Bank Deals Blog - December 2008


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Rate Cuts and Other Banking News
Wednesday, December 31, 2008 - 9:58 AM

It looks like 2009 will be a challenge for savers. Banks continue to cut rates. ING Direct's Orange Savings Account yield is now down to 2.50% APY (was 2.75%). It also cut rates on its Electric Orange checking account and CDs. Its top CD rate is now only 2.75% APY for terms of 12 to 60 months.

Other banks that have recently cut rates include Corus Bank (MMA now 3.55% APY, was 3.65%) and Provident Direct (savings account now 3.25% APY, was 3.75%). There are still are three banks offering 4% savings accounts (see my weekly rate summary).

Banks are also cutting reward checking rates. I'm in the process of updating rates for dozens of banks in my High Yield Checking website. Thanks to the readers who have been leaving comments on the rate changes.

As reported by Wall Street Journal, GMAC fell short of its goal to raise $30 billion by converting its issued debt into preferred stock holdings. On Monday, GMAC received commitments from the federal government for $6 billion in aid.

GMAC is the parent of GMAC Bank. We'll have to see how greater stability at GMAC will affect the bank and its rates in the future months. GMAC Bank continues to offer a competitive 4.00% APY 12-month CD (see post).

According to this HousingWire article Fannie Mae may be holding up the IndyMac sale. The article mentioned sources that claim Fannie Mae has demanded $1 billion from IndyMac due to misrepresentations of loans it had sold to Fannie Mae.
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$190 Checking Account Bonus at HomeStreet Bank in WA, OR & HI
Wednesday, December 31, 2008 - 9:08 AM

HomeStreet Bank is offering a checking account promotion in which you can earn up to $190. Open a new personal checking account at a HomeStreet Bank branch and complete the following activities for the full $190:
  • $75 for direct deposit with a minimum of $500 a month for 2 consecutive months
  • $75 for using your Visa check card to make 10 purchases or payments each month for 2 consecutive months
  • $30 for enrolling in free Online Banking/Bill Payer and paying a minimum of 3 bills each month for 2 consecutive months
  • $10 for signing up for e-statements
The promotion is scheduled to last through 3/31/2009.

$25 can be applied to the cost of new checks for giving the bank your old checks or check card from another bank. I didn't include this as part of bonus since many banks offer free first order of checks. Some important small print of the offer includes:
  • Offer is limited to one account per household
  • Account holder will be responsible for tax implications
  • Accounts closed by the customer within 90 days of opening are subject to a $15 early closure fee

Branches are located in Washington State, Oregon and Hawaii. The bank is FDIC insured (FDIC Certificate # 32489).

Thanks to the reader who mentioned this promotion in the Finding the Best Deals post.
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4.00% 18-Month CD at Credit Union of New Jersey
Wednesday, December 31, 2008 - 9:05 AM

Credit Union of New Jersey is offering some competitive CD rates. The most competitive rates include a 3.75% APY for 12 months, 4.00% APY for 18 and 24 months, 4.25% APY for 36 months, 4.50% APY for 48 months and 4.75% APY for 60 months. Minimum deposit is $500. Higher rates are available with account relationships and for Jumbo CDs. The same rates are also available for IRA certificates. These rates are listed in the credit union's rate table as of 12/31/08. Like many credit unions, new rates may take effect at the start of the month.

Membership is open to those who live, work, worship or attend school in Ewing Township and in parts of Burlington County or Trenton. Membership is also open to those who work for the State of New Jersey. Please refer to the credit union's Membership Page for the full details. Membership requires a minimum deposit of $25 in the regular share savings account.

The credit union is federally insured by the NCUA (Charter # 65597).

Thanks to the reader who mentioned this credit union in the Finding the Best Deals post.
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4.00% 24-Month CD at Colonial Bank in AL, GA, FL, TX & NV
Wednesday, December 31, 2008 - 8:49 AM

Update 1/07/09: This CD special has ended. Please check with the bank for the latest rates.

Colonial Bank is offering a 4.00% APY 24-month CD special. Minimum deposit is $500. No checking is required. This special is not listed at the bank's website. A reader mentioned this, and I just called for additional info. According to the CSR, it's available at all of their branches as of 12/31/08. She didn't know how long this would last. It has been available since late November. With dropping rates, this 4% 24-month CD is now very competitive.

A branch visit is required. Branches are located in Alabama, Georgia, Florida, Texas and Nevada.

Colonial Bank's ratings for soundness are a little weak: 3 stars (adequate) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 9/30/08 data. The bank has been FDIC insured since 1934 (FDIC Certificate # 9609).
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2.51% Checking Without Debit Card Requirement at First New England FCU - Easy Membership
Tuesday, December 30, 2008 - 4:15 PM

Update 5/10/09: The top rate has fallen to 2.51% APY.

First New England Federal Credit Union has a checking account called Platinum Reward Checking that pays 2.51% APY on balances from $40,000 to $50,000 if there's a monthly direct deposit of at least $500. Amounts over $50K earn 2% APY. If direct deposit or minimum balance requirement is not met, the rate falls to 0.10%. There are no monthly fees regardless if the requirements are met.

Unlike the typical reward checking accounts, there are no debit card usage requirements. Also different is that it requires a minimum balance of $40K to earn the high yield. This may be a good alternative for those who have avoided reward checking due to the debit card requirements. But without the debit card requirements, I wonder how long they'll be able to maintain the high yield.

Credit union membership is open to Friends of the Lucy Robbins Welles Library. The online application allows you to select the option to join this library association. Refer to my September post on this credit union for details about joining this credit union and opening accounts. Note, the Platinum Reward Checking cannot be selected in the online application as of 12/30/08. You'll need to call to open the account.

The Share Savings Account is required for membership, and it has a minimum deposit of $10. For more details on credit union membership, please refer to their Who-Can-Join page.

This credit union also offers a typical type of reward checking account that pays a top rate on balances up to $25K (see post).

Branches are located in the Connecticut cities of East Hartford, Vernon and Newington.

The credit union's ratings for soundness are mixed: 4 stars (excellent) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 9/30/08 data. The credit union is federally insured by the NCUA (Charter # 2601).

Thanks to the reader who emailed me info on this account.

Account History:
05/05/09: 2.51% APY
12/30/08: 4.01% APY

Comments (5)
3.75% 7-Month CD & 3.85% 13-Month CD at Greater Atlantic Bank in MD & VA
Tuesday, December 30, 2008 - 4:12 PM

Greater Atlantic Bank is offering some competitive rates on its CD specials. These include a 3.75% APY 7-month CD, a 3.85% APY 13-month CD and a 3.90% APY 25-month CD. Minimum deposit is $10,000. The bank also is offering special CDs with penalty-free withdrawals. These include a 3.45% APY CD with terms of 5 and 9 months and a 3.50% APY 14-month CD. These rates are listed in the bank's rate table as of 12/30/08.

It appears a branch visit is required to open an account. Branches are located in Reston, Front Royal, New Market and South Riding, Virginia and in Rockville, Maryland.

The bank's ratings for soundness are weak: 1 star (troubled) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 9/30/08 data. The bank has been FDIC insured since 1988 (FDIC Certificate # 32583).
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3.90% Reward Checking Account at UMassFive College FCU in Massachusetts
Tuesday, December 30, 2008 - 9:57 AM

Update 10/04/09: The top rate has fallen to 3.90% APY.

UMassFive College FCU is offering a reward checking account called Co-op Advantage Checking. It pays 3.90% APY on balances up to $25,000 (1.01% for above) and refunds up to $25 per cycle of nationwide ATM fees if the following monthly requirements are met:
  • 12 debit card purchases
  • 1 direct deposit or ACH auto debit
  • receive eStatements
If these are not met, the rate falls to 0.10%. There are no minimum balance requirements.

Membership is open to employees of the UMass system, Amherst College, Hampshire College, Mt. Holyoke College, and Smith College. There are other groups that are also eligible. Please refer to the credit union's Membership Page for the full details. Membership requires a minimum balance of $5 in the share savings account.

Branches are located in the Massachusetts cities of Hadley, Amherst, Worcester and Northampton.

The credit union is federally insured by the NCUA (Charter # 18181).

Other 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.

Account History:
10/01/09: 3.90% APY up to $25K
05/05/09: 4.09% APY up to $25K
12/30/08: 4.59% APY up to $25K; 1.01% over; 0.10% base
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4.50% 12-Month & 6-Month CD at CorePlus FCU in Connecticut
Tuesday, December 30, 2008 - 7:42 AM

CorePlus Federal Credit Union is having a promotion called the Step-Back In Time Certificates. The promotion is scheduled to end on 12/31/08. The two most competititve CDs in this promotion have an APY of 4.50% for terms of 6 and 12 months. Others include a 4.35% APY 18-month CD and a 4.30% APY for terms of 2, 3 and 4 years. Minimum deposit is $500, and the maximum deposit is $75,000. Limit of one Step-Back CD per member. These rates are listed in the credit union's rate table as of 12/30/08. This promotion has additional requirements which are described in the rate and fee schedule:
Loyalty participation Step-Back rates apply to any existing or new members who meet and/or maintain any 2 of the following conditions for the life of the certificate: active share draft account with debit card (avg. 10 transactions/month, 3 using debit card), money market account with avg. bal. of at least $2,000, direct deposit or payroll deduction of at least $500, automatic funds transfer for loan payment, a loan with no delinquency in the previous 6 month period, active credit card (avg. 1 transaction per month), another certificate with CorePlus.

The reader who mentioned this promotion suggested qualifying by opening the money market account with $2,000 balance and opening a non-Step-Back CD (APY ~ 3%) with the minimum deposit of $500.

Membership is open to anyone who lives, works, worships, or attends school in New London County or Windham County, Connecticut. Please refer to their how-to-join page for the full details. Membership requires a $5 minimum balance in the savings account.

Branches are located in Norwich, Groton, East Lyme, New London and Plainfield, CT. The credit union is federally insured by the NCUA (Charter # 1148).

Thanks to the reader who mentioned this promotion in the comments.
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GMAC and IndyMac News
Monday, December 29, 2008 - 7:56 AM

GMAC and IndyMac are still in the news. As Reuters reported, GMAC has yet to release the results of a bondholders' vote:
GMAC LLC expects to soon announce the results of a debt exchange offer that is key to North America's largest auto finance company's capital levels

The article mentioned that the bank holding company approval was not contingent on the bond exchange but the completion of the bond exchange is still important for GMAC's capital levels. Last week the Federal Reserve approved GMAC’s application to become a bank holding company.

GMAC is the parent of GMAC Bank. We'll have to see how greater stability at GMAC will affect the bank and its rates in the future months. GMAC Bank continues to offer a competitive 4.00% APY 12-month CD (see post).

WSJ reported that a private-equity firm is the likely buyer of the failed IndyMac Bank:
New York private-equity firm Dune Capital Management L.P. has emerged as a potential buyer of the failed IndyMac Bank, according to people familiar with the situation ... Founded in 2004, Dune is led by two former Goldman Sachs & Co. executives

The FDIC-controlled IndyMac continued offering competitive CD and money market rates since the FDIC took control of the bank in July. It's still not certain that the new buyer will honor the existing IndyMac CD rates, but it seems likely that they will.
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4.01% Reward Checking Account at Carolinas Telco FCU
Monday, December 29, 2008 - 7:54 AM

Update 7/04/09: The top rate has fallen to 4.01% APY.

