermont/New Hampshire CU (Heritage Family).
Monday, December 17, 2007 - 8:08 AM

Heritage Family Credit Union is offering a 5.25% APY 9-month certificate. The minimum deposit is $1,000. My last report on this credit union was in March when they were offering a 6% 51-month CD.

Field of membership includes those who live, work or worship in any of the following Vermont communities: Rutland, Addison, Bennington, Windsor or Windham counties. People who live, work or worship in Hooksett, New Hampshire are also eligible to become members. Membership requires a minimum $25 deposit into the Prime Share savings account.

Branches are located in Rutland, Fair Haven, Bennington and South Londonderry, VT and in Hooksett, NH. The credit union is federally insured by the NCUA (Charter # 24742). It has $157.4 million in assets and 23,516 members.
Comments (1)
5.25% 18-Month / 5.25% 60-Month CD at a New York Bank (LibertyPointe).
Sunday, December 16, 2007 - 7:00 PM

Update 1/5/08: The rates have changed. Please check the bank's website for the latest rates.

LibertyPointe Bank is offering competitive CD rates with yields up to 5.25% APY. The short term CDs with terms from 6 to 18 months require a checking account with direct deposit of payroll or government payment to qualify for the 5.25% APY. Without the checking, the yield is 5.00% APY. The longer term CDs have yields over 5% without this checking account requirement. These include a 5.15% APY 3-year CD, a 5.20% APY 4-year CD and a 5.25% APY 5-year CD. These are also available in retirement accounts.

These standard rates are available to customers within the New York, New Jersey and Connecticut area.

I had posted on this bank many times before. They've recently had some nice new-branch specials. The last one I reported on was in November. So if you're near a branch, be sure to check if there's a better CD special available.

Branches are located in New York and Brooklyn, NY. LibertyPointe Bank is a small bank that was established in 2005. The bank is FDIC insured (FDIC Certificate # 58071).
Leave a comment
5.10% 13-Month / 5.28% 6-Month CD at a Colorado CU (Elevations).
Sunday, December 16, 2007 - 6:42 PM

Update 1/19/08: The rates have fallen. Please check with the credit union's website for the latest rates.

Elevations Credit Union is offering three certificate specials. Two of these have a yield of 5.10% APY and terms of 13 and 5 months. The minimum deposit is $10,000. The third is a 6-month Jumbo CD with a yield of 5.28% APY. The minimum deposit is $100,000. These specials are also available in IRA, ESA and HSA accounts

The credit union has long been offering a 9% 9-month CD with a $2,000 maximum balance. I just did a new post on this 9% CD special. Please refer to that post for membership and credit union details.
Leave a comment
9.00% 9-Month CD at a Colorado Credit Union Continues - $2K Max (Elevations)
Sunday, December 16, 2007 - 6:36 PM

Elevations Credit Union continues to offer a 9% APY 9-month certificate. The minimum deposit is $1,000 and the maximum is $2,000 per member. A checking account is required. A free checking account is allowed for new members. Current members must open a dividend bearing checking account. My last report on this special was in March.

Since the checking account is required, you can think of this 9% CD like a checking account bouus. Having $2K in a 9% CD for 9 months would result in about $60 over what you would earn in a 5% CD.

Credit union membership is open to all students, faculty, staff and alumni association members of the University of Colorado system. Anyone seems eligible to join the Alumni Association of the University of Colorado at Boulder. Membership is $45. Residents of Boulder County who are 50 years of age and older may join the credit union by becoming a member of the 50 and Better Club. There's also a long list of Select Employer Groups. Be sure to check with the credit union to ensure that membership and not employment in an organization qualifies for credit union membership. Credit union membership requires a $25 minimum deposit into a savings account.

Branches are located in Boulder, Longmont and Lafayette, Colorado.

The credit union is federally insured by the NCUA (Charter # 68565). It has $751.8 million in assets and 75,686 members. One interesting note about this credit union is that members voted early in the year to convert from a federal to a state chartered credit union.
Comments (2)
5.25% 48-Month CD at MidAmerica Bank - Available Online Nationwide
Sunday, December 16, 2007 - 5:27 PM

MidAmerica Bank is offering a 5.25% APY 48-month certificate of deposit. The minimum deposit is $10,000. The CD is available for regular and IRA funds. This rate may vary by state. At the top of the rate table, you can select your state. I've checked a few states and all show 5.25% APY for the 4-year CD.

Update 12/17/07: This special CD requires that you also open a checking account with a minimum initial deposit of $1,500 of new money. I was told their Free Checking qualifies. I also confirmed that the accounts can be opened online by people in any state.

The 5.25% APY may not sound that great, but as you can see from my weekly rate summary, it's near the top for a 4-year term.

The bank is also offering a competitive money market account with a yield of 4.75% APY on balances over $10K.

The "apply" link in the rate table opens up a PDF application that must be printed and mailed. However, if you go to the bank's home page, there's an "open a new account online" link on the left hand side. The online application allows you to select the 5.25% 4-year CD. According to the application instructions, the account can be funded with a credit or debit card or U.S. checking or savings account. The only requirement is that you are a US citizen or a US resident alien.

In the application, they provide their account disclosure (pdf) which has the details on their CDs (page 10). Some of the important detais include:
  • 270 days of interest penalty (earned or not) for 4-year CD term
  • Posted interest may be withdrawn at any time without incurring the penalty
  • Grace period at maturity is 7 calendar days.

Branches are located in Wisconsin and Illinois. The bank is FDIC insured (Certificate # 28671). It has a 3 out of 5 star rating (performing) at Bankrate.
Comments (1)
Bank Deals Weekly Summary for December 15, 2007
Saturday, December 15, 2007 - 9:04 PM

Quick Link for Rates, Recap of this week's posts

The Fed cut the target federal funds rate this week from 4.50% to 4.25%. There had been some expectations of a 50 basis point rate cut so it could have been worse for savers. Nevertheless, it didn't take long for several online banks to cut their savings account and CD rates. Online banks which lowered their savings account rates included Presidential, Savings Square, VirtualBank, Zions, AmTrustDirect, ING Direct and E-LOAN. There were even more CD rate cuts.

State Bank of Toledo which had been the nation's best reward checking account lowered the rate on its reward checking from 6.01% to 5.01% APY. It also placed a cap of $70K on the balance that can earn 5.01%. There are still many 6%+ reward checking accounts available (most are local deals), but as we learned with State Bank of Toledo, these accounts are not immuned to the new rate environment (see post).

There was some good news for those looking for CDs. Countrywide Bank raised the rates on their 3 and 6 month internet CDs to 5.50% APY (see post). KeyDirect raised the rate on some of its long term CDs. KeyDirect's 3 and 5 year CDs have a yield of 5.25% APY and the 7-year CD yield was raised to 5.50% APY. Capital One also raised its 7-year CD yield. The new yield is 5.30% APY. The new online bank Doral Bank Direct also has some good CD deals with rates ranging from 5.25% APY for its 6 and 9 month terms, 5.15% APY for its 12 month term and 5.10% APY on its longer terms. I first posted on Doral on December 3rd.

Recap for the Week

Banking News

Savings and Checking Accounts - National

CD Deals - National

Checking and Savings Account Bonuses

Reward Checking Accounts - Local

CD and Money Market Deals - Local

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. The top lists include banks and credit unions with broad availability and with minimums around $10K or less. Previous weekly summaries are available for Dec 8th, Dec 1st, Nov 24th, Nov 17th, Nov 10th, Nov 3rd, Oct 27th, Oct 20th and Oct 13th.

Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Special rates, Local checking/savings, Bank alternatives CD Rates: 3 Mo CDs, 6 Mo CDs, 9 Mo CDs, 12 Mo CDs, 18 Mo CDs, 24 Mo CDs, 36 Mo CDs, 48 Mo CDs, 60 Mo CDs, 84 Mo CDs, CDs by state Comments: read and discuss

As of December 15, 2007

Checking/Savings/Money Market Accounts:


3-Month Certificates of Deposit:

6-Month Certificates of Deposit:

9-Month Certificates of Deposit:

12-Month Certificates of Deposit:

18-Month Certificates of Deposit:

24-Month Certificates of Deposit:

36-Month Certificate of Deposit:

48-Month Certificate of Deposit:

60-Month Certificate of Deposit:

84-Month Certificate of Deposit:

High Yield Checking Accounts with Conditions - Open to All

Checking and Saving Accounts at Local Banks/Credit Unions

CD Specials at Local Credit Unions/Banks Over the Last Two Months


Terms of 60 Months and Over

Terms of 24 Months to Under 60 Months

Terms of 12 Months to Under 24 Months

Terms of Under 12 Months

Bank Account Alternatives


Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)
Comments (2)
5.75% 13-Month CD at a California/Arizona CU (LA Financial).
Friday, December 14, 2007 - 6:13 PM

Update 2/2/08: CD special has ended. Please check the credit union's website for the latest rates.

LA Financial Credit Union is offering a special 5.75% APY 13-month certificate. The minimum deposit is $1,000. The 5.75% APY requires that you open a checking account with direct deposit. Without the checking account, the yield is 5.25% APY. At least half of the deposit must be new money. It also can be opened as an IRA certificate.

My last report on this credit union was in March when they were offering a 6.25% 13-month IRA CD.

Membership is open to those who live, work, worship, volunteer or attend school in Los Angeles County, California. Membership is also open to anyone who lives or works in Lake Havasu City, Arizona through Havasu Community Credit Union (a division of LA Financial CU). Please refer to LA Financial CU's membership page and Havasu Community CU's membership page for more details. The credit union has a $5 membership fee, and there's a $5 minimum deposit required for the savings account. A minimum $100 balance in the savings account (or $2.5K combined balance of all savings and loans) is required to avoid a $3/month fee (see savings account info).

Branches are located in Los Angeles, Pasadena and Norwalk, CA, and in Lake Havasu, AZ. The credit union is federally insured by the NCUA (Charter # 2024). It has $288.2 million in assets and 34,419 members.

Thanks to the reader ommie who mentioned this promotion in the finding-the-best-deals post.
Comments (4)
Countrywide Raises Yields on 3 and 6-Month Internet CDs to 5.50%
Friday, December 14, 2007 - 2:42 PM

Countrywide just increased the yield on its 3 and 6-month internet CDs to 5.50% APY. The previous yields were 5.45% and 5.35%. The longer term rates remain the same. The minimum deposit is $10,000. These same rates are also available in IRA CDs.

These short term rates continue to be way above of the rates offered by most other banks. This started back in August when its credit crunch problems made headlines. Today's bad news for Countrywide is an investigation by the attorney generals in California and Illinois. This LA Times article from today has more info on these investigations.

As I mentioned in my previous posts, it seems prudent to stay below the FDIC insurance limits. Note, there are many ways to extend your FDIC coverage over $100K. However, you have to be careful, especially if you use POD's. Please see this post for more info.

Countrywide has a nice feature that allows additional deposits to a CD for 30 days after the application. Please see this post for more details. Additional Countrywide CD info is also included in this post, and for more info on their savingslink account, please see this post.

To review Countrywide Bank's FDIC information, please see their FDIC page.

Thanks to the readers who mentioned this rate update.
Comments (3)
The Nation's Best Reward Checking Account Slashes Rate from 6.01% to 5.01%
Friday, December 14, 2007 - 9:07 AM

State Bank of Toledo (SBoT) officially slashed the yield on its reward checking account from 6.01% to 5.01% APY. In addition, they've added a $70,000 cap on the balance that earns this top yield. Balances over $70,000 only earn 3.30% APY. Everything else seems to have remained the same as what I reported when I first posted on SBoT in June. It still has typical reward checking requirements.

This reward checking was probably the nation's best reward checking account for two reasons: First, it allowed people in any state to sign up for it without a branch visit. Second, it didn't have a balance cap. Most reward checking accounts had a balance cap of $25,000. Balances over that earned a smaller rate.