Carolinas Telco FCU is offering a reward checking account that pays 4.01% APY on balances up to $25,000 (0.50% for above) and refunds up to $25 per month in ATM fees if the following monthly requirements are met:
  • 12 Visa Check Card purchases
  • 1 Direct Deposit or ACH Auto Debit
  • Receive E-Statements
If these are not met, the rate falls to 0.25%. There are no minimum balance requirements and no monthly service charges.

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).

Other 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.

Rate History:
07/02/09: 4.01% APY up to $25K; 0.50% over; 0.25% base
12/29/08: 5.01% APY up to $25K; 1.01% over; 0.25% base
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4.03% 18-Month CD at USAlliance FCU in NY, NJ & MA
Monday, December 29, 2008 - 6:01 AM

Update 1/20/2009: These CD rates are down, but they're still very competitive. Please refer to the credit union's website for the latest rates.

USAlliance Federal Credit Union is offering several competitive promotional certificates. The most competitive is an 18-month CD with an APY of 4.03%. Other CD specials include a 3.98% APY 11-month CD, a 3.82% APY 15-month CD and a 3.77% APY 24-month CD. Minimum deposit is either $500 or $2,500. These rates are listed in the credit union's rate table as of 12/29/08.

The reader who mentioned these promotions reported that the 18-month CD has a free bump-up and is scheduled to last until December 31st.

Membership is open to those who live, work or worship in one of the following seven counties in Massachusetts: Barnstable, Essex, Middlesex, Norfolk, Plymouth, Suffolk and Worcester. Please refer to the credit union's Join-Us Page for more details about eligibility.

Branches are located in Massachusetts, New York and New Jersey. The credit union is federally insured by the NCUA (Charter # 17587).

Thanks to the reader who emailed me info on this promotion.
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Canival of Saving Money – Issue 2, Surviving a Recession in 2009
Monday, December 29, 2008 - 12:00 AM

Welcome to the second edition of the Carnival of Saving Money. In this edition we look at what changes you can make in 2009 to get through the current recession.

Do What You Must to Get By

We'll start this off with a post at Home I Own which shows us how to Get through recession with household survival tips. Some additional ideas are 12 Tips To Lower Your Heating Bill which is exactly what FIRE Finance covers.

On the topic of homes, do you know what to do if you face forecloser? The Political and Financial Markets Commentator shares some tips with their article You Are Facing Foreclosure? Now What?. And finally, learn some inside tips on credit cards with Lazy Man and Money's Brief Interview With a Visa Representative.

Change Your Thinking

The next step is to change the way you view your financial situation. Out of Debt Christian encourages us to take the bull by the horns when Dealing with Financial Disaster. While Ready to be Rich provides 6 Tips on How to Keep Your New Year's Resolution to Save Money.

You also have to consider if all this worrying about finances is really worth it. Learn Financial Planning share's their views on Financial Happiness: The Real Goal of Financial Planning and We Overstep presents an alternative view of a Money Free World.

Put Money Aside

Finally you need to make sure a portion of your investments are in more stable accounts. The articles on Adding an Online Savings Account as Part of Your Investment Strategy at Investing School and How to Choose a Money Market Account at Deposit Accounts can help with this.

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5 Basic Steps to Becoming a Millionaire
Monday, December 29, 2008 - 12:00 AM

It sounds like a lot, but pretty much anyone could become a millionaire with enough time and consistency. The trouble is, a million dollars in today's money isn't really worth a million dollars in the future's money – but following the steps to becoming a millionaire will certainly be more rewarding and valuable then throwing your hands up in the air and saying “I can't do it”! You can save a million even on average income, as long as you have determination and self discipline.

1) Earn consistent income.

Obviously, the more money you make the faster and easier it is to reach your million-dollar goal, but plenty of dedicated individuals have reached the coveted millionaire title on a typical $42,000 annual income. If you make even less than the median income, you don't have to give up hope but you may want to consider what you could do to increase your income. Perhaps looking for a new career to replace what you currently do to earn money; or adding a second job temporarily may be the way to go. Regardless of what you earn and how you earn it, you can be sure that unless you hit a lucky streak at the casino or someone hands you cash – you can't become a millionaire without having an income.

2) Learn to live frugally.

If you have consistent income but you regularly run out and spend every last dime each paycheck (or worse – you spend more than you make with credit cards and loans), you're not going to become a millionaire. Heck, you may not ever become a thousand-aire with that type of lifestyle! Living frugally does not mean going without everything, it just means making wise choices regarding how and when to spend money, and not having to buy the most expensive version of everything you do need to purchase. Cut back living expenses by finding ways to save on utilities, find ways to reduce waste, and cut your grocery bill with simple methods. The money you save can be applied to your savings.

3) Save, save, save.

Everyone will tell you to pay yourself first, because what happens after you've paid the bills, living expenses, had a few drinks at the bar with friends? There is rarely anything left to save, right? Figure out how much you can afford to save per pay period, and consistently set that amount aside into your savings account (preferably one that offers interest, until you have enough to move into other investments and saving opportunities). If you wait until everything has been paid, you'll rarely, if ever, get any money into your savings. Start small if money is tight, but get into the habit of saving that amount each and every pay period until you find ways to increase income or reduce expenses to increase the amount you are able to save.

4) Look for investing and savings opportunities.

As you are putting money into your temporary savings account, you can keep an eye out for opportunities to increase the return you get on your money. You might want to consider a variety of investments and deposit accounts to diversify your portfolio and maximize your returns while reducing risks.

5) Rinse, lather, repeat.

As simple as the instructions on the shampoo bottle – you can become a millionaire. You make money, you save it, you repeat. Consistency is the key. There are many factors that play a role in how much you'll earn in interest, but using these basic steps you can eventually reach the millionaire status you're looking for.

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10 Lessons from the 2008 Bank Failures
Sunday, December 28, 2008 - 9:59 AM

The financial crisis became serious this year as we saw breakdowns of major institutions like Fannie, Freddie, Lehman and AIG. It was stressful for bank depositors as major banks collapsed. However, the FDIC did its job to protect depositors. In 2008 there were 25 official bank failures. Since we'll likely see many more bank failures in 2009, I thought it would be useful to review these closures from the point-of-view of a depositor. So I looked back at my posts of this year's bank failures and put together this list of lessons that can be learned.

1) Banks of all sizes can fail. WaMu was the largest bank that failed this year, and the largest to ever fail in the U.S. WaMu had assets of $307 billion and deposits of $188 billion. The smallest bank that failed in 2008 was Hume Bank in Missouri. It was the second bank of 2008 to fail. It had $18.7 million in assets and $13.6 million in deposits. As a comparison, WaMu had more than 16,400 times more in assets.

2) When most banks fail, the FDIC has another bank assume insured deposits which allows customers to continue accessing their insured deposits. This happened for all of 2008 closures except IndyMac. In that case IndyMac was reopened as IndyMac Federal Bank under the supervision of the FDIC.

3) There's likely nothing to gain to rush to your bank when it fails. After IndyMac Bank failed, not only were there long lines outside of IndyMac offices, there were people who flew to Los Angeles to get their money. Some understanding and faith in the FDIC would have saved them time and money. The FDIC continued paying interest on the IndyMac accounts. It also pays to get internet access to your accounts. I was able to log into my IndyMac account on Monday after the closure without any problems.

4) Principal and accrued interest are insured up to the day of closure. Interest is added to the principal to determine the insured amounts. If the added interest causes the total balance to go over the insured amounts, that amount is at risk. A reader reported having this happen to his deposits when ANB Financial failed. His $400,000 initial deposit was fully insured. The $15,000 of interest that he had earned was not.

5) You can increase your deposit insurance above the basic level (currently $250,000) at one bank through different ownership categories (see FDIC webpage). The two most common ownership categories for this purpose are joint accounts and revocable trust accounts, such payable-on-death (POD) accounts. With POD accounts, you have to be careful that you meet the FDIC requirements. The one requirement that banks often get wrong is the account title. A reader who had over $400,000 of deposits in the failed bank ANB Financial described how glad he was that he had insisted on the correct titling of his CD.

6) When a bank fails, the new bank that takes over the failed bank can decide not to honor existing rates on the failed bank CDs. This happened when Alpha Bank & Trust Bank failed, and Stearns Bank took over. A reader reported that Stearns Bank lowered the 12-mo CD rate from around 5% to 1%. The reduction was made at the day of closure (10/29). He didn't receive the letter about the change until 11/12.

7) When you buy CDs at a brokerage, they're FDIC insured, but it can take 4 or more weeks for depositors of brokered CDs to get back the money at a failed bank that was holding the CD. This occurred after ANB Financial's closure)

8) Good deposit deals can continue after a bank fails. This happened for both IndyMac and WaMu when high-rate CDs continued for one or more weeks after the failures. During this time, the CDs were opened under the new banks (Chase Bank in the case of WaMu and the FDIC in the case of IndyMac). This provided a good opportunity to get a great CD deal at a strong bank.

9) All-Deposit Transfers became a common term. When the FDIC arranges for another bank to take over a failed bank, the new bank will sometimes assume all deposits, not just the insured deposits. In these cases, all deposits, even those above the FDIC insured limits, are transfered. All-Deposit Transfers occurred when WaMu closed, and it occurred at many banks that were closed in 2008. However, there were several cases in which non-insured deposits were not completely covered. IndyMac customers who had over the FDIC limits only received 50% of their non-insured deposits immediately after the closure.

10) Most banks are closed by regulators on Friday afternoon, but there was one exception in 2008. That was WaMu, which was closed on a Thursday.
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4.50% 12-Month CD at San Diego Metropolitan Credit Union
Sunday, December 28, 2008 - 9:56 AM

San Diego Metropolitan Credit Union has a very attractive certificate promotion. The promotion includes a 4.25% APY 12-month CD and a 4.00% APY 6-month CD. You can earn an extra 0.25% if you currently have or if you open a qualifying checking account. Minimum deposit is $10,000, and these are also available as IRA certificates. This promotion is listed at the credit union's front page and in this promotion page as of 12/28/08.

Membership is open to all those who live or work in San Diego County, California. Please refer to the credit union's membership page for the full details regarding membership eligibility. Membership requires a minimum balance of $10 in the regular savings account.

The credit union is federally insured by the NCUA (Charter # 61003).

Thanks to the reader Bob who mentioned this promotion in the comments.
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2.53% Reward Checking Account at State Bank of Southern Utah
Sunday, December 28, 2008 - 9:54 AM

Update 10/15/09: The top yield has fallen to 2.53% APY. Refer to the bottom of the post for the rate history.

State Bank of Southern Utah is offering a reward checking account called Big Interest Checking. It pays 2.53% APY on balances up to $50,000 (0.50% for above) if the following monthly requirements are met:
  • 12 debit card purchases
  • 2 ACH direct deposits or ACH autopayments
  • receive e-statements
  • maintain a valid email address
If these are not met, the rate falls to 0.25%. There are no minimum balance fees. There doesn't seem to be any refunds of ATM fees, however, free nationwide withdrawals are available at ATMs with the MoneyPass Logo.

It appears a branch visit is required to open an account. Branches are located in the southwest Utah. Some of the cities include Cedar City, Santa Clara and St. George. The bank has been FDIC insured since 1959 (FDIC Certificate # 17964).

Other 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.

Rate History:
10/07/09: 2.53% APY up to $50K
07/14/09: 2.78% APY up to $50K
06/03/09: 3.04% APY up to $50K
04/10/09: 3.30% APY up to $50K
01/06/09: 3.56% APY up to $50K; 0.50% over $50K, 0.25% if requirements not met
12/28/08: 4.06% APY up to $50K; 0.75% over $50K, 0.25% if requirements not met
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Bank Deals Weekly Summary for December 27, 2008
Saturday, December 27, 2008 - 10:08 AM

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

Happy Holidays. This is a reduced version of my weekly rate recap. I was going to skip a week, but rates have declined so much in the last week, I thought it was important to update the rates. Banks are still responding to the historic Fed rate cut on December 16th.

Savings Account Rates

Rates continued to trend down. There are still 3 banks offering 4% savings accounts. DollarSavingsDirect continues to offer 4% APY and EverBank continues to offer 4.08% APY guaranteed for 3 months. I doubt these will last too much longer. In a few months, I'm afraid it may be difficult to find a 3% savings account.

Below is the list of savings account rate changes for this week. With so many rate cuts, it's hard to keep track of these. There were over two dozen cuts that I reported on in my December 20th weekly recap. So if you don't find a rate cut below, check that recap from last week. The full list of savings account rates is farther down.

Rate Hikes:
  1. None
Rate Drops:
  1. GMAC Bank Savings - 3.25% (was 3.75%)
  2. Venture Bank Direct - 3.50% (was 3.60%)
  3. OneUnited - 3.00% (was 3.35%)
  4. ETrade Savings - 3.01% (was 3.30%)
  5. iGObanking - 3.08% (was 3.28%)
  6. Nationwide MMA - 2.97% (was 3.27%)
  7. FNBO Direct Savings 2.80% (was 3.25%)
  8. GMAC Bank MMA - 2.75% (was 3.25%)
  9. National City 6mo promo - 3.00% (was 3.25%)
  10. Capital One/Costco Savings - 3.05% (was 3.37%)
  11. Capital One - 3.00% (was 3.25%)
  12. Capital One/Costco MMA - 2.35% (was 3.00%)
  13. Capital One MMA - 2.10% (was 2.75%)
  14. IndyMac MMA - 2.75% $25K+ (was 3.25%)
  15. M&T Bank savings - 2.75% (was 3.00%)
  16. Discover MMA - 2.75% (was 2.90%)
  17. iGObanking checking - 1.75% (was 2.00%)
  18. Citibank Ultimate Savings - 2.50% (was 2.75%)
Nationwide Certificate of Deposit Rates

CD rates again trended down this week even more than savings account rates. For those who haven't locked into a CD, the next few days may be the last chance for some decent rates at credit unions. Many credit typically change rates at the start of month, so many still have some decent rates. These are included in the list below:

The full list of nationwide CD rates is farther down.
  1. 4.00% 6-mo CD at Navy FCU (account review)
  2. 4.00% 7-mo Add-On CD at America's CU (account review)
  3. 4.00% 12-mo CD at Mountain America CU (account review)
  4. 4.00% 12-mo CD at GMAC Bank (account review)
  5. 4.00% 16-mo CD at DollarSavingsDirect (account review
  6. 4.15% 17-mo CD at Western FCU (account review)
  7. 4.75% 3-year CD at PenFed (account review)
  8. 5.10% 5-year CD at Navy FCU (account review)
Reward Checking Accounts

Many reward checking accounts continue offering 5-percent-plus yields, but like all other deposit accounts, banks are cutting these rates. I've added a few new reward checking accounts this week, and I've spent some time updating rates on my existing reward checking accounts (almost 300). I'm afraid this will be keeping me busy in the weeks to come.

For my full list of reward checking accounts around the nation, please refer to my High Yield Checking website. I'll be updating this website next week.

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 20th, Dec 13th, Dec 6th, Nov 29th, Nov 22nd, Nov 15th, Nov 8th, Nov 1st, Oct 25th, Oct 18th and Oct 12th.

Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Reward Checking, 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 27, 2008

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:

Various Deposit Account Deals


High Yield Reward Checking Accounts - Open to All


Recent CD Specials at Local Credit Unions and Banks


Bank Account Alternatives


Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)
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How to Choose a Money Market Account
Saturday, December 27, 2008 - 12:00 AM

If you've decided to use a money market account to benefit from higher interest rates and to avoid the risks associated with other investments, your next decision is deciding which money market account to open. Money market accounts are just like savings accounts in that the money you deposit is insured by the Federal Deposit Insurance Corporation (FDIC), so even if the bank holding your money goes bankrupt – the government guarantees you will not lose your money. This government guarantee makes Money Market accounts the safest option for investing money with a guaranteed return and the ability to access your money whenever you want.

When selecting a Money Market account to save your money, there are a number of things you'll want to consider in order to make the best selection for your unique circumstances.

1)Number of Withdrawals Allowed

Money Market Accounts typically set up a limit for how many withdrawals you can make each month. If you plan to use the account frequently, you'll want to look for money market accounts with high numbers of withdrawal limitations, so you don't run into trouble when you reach your limit before the month is over.

If your goal is to deposit a sum of money and make very limited withdrawals only when you fall short of cash in a month, you probably don't need to concern yourself with the withdrawal limitations. On the other hand, if you're looking to use your Money Market Account more like a checking account, you'll want to be sure you select one that offers enough monthly withdrawals so you aren't paying fees for too many transactions.

2)Minimum Required Balance

While you can open a standard savings or checking account with next to nothing these days, money market accounts require much higher minimum balances if you want to avoid “minimum balance fees”. Make sure you have enough money to keep in the account to ensure you're always above the minimum balance required, or you could find yourself paying out more than the interest you earn in monthly fees.

If you think you may consistently fall short of the required minimum balance, you might want to consider saving your money in a high interest savings account online until you've built it up enough to meet the minimum balance requirements.

3)Account Fees

Just like any other deposit account, a Money Market account can have a variety of fees associated with it. Typical fees include making too many withdrawals per month, or not having enough money in the account to meet the required minimum balance.

Keep an eye on other fees that the bank may charge, including fees for writing checks and monthly service or maintenance fees, atm withdrawal fees, etc. Consider how you intend to use the account and determine how much you'll pay in fees for your account before selecting.

4)Interest Rate

The main reason people use Money Market accounts is to take advantage of higher interest rates than they could get with a traditional savings or checking account. In order to maximize your interest earnings, you'll want to compare all of the available options for Money Market accounts and select the one with the best combination of high interest rate and low fees based on how you are likely to use the account.

When you consider these four factors, you'll make a good choice for a Money Market account that maximizes the amount of money you earn on your savings by reducing the amount you pay in fees.

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Planning for Unexpected Expenses
Saturday, December 27, 2008 - 12:00 AM

How many times have you had to scrape together some cash by skipping a savings deposit, pull out a credit card or take out a loan for an expense you consider “unexpected”? Most of our seemingly unexpected expenses are actually recurring, known expenses – but because they are not a monthly bill, many people overlook them when budgeting or managing their finances.

Typical “unexpected” expenses that should actually be planned for include:

  • car maintenance (new tires, brakes, oil changes, insurance premiums, etc)
  • school and property taxes
  • holiday gift giving
  • higher electric bills in the summer due to air conditioning / heating bills in cold months
  • home maintenance (roof, windows, furnace cleanings, etc)

How to Plan for the Unexpected:

Even when an expense does not require a monthly payment, you should plan for it in your monthly budgeting efforts. That way, when the payment or repair needs to be made, you'll have the money set aside and ready to go.

For example, if you pay $3500 a year in school and property taxes, divide the total by 12 months to determine that your taxes are actually costing you $291.66 each month. Set up a preparation savings account (or better yet, a Money Market Account with high interest, as you will not have many withdrawals to worry about) that is used to prepare for your non-monthly expenses and each month, transfer $291.66 to the account. When the tax bill comes, you'll be able to withdraw or transfer the money to make the payment.

You can do the same for all of your non-monthly expenses. Go through old check registers or your online bank statements to make a list of things you pay. Take the average yearly amount and divide by 12 to determine how much it costs you on a monthly basis- and simply set that money aside to save for it.

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Banking News of the Day
Friday, December 26, 2008 - 7:59 AM

Happy Holidays! Unfortunately, savers are not getting presents from banks. Rates continue to plummet. Some recent savings account rate cuts have occurred at GMAC Bank, OnBank, FNBO Direct, E*TRADE, Citibank and Capital One. Readers have reported being told that Alliant Credit Union will be lowering its savings account yield to 3.25% APY starting next month and PenFed will be lowering its CD yields next month (3yr to 3.94%, 4yr to 4.25% and 5 and 7yr to 4.50%).

Although GMAC Bank lowered its savings account and money market yields today, it's still offering a 4% APY 12-month CD. I have more details about GMAC Bank in my Wednesday post.

GMAC Bank's parent, GMAC, has received approval to become a bank holding company. According to the Washington Post:
The move gives GMAC access to new sources of funding, including a potential infusion of taxpayer dollars from the Treasury Department and loans from the Fed itself.

On other news, it has been reported that the FDIC is close to finding a buyer for IndyMac. I found this excerpt from this LA Times article interesting:
IndyMac's deposits have since fallen to $6 billion, as the FDIC has rid the bank of $6 billion in high-rate, brokered deposits and as customers pulled out another $6 billion in reaction to the bank's seizure by the government.

I guess those internet special CDs didn't amount to much in the total deposits. The question for those with IndyMac CDs is whether the new bank will choose to terminate the existing CDs instead of continuing the high rates to maturity.
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4.04% 9-Month CD at First New England FCU - Easy Membership
Friday, December 26, 2008 - 7:56 AM

Update 1/24/09: The special 9-month CD rates have gone down. Please refer to the credit union's website for the latest rates.

First New England Federal Credit Union is offering a special 4.04% APY 9-month CD. Minimum deposit is $10,000, and it requires an Advantage relationship account. Without this, the APY is 3.78%. There's also a special 18-month CD with rates 25 basis points lower. These specials are listed in the credit union's rate table as of 12/26/08.

Membership is open to Friends of the Lucy Robbins Welles Library. The online application allows you to select the option to join this library association. Refer to my September post on this credit union for details about joining this credit union and opening accounts. I recommend checking with the credit union for the latest instructions.

The Share Savings Account is required for membership, and it has a minimum deposit of $10. For more details on credit union membership, please refer to their Who-Can-Join page.

This credit union also offers a reward checking account that currently pays 5.15% APY on balances up to $25K (see post).

Branches are located in the Connecticut cities of East Hartford, Vernon and Newington. The credit union is federally insured by the NCUA (Charter # 2601).

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4.06% 12-Month CD at Metro Phoenix Bank
Friday, December 26, 2008 - 7:54 AM

Metro Phoenix Bank is listing some competitive CD rates. These include a 4.06% APY 12-month CD and a 4.32% APY 24-month CD. The longer term CDs have APY's of 4.37% to 4.47%. The money market account rates are also competitive with an APY of 2.53% for up to $25K, 2.78% for $25K to $100K and 3.56% for $100K to $1M. This is available for both personal and business money market accounts.

These rates are listed in the bank's rate table as of the morning of 12/26/08.

A branch visit appears to be required to open an account. The bank has one branch in Phoenix, Arizona.