I don't think this big rate drop is an indication that reward checking yields are just teasers. The interest rate environment is changing. The Fed has now cut the target Federal funds rate by 1%, and more cuts are expected. The 5.01% yield is now close to many online savings account yields. However, if SBoT keeps this rate for several months, this rate may soon be on top once again.

Based on its history, SBoT hasn't been the type of bank that makes frequent rate changes. So my guess is that they intend to keep this 5.01% valid for the next 6 months at minimum. With the Federal funds rate target now 1% under its peak, 5.01% is basically at the level (relative to the funds rate) as 6.01% was in the summer. As other banks continue to drop their rates, this 5.01% may start to look more attractive. Three months from now, even Countrywide's savings account yield may be under 5%.

There is still the question if reward checking accounts can maintain yields significantly higher than the average online savings account yield. Some think these yields that we've seen with reward checking accounts have essentially been teaser rates. Once these banks attract a lot of customers, they can lower rates without worrying about a mass exodus. Unlike online savings account customers, these reward checking customers have converted their direct deposits and they are now in the habit of using the account debit card. Thus, it's not as easy to leave. So if these reward checking account yields can just stay close to the yields of online savings accounts, it may be good enough for most people.

More Info on High Yield Reward Checking Accounts

For more information on reward checking accounts, please refer to one of these posts: reward checking overview, State Bank of Toledo reward checking overview, list of reward checking accounts around the nation, and the best checking account post.

Thanks to the readers who sent and commented on this rate change.

Update: Removed "for new customers" regarding the rate change.
Comments (29)
Century Bank Direct - New Online Bank with Savings, Checking and CDs
Friday, December 14, 2007 - 9:00 AM

Update 3/31/09: Rates continue to fall. New APY's: 1.69% MMA, 1.79% Savings and 1.45% Checking. Refer to the bank's website for the latest rates and the bottom of this post for the rate history.

Century Bank of Kentucky launched a new internet bank in November called Century Bank Direct. They don't have any attention grabbing rates, but their rates are competitive. The current yields for their online accounts include: 4.54% APY for the savings, 4.23% APY for the money market, 3.35% APY for the checking and 5.01% APY for their 5-month CD. Two nice features include no minimum balance requirements on the liquid accounts and free checks for the money market and checking accounts. One significant issue in my opinion is that they don't have an ACH bank-to-bank transfer system (although they do claim to have this soon). However, the biggest issue for some is that it's not available in 7 states (Texas, New York, New Jersey, Florida, California, Illinois and Arizona). When I asked about this, here was their reply "There are seven states that are restricted due to Patriot Act Guidelines." I haven't seen other banks with similar restrictions so I'm not sure what they mean.

Update 3/31/08: I just received confirmation from the bank, that people in any state can now apply for this account. Also, according to the CSR, there's no hard credit inquiry when you apply. They only do a soft pull and a ChexSystem verification.

Here's their summary of features of these accounts. Below is my summary:

Common Features on Savings, Money Market and Checking Accounts:
  • No minimum balance requirements or monthly fees
  • No ACH transfer system
  • They don't block ACH transfers initiated from your other bank
  • Postage paid bank-by-mail
  • Monthly e-statements
  • Possibly only a soft credit pull. This is what the CSR stated on my question about a hard credit pull: "Credit bureau is used to verify information. This should not have an effect on your credit score."
  • No new account bonuses

Online Savings Account:
  • $100 minimum to open
  • 3 free withdrawals per month ($5.95 for additional withdrawals)

Online Checking Account:
  • $100 minimum to open
  • Free checks
  • VISA Debit/ATM Card
  • Automatic ATM surcharge reimbursement (5/month)
  • Interest only paid on the first $50,000 of balance

Online Money Market Account:
  • $1,000 minimum to open
  • Free checks
  • VISA Debit/ATM Card
  • 3 free withdrawals per month ($5.95 for additional withdrawals)

Online Certificate of Deposit:
  • $1,000 minimum to open
  • Maximum deposit of $100,000
  • Terms from 5 to 20 months
  • Interest calculated daily and paid monthly
  • Automatic transfers to outside bank of monthly interest available
  • Online CD redemption form can be used to close CD
  • 10-day grace period when a CD matures
  • Early withdrawal penalties on the amount withdrawn: 90 days of interest for terms 12 months and under, 180 days for terms over 12 months

Century Bank of Kentucky is FDIC insured (Certificate # 35450). It's a small bank with only 39 employees, $125.8 million in assets and $102.7 million in deposits based on 9/30/07 data. It does have a good rating at Bankrate with a 4 out of 5 star rating (sound) based on 6/30/07 data.

Rate History:
Update 3/31/09: New APY's: 1.69% MMA, 1.79% Savings and 1.45% Checking
Update 3/18/09: New APY's: 1.89% MMA, 1.99% Savings and 1.65% Checking
Update 3/04/09: New APY's: 2.29% MMA, 2.39% Savings and 2.05% Checking
Update 2/14/09: APY's include: 2.82% MMA, 3.04% Savings and 2.59% Checking.
Update 1/13/09: APY's include: 3.32% MMA, 3.31% Savings and 3.05% Checking. CD rates have also fallen.
Update 6/27/08: The latest rates include: 3.57% APY money market account, 3.41% APY savings account and 3.35% APY checking. See this post for CD info.
Update 4/10/08: The savings account rate fell to 3.61% APY and the money market rate fell to 3.82% APY. Please check the bank's website for the latest CD rates.
Update 3/31/08: The savings account rate is now 4.01% APY. People from any state can now apply for this account.
Update 2/20/08: The CD rates have fallen. Please check the bank's website for the latest rates.
Comments (1)
5.04% 18-Month CD at a Michigan CU and Update on a Failed CU (Detroit Edison).
Friday, December 14, 2007 - 8:54 AM

Update 1/19/08: This yield has fallen from 5.19% to 5.04% APY. Please refer to the credit union's website for the latest rates.

Detroit Edison Credit Union is offering a 5.19% APY 18-month Jumbo share certificate. The minimum deposit is $50,000. It also has some competitive rates on its regular share certificates. Top yields range from 5.09% APY for a 36-month term to 5.20% on a 60 and 72-month terms. Similar rates and terms are available for IRA certificates.

Detroit Edison CU Acquires Huron River Area CU after It's Liquidated by NCUA

Last month Detroit Edison Credit Union acquired Huron River Area Credit Union (HRACU) after it was liquidated by the NCUA. In February, the NCUA had put HRACU into a conservatorship (see post). It doesn't appear anyone lost money in this liquidation since the conservatorship gave members plenty of time to reduce their deposits to be under the NCUA insurance limits. That's one benefit of NCUA insured credit unions over FDIC insured banks. I haven't seen bank customers get similar official warnings (although there were plenty of unofficial warnings in the case of Netbank).

Former members of HRACU now have access to Detroit Edison CU through Huron River Financial and can receive similar CD rates.

Membership into Detroit Edison CU and Huron River Financial is open any person who lives, works, or worships in the counties of Lenawee, Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw or Wayne. Please refer to the credit unions Membership Eligibility page for more details. Membership requires a minimum deposit of $5 into the savings account.

Detroit Edison CU is located in Detroit. Huron River Financial has branches in Ann Arbor, Auburn Hills, Brighton, Center Line, Chelsea and Howell, Michigan. Detroit Edison CU is federally insured by the NCUA (Charter # 62047).

Thanks to the reader who sent me info on HRACU's liquidation.
Leave a comment
5.36% 60-Month / 5.20% 18-Month CD at a New York CU (SeaComm).
Friday, December 14, 2007 - 8:51 AM

SeaComm Federal Credit Union has some competitive rates on share certificates. The high rates range from 5.36% APY on a 5-year term to 5.20% APY on an 18-month term. The minimum deposit is $1,000. The same rates are also availble in IRA certificates. The rate table has an October date, so I called and verified that these rates are still in effect.

Membership is open to those who live, work, worship or attend school anywhere in St. Lawrence County or in one of several municipalities of Franklin County. Please refer to their membership page for the full details. Membership requires a minimum deposit of $5 into a regular share savings account.

Branches are located in the northern New York State cities of Massena, Malone, Potsdam and Canton. The credit union is federally insured by the NCUA (Charter # 15672). It has $237.8 million in assets and 33,508 members.
Comments (305)
Introduction - High Yield Checking Deals
Thursday, December 13, 2007 - 6:13 PM

How would you like a checking account that pays higher interest rates than CDs and online savings accounts? These checking accounts do exist, and they're called high yield reward checking. This website is intended to help you find those banks and credit unions offering these accounts. To learn about how these reward checking accounts work, see the section below.

This site is maintained by Ken the Bank Deals Guy who also runs the Bank Deals Blog. For questions, send email to bankdeals at gmail dot com.

Reward Checking Directory By State

High yield reward checking accounts are mostly being offered by small banks and credit unions which restrict account opening to local residents. The main directory is divided by state so you can quickly find an institution close to you.

Directory of Reward Checking Available Nationwide

I also have a directory of banks and credit unions which don't have local restrictions. These allow you to sign up for their accounts online or by mail. For the credit unions, you'll have to first qualify for membership. The credit unions that I include in this directory allow you to qualify for membership via some association in which anyone is allowed to join. These associations typically require a small membership fee. However, once you're a member of a credit union, you're free to end your association membership without that affecting your credit union membership. Thus, you don't have to renew the association membership.

Directory Contents

Each row in the directory of banks includes the name and link of the bank or credit union offering the reward checking. Next to the name, the yield and the balance cap are included. The right most field is a link to a review of this account and institution at the Bank Deals Blog. The "initial review date" indicates the date that the review was first made. The "updated review date" indicates a change to the original review. Often this is a lower rate. If you place your mouse over the link, you can also see the initial date. These dates are intended to give an idea of how long the bank has been offering the account and how long the rate has been maintained. These dates are not intended to provide 100% accurate history.

Overview of High Yield Reward Checking

A new type of checking account is becoming popular with small banks and credit unions. This checking account is what's called a high yield reward checking account. It basically rewards you with a very high yield if you perform certain monthly banking activities. These typically include:

  • around 10 debit card transactions (non ATM). There are typically no dollar requirements per debit card purchase.
  • direct deposit or auto debit. Any ACH transfer often satisfies this.
  • receive electronic statements. They won't mail you a paper statement.

If you don't meet the above requirements, you won't earn the high yield for that month. Instead you'll earn a base rate which is usually under 1%. You can return to earning the high yield if you meet the requirements for the next month.

Unlike many other checking and money market accounts, reward checking accounts usually lack minimum balance requirements and monthly fees.

The other important catch related to these accounts is that banks limit the amount that can earn the top yield. The most common maximum balance is $25,000. Balances up to $25,000 will earn the top yield, and any balances over this will earn a much smaller yield. On the plus side, reward checking accounts are not tiered accounts that require you to reach a certain balance before you can earn the top yield. Any balance (up to the cap) will earn the full top yield if you meet the monthly requirements.

One more reward offered by most of these accounts is refunds of ATM fees charged when you use another bank's ATM. These refunds are typically done automatically at the end of the statement cycle if you meet the requirements. The refunds are typically limited to around $25 a month.

Just Teaser Rates?

Most banks and credit unions don't guarantee future rates of these reward checking accounts. Like any liquid account, the rates are variable. Banks claim that these rates are not intended to be teaser rates, but many people have been skeptical.

The debit card usage requirements and the balance caps are the main factors that are suppose to allow these accounts to be profitable for the banks. Banks receive a percentage of each debit card purchase that you make. Also, there have been statistics which show that higher debit card usage help banks make more money on overdraft fees.

At of the end of March 2008, many banks are still offering 6% APY (within their balance caps) after 6 or more months. Several have reduced their rates to between 4% and 5% as the Fed has been cutting rates in the last 6 months. However, most of these reward checking accounts have maintained their lead over most online savings accounts. For those just concerned with high yield, the extra 1% to 3% in interest can make the extra hassles worthwhile.