Metro Phoenix Bank is a new bank that was just established in 2007. Since it's new, it doesn't have a rating at BauerFinancial. Bankrate gives it a 4-star Safe & Sound rating (sound) based on 9/30/08 data.

The bank is FDIC insured (FDIC Certificate # 58402).
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4.50% 36-Month CD at Federal Trust in Florida
Friday, December 26, 2008 - 7:53 AM

Federal Trust Bank continues to list some competitive CD rates. These include an APY of 4.50% for terms of 36, 48 and 60 months. Also competitive is the 12-month CD with an APY of 3.75%. Minimum deposit is $500, and the early withdrawal penalty is 6 months of interest. These rates are listed in the bank's rate table as of 12/26/08.

It appears a branch visit is required to open the CD. Branches are located in several Central Florida cities including Winter Park, Sanford, New Smyrna Beach, Palm Coast and Eustis.

The bank isn't in good financial shape. BauerFinancial gives it 0 stars based on 9/30/08 data. However, there has been a new development with Federal Trust that should help it weather the credit crisis. Federal Trust's parent has agreed on an acquistion by Hartford Financial Services in Novmeber (press release). Hartford is one of the many companies that are buying problem banks so it can qualify for federal assistance from the TARP funds.

As I recommend with any bank, make sure to stay below FDIC limits. The bank has been FDIC insured since 1988 (FDIC Certificate # 32580).
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5.00% Reward Checking Account at Neighbors Credit Union in Missouri
Friday, December 26, 2008 - 7:49 AM

Neighbors Credit Union is offering a reward checking account called Green Checking. It pays 5.00% APY on balances up to $25,000 (0.50% for above) and refunds up to $10/month in ATM fees if the following monthly requirements are met:
  • 12 signature-based debit card purchases
  • one direct deposit
  • log into online banking
  • receive e-statements
If these are not met, the rate falls to 0.50%. There are no minimum balance requirements and no monthly fees. If the above requirements are not met for 90 days of account opening, the account is converted to a Basic Green Checking with a rate of 0.25%.

This top yield is listed in the credit union's rate table. Only the top yield is shown. I had to call for the balance cap and the other yields. According to the CSR, this account was started in early November 2008. Hopefully, the high yield will last for a while.

Membership is open to those who live or work within St. Louis City, St. Louis County, St. Charles County, or Jefferson County, Misouri. Please refer to the credit union's Who Can Join section for the full details.

Branches are located in St. Louis, Fenton, Florissant and Hazelwood, MO. The credit union is federally insured by the NCUA (Charter # 62905).

Other 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.
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4.00% 12-Month CD at GMAC Bank - Nationally Available
Wednesday, December 24, 2008 - 7:36 AM

Update 1/02/09: The 12-month CD rate has fallen to 3.75% APY.

GMAC Bank continues to offer top yields on its CDs. Their CD rates have gone down just like everyone else, but they're one of the few with a 4.00% APY on a one year CD as of 12/24/08. Typically, GMAC Bank changes rates on Fridays, so this might not last much longer. The CDs can be opened online, so you should be able to lock into these rates before Friday.

GMAC Bank's FAQ page does a pretty good job describing the CD details. Please refer to my GMAC CD review post for a summary of GMAC's CD features.

GMAC Bank's Online Savings Account continues to offer a 3.75% APY as of 12/24/08. It has no minimum balance requirements and no monthly fees. GMAC Bank continues to be my favorite online bank due to its ACH bank-to-bank transfer features (see my latest OSA review).

GMAC Bank's parent has been in the news lately due to its financial problems. What may happen if GMAC Bank's parent goes bankrupt? Refer to my recent GMAC's troubles post for more on this issue.

GMAC Bank accounts are FDIC insured (FDIC Certificate # 57803).
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4.00% 15-Month CD at Nassau Educators FCU in New York
Wednesday, December 24, 2008 - 7:34 AM

Nassau Educators FCU is offering a special 15-month bump certificate with an APY of 4.00%. Minimum deposit is $1,000. This is also available as an IRA certificate. The special CD is listed in the credit union's rate table as of 12/24/08.

The credit union also has a reward checking account that pays 4.00% APY on balances up to $25,000 as of 12/24/08 (see post).

Membership is open to a wide range of Nassau County professionals, school employees and students. Please refer to their Membership page for the full details. Membership requires a minimum deposit of $5 in the share savings account. An online application is provided.

Branches are located in the New York cities of Westbury, Valley Stream, Massapequa, Plainview, Syosset, Rockville Centre and Brookville. The credit union is federally insured by the NCUA (Charter # 2760).
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High-Yield Reward Checking Account at Nassau Educators FCU in New York
Wednesday, December 24, 2008 - 7:29 AM

Update 4/1/2011: The top rate has fallen to 3.50% APY

Nassau Educators FCU is offering a reward checking account called Go Green Checking. It pays 3.50% APY on balances up to $25,000 (0.50% for above) and refunds up to $15/month in ATM fees if the following monthly requirements are met:

  • 12 VISA debit card signature-based purchases
  • One direct deposit of at least $100 or other monthly recurring deposit of at least $100 OR Maintain an active free online bill payment account and pay at least one bill per month
  • Receive eStatements

Update 12/2/10: From the credit union's Go Green Checking page

If the monthly requirements are not met, the bonus interest rate will be forfeited on balances up to and including $25,000. You'll continue to earn the competitive rate on balances over $25,000.

Update 7/18/10: The credit union has expanded its membership to include all those who live, work, worship or attend school in Nassau and Suffolk County, New York. Please refer to their Membership page for the full details. Membership requires a minimum deposit of $5 in the share savings account. An online application is provided.

Branches are located in the New York cities of Westbury, Valley Stream, Massapequa, Plainview, Syosset, Rockville Centre and Brookville. The credit union is federally insured by the NCUA (Charter # 2760).

Other 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.

Rate History:

  • 04/01/11: 3.50% APY up to $25K
  • 08/03/10: 4.00% APY up to $25K; 0.50% over; base rate: 0% up to $25K; 0.50% over
  • 02/17/10: 4.00% APY up to $25K; 0.65% over; 0.65% base rate
  • 04/16/09: 4.00% APY up to $25K; 0.75% over; 0.75% base rate
  • 12/24/08: 4.00% APY up to $25K; 1.00% over; 1.00% base rate

Edit 1/8/12: Updated monthly requirements.
Edit 1/18/09: Corrected based rate.

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3.00% Reward Checking Account at Advantage National Bank in Illinois
Wednesday, December 24, 2008 - 7:18 AM

Update 11/09/09: The top rate has fallen to 3.00% APY.

Advantage National Bank offers a reward checking account that pays 3.00% APY on balances up to $25,000 (0.50% for above) and refunds nationwide ATM fees if the following monthly requirements are met:
  • 12 debit card purchases
  • one direct deposit or automatic payment
  • access online banking
If these are not met, the rate falls to 0.10%. Minimum initial deposit is $100. There are no minimum balance requirements or monthly fees.

It appears a branch visit is required to open an account. Branches are located in the Chicagoland cities of Elk Grove Village, Roselle and Bloomingdale. Note, the three offices have their own bank names, but all three are under Advantage National Bank Group. The bank has been FDIC insured since 2001 (FDIC Certificate # 57103).

Other 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.

Rate History:
11/02/09: 3.00% APY up to $25K; 0.50% over
09/15/09: 3.50% APY up to $25K; 1.00% over; 0.10% base
02/16/09: 4.01% APY up to $25K
12/24/08: 5.00% APY up to $25K; 1.00% over; 0.50% base
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4.00% 16-Month Online CD at Dollar Savings Direct
Tuesday, December 23, 2008 - 8:12 AM

Update 2/05/09: The CD rate has fallen to 3.00% APY and the savings account yield has fallen to 3.20% APY.

Update 1/05/09: The CD rate has fallen to 3.50% APY. The savings account yield remains at 4% APY.

Emigrant Bank's DollarSavingsDirect is still offering 4% APY on its online savings account for balances of at least $1,000 (as of 12/23/08). However, I doubt this will last too much longer. If you want to lock in 4%, DollarSavingsDirect is also offering 4% APY on a 16-month certificate of deposit. With last week's historic Fed rate cut, this CD is now quite competitive. Emigrant Bank's old online bank, EmigrantDirect has already lowered its rates. EmigrantDirect's savings account APY is now 2.75% and its 16-month CD APY is 3.00%.

Details about DollarSavingsDirect's CDs are provided in this FAQ and in the account disclosure. A few important points regarding the CD include:
  • Must already have DollarSavingsDirect savings account to open CD (The savings account has no minimum balance fees so there's little downside to this)
  • $1,000 minimum balance is required to establish a CD and to earn the APY disclosed
  • Interest will be compounded on a daily basis and credited to your CD on the last day of the month and at maturity
  • Early withdrawal penalty for a 16-month term is an amount equal to 180 days interest (whether earned or not)
  • You may withdraw your posted interest at any time by transferring the money back to your linked funding account
  • 10 calendar day grace period at CD maturity in which you can close the CD without a penalty
  • If you choose to close your CD Account, no interest will be earned during the grace period
Emigrant Bank started DollarSavingsDirect in August 2008. Refer to my review of DollarSavingsDirect for more details. Like many banks these days, Emigrant decided to create a new savings account with high rates rather than raising the rate on its existing savings account at EmigrantDirect. Unfortunately, if you're an EmigrantDirect customer, you have to go through the entire new-account process at DollarSavingsDirect.

DollarSavingsDirect and EmigrantDirect are divisions of, Emigrant Bank which has been FDIC insured since 1934 (FDIC Certificate # 12054).

The bank's financial ratings for soundness have gone down in the last few months. It has dropped from 3 stars to 2 stars (problematic) at BauerFinancial and from 2 stars to 1 star (lowest) at Bankrate.com. These latest ratings are based on 9/30/08 data (old ratings based on 3/31/08 data). As I recommend with any bank, it's best to keep below the FDIC limits.
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5.00% 5-Year CD & 4.00% 18-Month CD at Community One FCU in Las Vegas
Tuesday, December 23, 2008 - 7:27 AM

Update 2/12/09: These CD rates have fallen, but they remain competitive. Refer to the credit union's website for the latest rates.

Community One Federal Credit Union is offering some competitive certificate rates. The two best are the 18-month CD with a 4.00% APY and the 5-year CD with a 5.00% APY. Minimum deposit is $1,000. These are also available as IRA certificates. These rates are listed in the credit union's rate table as of 12/23/08.

Full details of the accounts are described in the credit union's Truth in Savings Disclosure (pdf). Early withdrawal penalty for CD terms over one year is 180 days of interest.

Membership is open to all those who live, work, worship or attend school in Clark County. Please refer to the credit union's membership page for more details. Membership requires a minimum balance of $25 in the Prime Share Savings Account.

Community One FCU has 8 branches located in Las Vegas, Nevada. The credit union is federally insured by the NCUA (Charter # 13431).
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4.00% 12-Month CD at Mountain America Credit Union in UT, AZ & NV - Easy Membership
Tuesday, December 23, 2008 - 7:05 AM

Mountain America Credit Union continues to offer competitive rates on its CDs. The rates have become more competitive over the last week as banks have been slashing rates after the Fed's historic rate cut. The credit union typically only changes rates on the first of the month, so these may last through December. Below are the full list of CD yields as listed in the credit union's rate table as of morning of 12/23/08:

Term        APY
6 month     3.35%
12 month    4.00%
18 month    4.05%
24 month    4.11%
30 month    4.15%
36 month    4.25%
48 month    4.50%
60 month    4.75%

Minimum deposit is $1,000. These are also available as Traditonal and Roth IRAs. Note, their name for CDs is term deposits.