Other Articles and Reward Checking Resources If you find other reward checking resources or other banks or credit unions offering these that are not list here, please leave a comment.
Comments (19)
New Savings Account Rate Cuts
Thursday, December 13, 2007 - 10:09 AM

The effect of the latest Fed rate cut is starting to be seen at several online banks. Here's a summary of the rate cuts in the last 2 days:

ING Direct also cut rates on all tiers of its Electric Orange Account by 10 basis points. The new yield is 3.15% APY for balances under $50K, 4.65% APY for balances between $50K and $100K, and 4.80% APY for balances over $100K.

Some good CD rates are also being cut. Ascencia Bank ended its 5.21% 6 and 12 month CDs. The new yields are down to 4.81% APY and 4.78% APY.

I'm sure we'll see more cuts. It could have been worse if the Fed had done a 50 basis point cut. Thanks to everyone who have been posting rate updates in the comments.
Leave a comment
5.25% 9-Month CD at a Maryland CU - Easy Membership (Money One).
Thursday, December 13, 2007 - 10:07 AM

Update 2/2/08: This CD special has ended.

Money One Federal Credit Union is offering a special 5.25% APY 9-month share certificate. The minimum deposit is $5,000. New money is required. You can add-on to your balance one time within the first 5 months.

Membership is open to anyone who makes a one-time membership donation to Gifts for Easter Seals. There's also a long list of Select Employee Groups. Please refer to their membership page for more details. Membership requires a minimum deposit of $5 into your share savings account.

The credit union is located in Largo, Maryland. It's federally insured by the NCUA (Charter # 7264). It has $84.5 million in assets and 14,242 members.
Leave a comment
5.30% 17-Month / 5.25% 11-Month CD at a California CU (Tulare County).
Thursday, December 13, 2007 - 10:05 AM

Update 1/5/08: These CD specials have ended. Please check the credit union's website for the latest rates.

Tulare County Federal Credit Union is offering a special 5.30% APY 17-month and a 5.25% APY 11-month share certificate. The minimum deposit is $10,000. They also have a competitive 60-month CD with a yield of 5.40% APY with only a $1,000 minimum deposit. These are also available as IRA certificates.

Membership is open to persons who live, work, worship, or attend school in Tulare County. Please refer to their membership page for the full details. Membership requires a minimum $25 deposit into your savings account.

Branches are located in Visalia, Tulare and Porterville, CA. The credit union is federally insured by the NCUA (Charter # 3218). It has $74.0 million in assets and 13,579 members.
Leave a comment
5.50% 14-Month CD Continues at Universal City Studios Credit Union in California.
Thursday, December 13, 2007 - 10:03 AM

Update 12/29/07: This 5.50% CD special is no longer listed at the credit union's website.

Universal City Studios Credit Union is still offering a special 5.50% APY 14-month share certificate (see rate table). The minimum deposit is $50,000. A yield of 5.20% APY is available for a $500 minimum. I had first reported on this CD on November 6th. There are also other good CD deals such as a 5.51% APY 24-month IRA certificate.

In addition to current and retired employees of Universal Studios, membership is open to anyone who lives, works, worships or attends school in the San Fernando Valley or West Los Angeles Corridor. Please refer to the credit union's Join Us page for more details. Membership requires a $1 fee and a minimum deposit of $5 into your savings account.

Branches are located in Universal City and Burbank, CA. The credit union is federally insured by the NCUA (Charter # 64893). It has $68.6 million in assets and 8,858 members.
Comments (8)
Risks with a CD When a Bank Goes Under
Wednesday, December 12, 2007 - 6:56 PM

If you keep your deposits under the FDIC limits, you shouldn't have to worry about losing any money if your bank fails. This includes interest if the combined interest and principal remain under the FDIC limits. There is one risk described in this Bankrate article for those with CDs. A Bankrate reader asked if ING Direct (the receiver of Netbank's deposits) was obligated to continue the terms of his Netbank CD that was scheduled to mature next February. Since interest rates had fallen, he was happy with the rate of the CD and wanted to wait for it to mature. However, ING Direct closed the CD. Apparently, the receiver of a failed bank has no obligation to continue the account terms of the failed bank. So when a bank fails and the deposits are acquired by another bank, your existing CD essentially becomes a callable CD that can be closed by the new bank at any time. The Bankrate reader mentioned that ING Direct claimed it closed the CD for security reasons, but you have to wonder if it closed the CD so it wouldn't have to pay the high interest rate.

So when interest rates are falling, you may want to consider the health of a bank if you're wanting to purchase a CD, especially a long-term CD. If you open a 5-year CD at 5.00% and the bank goes under after one year, the receiver bank may decide to close the CD. At that time, you may be lucky to find a 3% CD. You would have been better off choosing a 4.50% CD at a healthy bank that had much less risk of failing.

On the other hand, a bank failure could be advantageous if rates are rising. ING Direct allowed Netbank customers with CDs to close them without any penalties.

Bank failures have been so rare before Netbank in the last few years, that this analysis may be a waste of time. However, with the current credit crisis, we may see many more bank failures in the year to come. So it may be something worthwhile to consider.

For more information on Netbank's closure and comments of many readers who had Netbank accounts, please refer to my follow-up post on Netbank's closure.

Also, for information on the FDIC and NCUA deposit insurance, please refer to the following posts: Extending FDIC/NCUA insurance over $100K and Facts about FDIC/NCUA.

Resources to review the health of banks and credit unions:

Latest financial data of the banks and credit unions are available via:
Comments (3)
5.25% 60-Month / 5.20% 48-Month CD at a Pennsylvania CU (Diamond).
Wednesday, December 12, 2007 - 10:31 AM

Diamond Credit Union continues to offer some competitive rates on its Jumbo long term share certificates. These rates have gone down since my last post in July, but they're still competitive considering today's rate environment. The rates include a 5.25% APY for 5 and 10 year terms, a 5.20% APY for a 4 year term and a 5.15% APY for a 3 year term. The Jumbo CDs have a minimum deposit of $75,000. Rates are 10 basis points lower for a minimum of $1,000.

Field of membership includes anyone who lives, works, worships, regularly conducts business or attends school in Berks County or the Tri-County Region of Pennsylvania. Membership requires a minimum $5 deposit into the share savings account. Please see the Ask Diamond page for more details.

Branches are located in Pottstown, Wyomissing and West Reading, PA. The credit union is federally insured by the NCUA (Charter # 68241). It has $287.7 million in assets and 32,968 members.
Leave a comment
5.25% 7-Month / 5.15% 11-Month CD at a Florida Bank (CenterState).
Wednesday, December 12, 2007 - 10:27 AM

CenterState Bank West Florida, NA is advertising a certificate of deposit special with a 5.25% APY 7-month CD and a 5.15% APY 11-month CD. The minimum deposit is $1,000. The offer is scheduled to last through 12/31/07. This special doesn't seem to be listed at the bank's website. It was advertised in last Sunday's Tampa Tribune. The ad is available online here.

Five of the bank's branches are listed in the ad include Brooksville, Spring Hill, Dade City and Zephyrhills. I'm not sure if these CD specials are also available at the bank's other branches.

The bank is FDIC insured (Certificate # 32699). It has a rating of 4 out of 5 stars (sound) by Bankrate.
Comments (15)
New Account Bonus for ShoreBank's 5% Savings Account
Wednesday, December 12, 2007 - 10:16 AM

Update 3/07/09: The rate has fallen. Please check the bank's website for the latest rates.

Update 3/27/08: A reader has reported that the bonus is no longer available for new signups.

ShoreBank is offering a $25 new account bonus for opening its new High-Yield Savings Account. It doesn't seem to be listed on the bank's website. A reader mentioned seeing it in an ad, and he attached a scan of it. Here's a copy of the scan. The code is 1DMHY, and it should be entered into the online application. I called their toll-free number (888-864-4972) and was told that there is a $25 bonus and there's only a $1 minimum deposit to earn this. I think the $1,000 minimum mentioned in the ad refers to the CD. The bonus should be credited within 2 months.

I wrote a review of this new online savings account in this November post. The yield is still 5% APY on all balances. With the latest Fed rate drops, this might not last much longer. But with this being a new account, the bank may keep it higher to help promote it.

Thanks to the reader who mentioned this promo and provided a link to the scan in the comments.
Leave a comment
5.30% 90-Day Money Market Promo at a Texas Bank (Providence)
Wednesday, December 12, 2007 - 9:01 AM

Providence Bank of Texas is advertising a 5.30% APY yield guaranteed for 90 days on its money market account. The minimum and maximum deposit are $15,000 and $750,000. The special doesn't seem to be listed at the bank's website. It was advertised in yesterday's Dallas Morning News. The ad is available online here.

The money market account requires a $10,000 minimum balance to avoid a $15/month fee. There are a few perks like free checks and bonus rates on CDs.

It's a small bank with one office located in Southlake, Texas which is about 10 miles northeast of Fort Worth. It was just established last August. The bank is FDIC insured (Certificate # 58560).
Leave a comment
5.13% 24-Month / 5.13% 12-Month CD at a DC Credit Union (Signal Financial).
Wednesday, December 12, 2007 - 8:40 AM

Update 1/19/08: The yield has fallen to 5.13% APY for both terms. The title has been changed with these new yield. Please refer to the credit union's website for the latest rates.

Signal Financial FCU is still offering promotional rates on 24 and 12 month share certificate. The rates have gone down once again, but they're still very competitive. The 24-month term has a yield of 5.28% APY and the 12-month term has a yield 5.18% APY. The 24-month term has a minimum deposit of $5,000, and the 12-month term has a minimum of $2,500. These require money new to the credit union. My last report on these CDs was on November 5th.

They also have longer term CDs with yields over 5% which are competitive in today's rate environment. The yields for terms of 48, 60 and 72 months are 5.07%, 5.13% and 5.18% APY. The minimum deposit is $500.

The credit union is still advertising on its home page a $101 bonus for opening a checking account with direct deposit.

Membership is open to anyone who lives, works, worships or attends school in Washington, DC or inside the Beltway in Prince George's County, Maryland. Membership is also available to members of Artemis Racing. Please refer to the credit union's membership page for more details. An application to Artemis Racing is available at this page. Artemis Racing membership costs $25. Credit union membership requires a $5 deposit into the main savings account.

Branches are located in Maryland, Virginia and Washington DC. The credit union is federally insured by the NCUA (Charter # 5571). It has $245.2 million in assets and 32,761 members.

Thanks to Mark who mentioned these updated rates in the finding-the-best-deals post.
Comments (13)
Another Fed Rate Cut - Doesn't Look Good for Savers
Tuesday, December 11, 2007 - 2:01 PM

As many had expected, the Fed cut the target federal funds rate today from 4.50% to 4.25%. Here's how the Fed explained the decision:
Incoming information suggests that economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending. Moreover, strains in financial markets have increased in recent weeks. Today’s action, combined with the policy actions taken earlier, should help promote moderate growth over time.

Apparently, they were more concerned with recession than inflation. They admitted that the elevated energy and commodity prices may "put upward pressure on inflation." Perhaps this prevented them from cutting by 50 basis points. One of the FOMC members did vote against the 25 basis point cut in favor of a 50 basis point cut.

So with this new rate cut, it's likely we'll see a continuation of savings account and CD rate cuts that we've seen in the last few months. With the Fed rate now a whole percentage point lower, 5% for CDs and savings accounts may become as difficult to find as 6% was earlier in the year.

There are a few online savings accounts with rates over 5% that have held their rates steady since the Fed started cutting rates. These include OneUnited and Savings Square. Others like Countrywide, Zions and UFB Direct have lowered their rates, but have kept rates well above 5%. It may be only a matter of time before we also see major cuts at these accounts. If you want to avoid experiencing a rate drop right after opening one of these savings accounts, you can try one of the three savings account promos that are guaranteeing the rate for 3 months. This includes EverBank's 5.51% money market and checking promo, UmbrellaBank's 5.50% savings account promo, and AmTrustDirect's 5.26% savings account promo. The only other alternative for a longer lock is a CD, but these rates are dropping even faster than the savings account rates.