Before my last post on this credit union, I contacted the CSR using their online chat system. I was told that once your membership has been established, you should be able to open these CDs when logged into your account or by phone.

The credit union has a pretty good FAQ system. Here are some relevant ones for CDs: wire transfer info and CD early withdrawal penalties. On the downside, early withdrawals may be made only with the consent of the credit union. On the plus side, their early withdrawal penalties are below average: 30 days of interest for terms of 12 months and under, 90 days of interest for terms over 12 months. The penalty applies on the amount withdrawn.

Credit union membership is open to members of the American Consumer Council. Council membership costs $12, and is open to anyone. This council is listed in the credit union's Select Employee Groups & Affiliated Associations page. According to the CSR, members of the Council are qualified for membership into the credit union. The CSR also stated that one could join the credit union via their online application. Membership requires a minimum deposit of $25 into the share savings account. I haven't tried applying, so if you find problems in the application process, please leave a comment.

I just noticed the following at this page of the American Consumer Council website:
By joining through an ACC-affiliated credit union, you can join ACC for free!

I'm not sure how this can be done using Mountain America Credit Union's online application. This might require a branch visit.

Branches are located throughout Utah. I've also located a branch in both Phoenix, Arizona and Las Vegas, Nevada. The credit union is federally insured by the NCUA (Charter # 24692). It's a large credit union with $2.8 billion in assets and 313,553 members.
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3 Tips from the OCC's Website, Help With My Bank
Monday, December 22, 2008 - 9:04 AM

The Office of the Comptroller of the Currency (OCC) has a resource called helpwithmybank.com to help deal with problems you may have with your bank. This is specifically for national banks which are chartered and regulated by the OCC. However, the information is likely to still be relevant for other banks and for credit unions. In the website's FAQs I've found 3 that are related to issues that I've seen many people complain about.

When can a bank close a checking account?

In the years in writing this blog, many readers have had their checking or savings accounts closed for apparently no good reason. Here's the FAQ on this:
The bank closed my checking account and did not notify me. Is this legal?

Yes. Generally, national banks may close deposit accounts for any reason (e.g., inactivity or low usage) and without notice. Federal banking laws and regulation do not address the closing of deposit accounts.

This issue is governed by the Deposit Account Agreement you received when you opened your account. Review that Agreement, and contact your bank directly for more information.

This may be a good reason to have at least two checking accounts. If a bank does close your account, you can fall back on the other one. You could always open a new one when you need to, but you might have to deal with initial holds that could cause inconvenience.

Does a bank have to pay interest after a CD matures

The other useful FAQ has to due with certificates of deposit and when they mature. Most CDs are set up so they automatically renew at maturity. The new CD will have a new rate decided by the bank. At the time the CD matures, you can just let it automatically renew. But you have to be careful about this since the new CD may have a low rate. It's often better to close a CD, withdraw all the funds and use the funds for a CD at another bank.

CDs typically have grace periods when they mature. This a period of 5 to 20 days in which you are allowed to close the CD and withdraw the funds without penalty. Before the CD matures, any withdrawal triggers an early withdrawal penalty.

If the grace period is 14 days and you decide to close it on day 12, what interest rate will you receive during these 12 days? For many banks it may be zero, and this is allowed as explained by this FAQ:
Does the bank have to continue to pay interest on my Time Certificate of Deposit (CD) after it matures?

Not necessarily. If you choose to roll over/renew the time certificate of deposit (CD) for another term at the bank, the bank can continue to pay the interest.

Let's say you haven't decided in advance. Once the CD matures, you have 10 days to decide whether to renew or withdraw the funds. The bank can continue to pay interest until you decide, but it's entirely up to the bank.

You may want to review your Account Agreement, which explains if interest is paid after maturity. You should have received this Agreement when you opened the account.

How long can a hold time be?

Another issue that irks many people is the hold time that banks place on your money after you deposit a check or make an electronic deposit. During this hold time, you're unable to have access to the money. It's still earning interest, but you can't withdraw it or use it to pay bills.

Unfortunately, the government gives banks a lot of leeway on hold times for deposits over $5,000. From this FAQ

I deposited $10,000 to my account. When will the funds be available for withdrawal?

For deposits in excess of $5,000, banking laws and regulations allow for exceptions to the availability of funds. Exception holds include deposits over $5,000 which may be applied to any deposit of checks (including official checks) to any and all account(s) where the aggregate amount of the checks deposited on a banking day exceeds $5,000.

The hold may be placed only on the amount deposited in excess of $5,000; thus, the first $5,000 must be made available consistent with the bank's normal availability schedule.

When the large deposit exception is applied, the bank may extend the time periods established under the availability schedule by a reasonable period of time. According to the banking regulations, reasonable periods of time include an extension of up to five business days for local checks and six business days for non-local checks. However, under certain circumstances, a longer extension may be reasonable.

In addition, the account agreement you received when you opened the account should explain the availability process.

If you find any other FAQs at this OCC website useful, please leave a comment.
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High-Yield Reward Checking Account at Bank of Gloucester in Massachusetts
Monday, December 22, 2008 - 7:17 AM

Update 8/09/10: The top rate has fallen to 3.01% APY. Refer to the bottom of the post for the rate history.

Bank Gloucester is offering a reward checking account that pays 3.01% APY on balances up to $25,000 (1.01% for above) and refunds all ATM fees nationwide if the following monthly requirements are met:

  • 10 debit card purchases
  • one direct deposit or automatic payment
  • use online banking to receive electronic statements

If these are not met, the rate falls to 0.10%. Minimum initial deposit is $50. There are no minimum balance requirements and no monthly maintenance fees.

It appears a branch visit is required to open an account. The bank has one office located in Gloucester, Massachusetts.

The bank has been FDIC insured since 1987 (FDIC Certificate # 26536).

Other 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.

Rate History:

  • 08/06/10: 3.01% APY up to $25K
  • 10/24/09: 4.01% APY up to $25K
  • 12/22/08: 4.51% APY up to $25K; 1.01% over; 0.10% base
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4.32% 6-Month CD at Gloucester Bank in Massachusetts
Monday, December 22, 2008 - 7:05 AM

Update 12/24/08: It has been reported that this CD special has ended.

Bank Gloucester is offering a grand opening special 6-month CD with an APY of 4.32%. Minimum deposit is $50,000. An APY of 4.06% is available with a $2,500 minimum deposit. The special is listed on the bank's home page, and the details are described in the bank's rate table as of 12/22/08. A reader who commented on this special noted that the bank requires a branch visit for new accounts.

Gloucester Bank also offers a reward checking account that pays 4.51% APY for balances up to $25K as of 12/22/08 (see post).

The bank has one office located in Gloucester, Massachusetts.

Gloucester Bank has been FDIC insured since 1987 (FDIC Certificate # 26536).

Thanks to Scott who mentioned this special in the Finding the Best Deals post.
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Carnival of Saving Money - First Edition
Monday, December 22, 2008 - 12:00 AM

Welcome to the first edition of Carnival of Saving Money. We'd like to thank everyone who submitted posts for this first edition and share some of the ones that really stood out.

Savings Accounts

The Dough Roller presents Best High Yield Savings Account Offers posted at The Dough Roller

Silicon Valley Blogger presents Keep Your Money Safe: Online Bank Accounts and More Savings Options posted at The Digerati Life

Savings Toolbox presents Set Your Children Up With Savings Accounts posted at Savings Toolbox.

Deposit Accounts presents Investing in a Rocky Economy posted at Deposit Accounts.

Getting Out of Debt

Debt Free Destiny presents New Year's Resolution: Get Out of Debt For Good posted at Debt Free Destiny.

Destroy Debt presents Make Your Own Debt Reduction Plan posted at Destroy Debt.

Michael Geoffrey presents Pay Off Debt Or Invest Your Money? posted at Debt Smackdown

Frugal Living

Myscha Theriault presents Ice Cube Trays: Your Passport to Huge Savings posted at Wise Bread

MoneyNing presents Bargaining to Advantage: Lowering your Bills in a Recession posted at Money Ning

Finally We'd like to leave you with a little perspective. It's easy to get too focused on money and let our efforts to make and save more go a little to far. We'd like to share these last two posts to help remind everyone to focus on the things that really matter in life. Merry Christmas.

Debbie Dragon presents It's Not About The Money posted at Share Your Number.

Nicki presents When Penny-Pinching Has Pushed You Too Far posted at Domestic Cents

Comments (9)
$25 Bonus at Citibank for Opening the Ultimate Savings Account - Update
Sunday, December 21, 2008 - 8:37 AM

Citibank has a $25 bonus for opening its Ultimate Savings Account with a minimum initial deposit of $1,000. A $1,000 minimum balance must be maintained each month for the next 3 consecutive months to earn the bonus. Here's the promotional page link. You can apply online or by phone at 1-877-695-9400. Make sure to mention the code CYA8. This is the same offer that I had reported on in October. It's scheduled to expire on 1/31/09.

Some important small print of the promo:
  • $25 offer is only available for first-time Citibank deposit account customers
  • $25 will be credited to your account within 120 days from the date of satisfaction of offer terms
  • The amount of any bonus payment will be reported to the IRS as interest earned in the year credited

$25 is not much, but at least the Ultimate Savings Account has two nice features: currently has a fair yield of 2.75% APY and there are no monthly maintenance fees.

About the fees, their small print is confusing: "No monthly maintenance fee applies when held as a stand-alone account in the Citibank Account relationship package." I'm not sure what this means, but I've had this savings account since December with a small balance and with no checking account, and I have not been charged any fees. A reader mentioned this same thing in my previous Citibank post.

The two downsides to this Ultimate Savings Account is that the yield will probably not remain competitive and it has a very low ACH outbound transfer limit: $2,000 per day and $10,000 per month (Citibank's webpage). A reader in my last post provided the following tip of how to get around this limitation:
One can overcome the $2k/day, $10k/month outbound limits by opening some other type of savings or money market account with Citi, doing an internal transfer, then doing the ACH transfer from the standard savings/MM account.

You should also be able to transfer above these limits by initiating ACH transfers from another bank.

About a hard credit pull, readers have reported that Citibank has a new policy in which they no longer do hard credit pulls for deposit account applications with no overdraft protection. When I opened a Citibank checking account in 2006, I had a hard credit pull. A reader commented in my last post that he received a hard pull by Transunion when he recently applied for the Ultimate Savings Account.

Citibank still has a $100 checking account bonus that is scheduled to expire 12/31/08. It should be noted that it's not as good as previous promotions (see post).

Citibank is FDIC insured (FDIC Certificate # 7213).
Comments (2)
4.01% Reward Checking Account at Classic Bank in Texas
Sunday, December 21, 2008 - 8:34 AM

Update 1/12/09: The top yield has fallen to 4.01% APY. Refer to the bottom of the post for the rate history.

Classic Bank is offering a reward checking account that pays 4.01% APY on balances up to $25,000 (1.01% for above) and refunds all ATM nationwide fees if the following monthly requirements are met:
  • 10 Visa check card purchases
  • one direct deposit or direct withdrawal
  • receive electronic statements and maintain a valid email address
If these are not met, the rate falls to 0.25%. Minimum initial deposit is $100. There are no minimum balance requirements and no monthly maintenance fees.

The bank is listed at CheckingFinder but only when you enter a Texas zip code. So it appears that anyone in Texas can open this account online from this CheckingFinder page.

Branches are located in the Texas cities of Cameron, Rosebud, Rockdale and Giddings. The bank has been FDIC insured since 1934 (FDIC Certificate # 3126).

Other 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.

Rate History:
01/12/09: 4.01% APY
12/21/08: 4.75% APY
10/10/06: 4.75% APY up to $25K; Bank was called First National Bank (see 2006 post)
Comments (4)
5.00% 5-Year & 4.00% 2-Year CD at FedChoice FCU in MD, DC & PA
Sunday, December 21, 2008 - 8:31 AM

FedChoice Federal Credit Union is offering a 5.00% APY 5-year CD. Minimum deposit is $500, and it requires new money. An APY of 5.05% is available for a $50,000 minimum deposit. There's also a competitive 24-month CD with an APY of 4.00% (4.05% for $50K). These are available as regular and IRA CDs. These rates are listed in the credit union's rate table as of 12/21/08, and they're only limited time specials.

Field of membership includes all federal civilian employees, annuitants and their families in the Washington, D.C., Baltimore and Philadelphia Metropolitan areas. Refer to the site for details about the specific counties that are part of the covered areas.

Branches are located in Maryland, Washington DC and in Philadelphia, Pennsylvania.

FedChoice FCU is federally insured by the NCUA (Charter # 150).
Comments (4)
Bank Deals Weekly Summary for December 20, 2008
Saturday, December 20, 2008 - 3:09 PM

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

This was a historic week with the Fed slashing the target federal funds rate to an all-time low. It was set at a range from 0 to 0.25%. I remember in the summer when there were expectations that the Fed would be starting rate hikes after the election. This is a good example of how difficult it can be in predicting future interest rates.

On the positive side, there were no bank failures yesterday. With only one Friday left in 2008, we may be finished with bank closures for 2008. If that is the case, that would be 25 bank failures for the year. It's still way below what we saw during the S&L Crisis in the late 80's and early 90's. However, I doubt the worse is over, and the FDIC appears to be getting ready for many more failures in 2009 (see post).

Savings Account Rates

As you might expect after the Fed's historic rate cut, this week wasn't good for savers. I haven't seen so many banks cut rates since early this year when the Fed started its string of massive rate cuts. On the positive side, there are several banks that are holding steady with their rates. There are still a few 4% savings accounts on my list, and there are several that are above 3.50%. I'm afraid these rate will likely fall, but there may be factors that prevent these rates from falling as low as they did back in 2002. This BestCashCow post has a good discussion of these factors.

UFB Direct Traveler Savings had one of the largest rate cuts this week. The rate fell from 4% to 3.15% APY. I think we all knew the 4% was just a teaser rate.

The two banks that were acquired by mega banks continue to slash their savings account rates. Countrywide cut its SavingsLink yield from 2.40% APY to 1.90% APY for balances of $10K to $50K. WaMu cut its online savings account yield from 2.00% APY to 1.50% APY.

Many online checking account rates were slashed: ING Direct's Electric Orange rate cut from 1% to 0.50% for under $50K, E*TRADE MaxRate checking rate cut from 2.90% to 1.50%, and Charles Schwab checking rate cut from 1.50% to 1.00%. It's interesting to see E*TRADE advertising their new 1.50% APY is 10x the national average checking rate. They're going to have try harder to make 1.50% look appealing.

The only rate increase this week was at Bank of Internet, but this probably shouldn't be considered a rate increase. Earlier this month Bank of Internet changed its savings account into a competitive online savings account. The yield was increased from 2% to 3.51% APY (see post).

Below is the list of savings account rate changes for this week. Due to large number of rate cuts, I tried to simplify things. I didn't list rate tiers for any accounts. All rates are based on APY. The full list of savings account rates is farther down.

Rate Hikes:
  1. Bank of Internet, High Yield Savings - 3.51% (was 2.00%)
Rate Drops:
  1. UFB Direct Traveler Savings - 3.15% (was 4%)
  2. 1st Constitution Direct 3mo promo - 3.75% (was 4%)
  3. GCF Bank 3mo promo - 3.00% (was 4%)
  4. Corus Bank MMA - 3.65% (was 3.75%)
  5. Union Federal Savings - 3.60% (was 3.75%)
  6. CNB Bank Direct - 3.50% (was 3.75%)
  7. OnBank - 3.15% (was 3.60%)
  8. Mutual Bank 3mo promo - 3.30% (was 3.55%)
  9. Bank of Internet MMA - 3.26% (was 3.46%)
  10. Bank of Internet Chk - 3.20% (was 3.40%)
  11. UmbrellaBank MMA - 2.75% (was 3.40%)
  12. Zions MMA - 2.84% (was 3.41%)
  13. E*TRADE Complete Savings - 3.01% (was 3.30%)
  14. National City 6mo promo - 3.00% (was 3.25%)
  15. Transportation Alliance savings - 2.00% (was 3.00%)
  16. EmigrantDirect - 2.75% (was 3.00%)
  17. AARP savings - 2.50% (was 3.00%)
  18. Discover MMA - 2.90% (was 3.00%)
  19. E*TRADE MaxRate chk - 1.50% (was 2.90%)
  20. E-LOAN Savings Plus - 2.40% (was 2.90%)
  21. iGObanking checking - 2.00% (was 2.80%)
  22. ING Direct Electric Orange - 0.50% (was 1.00%)
  23. Salem Five Direct - 3.00% $100K+ (was 3.25%)
  24. E-LOAN std savings - 1.91% (was 2.41%)
  25. Countrywide savings - 1.90% (was 2.40%)
  26. WaMu Online Savings - 1.50% (was 2%)
  27. VirtualBank - 1.02% (was 1.51%)
  28. Charles Schwab checking - 1.00% (was 1.50%)
Nationwide Certificate of Deposit Rates

CD rates trended down this week even more than savings account rates. There are now just a handful of banks offering at least 4% on CDs with terms under 4 years. I find it amusing when banks try to market their CDs after they've made huge rate cuts. My favorite this week is at Zions Bank. Under their new 6-month CD APY of 1.66%, it states "We want to give you more." It should say "We wish we could give you more."

For most terms, credit unions are offering the best rates. Many credit unions typically only change rates at the start of each month, so this can give you a chance at some decent rates.

Good CD deals available nationwide are disappearing, but they are a few that are still available (at least as of 12/20/08). Some of these are listed below. The full list of nationwide CD rates is farther down.
  1. 4.00% 6-mo CD at Navy FCU (account review)
  2. 4.00% 8-mo CD & 4.50% 16-mo CD at Digital Credit Union (account review)
  3. 4.26% 24-mo CD at FNBO Direct (account review)
  4. 4.40% 24-mo Jumbo CD at MetLife Bank (account review)
  5. 4.75% 3-year CD at Pentagon FCU (account review)
  6. 5.00% 5-year CD at Chase/WaMu (account review)
  7. 5.10% 5-year CD at Apple FCU (account review)
  8. 5.10% 5-year CD at Navy FCU (account review)

Local Certificate of Deposit Rates

Those hot local CD deals have been shrinking. Below is a list of some of the best ones that are still available. These deals won't last long, so please check with the institution. For more local deals, please refer to the new local CD deals and the state section below.
  1. 5.00% 60-mo CD in California (account review)
  2. 4.15% 10-mo, 4.3% 15-mo & 4.5% 27-mo CD in FL & GA (account review)
  3. 4.00% 9-mo CD in MN & MO (account review)
  4. 4.25% 18-mo CD in Kansas (account review)
  5. 4.25% 14-mo & 4% 3/6-mo CD in FL (account review)
  6. 4.58% 12-mo CD in DC & MA (account review)
  7. 4.50% 12-mo CD in Houston (account review)
  8. 4.50% 22-mo CD in Indiana (account review)
  9. 4.50% 24-mo CD in Michigan (account review)
  10. 4.30% 15-mo CD in TX & CO (account review
Reward Checking Accounts

I posted on two new reward checking accounts this week. One of these was at Venture Bank Direct, and it's available nationwide (see post). Unfortunately, the top yield is only 3.50% APY which is lower than Venture Bank Direct's online savings account rate (3.60% APY). On the positive side, it's nice to see a reward checking account being offered by an internet bank. Hopefully, we'll see more.

I've been hoping these reward checking accounts will be able to provide rates at least 100 basis points higher than online savings account rates. For many cases, this has been true in the last two years. But based on Venture Bank Direct's rates, this may be too optimistic for the long term. It'll be interesting to see how these reward checking yields hold up next year.

For my full list of reward checking accounts around the nation, please refer to my High Yield Checking website.

Recap for the Week - Links to This Week's Posts

Banking News

Savings/Checking Accounts - National
CD Deals - National
Checking/Savings Account Bonuses

Reward Checking Accounts

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 13th, Dec 6th, Nov 29th, Nov 22nd, Nov 15th, Nov 8th, Nov 1st, Oct 25th and Oct 18th.

Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Reward Checking, 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 20, 2008

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:

Various Deposit Account Deals


High Yield Reward Checking Accounts - Open to All


Checking and Saving Accounts at Local Banks/Credit Unions

Recent CD Specials at Local Credit Unions and Banks


Bank Account Alternatives


Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)
Comments (1)
3.05% Checking Guaranteed Until 6/30/09 at Old Southern Bank in Florida
Saturday, December 20, 2008 - 11:17 AM

Old Southern Bank is offering a 3.05% APY on its Investment Checking Account and is guaranteeing this rate through June 30, 2009. This offer is listed at the bank's products page as of 12/20/08. Minimum balance to earn this yield is $10,000. If the average daily balance falls below $10K, the rate falls and a monthly fee of $25 is charged. Balances in excess of $1 million may be subject to a reduced rate.

Unlike many other high yield checking accounts, this does not require debit card usage or other activities to maintain the high rate. Accounts are for individuals only.

I first reported on this checking account in August 2006 when the bank was offering a 6% promo with a rate guarantee through March 15, 2007. Since then it has maintained a very competitive rate that has been comparable to online savings account rates. I've been tracking the rate history in this post.

On the bottom of the products page it states that these are "available in our Clermont, Downtown Orlando, Winter Park, Altamonte Springs, Longwood, Colonialtown and Sand Lake offices only." Please refer to the bank's branch page for addresses and phone numbers.

Old Southern Bank's ratings for soundness are mixed: 3 stars (adequate) at BauerFinancial and 1 star (lowest) at Bankrate.com. Both ratings are based on 9/30/08 data.

The bank has been FDIC insured since 2006 (FDIC Certificate # 58182). As I recommend with any bank, it's best to keep under the FDIC limits.
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4.00% 4-Month CD at Great Lakes Credit Union in IL & WI
Friday, December 19, 2008 - 10:03 AM

Great Lakes Credit Union is offering a special 4-month certificate with a 4.00% APY. There is no minimum or maximum deposit. The promotion is listed on the credit union's home page as of 12/19/08. According to the promotion page, this CD is scheduled to last through 12/31/08.

Membership is open to those who live or work in Lake or McHenry Counties of Illinois or Kenosha County of Wisconsin. You can also be eligible if you're a current or retired federal government employee. Please refer to the credit union's Membership Page for more details. Membership requires a minimum $5 deposit into a savings account.