For the latest savings account and CD rates, please refer to my latest weekly summary of rates.
Comments (6)
5.20% 7-Month CD at WaMu in Some States
Tuesday, December 11, 2007 - 10:56 AM

Washington Mutual is offering a special 5.20% APY 7-month special CD in some states. A reader mentioned in my last WaMu post that he opened one in New York. A free checking account was required. This doesn't seem to be listed at their website. I called WaMu, and I was told that this 5.20% APY 7-month CD is available in New York, New Jersey, Connecticut, California, Illinois and Florida. A yield of 5.15% APY is available in Texas. There's also a 4-month CD in Texas. Only the 4-month 5.15% APY is avilable in Georgia, Colorado and Utah. The CSR went through the states fast, so be sure to call to verify what's available in your state.

According to the CSR, the minimum deposit is $1,000, and it has an add-on feature that allows you to make additional deposits during the term up to the amount of the initial deposit. These specials are scheduled to last until December 27, 2007.

WaMu is still offering a 5.10% APY 6-month Online CD which is available to people in any state. Please refer to my Friday post for more info on these CDs and on WaMu's online high yield savings account and free checking account.

Thanks to the reader who mentioned this new CD special in the comments.
Comments (2)
Update on Countrywide's CDs - 5.50% for 3 and 5 Month Terms
Tuesday, December 11, 2007 - 10:47 AM

Countrywide Bank is offering a 3-month CD with a yield of 5.50% APY in some states. This is only available at Countrywide's financial centers and call centers. The yield available on the internet is 5.45% APY. To see if your state has this 5.50%, type in your zip code in the Countrywide CD page. I've verified this for Massachusetts, Texas and California.

I also called again their toll-free number (1-800-283-8875), and I was told that their secret 5.50% APY 5-month CD special is still available, at least for my Texas zip code. It may vary by state, and it can't be opened online.

Please see my Friday post for more details about Countrywide and Countrywide's CDs including their 30-day additional deposit feature.

Thanks to Scott who mentioned this 3-month CD rate in the finding-the-best-deals post.
Comments (2)
High-Yield Reward Checking Account at a Washington State CU (People's Community)
Tuesday, December 11, 2007 - 10:39 AM

Update 4/8/2011: The top rate is now 2.75% APY for up to $50K.

People's Community Federal Credit Union is offering a reward checking account called Loyalty Checking. The yield is 2.75% APY on balances up to $50,000 (0.25% for over) and all ATM fees are refunded (up to $100 per month) if the following monthly requirements are met: 1) 10 debit card transactions, 2) 3 CU@Home and/or Bill Pay transactions, 3) Deposits of $350 or more, and 4) electronic statements. If these requirements are not met, the rate falls to 0.25%. The minimum initial deposit is $100.

Unlike the typical reward checking account, this one has the extra requirement of 3 bill payments per month. On the plus side, you're rewarded with higher interest rate and a higher cap than the typical 6.01% reward checking with a $25K maximum balance.

They also have a savings account with a yield of 7.50% APY, but the high yield is only for the first $750 balance. The yield is only 0.25% for balances over $750 (as of 4/8/2011).

Membership is open to anyone who lives, works or worships in Clark, Cowlitz or Skamania county. Please refer to their membership page for more details. Membership requires a one-time fee of $5 and a minimum deposit of $5 into the savings account. An online application is available that allows funding via ACH.

Branches are located in Vancouver and Battle Ground, Washington. The credit union is federally insured by the NCUA (Charter # 24713). It has $117.4 million in assets and 14,304 members.

Other Reward Checking Accounts

For other reward checking accounts in other parts of the country, please see my reward checking account page and my best checking account post. For a discussion of reward checking accounts and if the high yields can last, please refer to High Yield Reward Checking News and Reviews post.

Rate History:

  • 11/05/10: 2.75% APY up to $50K; 0.25% over; 0.25% base
  • 12/23/09: 3.25% APY up to $50K; 0.25% over; 0.25% base
  • 12/11/07: 6.25% APY up to $50K; 0.25% over; 0.25% base
Leave a comment
5.80% 24-Month CD at a Massachusetts CU (MIT).
Tuesday, December 11, 2007 - 10:36 AM

Update 1/5/08: This special CD has ended. Please refer to the credit union's websites for the latest rates.

MIT Federal Credit Union is offering a certificate special with a yield of up to 5.80% APY for a 24-month term. This has a minimum deposit of $50,000, and it requires the Smart Money Rewards relationship which requires a checking account with direct deposit. Without this relationship, the yield is 5.55% APY, and with a smaller minimum of $500, the yield is 5.30% APY.

In addition to students and staff of MIT, membership is open to several other select employee groups. Unfortunately, I don't see any easy way to join if you're not in one of these groups even is you live in MA. Please refer to their Eligibility page for more details. Membership requires a minimum deposit of $5 into the savings account.

Branches are located in Cambridge and Lexington, MA. The credit union is federally insured by the NCUA (Charter # 3830). It has $220.8 million in assets and 23,381 members.
Comments (3)
High-Interest Reward Checking Account at a MO/AR Bank (Focus)
Monday, December 10, 2007 - 8:55 AM

Update 01/11/2011: The top rate has fallen to 3.01% APY.

Focus Bank is offering a reward checking account called Maximum Free Checking. It pays 3.01% APY for balances up to $25,000 (0.51% over) and automatically refunds ATM fees (up to $25 per cycle) if the following monthly requirements are met: 1) 10 debit card transactions, 2) access online banking, and 3) receive electronic statements. If these requirements are not met, the rate falls to 0.10%. The minimum opening deposit is $100. There are no minimum balance requirements or monthly service charges regardless of meeting the above conditions.

One thing a little different with this reward checking is that it does not require direct deposit or ACH debits. Instead, it just requires "access online banking". This seems redundant to the third requirement "receive electronic statements" since e-statements usually require that you log into online banking.

Update: The bank's MAXimum Free Checking page on the "more information" tab states the following "ONLINE ACCOUNTS AVAILABLE TO MISSOURI, ARKANSAS, KENTUCKY, TENNESSEE, AND SOME ILLINOIS RESIDENTS ONLY." The bank had been offering this account nationwide.

Branches are located in Missouri and Arkansas. The bank is FDIC insured (Certificate # 1426).

Thanks to the reader who emailed me info on this bank and reward checking account.

Other Reward Checking Accounts

For other reward checking accounts in other parts of the country, please see my reward checking account page and my best checking account post. For a discussion of reward checking accounts and if the high yields can last, please refer to the High Yield Reward Checking News and Reviews post.

Rate History:

  • 01/11/11: 3.01% APY up to $25K; Account is available for AR, MO, KY, TN & some IL residents
  • 07/15/10: 3.51% APY up to $25K; 0.51% over;
  • 06/13/09: Account is now ONLY available for Arkansas and Missouri residents
  • 03/17/09: Account is now available nationwide.
  • 01/08/09: 4.51% APY for up to $25K; 1.01% APY for above; 0.10% if req's are not met
  • 12/10/07: 6.01% APY for up to $25K; 0.25% if req's are not met
Leave a comment
5.35% 4-Month CD at a South Carolina Bank (CapitalBank).
Monday, December 10, 2007 - 8:54 AM

CapitalBank is offering a CD special with a 5.35% APY and a 4-month term. The minimum deposit is $10,000. The special is scheduled to end on Friday, December 14, 2007. It's only available at the bank's Greenville County branches.

This special is not listed at the credit union's website. A reader mentioned seeing this advertised at the Woodruff Road branch. I just called for additional information. It does require a branch visit at one of the Greenville County branch locations. I forgot to ask if you had to live in the area to qualify for this CD, so be sure to verify this yourself before driving to one of these branches.

The bank is FDIC insured (Certificate # 27426).

Thanks to the reader who emailed me info on this special.
Comments (1)
5.50% 9-Month CD at a Los Angeles CU (Water and Power Community).
Monday, December 10, 2007 - 7:52 AM

Update 1/19/08: This promotion may have ended. Please check the credit union for the latest rates and promotions.

Water and Power Community Credit Union is advertising a certificate special with a yield up to 5.50% APY and a term of 9 months. The minimum deposit is $5,000. The 5.50% APY requires opening a Free Power Checking Account with direct deposit. However, you can still get 5.45% APY without this requirement. New money is required.

This special doesn't seem to be listed at the credit union's website. A reader mentioned seeing this advertised in Sunday's LA Times (CA section, B-5). The ad instructed readers to bring in the ad for this special rate and for a waiver of the $5 membership fee. I can't find this ad online, so hopefully if you mention the ad, they'll honor it without a copy.

Membership is open to anyone who lives, works, attends school or worships in many communities within greater Los Angeles area, San Fernando Valley or portions of the San Gabriel Valley. You can also be eligible via Select Employee Groups. Please see their membership page for the full details. In addition to the $5 membership fee (which may be waived as part of this special), membership requires a minimum deposit of $25 into the regular share savings account.

Branches are located in Los Angeles, San Valley, Westchester, Montebello and Granada Hills, California. The credit union is federally insured by the NCUA (Charter # 68493). It has $436.9 million in assets and 52,910 members.

Thanks to the reader who emailed me info on this special.
Comments (3)
5.55% 13-Month / 5.25% 7-Month CD at a Florida Bank (Sunshine Savings).
Sunday, December 9, 2007 - 6:20 PM

Update 12/15/07: The rates on these CD specials have fallen.

Sunshine Savings Bank has a CD promotion with a 5.55% APY 13-month CD and a 5.25% APY 7-month CD. The minimum deposit is $1,000.

My last report on this promotion was when they were a credit union. They converted to a bank in July. The good news about this is that you don't have to worry about qualifying for membership. However, they may require a branch visit to open accounts. I haven't contacted the bank to verify this.

Update 12/10/07: I just contacted the bank, and the CSR confirmed these special rates are still available, but she didn't know how long they would last. Also, she said these could be opened by mail from any state. It requires that you send in notarized copies of you driver's license and social security card with the application. Note, small banks often change this policy so please keep this in mind if you decide to try to apply by mail.

Branches are located in the Florida cities of Tallahassee and Pembroke Pines which is located between Miami and Ft. Lauderdale. The bank is FDIC insured (Certificate # 58452).

Thanks to the reader who emailed me info on this promotion.
Comments (14)
Treasury Slashes Annual Purchase Limits for Savings Bonds
Sunday, December 9, 2007 - 5:34 PM

It has been a while since I reported on US Savings Bonds. Their rates haven't been competitive when compared with CDs in the last few years even if you consider the savings bonds' special tax treatment. The US Treasury announced a change last week that will make savings bonds even less attractive. Starting in 2008, they're reducing the annual limit on savings bonds purchases from $120,000 to $20,000. This limit includes $5,000 for I Bonds online, $5,000 for paper I Bonds, $5,000 for EE Bonds online and $5,000 for paper EE Bonds.

The I Bonds did have a few occasions in the past when they were good deals. In October 2005 there was a good short-term buying opportunity for I Bonds due to a spike in inflation. Besides that time, I Bonds haven't been a good deal since the Treasury significantly reduced the I Bond fixed rates in 2001 and 2002. As you can see from my I Bond rate my table, fixed rates were as high as 3.60% in 2000. For the last four years, the fixed rate hasn't been over 1.40%. Currently, it's 1.20%.

For those not familiar with I Bonds, the fixed rate stays constant until you redeem the I Bond. Every six months from the purchase date a new inflation component is added to the fixed rate to form the composite rate. The current inflation component rate is 3.06%, and the composite rate is 4.28%. For more details on I and EE Bonds, refer to this TreasuryDirect page.
Leave a comment
5.25% 48-Month CD and 4.75% Money Market Promo at National City
Sunday, December 9, 2007 - 3:42 PM

Update 1/1/08: This CD special has ended.