Branches are located in Chicago, Gurnee, Libertyville, Round Lake Beach and Waukegan.

The credit union has some decent ratings for soundness: 5 stars (superior) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 9/30/08 data. The credit union is federally insured by the NCUA (Charter # 60238).
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Last Days of Two $150 Checking Account Promotions
Friday, December 19, 2008 - 9:13 AM

There are two checking account promotions each with a bonus of up to $150 that are scheduled to end on 12/31/08:

$150 Visa Gift Card at National City Bank available in 9 states (my bonus review)

$150 cash bonus at NuVision FCU available in Southern California (my bonus review)

Both of these require some work, so please review the details at my bonus review posts.
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4.00% 9-Month CD at Endura Financial FCU in MN & MO
Friday, December 19, 2008 - 8:55 AM

Update 1/09/09: This special CD rate is no longer listed. Please refer to the credit union's website for the latest rates and specials.

Endura Financial FCU has a share certificate special with an APY of 4.00% and a term of 9 months. Minimum deposit is $5,000. This special is listed in the credit union's rate table as of 12/19/08.

I just reported on this credit union's reward checking account which has a yield of 4.50% APY for balances up to $25,000 as of 12/19/08 (see post).

The credit union also has a nice refer-a-friend bonus of $50 for both the person joining and the member who made the referral.

Membership is open to anyone who lives, works, worships or attends school in any of the of the following Minnesota cities: Brooklyn Center, Crystal, Golden Valley, Hopkins, Minneapolis, New Hope, Robbinsdale and St. Louis Park. It also includes those in Jackson County, Missouri. You can also join via Select Employer Groups and family. Please refer to the credit union's Who Can Join page for more details. Membership requires a $5 deposit into a share savings account.

Branches are located in Minneapolis, Brooklyn Center, and Golden Valley, MN and in Kansas City, MO. The credit union is federally insured by the NCUA (Charter # 24446).
Comments (6)
High-Yield Reward Checking Account at Endura Financial FCU in MN & MO
Friday, December 19, 2008 - 8:52 AM

Update 10/01/2011: The top rate has fallen from 3.01% to 1.51% APY.

Endura Financial FCU has a reward checking account called eLife checking. It pays 1.51% APY on balances up to $25,000 (0.15% for above) and refunds up to $15 of ATM fees per month if the following monthly requirements are met:

  • 12 debit card purchases
  • one direct deposit (see 8/3/10 update below)
  • Online banking enrollment and receiving e-statements

If these are not met, the rate falls to 0.15%. Minimum initial deposit is $25. There are no monthly fees and no minimum balance requirements.

Update 8/3/2010: The credit union added a new direct deposit requirement in order to qualify for the $25K balance cap. The direct deposit must be at least $2.5K (up from $1K on 6/29/11). Smaller direct deposits result in smaller balance caps.

The credit union also has a nice refer-a-friend bonus of $50 for both the person joining and the member who made the referral.

Membership is open to anyone who lives, works, worships or attends school in any of the of the following Minnesota cities: Brooklyn Center, Crystal, Golden Valley, Hopkins, Minneapolis, New Hope, Robbinsdale and St. Louis Park. It also includes those in Jackson County, Missouri. You can also join via Select Employer Groups and family. Please refer to the credit union's Who Can Join page for more details. Membership requires a $5 deposit into a share savings account.

Branches are located in Minneapolis, Brooklyn Center, and Golden Valley, MN and in Kansas City, MO. The credit union is federally insured by the NCUA (Charter # 24446).

Other 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.

Account History

  • 10/01/11: 1.51% APY up to $25K (with $2.5K+ DD)
  • 06/29/11: 3.01% APY up to $25K (with $2.5K+ DD); 0.15% over; 0.15% base
  • 08/03/10: 4.01% APY up to $25K (with $1K+ DD)
  • 11/08/09: Debit card usage requirement only met by debit card purchases. Enrollment in Online Banking is also required.
  • 12/19/08: 4.50% APY up to $25K; 0.25% over; 0.25% base; Debit card usage requirement can be met by online banking, bill pay, debit card purchases, or ACH withdrawals requirements include
Comments (1)
4.10% 18-Month CD & 4.00% 5-Month CD at Hyde Park Savings Bank in MA
Friday, December 19, 2008 - 8:49 AM

Update 1/11/09: These CD rates have ended. Please check the bank's website for the latest rates.

Hyde Park Savings Bank is offering two competitive CD rates: 4.00% APY 5-month CD and a 4.10% APY 18-month CD. Minimum deposit is $10,000. The rates are listed in the bank's rate table as of 12/19/08 and are subject to change at any time.

These CD rates require a minimum of 3 withdrawals per statement cycle in a Triangle Interest Checking Account. If this is not done, the interest rate on the CD permanently falls by 0.50%. Qualifying withdrawals include those conducted via ATM, debit card, check, bill pay, phone transfer and online transfer.

The Triangle Interest Checking Account has a $10/month fee, but this can be waived with a combined deposit balance of $5,000. It seems like it would be easy to set up 3 automatic withdrawals per month.

The bank also offers an internet 9-month CD with an APY of 3.80%. Minimum deposit is $1,000. This does not require any relationship. The 3.80% APY is listed in the bank's rate table as of 12/19/08.

The bank provides an online application, but it specifically restricts accounts to Massachusetts residents.

Branches are located in the Massachusetts cities of Brookline, Dedham, Hyde Park, Norwood and West Roxbury.

Hyde Park Savings Bank has some decent ratings for soundness: 5 stars (superior) at BauerFinancial and 3 stars (performing) at Bankrate.com. These ratings are based on 9/30/08 data.

The bank is FDIC insured (FDIC certificate # 90160). It also has private DIF insurance to provide protection for deposits over the FDIC limits.
Comments (14)
Rate Cuts - ING Direct, WaMu, E*Trade, UFB Direct & Others
Thursday, December 18, 2008 - 5:02 PM

I'm afraid many banks are not wasting any time cutting deposit rates after Tuesday's historic Fed rate cut. Checking, savings and CD rates are all going down.

One interesting thing to note is that ING Direct didn't cut their Orange Savings account yield. It's still 2.75% APY. However, their CD rates and Electric Orange checking account rates were slashed. For balances of under $50K, the checking now only pays 0.50% APY. That's getting close to zero.

WaMu's online savings account yield is also getting close to zero. WaMu yet again lowered the yield on this account. It's now 1.50% APY (down from 2% APY).

Below are a few more of the recent checking and savings account rate drops. I'll provide a full update in my Saturday weekly rate summary.
  • UFB Direct Traveler Savings - 3.15% APY (was 4%)
  • 1st Constitution Direct 3mo promo - 3.75% APY (was 4%)
  • GCF Bank's CyberSaver 3mo promo - 3.00% APY (was 4%)
  • CNB Bank Direct - 3.50% APY (was 3.75%)
  • Corus MMA - 3.65% APY (was 3.75%)
  • UmbrellaBank MMA - 2.75% APY (was 3.40%)
  • E*Trade Max-Rate Checking - 2.25% APY (was 2.90%)
  • WaMu Online Savings - 1.50% APY (was 2.00%)
  • ING Direct Electric Orange - 0.50% APY under $50K, 2.85% APY $50K-$100K, 3.05% APY $100K+ (was 1%/2.90%/3.25%)
Comments (9)
Issues of Long-Term CDs and Early Withdrawal Penalties
Thursday, December 18, 2008 - 9:52 AM

With the historic rate cut by the Feds, banks have begun slashing deposit rates. There are still some opportunities to lock into a high rate but most of these CDs have long terms of up to 5 years. Are these good deals?

There are two economic possibilities to consider: one that favors long-term CDs and the other that makes them undesirable:
  • PRO: Rates will remain low for many years similar to what happened in 2001 in the US and in Japan through the 90's
  • CON: All the money being pumped into the economy by the US government will lead to high inflation at some time between 1 and 5 years from now. This will force substantial increases in interest rates similar to what happened in the early 80's when CD rates were over 15%.
I can't say which is more likely to occur. One thing to consider is if rates do remain low for a long period, you may have no options to find decent rates when your short-term CDs mature. If you are locked into a long-term CD and rates rise, you usually have the option to do an early closure of the CD. It'll cost you an early withdrawal penalty, but it may be worthwhile if you can get another CD at a much higher interest rate.

The typical early withdrawal penalty for long-term CDs is around 6 months of interest. The smallest I've found is 3 months of interest. Some have penalties as high as half the term in interest. This would be 30 months of interest for a 5-year CD. The shorter the penalty, the less cost it'll be to close the CD and re-invest it into a higher rate CD.

Can banks refuse an early withdrawal request?

The other concern that some readers have mentioned is when the bank has a clause in their disclosures that state they have the right to refuse an early withdrawal request. Penalties would apply only if they consent on the withdrawal.

I haven't seen cases where banks have used these clauses to prevent customers from making withdrawals. It appears this is rarely used by banks. But since it's in writing, it is possible, and it is a legitimate concern.

I asked Chris at Jumbo CD Investments about this, and he remembered two cases in which a bank refused to release funds. In one case, the bank ended up working with him and his client. They were able to have the bank release the funds after negotiating a higher penalty. The other bank would not budge, and it refused to release the funds.

Chris had a good recommendation when banks have this small print about restricting withdrawals:
Some of our clients would issue a letter and have the bank sign, indicating that they would allow for the closure at the stated penalty. This is quite effective. Most banks are willing to sign because they really don’t intend to not allow the withdrawal.

If you have experienced banks that have refused early withdrawals from CDs or if you had success with such letters, please leave a comment.

To find some 5% 60-month CDs that are still widely available as of the morning of 12/18/08, please refer to my previous post.
Comments (9)
Last Chance to Lock into a 5 Percent CD?
Thursday, December 18, 2008 - 9:47 AM

With last Tuesday's historic Fed rate cut, banks are reponding fast and dropping their deposit rates. CD rates seem to be falling faster than savings account rates. I'm afraid it may be a while before we see 5% CDs again. There are still a few 5% long-term CDs available as of this morning:
Note these rates are based on what was listed on the financial institutions' websites as of the morning of 12/18/08. The two credit unions also offer these rates in IRAs. I'm not sure about Chase/WaMu.

One credit union, Christian Community CU, with easy membership is offering a special 5% APY CD for terms from 24 to 60 months. However, it does not have federal insurance via NCUA. It's only privately insured via ASI (credit union review).

In my next post, I'll look into the pros and cons of long-term CDs.
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4.15% 10-Month CD & 4.30% 15-month CD at Omni National Bank in Florida & Georgia
Thursday, December 18, 2008 - 8:44 AM

Update 3/27/09: The bank was closed by regulators. Refer to this post for more details.

Omni National Bank is offering 3 competitive CDs for residents of Tampa, Florida and Atlanta, Georgia. These include a 4.15% APY 10-month CD, a 4.30% APY 15-month CD and a 4.50% APY 27-month CD. These rates are for new deposits in both regular CDs and IRA CDs. Minimum deposit is $5,000. These CD rates are listed at the bank's website as of 12/18/08. Rates are subject to change at any time.

The bank also has branches in Dalton, GA; Chicago, IL; and Dallas and Houston, TX. However, these rates are lower. These include a 3.75% APY 10-month CD, a 4.00% APY 15-month CD and a 4.15% APY 27-month CD.