National City is offering a special 5.25% APY 48-month certificate of deposit. The minimum deposit is $10,000, and the maximum is $250,000 per household. It requires you have or open a National City money market savings account with a minimum deposit of $1,500. It's also available as an IRA CD. The CD is scheduled to last until 12/24/07.

This CD promotion doesn't seem to be listed at their website. It was advertised in today's Fort Wayne Indiana newspaper. The ad is available online here. A reader also mentioned this being advertised in the Orlando Sentinel.

The other offer being advertised is a money market savings account with a yield of 4.75% APY for minimum balances of $5,000 guaranteed for the first 180 days. This requires that you have or open a personal checking account (excluding Free Checking) with a minimum of $1,500. The money market savings account must be opened by 1/05/08. This promotion is listed at nationalcity.com/save in addition to the ad above. This promo webpage has the small print for the CD, but the 5.25% CD isn't shown.

The current standard rate on their Money Market Savings account is 3.28% for balances over $25K and only 1.00% for balances between $10K and $25K. The checking account requirement also hurts this deal. The interest checking accounts have at least a $10/month fee unless a minimum is maintained.

According to the ad, these offers are only for consumer accounts opened in National City locations in Indiana, Illinois, Kentucky, Michigan, Missouri, Ohio and Pennsylvania. It may also be available in Central Florida.

National City has been FDIC insured since 1934.
Leave a comment
$125 Checking Account Bonus at a Tennessee Bank (Jefferson Federal)
Sunday, December 9, 2007 - 3:38 PM

Jefferson Federal Bank is offering a $125 Visa gift card when you open any checking account. The account must be opened by 12/31/07. Minimum opening deposit is $1,000. The bonus requires that you select two additional services such as Visa Debit card, online banking, online bill pay, direct deposit, safe deposit box, savings account or CD.

Here are some additonal details: Bonus will be reported as income on 1099-Misc. You must be a new checking account customer. Offer is good for personal and business checking accounts. The account must remain open for 6 months.

The promotion doesn't seem to be listed at the bank's website. It was advertised in yesterday's Knoxville News Sentinel. The ad is available online here. According to the ad, the gift card will be given at the time of account opening which is a nice feature for this type of promotion.

They do have a Free Checking Account with no minimum balance requirements. It offers a free debit card, free online banking and free bill payment. So choosing any two of these seems like a free and easy way to satisfy the promo requirements.

This promotion seems to require a branch visit. Branches are located in Knoxville and Morristown, Tennessee. The bank is FDIC insured (Certificate # 31367.
Comments (1)
Bank Deals Weekly Summary for December 8, 2007
Saturday, December 8, 2007 - 5:30 PM

Quick Link for Rates, Recap of this week's posts

There were several banks that lowered their online savings account rates this week. UFB Direct finally lowered the rate on its Absolute Savings Account from 5.31% to 5.22% APY. Another bank with a top online savings account, BankUnited, lowered its rate from 5.31% to 5.15% APY. Other banks to lower their savings and money market account rates include Flagstar, AmboyDirect, Mutual Bank and Discover Bank.

The Fed is scheduled to meet next Tuesday, and it looks very likely that we'll see another rate cut (see article). Some are even predicting a 50-basis-point cut; however, yesterday's jobs report may reduce that likelihood. So I'm afraid there'll be more savings account rate cuts to come.

Some Good News on Savings Accounts

I did a new review of one of the few banks with an online savings account that has yet to cut rates. OneUnited's E-Savings Account continues to offer a yield of 5.30% APY. It has some issues, but the yield is now tied with Countrywide Bank's savingslink as the top non-promo yield.

There were a few pleasant surprises for savings account customers this week. First, a new online bank was launched by Doral Bank at Doral Bank Direct. They offer an online savings account and online CDs. The rates are very competitive with a 5% APY savings account and CD rates from 5.10% to 5.25% APY (see my bank review).

The other surprise included unexpected rate increases. The first was at Bank of America. Burried deep inside their website under MyExpressions Banking, is the Defenders of Wildlife Money Market Savings Account which has some very nice rates. When I first reported on this in September, the rates were as high as 5.71% APY. The rates had declined significantly since then, but yesterday the rates jumped back up to a very competitive level. The current top yield is 5.12% APY for balances over $50K. A yield of 4.75% APY is available for a balance of only $2.5K (see post).

The other unexpected rate increase was at M&T Bank's new online savings account. It was launched a few months ago with a yield of 5.05% APY. Around the start of November, the rate had fallen to 4.75% APY. This week the rate went back up to 5.00% APY (see my account review).

CD Rates Update

Like savings account rates, CD rates are also taking a beating. There were large across-the-board rate cuts at AmTrustDirect and VirtualBank. AmTrustDirect rates on all CD terms were lowered by 25 basis points to 4.25% APY. VirtualBank had a similar cut of 26 basis points on all terms. The new yield is 4.34% APY for all terms. Other banks to cut CD rates include EverBank, E-LOAN, Discover Bank and Apple Bank.

For those looking for federally insured CDs, a new option became available this week. The person-to-person lender, Zopa, launched its US website offering a high yield one-year CD. The current yield is 5.10% APY. They've partnered with several major credit unions (many which have easy memberships) so that the CDs are federally insured (see review).

There were a few banks which raised some of their CD rates.

KeyDirect increased the rate on its 6 and 60-month terms. The 6-month CD yield went up from 5.10% to 5.20% APY, and the 60-month CD yield went up from 5.00% to 5.25% APY.

Washington Mutual raised the yield on its 6-month Online CD from 5.00% to 5.10% APY (see account review).

Countrywide is still offering a 5.50% APY 5-month CD. This special CD is not listed online and can only be opened by phone (see post).

Recap for the Week

Savings and Checking Accounts - National

CD Deals - National

Checking Account Bonuses

Reward Checking Accounts - Local

CD and Money Market Deals - Local

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. The top lists include banks and credit unions with broad availability and with minimums around $10K or less. Previous weekly summaries are available for Dec 1st, Nov 24th, Nov 17th, Nov 10th, Nov 3rd, Oct 27th, Oct 20th, Oct 13th Oct 6th.

Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Special rates, Local checking/savings, Bank alternatives CD Rates: 3 Mo CDs, 6 Mo CDs, 9 Mo CDs, 12 Mo CDs, 18 Mo CDs, 24 Mo CDs, 36 Mo CDs, 48 Mo CDs, 60 Mo CDs, 84 Mo CDs, CDs by state Comments: read and discuss

As of December 8, 2007

Checking/Savings/Money Market Accounts:


3-Month Certificates of Deposit:

6-Month Certificates of Deposit:

9-Month Certificates of Deposit:

12-Month Certificates of Deposit:

18-Month Certificates of Deposit:

24-Month Certificates of Deposit:

36-Month Certificate of Deposit:

48-Month Certificate of Deposit:

60-Month Certificate of Deposit:

84-Month Certificate of Deposit:

High Yield Checking Accounts with Conditions - Open to All

Checking and Saving Accounts at Local Banks/Credit Unions

CD Specials at Local Credit Unions/Banks Over the Last Two Months


Terms of 60 Months and Over

Terms of 24 Months to Under 60 Months

Terms of 12 Months to Under 24 Months

Terms of Under 12 Months

Bank Account Alternatives


Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)
Comments (9)
5.10% 6-Month Online CD at WaMu - Plus Updates on WaMu's Savings Accounts
Saturday, December 8, 2007 - 11:20 AM

Washington Mutual just recently increased the yield on its 6-month Online CD from 5% to 5.10% APY. The minimum deposit is $1,000, and the maximum is $250,000.

Every now and then WaMu bumps up the rates on these Online CDs. In August this 6-month CD yield had been 5.50%. The 5.10% isn't that great, but it is competitive in today's rate environment.

I just called WaMu's customer service rep, and I was told that there's no hard credit pull. They only do a ChexSystem verification. To fund the CD, you can do an ACH transfer from another bank (you supply your bank's routing and account number) or you can have the money transfered from your existing WaMu savings or checking account. For this second option, I was told that you must first log into your account, and then open the CD. This will allow you to link the CD to your account and fund it with a transfer from your WaMu savings or checking.

At maturity of the certificate, there's a 10 day grace period in which you can close the CD without a penalty. They cannot do an ACH transfer out of the CD into another bank account, even the one used to fund the CD. This is different than what I reported being previously told, but I believe this latest info is correct since several readers have reported difficulty in receiving funds from a matured WaMu CD. You can request to have them transfer the funds to your WaMu savings or checking account.

WaMu Online Savings and Free Checking Account

So if you decide to open a WaMu Online CD, you might also consider their Online Savings Account. It currently pays 4.75% APY, and it has no monthly fees or minimum balance requirements if it's linked to WaMu's Free Checking account. The Free Checking also has no monthly service charges. It has several nice features such as free checks and free outgoing wire transfers (which can come in very handy to fund CDs at other banks).

Savings for Success Update

I did get confirmation that the rates on the Savings for Success account dropped by 50 basis points. The new rates are 6.50% APY for Texas and Illinois, and 5.50% APY for Georgia and Washington State. When I was told about this program in July, they said they expected to roll this program out to the other states later in 2007. With 2007 nearing an end, it looks like they changed their minds. For details about this Savings for Success program, please refer to this previous WaMu deals post.

WaMu is FDIC insured under two banks (Washington Mutual Bank FSB and Washington Mutual Bank).

Thanks to the reader Shrazzy who mentioned this CD rate update in the finding-the-best-deals post.
Leave a comment
$50 Checking Account Bonus at AmTrust Bank - Nationally Available
Saturday, December 8, 2007 - 11:15 AM

AmTrust Bank is offering a $50 bonus for its Totally Free Checking. To receive the full $50, there are a few hoops to jump through. Specifically, it requires the following 3 activities to be done within 90 days of the account opening date:
  • Debit Card Usage - 3 purchases per month for 2 consecutive months with the debit card
  • Direct Deposit - 2 $50 direct deposits are posted to your checking account
  • Online Bill Pay - 3 different bills are paid online per month and debited to your checking account for 2 consecutive months.

If only two of the above activities are done, the bonus is $25, and if only one activity is done, the bonus is only $10. The bonus will be credited to your account within 30 days of completing each requirement. Cash bonuses may be subject to 1099 reporting. If the account is closed within the first 12 months, they have the right to debit your account for the bonus.

Free first order of checks if you open by phone

According to the customer service rep, the account can be opened by people in any state. It can be opened online or by phone. However, I was told if you open by phone, you'll receive the first book of checks free. This won't be the case if you apply online. You can fund the account with a check or an ACH transfer. The minimum deposit to open the account is $50. More details about the Totally Free Checking is available at this AmTrust page.

No Hard Credit Pull

The CSR said there is no hard credit pull when you apply. She said it's just a soft pull, and has verified it herself when she had applied for this account. I was a little surprised by this since AmTrustDirect has long used hard credit pulls for its online savings accounts. Let me know in the comments if you've received a hard pull from opening this account.

AmTrust Bank is FDIC insured (Certificate # 29776). Branches are located in Ohio, Arizona and South Florida.

For more info on AmTrust's internet bank AmTrustDirect and its 5.26% savings account promotion, please refer to this post.

Thanks to the reader Andrew who mentioned this promotion in the finding-the-best-deals post.
Comments (5)
5.50% 5-Month CD at Countrywide Bank Continues
Friday, December 7, 2007 - 6:29 PM

Countrywide Bank is still offering a "secret" 5.50% APY 5-month CD special that I first reported on November 28th. It's not listed at their website. They've been advertising it on TV in certain markets. I just called their toll-free number (1-800-283-8875) and verified that it's still available at least for Texas (it may vary by state). However, I was told it may end any day. The minimum deposit is $10,000. The application must be done by phone.

Other Countrywide Bank CD Rates

Last week, Countrywide was offering 6-month CD yields as high as 5.45% APY in some states, but the best yields now are no better than Countrywide's internet CD rate of 5.35% APY. However, you can get a higher yield of 5.50% APY in some states for the 3-month CD.

The 30-Day Additional Funding Feature

Countrywide Bank's CDs have some nice features that I've seen mentioned before. According to the CSR, you have 10 days after the application to fund the CD to guarantee the rate at the time of the application. This can be done by check or wire transfer. More importantly, they give you 30 days after the application to add more funds to the CD at the same guaranteed rate. You can add to it as much as you like. So this could be very useful if you're waiting on more funds to become available or if you're waiting for another potential CD deal (like at PenFed).

Countrywide Bank Risks

With the issues Countrywide has been having in its mortgage business (see post), it seems prudent to stay below the FDIC insurance limits. Note, there are many ways to extend your FDIC coverage over $100K. However, you have to be careful, especially if you use POD's. Please see this post for more info.

For more info on Countrywide's online savingslink account and CDs, please see this post.

To review Countrywide Bank's FDIC information, please see their FDIC page.

Thanks to the reader who mentioned this 5-month CD still being available in the comments.
Comments (6)
Bank of America's Money Market Savings Account Yield Up to 5.12%
Friday, December 7, 2007 - 8:46 AM

Bank of America's Defenders of Wildlife (DoW) Money Market Savings Account had a significant rate increase on all tiers today. The top yield is 5.12% APY for balances over $50,000. It's nice to see a savings account rate increase. Bank of America tweaks the rates on this account every Friday, and most Fridays the rates have been declining since I first reported on this account in September. Below is the list of the rates for all the tiers:

Tier              Interest Rate   APY
Less than $2,500        2.96%    3.00%
$2,500 - $9,999         4.65%    4.75%
$10,000 - $24,999       4.75%    4.85%
$25,000 - $49,999       4.75%    4.85%
$50,000 - $99,999       5.00%    5.12%
$100,000 - $499,999     5.00%    5.12%
$500,000 - $2,499,999   5.00%    5.12%
$2,500,000 and over     5.00%    5.12%

Note, rates may vary slightly by state. The above rates are for Texas. There's no direct link to this rate table. The closest link takes you to the MyExpressions Banking DoW page. From here, you have to click on the small right arrow on the right side of the Savings block to change to the Money Market Savings. Then you have to click on "Rate & Fees" link and than on the "More" link.

I have more details about this account in my September post. It's important to note that it's not available at BofA's branches. You have to open it online.

The Other Affinity Accounts

This DoW Money Market now has higher rates than the rates of the AAA and NEA Affinity Money Market Accounts. These rates are based on the Money Fund Report (MFR) averages. The top yield for these accounts is currently 4.70% APY for balances over $50,000. For more details about these accounts, please refer to this 2006 post or this FW thread.

Several readers who have this AAA Affinity Money Market Account mentioned that they've received a letter from AAA stating that their relationship with BofA will expire on 12/31/07. So these high rates may not last.

Thanks to the readers who've sent me info on these changes.

Bank of America continues to offer some decent yields on its 4-month online CDs, and last week they were having a 4-month CD special with a yield as high as 5.20% APY at many of their branches. For more info on these Bank of America CDs and other promotions, please refer to this Bank of America post.
Comments (1)
5.75% 5-Month CD at a California CU - and $100 Checking Bonus (Travis).
Thursday, December 6, 2007 - 12:32 PM

Travis Credit Union is offering a special 5.75% APY 5-month certificate. The minimum deposit is $10,000. It requires that you have direct deposit of $500 or more. This special is only available at four of the credit union's branches (see below).

In addition to the CD, there's a $100 gift card bonus for opening a new checking account with direct deposit. I was told that it can be done in combination with the CD. Their Free Checking should qualify for the bonus. There's a $50 minimum opening deposit.

The last day for these specials is this Saturday (Dec 8, 2007).

These specials don't seem to be listed at the credit union's website. A reader mentioned in the comments seeing this advertised in the Brentwood Press newspaper. I just called their toll-free members service number (800-877-8328) for additional details.

These specials are only available at the following branches: Brentwood Branch 3111-N Balbout Rd, Antioch Branch 5819 Lone Tree Way, Concord Branch 1257 Willow Pass Rd, and Clayton Valley Branch 5442 Ygnacio Valley Rd.

Membership is open to anyone who lives, works, worships or attends school in the following counties: Alameda, Colusa, Contra Costa, Merced, Napa, Placer, Sacramento, San Joaquin, Solano, Sonoma, Stanislaus and Yolo. Please refer to their membership page for the full details. Membership requires a $5 fee and a minimum $5 deposit into a savings account. The $5 fee is waived when you join online.

The credit union is federally insured by the NCUA (Charter # 68429). It's a large credit union with $1.647 billion in assets and 151,923 members.

Thanks to the reader who mentioned this promotion in the finding-the-best-deals post.
Comments (8)
Zopa, the Person-to-Person Lender, Partners with Credit Unions to Offer High Yield CDs
Thursday, December 6, 2007 - 8:43 AM

Update: Zopa Ends Operations in the US. According to Zopa's blog,

Zopa’s US customers’ deposit accounts continue to be insured by the NCUA up to $250,000, and servicing of those accounts as well as the loans will be assumed by the credit unions within 90 days.



Update 2/13/08: The yield on Zopa's 12-month CD has gone down to 4.25% APY.
Update 1/29/08: The yield on Zopa's 12-month CD has gone down to 4.50% APY.

Zopa has parterned with six US credit unions to offer online CDs and loans. Zopa was first launched in the UK in 2005. It's similar to Prosper.com in that it provides a form of peer-to-peer lending. What's unique about Zopa in the US is that they've partnered with credit unions so that the CDs that you purchase through Zopa are guaranteed by the issuing credit union and federally insured by the NCUA.

The current CD being offered by Zopa has a yield of 5.10% APY and a term of 1 year which is competitive as you can see from my weekly rate summary. The details about the Zopa CD are described in their Zopa CD FAQs. It seems to be equivalent to any bank certificate of deposit. The compounding is annual so the rate is also 5.10%. The rate is fixed during the term. The penalty for early withdrawal is 90 days of interest.

Requirements for Buying a Zopa CD

The one thing that makes this different than a bank CD is that Zopa requires you to pick at least one borrower to help. As stated in this Zopa FAQ, "If they want to earn the maximum possible on their Zopa CD, they will help their picked borrowers a little. But the bigger their Zopa CD, and the lower the rate they choose to receive, the more help they give." So I guess the 5.10% APY is currently the maximum rate you can choose. It seems that you're allowed to accept lower rates if you choose to provide more help.

To buy a Zopa CD or to take out a Zopa loan, you'll need to be a member of one of Zopa's partner credit unions. The six credit unions that have partnered with Zopa include Addison Avenue FCU, Affinity Plus FCU, First Tech CU, Forum CU, Provident CU, USA FCU. Most of these credit unions mention this new Zopa partnership on their websites. Most have easy membership qualifications so anyone in the US can qualify. Below is a summary of how you can qualify for membership in these credit unions.

Provident Credit Union Membership Qualifications:

Field of membership includes members of several associations. Some of the associations listed with national coverage include the American Cancer Society and the Sierra Club and Sierra Club Foundation. The Sierra Club has a membership page where you can become a member online. The lowest membership level costs $25.

For those in California, you can be immediately eligible to join if you live or work in one of the following counties: San Mateo, San Francisco, Santa Clara, Alameda, Contra Costa, Monterey, Sacramento, El Dorado, Placer and Humboldt. Also those in Los Angeles City are elibible. Please see the eligibility page for the full details.

Membership into the credit union requires a $10 membership fee, but this is waived if you apply online. A minimum deposit of $25 is required into the share savings account.

Addison Avenue Federal Credit Union Membership Qualifications:

Field of membership includes members of the Financial Fitness Association. There's a $5 fee to join this association.

Employees of certain companies can be immediately eligible to join the credit union. Please see the eligibility page for the full details.

Membership into the credit union requires a minimum deposit of $5 in the Daily Savings Account.

USA Federal Credit Union Membership Qualifications:

Field of membership includes members of the Prime Meridian Association. Anyone can join this association with a $10 membership fee.

You can be immediately eligible to join the credit union if you are an active or retired military member or if you are employed by one of its Select Employer Groups. Please refer to their membership eligibility page for more details.

Membership into the credit union requires a $5 membership fee and a minimum opening savings deposit of $5.

Affinity Plus Federal Credit Union Membership Qualifications:

Field of membership includes members of the Affinity Plus Foundation. The cost of membership is $25.

You can be immediately eligible to join the credit union if you live in certain parts of Minnesota or if you are a student in the Minnesota State University System. Please refer to their membership page for the full details.

Membership into the credit union requires a $10 minimum deposit into the share savings account.

Forum Credit Union Membership Qualifications:

Membership into Forum CU is open to residents of several Indiana counties (including most of the Indianapolis metro area). You can also qualify based on select employer groups and family. I wasn't able to find their membership page, but I did find this Q&A page with some more details.

Credit union membership requires a minimum deposit of $5 into a savings account.

First Tech Credit Union Membership Qualifications:

Field of membership is open to those who live in any school district of Washington or in Lane County, Oregon. Please refer to their membership page for the full details.

Credit union membership requires a minimum deposit of $5 into the Regular Share Savings Account.

Leave a comment
5.45% 5-Month CD at an Illinois Bank (Town Center).
Wednesday, December 5, 2007 - 6:39 PM

Town Center Bank is offering a special 5.45% APY 5-month certificate of deposit. The minimum deposit is $10,000, and the maximum is $100,000. The special is mentioned on the bank's home page, but since there are no details, I called the bank today. I was told that it's scheduled to end this Friday (12/7/07) at the end of the day. It requires that you open a checking account. The Free Interest Checking qualifies. It requires a $100 minimum to open, and it has no monthly fees.

According to the banking rep, a branch visit is required. Branches are located in Frankfort and New Lenox, Illinois which is just south of Chicago.

My last report on this bank was in March when it was offering a 5.75% 6-month CD. It's a newly established bank that started in September of 2006. The bank is FDIC insured (Certificate # 58214).
Comments (38)
Review of OneUnited Bank's Unity Gold E-Savings Account
Wednesday, December 5, 2007 - 9:52 AM

Update 6/13/09: Unity Gold E-Savings rate has fallen from 1.75% to 1.51% APY.

Update 3/16/09: The yield has fallen to 2.25% APY. Note, OneUnited Bank's website only clearly shows the rate for their new E-CD (2.50% APY). I can only find the savings account rate in the Truth and Savings Disclosure. See bottom of post for the rate history.

Update 11/29/08: OneUnited received a Cease and Desist Order from FDIC (see post).

OneUnited Bank is one of the very few banks that have yet to cut the yeild on their online savings account since the Fed started cutting rates in September. The yield remains at 5.30% APY. My last report on this account was December 2006 when they changed the minimum of the account from $10 to $1,000. So it's time for another review of this account. I hope I don't jinx the rate.

Account Features

Below is a summary of the features based on their FAQ page, their Savings Disclosure, their learn more page, and from my Monday conservation with their customer service rep (CSR). Note, there are a few things mentioned in the disclosure (like a $1 fee for ACH withdrawal) that the CSR said did not apply to this account. I've noted in bold those features that may be an issue with some.
  • $1,000 minimum to open and earn interest (FAQ)
  • No monthly maintenance fees (FAQ)
  • Must be a US citizen (learn more)
  • Can be funded by ACH transfer or by mailing in a check (learn more)
  • 9 day hold before your initial deposited funds are available (learn more)
  • Online application with nothing to mail in for most cases (CSR)
  • After the application, an email will be sent with instructions allowing you to register for Online Banking (CSR)
  • No hard credit inquiry - just a soft pull (CSR)
  • ATM card - Maximum withdrawal is $300/day (CSR)
  • Typical limit of 6 electronic withdrawals per month - no limits on deposit (CSR)
  • ACH capability for electronically transfering funds to and from your other banks (FAQ)
  • Unlimited ACH links to other bank accounts can be set up (CSR)
  • ACH links don't require voided checks. Trial deposits used to verify accounts. (CSR)
  • Standard ACH transfers are free and take 3 business days (CSR)
  • Standard ACH transfer limits: outbound: $20k/day, $40k/month, inbound: $20k/day, $100k/month (CSR)
  • Premium ACH transfers take one day and cost $10 - dollar limits are lower (CSR)
  • Interest is credited and compounded quarterly (Disclosure)
  • Accrued interest will not be paid if you close an account before the accrued interest has been credited (Disclosure)

I haven't opened this account, so I don't have first hand experience with this bank. In previous posts, many readers complained of a slow account opening process, a poor ACH transfer system, and bad customer service. However, it seems they made a major improvement in the ACH system late last year. So this may no longer be an issue. If you're a customer, a comment about your experience would be much appreciated.

Rate History

The rates have remained very competitive since OneUnited launched this savings account in April of 2006. Here's a summary of the rate changes:

APY     Date
4.50%   4/2006
5.00%   6/2006
5.25%   7/2006
5.30%  12/2006
5.15%   2/4/2008
4.60%   2/22/2008
4.00%   3/07/2008
3.60%   4/07/2008
3.26%   7/14/2008
3.75%  10/03/2008
3.35%  12/13/2008
3.00%  12/23/2008
2.75%   2/14/2009
2.25%   3/16/2009

During 2006 and the first half of 2007, their rates were good but nothing great compared to other online savings accounts. But now with them continuing to hold the rate steady since the Fed rate cuts, they're way above most other savings accounts. From my weekly rate summary, the only competitors are accounts with intro rates or accounts with $5K or $10K minimums. UFB Direct is the only one with a comparable rate and with no minimum, but it has other issues to consider (see post).

This online savings account account was originally called the UNITY Internet Savings Account and only required a minimum balance of $10 to open and earn interest. Late in 2006, they created the UNITY Gold E-Savings Account with the $1,000 minimum. According to some readers who had the old account, they were able to keep that account with the old minimums. But new customers can only open the UNITY Gold with the $1,000 minimum.

Bank Overview

OneUnited Bank has been FDIC insured since 1982 (Certificate # 23966). The bank has $632 million in assets and $358 million in deposits. Bankrate gives the bank 3 out of 5 stars (performing) based on 6/30/07 data. This is down from 4 stars when I reported on this bank in June 2006.

Rate History:
Update 03/16/09: Yield has fallen to 2.25% APY
Update 02/14/09: Yield has fallen to 2.75% APY
Update 12/23/08: The yield fell to 3.00% APY.
Update 12/13/08: The yield fell to 3.35% APY.
Update 10/3/08: The yield has gone up to 3.75% APY.
Update 7/14/08: The yield fell to 3.26% APY.
Update 4/07/08: The yield fell to 3.60% APY.
Update 3/07/08: The yield fell to 4.00% APY.
Update 2/22/08: The yield fell to 4.60% APY.
Update 2/4/08: The yield fell to 5.15% APY.
Top yield had been 5.30% APY.
Comments (6)
3.01% Reward Checking Account at a Texas Bank (State National Bank of Texas)
Wednesday, December 5, 2007 - 8:38 AM

Update 4/24/09: The top yield has fallen to 3.01% APY. See bottom of the post for the rate history.

State National Bank of Texas is offering a reward checking called Premium e-Checking. It pays 3.01% APY on balances up to $100K (1.01% for over) and automatically refunds ATM fees if the following monthly requirements are met: 1) 15 Visa Check Card purchases, 2) one ACH direct deposit or debit, and 3) pay one bill using their free Internet Bill Pay service, and 4) receive statements online. If these are not met, the rate falls to 0.25%. The minimum balance required to open this account is $100.

This reward checking has a few more requirements than what's typical, but it has a high $100K cap which could make the extra hoops worthwhile for those with large balances. Typically, the cap is $25K.

It appears to require a branch visit. I've sent them an email to verify. Branches are located in the Wichita Falls, Texas area. The bank has been FDIC insured since 1934 (Certificate # 3270). It has $147.7 million in assets and $133 million in deposits.

Other Reward Checking Accounts

For other reward checking accounts in other parts of the country, please see my reward checking account page and my best checking account post.

Rate History:
04/23/09: 3.01% APY
11/21/08: 4.01% APY
04/16/08: 5.01% APY
12/05/07: 6.01% APY
Comments (1)
5.15% 24-Month CD at a New York CU - $99K Min (Western New York FCU).
Wednesday, December 5, 2007 - 8:36 AM

Update 12/15/07: Rates have gone down. The 24-month Jumbo CD rate declined from 5.61% to 5.15% APY.

Western New York Federal Credit Union has extended its CD special in which a 5.61% APY 24-month Jumbo CD is available. The minimum deposit is $100,000. The yield for a $1,000 minimum is 5.35% APY. There's also a special 12-month certificate with a yield of 5.35% APY with a $100k minimum and 5.09% APY with a $1k minimum. I first reported on this special in September.

Membership is open to anyone who lives, works, worships or attends school in the New York cities of Aurora, Buffalo, Cheektowaga, Depew, East Aurora, Elma, Lackawanna, Lancaster, Orchard Park, Sloan and West Seneca. There's also a long list of Select Employee Groups. Please see their about us page for more details. Membership requires a one-time fee of $1 and a minimum deposit of $5 into the share savings account.

Branches are located in West Seneca and Buffalo, NY. The credit union is federally insured by the NCUA (Charter # 16042). It has $17.6 million in assets and 6,776 members.
Leave a comment
5.35% 15-Month / 5.25% 7-Month CD at a New Mexico CU (State Employees).
Wednesday, December 5, 2007 - 8:32 AM

Update 12/29/07: These special CD rates have fallen. Please see the credit union's website for latest rates.

State Employees Credit Union continues to offer its special 7 and 15-month share certificates. Rates have gone down since my October post, but they're still competitive. The current top yields are 5.35% APY for the 15-month term and 5.25% APY for the 7-month term. This requires checking and direct deposit. With only checking or direct deposit, the yield is lower by 20 basis points, and without either the yield is 5.00% APY for both the 7 and 15 month CD. The minimum deposit is $1,000.

Membership is open to anyone who lives or works in Valencia or San Miguel County, and any person who works for or has retired from any state, city or county agency in New Mexico. For the full details please refer to the credit union's membership page. Membership requires a one-time $1 fee and the opening of the Prime Share Savings account.

Branches are located in Santa Fe, Albuquerque, Belen, Las Vegas and Los Lunas, New Mexico. The credit union is federally insured by the NCUA (Charter # 65513). It has $188.4 million in assets and 30,229 members.
Leave a comment
5.30% 36-Month / 5.25% 24-Month CD at a New York CU (Municipal).
Wednesday, December 5, 2007 - 8:28 AM

Update 12/29/07: These CD rates have fallen. Please see the credit union's website for the latest rates.

Municipal Credit Union has competitive rates on its share certificates. The top yield is 5.30% APY for a 36-month term. The 24 and 30 month CDs have a yield of 5.25% APY. The minimum deposit is $500. The rates are available as IRA certificates. Other CDs include a 5.10% APY 6 and 9-month CD, a 5.15% APY 12-month CD, and a 5.20% APY 18-month CD.

I had last reported on this credit union in March when the CD yields were as high as 5.64%. The current yields are not great, but they're still very competitive as you can see from my weekly rate summary.

Field of membership is primarily based on select employer groups which includes New York City employees, Federal or State employees who work in the five boroughs, and health care professionals (private or public) working in New York State. See site for the full list. Membership requires a minimum $5 deposit in the share savings account.

Branches are located in New York, Brooklyn, Bronx, Elmhurst, Staten Island, Elmont, Melville and Yonkers. The credit union is federally insured by the NCUA (Charter # 60153). It's a large credit union with $1.31 billioin in assets and 292,266 members.
Comments (6)
5.75% 12-Month CD at a Southern California CU (Patriots).
Tuesday, December 4, 2007 - 7:23 PM

Update 1/5/08: This CD special has ended. Please check the credit union's website for the latest rates.

Patriots Federal Credit Union is offering a special 5.75% APY 12-month certificate. The minimum deposit is $10,000, and new money is required. The special doesn't seem to be listed at the credit union's website. A reader mentioned seeing it advertised in today's Orange County Register.

I called and confirmed that this special is available. According to the service rep, it's scheduled to last until 1/15/08, but it could end early (which is likely based on the very high rate). She mentioned that it's only available at their Santa Ana branch, and you must make an appointment first which seemed odd to me. She took my number so another rep with more info on this special could call me, but no one called.

Update 12/05/07: I never received the call back, but a reader provided the following details in the comments which describes why the appointment is necessary:
PFCU is offering this high CD rate as part of a joint promotion with another financial entity. You must appear in person so the other entity can pitch you. However, you do NOT have to sign up for any other financial products to obtain the 5.75% rate. The CD itself is strictly beneath PFCU, a PFCU product and offering - and it IS NCUA insured.

Membership is open to those who live or work in Southern California. You can also be eligible to join if you're a member or employee of eligible organizations or businesses. More info is provided at their history page. However, they don't provide any details about eligible organizations. I forgot to asked about this during the call.

Membership requires a $10 fee, but this fee is waived during this promotion. A minimum balance of $25 in your savings account is required for membership.

The credit union is federally insured by the NCUA (Charter # 14785). It has $93.9 million in assets and 6,638 members. Bankrate.com gives them 3 out of 5 stars (performing) based on 6/30/07 data.

Thanks to the reader who emailed me info on this CD. More info is also available at this FW thread.
Leave a comment
5.75% 60-Month / 5.50% 24-Month CD at an Idaho/Washington CU (Potlatch No. 1).
Tuesday, December 4, 2007 - 7:44 AM

Update 1/19/08: The yields have fallen again. Please refer to the credit union's website for the latest rates.
Update 1/5/08: The yields for 12, 18 and 24 month terms have actually gone up to 5.50% APY.

Potlatch No. 1 Federal Credit Union continues to offer competitive rates on its long-term share certificates. For a $10K minimum deposit, the yields include a 5.25% APY for terms of 24 to 48 months and a 5.75% APY for a 60-month term. Jumbo CD rates with a $100K minimum are 5 basis points higher. The same rates are available for IRA certificates.

Their short term rates are down from October, however, their 60-month CD yield is now a little higher than it was in October.

Membership is open to those who live, regularly work, attend school, worship, perform volunteer services, or participate in associations headquartered in one of the following Idaho or Washington Counties: Clearwater, Benewah, Bonner, Boundary, Idaho, Kootenai, Latah, Lewis, Nez Perce, Shoshone, Valley, Asotin or Whitman. Please see their membership page for more details.

Branches are located in the Idaho cities of Lewiston, Orofino, St. Maries, Moscow, Post Falls, Ponderay, Culdesac, and Grangeville, and in the Washington state city of Clarkston. The credit union is federally insured by the NCUA (Charter # 2734). It has $294.1 million in assets and 35,720 members.
Comments (13)
New Online Savings Account and CDs - Doral Bank Direct
Monday, December 3, 2007 - 7:04 PM

Update 2/15/09: Doral Bank has restricted new accounts to NY, NJ and CT. Refer to this post for more info.

Doral Bank, FSB has recently launched a new online bank called Doral Bank Direct that offers an online savings account and online CDs. The savings account has a yield of 5.00% APY for balances of over $1,000, and it's guaranteed to last for a 3-month intro period (click on the "More Details" button on their front page). Here's a summary of the savings account features from their learn more page and from their FAQ page:
  • $1,000 minimum opening deposit and to earn interest
  • $250 minimum required to avoid monthly service charge
  • Interest compounded daily and credited monthly
  • Typical 6 withdrawals allowed per month
  • Can be opened online or by mail
  • Up to 5 beneficiaries can be specified in the application
  • Trial deposits used to verify your checking account for initial funding

I still have many questions that are not answered in their documentation. I tried calling their toll-free number (877-313-6725), but I was forwarded to voice mail. Even though it was after hours, I expected at least to hear a message system to inform me of their office hours.

For CDs, they currently have some competitive rates. The 6 and 9-month CDs have yields of 5.25% APY. The 12-month CD yield is 5.15% APY and all longer term CDs up to 60 months have a yield of 5.10% APY. Here's a summary of the features listed at their CD page:
  • $1,000 minimum opening deposit
  • Interest compounded daily and credited quarterly
  • Withdraw your credited interest earnings without penalty
  • Up to 5 beneficiaries can be specified in the application

Like the savings account, I still have many questions like what's the early withdrawal penalty. Hopefully, I'll be able to get some answers tomorrow.

Doral Bank Direct is part of Doral Bank, FSB which is FDIC insured (Certificate # 34905). The FDIC page includes the Doral Bank's URL www.doralbankny.com. At that website, there's a link to www.doralbankdirect.com so you know Doral Bank Direct is legitimate.

I've been waiting several months for Doral Bank to launch this internet bank. In July, they released this press release that announced their intention to launch in August. I wonder why they waited as long as they did.

Doral Bank is a division of Doral Financial Corporation. As you can see from this CNN article on their Q3 loses, they've had financial problems and scandals in the past. As you might expect, their rating at Bankrate is low: 1 out of 5 stars (lowest rated) based on 6/30/07 data. However, BauerFinancial rates them as 3 out of 5 stars (adequate) based on 6/30/07 data. I don't know why these two ratings are so different.

Thanks to the reader who emailed me info on this launch.
Leave a comment
5.15% 24-Month / 5.15% 12-Month CD at an Illinois CU - easy membership (Alliant).
Monday, December 3, 2007 - 7:37 AM

Update 1/19/08: The rates have changed. Please see the credit union's website for the latest rates.

Alliant Credit Union is offering 5.15% APY on its 12 and 24 month certificates. The minimum deposit is $1,000. This is also available as an IRA certificate and a Coverdell ESA Certificate.

Back in September I had posted on this special when the rate was 5.30% APY. The current 5.15% APY is not that great, but it's still competitive for 24 and 12 month terms as you can see from my weekly rate summary.

Membership is open to those who live or work in several Chicagoland communities. National PTA members are also eligible. There's a $25 membership fee for the National PTA, and it appears that it's open to all. You can also be eligible via select employer groups and family. Please see the credit union's members eligibility page for more details. Membership requires a minimum deposit of $5 into the savings account.

Branches are located in Chicago, Des Plaines, and Elk Grove Township, Illinois. There are also branches in Colorad, California and Virginia. The credit union is federally insured by the NCUA (Charter # 67955). It's a large credit union with $4.8 billion in assets and 210,332 members.
Comments (11)
$25 Bonus for Paying Bills Using HSBC's Online Payment Account
Monday, December 3, 2007 - 7:35 AM

HSBC Direct is offering $25 for paying 3 bills using its Online Payment Account. Here's the promotional page link. According to the terms:
You must use Bill Pay to make three bill payments through your Online Payment Account by January 31, 2008. If you qualify, $25 will be credited to your Online Payment Account 6-8 weeks after that date.

Credit for this find goes to SD member rsqdoc56 who posted it at this SD thread. In some previous HSBC promotions, a few readers reported being told by HSBC that the promos were only for those who received a mailer. So your miles may vary. Be sure to save the webpage if you try this promotion. If you already have the Online Payment Account, there's not much to lose for giving this a try.

The Online Payment Account (OPA) is a free online checking account without paper checks similar to ING Direct's Electric Orange account. All payments are designed to be done using their free online bill pay. There's no minimum balance or fees. The current yield is 2.50% APY on all balances over $1. For those who already have the HSBC Online Savings Account, it's easy to open the OPA. I have more info on the OPA and my experiences opening this account in my OPA review post.
Comments (7)
3.91% Reward Checking Account at a Tennessee Bank (Peoples)
Sunday, December 2, 2007 - 5:41 PM

Update 1/12/09: The top yield has fallen to 3.91% APY.

Peoples Bank is offering a reward checking account that pays 3.91% APY on balances up to $25K (1.51% for over) and refunds ATM fees if the following monthly requirements are met: 1) 10 debit card transactions, 2) one direct deposit or ACH auto debit, and 3) receive electronic statements. If these are not met, the rate falls to 0.50% APY. Note, if the account dips below $400 and has no activity for six months (dormant), a monthly fee of $2 will apply.

It appears that a branch visit is required to open this account. Branches are located in the Tennessee cities of Clifton, Waynesboro and Hohenwald. The bank is FDIC insured (Certificate # 9489).

Other Reward Checking Accounts

For other reward checking accounts in other parts of the country, please see my reward checking account page and my best checking account post.

Rate History:
04/01/09: 3.91% APY up to $25K; 1.51% for above; 0.50% if req's are not met
01/12/09: 3.91% APY up to $25K
04/15/08: 5.01% APY up to $50K
12/02/07: 6.01% APY up to $50K; 0.50% for above; 1.51% if req's are not met

Edit 3/20/09: The balance cap appears to have changed from $50K to $25K in January.
Leave a comment
5.40% 36-Month / 5.35% 24-Month CD at a TX/CO Credit Union (Security Service).
Sunday, December 2, 2007 - 5:11 PM

Update 1/5/08: The rates have gone down. Please refer to the credit union's website for the latest rates.

Security Service Federal Credit Union has some competive long-term certificate rates with a top yield of 5.40% APY for a 3-year term and a minimum $100K deposit. The yield on the 2-year Jumbo CD is close to this at 5.35% APY. Lower yields are available for smaller deposits. With a $500 minimum, the yields for the 2 and 3-year CDs are 5.20% and 5.25% APY. These are also available for IRA certificates.

My last report on this credit union was in November 2006 when it was offering a 6% 15-month CD.

Membership is open to those who live, work or worship in Texas counties of Medina, Atascosa, Uvalde or South Bexar in addition to other areas. In Colorado the eligible counties include El Paso, Pueblo and Denver. There are several groups which can also qualify you for membership including the UT at San Antonio Alumni Association. Please refer to the credit union's ways-to-join page for more details. Membership requires a $5 minimum deposit into a share savings account.

Branches are located in the Texas cities of San Antonio, Schertz and Boerne, and in the Colorado cities of Colorado Springs, Denver, Fountain and Pueblo. The credit union is federally insured by the NCUA (Charter # 11065). It's a large credit union with $4.3 billion in assets and 632,378 members.
Comments (3)
Bank Deals Weekly Summary for December 1, 2007
Saturday, December 1, 2007 - 2:07 PM

Quick Link for Rates, Recap of this week's posts

E*Trade made news this week for two reasons. On Thursday, E*Trade received a $2.55 billion cash infusion from Citadel Investment Group to help relieve its debt problems. The move should increase its financial stability (Businees Week article). The big news for savers was E*Trade's rate increase on its savings accounts and CDs. In a move similar to what Countrywide Bank did in August, E*Trade Bank raised CD rates by up to 60 basis points on its short term CDs and raised its savings account rate back to where it was before the Fed rate cuts at 5.05% APY (up from 4.70%). According to the acting CEO who was interviewed by the WallStreet Journal, E*Trade's bank and brokerage customers removed some $7 billion of cash from the firm in November. The higher rates should help change this. For more info on E*Trade Bank, please refer to this post.

With all these credit problems in the banking industry, the importance of FDIC insurance becomes apparent. For those with large deposits at several banks, make sure you know who really holds the deposits. I learned this week that Countrywide Bank is holding some of UFB Direct's deposits. UFB Direct is run by Affinity Financial Corporation which is not a bank but an agent which may move customer deposits to and from Huntington Bank, Countrywide Bank and other potential "participating banks." For those with deposits near the FDIC limits at both Countrywide and UFB Direct, you may be over the FDIC limits. However, you can instruct UFB Direct to move your deposits into Huntington (see post).

For credit unions, the equivalent of FDIC is the National Credit Union Administration (NCUA). But unlike banks, additional insurance agencies for credit unions exist which are private with no government guarantees. The biggest is the American Share Insurance (ASI). A few credit unions are not federally insured by the NCUA, but are only insured by ASI. Patelco Credit Union is one of these. Patelco is one of the nation's largest credit union. It also has a history of offering great CD rates and many other very competitive banking products. In addition, it provides for an easy way for anyone in the country to qualify for membership. But it was hard to be too enthusiastic about Patelco without the safety of federal insurance. But that's scheduled to change on January 1, 2008. Patelco officially announced that its deposits will start being insured by the NCUA at that time. Patelco currently is offering a 9-month CD with a yield of 5.50% APY (see post)

Except for a few exceptions like at E*Trade, savings account and CD rates declined this week. Savings and money market rates were reduced this week at KeyDirect, Heartland Bank and IgoBanking. Rumors also came out this week that the nation's best high yield reward checking account at the State Bank of Toledo was going to lower the rate and institute a $70K cap on the high yield early next year (see post). It still offers a yield of 6.01% APY on all balances as long as the typical reward checking requirements are met.

CD rate declines occurred at AmTrustDirect, VirtualBank, Discover Bank, Bank of Internet, UFB Direct and many others. Mutual Bank's high yield special 12, 24, and 36-month CDs ended this week. The only special CD they have now is a 4.75% APY 60-month CD.

In addition to E*Trade, there were some banks which increased their CD rates. These included Corus Bank, Ascencia Bank and Capital One. Capital One had a 5% APY on all terms, but this changed with lower short term rates and little higher rates on longer terms (up to 5.10% APY on 60 months and longer). Countrywide Bank was advertising a 5.50% APY 5-month CD in some states (see post). It also recently raised some of its short term internet CD rates (see below).

There were some good short term CD promotions at the mega banks. Bank of America is offering a 4-month CD with a yield of up to 5.20% APY, but it's a short-lived promotion that's scheduled to end Monday (see post). Wachovia also has some good short term CD deals. For Texas, they include a 5.15% APY 4-month CD and a 5.05% APY 7-month CD. Rates may vary by state.

Recap for the Week

Banking News

Savings and Checking Accounts - National

CD Deals - National

Checking Account Bonuses

Reward Checking Accounts - Local

CD and Money Market Deals - Local

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. The top lists include banks and credit unions with broad availability and with minimums around $10K or less. Previous weekly summaries are available for Nov 24th, Nov 17th, Nov 10th, Nov 3rd, Oct 27th, Oct 20th, Oct 13th, Oct 6th and Sep 29th.

Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Special rates, Local checking/savings, Bank alternatives CD Rates: 3 Mo CDs, 6 Mo CDs, 9 Mo CDs, 12 Mo CDs, 18 Mo CDs, 24 Mo CDs, 36 Mo CDs, 48 Mo CDs, 60 Mo CDs, 84 Mo CDs, CDs by state Comments: read and discuss

As of December 1, 2007

Checking/Savings/Money Market Accounts:


3-Month Certificates of Deposit:

6-Month Certificates of Deposit:

9-Month Certificates of Deposit:

12-Month Certificates of Deposit:

18-Month Certificates of Deposit:

24-Month Certificates of Deposit:

36-Month Certificate of Deposit:

48-Month Certificate of Deposit:

60-Month Certificate of Deposit:

84-Month Certificate of Deposit:

High Yield Checking Accounts with Conditions - Open to All

Checking and Saving Accounts at Local Banks/Credit Unions

CD Specials at Local Credit Unions/Banks Over the Last Two Months


Terms of 60 Months and Over

Terms of 24 Months to Under 60 Months

Terms of 12 Months to Under 24 Months

Terms of Under 12 Months

Bank Account Alternatives


Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)
May 2012
Featured Accounts
Useful Resources
Nationwide Savings Accounts