It appears a branch visit may be required to open an account. Please check the bank's location page for addresses and phone numbers.

The bank's financial ratings for soundness are weak: 0 stars (lowest) at BauerFinancial and 1 star (lowest) at Bankrate.com. Both ratings are based on 9/30/08 data. The bank has been FDIC insured since 1976 (FDIC Certificate # 22238).

Edit 12/20/08: Corrected term of 4.30% CD from 30 to 15 months.
Comments (1)
5.00% 60-Month CD at Pacific Capital Bank in California
Thursday, December 18, 2008 - 8:28 AM

Update 1/06/09: The 5% CD is no longer listed on the websites.

Pacific Capital Bank, N.A. continues to offer a special CD with a 5.00% APY and a 60-month term. Minimum deposit is $1,000, and it's available as a consumer, IRA and business CD. Other shorter-term CD specials are also available but their rates are much less competitive with yields under 4%.

Pacific Capital Bank operates 48 branches under 5 other bank names. Each of these 5 have their own webpage. The links to all 5 are located on Pacific Capital Bank's homepage. The front of each webpage lists this 5% CD promotion as of 12/18/08.

My last post on this bank was in October when it was offering a 5% 25-month CD. This ended in November. Two readers who opened these CDs commented that they received great customer service from this bank.

It appears that a branch visit may be required to open an account. Branches are located in the following California counties: Los Angeles, Monterey, San Benito, San Luis Obispo, Santa Barbara, Santa Cruz and Ventura.

Pacific Capital Bank's ratings for soundness have gone down a bit since my last post but they remain fair: 3 stars (performing) at Bankrate.com and 3 stars (adequate) at BauerFinancial. Both are based on 9/30/08 data. The bank has been FDIC insured since 1960 (FDIC Certificate # 18169).
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4.00% 7-Month CD at Spencer Savings Bank in Massachusetts
Thursday, December 18, 2008 - 8:13 AM

Update 12/20/08: The 7-month CD rate has fallen to 3.50% APY. Please check the bank's website for the latest rates.

Spencer Savings Bank is offering a special 4.00% APY 7-month CD. Minimum deposit is $500. This CD is listed in the bank's rate table as of 12/18/08. Other CD specials are listed, but those are much less competitive with a yield of only 3%.

It appears a branch visit is required to open an account. Branches are located in the Massachusetts cities of Spencer, Leicester, Rutland, Warren and Worcester.

The bank has some solid ratings for soundness: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate. Both ratings are based on 9/30/08 data. It has been FDIC insured since 1985 (FDIC Certificate # 90282).

Other Top Certificate of Deposit Rates

With the recent historic Fed rate cut, high CD rates are not lasting long. I've found two Massachusetts credit unions that are still offering competitive CD specials.

First Priority Credit Union continues to offer a 4.00% APY 5-month no-penalty CD (see post).

Digital Credit Union continues with their CD promotion with a 4% APY 8-month CD and a 4.50% APY 16-month CD. Most of DCU's branches are located in Massachusetts but anyone in the US can qualify for membership and open the CDs by mail (see post).
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Bank of Internet's High Yield Savings Account - New Higher Yield
Wednesday, December 17, 2008 - 5:12 PM

Update 5/04/10: The High Yield Savings Account rate has fallen from 1.30% APY to 1.10% APY. Refer to the bottom of the post for the rate history.

Online banks have begun to lower their rates in response to the Fed's historic rate cut. Bank of Internet USA is one of these. It lowered the yields by 20 basis points on both the Money Market Savings Account (down to 3.26% APY) and the High Interest Checking (down to 3.20% APY). However, the High Yield Savings Account now pays 3.51% APY as of 12/17/08.

By reviewing the rate history of this account, it appears BofI raised the yield on December 10th from 2.00% to 3.51% APY. This used to be called Regular Savings Account. Like other online banks (Capital One and GMAC), BofI appears to have decided to offer the highest rates on its savings account rather than on its money market account. The only difference between these two accounts appears to be that the savings account does not have check writing privileges. The higher rate for the savings account makes sense since the lack of checks should make the account a little less costly for the bank.

Here's a summary of the High Yield Savings Account features:

  • 3.51% APY on all balances as of 12/17/08
  • $100 min. initial deposit required
  • No monthly maintenance fee
  • No minimum daily balance required
  • ATM card available
  • Interest is compounded daily and credited monthly
  • No ACH transfer service available
  • Accepts ACH transfers initiated from another bank

Note the lack of the electronic ACH bank-to-bank transfer feature. I called yesterday to see if they might have added this. Unfortunately, they have not.

For more info on Bank of Internet and its checking and money market account, please refer to my July 2008 BofI account reviews.

BofI's ratings for soundness have remained the same since my July report: 3 stars (performing) at Bankrate.com and 4 star rating (excellent) at BauerFinancial. These ratings are based on 9/30/08 data.

The bank has been FDIC insured since 2000 (FDIC Certificate # 35546).

Rate History:
05/04/10: 1.10% APY
04/09/10: 1.30% APY
03/24/10: 1.40% APY
02/10/10: 1.50% APY
??/??/10: 1.60% APY
11/16/09: 1.70% APY
08/04/09: 1.75% APY
07/29/09: 1.81% APY
05/01/09: 2.06% APY
03/04/09: 2.00% APY
02/24/09: 2.50% APY
02/05/09: 3.10% APY
12/17/08: 3.51% APY

Comments (3)
4.15% 17-Month CD at Western FCU - Easy Membership
Wednesday, December 17, 2008 - 8:28 AM

Western FCU is offering a special 4.15% APY 17-month CD. The minimum deposit is $1,000. According to the credit union's promotional web page, this offer is scheduled to last through December which is a plus in the current interest rate environment. The account can be opened online or at a branch.

I had posted on Western FCU several times in 2007 when it was offering long-term CDs with yields as high as 5.75% APY. Its standard CD rates haven't been too competitive for most of this year, but they're actually fairly competitive now. One plus with these CDs is a mild early withdrawal penalty of 90 days of interest (see page 7 of the Truth-in-Savings disclosure).

Update 1:00PM PST: Western FCU has a $25 bonus for members who sign up for eStatements before the end of 2008. Also, they're offering a $20.09 bonus when you open a Club Account and refer a new member to Western by January 31, 2009. Hat tip to the commenter who mentioned this.

Membership is open to members of two associations in which anyone can join with a $25 fee. Western FCU also has a long list of Select Employer Groups in which you can be immediately eligible to join. Please see their how to join page for more details.

Membership requires a $5 membership fee and a minimum deposit of $5 into the primary savings account. In the online application, it states that the $5 membership fee and $5 membership deposit are compliments of Western. It warns that it's only for a limited time. However, it has been this way since my September 2007 post.

The credit union has its headquarters in California but it also has branches in Arizona, Arkansas, Colorado, Texas, Utah and Virginia.

Western FCU's ratings for soundness are good: 5 stars (superior) at BauerFinancial and 3 stars (performing) at Bankrate. Both ratings are based on 9/30/08 data.

The credit union is federally insured by the NCUA (Charter # 15732). It's a large credit union with $1.43 billion in assets and 140,746 members.
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Pentagon Federal Credit Unioin's 4.75% 3-Year CD
Wednesday, December 17, 2008 - 8:24 AM

If you weren't able to advantage of PenFed CDs last month when the yield was 5%, you still have the opportunity to open a 4.75% APY 3-year CD. Last month a 4.75% 3-year CD wasn't that great, but now it's on top for a federally insured institution.

In addition to a 3-year term, the 4.75% APY applies to 4, 5 and 7-year terms. PenFed's CDs have a minimum deposit of $1,000. They're also available as Coverdell Education Savings Certificates and as IRA Certificates. PenFed CD rates typically last through the month.

For more details about PenFed's CDs and joining PenFed, please refer to this PenFed review post. PenFed makes it easy for anyone to join and open accounts online. If you don't qualify based on military, employer or family, you can become eligible by joining the National Military Family Association (NMFA). Please refer to How to Join Overview Page for details. Joining NMFA and Penfed can be done at the same time all online. The yearly membership for NMFA is $20, but your membership in the association does not need to be maintained to continue as a Penfed member

Credit Cards and Mortgages

In addition to high CD rates, PenFed has several other competitive banking products including a cash back Visa credit card with 5% cash back for gas purchases and auto loans with very low rates (see post). Also, PenFed is known for good mortgage deals. They currently have a 30-year fixed mortgage with an APR of 5.375%.

PenFed's financial rating for soundness at Bankrate.com has improved since last year. It's now 4 stars (sound) based on 9/30/08 data (up from 3 stars last year). PenFed's rating at BauerFinancial remains at 5 stars (superior) based on 9/30/08 data.

PenFed is one of the largest credit unions in the US with $12.7 billion in assets and 846,549 members. It's federally insured by the NCUA (Charter # 227).
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Apple Bank for Savings One-Year 3.75% Money Market Promo Continues in New York
Wednesday, December 17, 2008 - 8:20 AM

Update 12/31/08: A reader has reported being told by Apple Bank that this promotion has been suspended.

Apple Bank for Savings continues to advertise their 3.75% money market account promotion with the 3.75% APY guaranteed for 12 months. The offer doesn't seem to be listed at the bank's website. It was advertised in today's (12/17/08) edition of the NY Daily News. The ad is available online here.

I first reported on this promotion in this December 8th post. As I mentioned in the post, this guarantee requires some work. It requires a Grand Yield Advantage NOW Checking Account that has a minimum of 6 customer transactions per statement cycle. The 3.75% APY applies to all balances up $200K. Minimum deposit to open and avoid a $25 monthly fee is $10,000.

With the target federal funds rate at a historic low, a one year rate guarantee on a liquid account could be very useful. Six months from now, it may be hard to find a 2% savings account.

A branch visit is required to open an account. Apple Bank for Savings has branches in Manhattan, Bronx, Brooklyn, Queens, Westchester, Suffolk, Nassau and Staten Island, New York.

Grand Yield Direct is the online savings account that Apple Bank started in 2006. That savings account continues to offer a decent yield (currently 3% APY). Please refer to this post for more details on this savings account.

Apple Bank for Savings continues to have strong ratings for soundness. In fact its Bankrate Safe & Sound rating has gone up from 4 to 5 stars (the highest rating). It continues to have 5-star rating (superior) at BauerFinancial. Both ratings are based on 9/30/08 data. The bank has been FDIC insured since 1943 (FDIC Certificate # 16068).
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Investing In A Rocky Economy
Wednesday, December 17, 2008 - 12:00 AM

With all the talk about a recession (Are we headed for one? Are we already in a recession?), many people are unsure where the safest options are for investing their money. Stock values and retirement accounts are plummeting and whether or not you're in them for the long haul, you may still want to invest some of your money in investments that are considered “less risky” in an effort to combat the situation of the current economy.

Certificates of Deposit are an option for a reasonably safe investment that also offers the opportunity to earn interest. It's a bit like loaning money to the bank; and in return – they pay you interest on the money you've loaned them. The CD is a note from the lending institution that states you are investing a certain amount of money for a specific time period; and during that time period, the lending institution will pay you a guaranteed interest rate when the CD matures at the end of the designated time period.

You can choose the investment period you prefer, with options ranging from a few months to several years. Usually the longer you invest the higher your interest rate, but the amount of your deposit will also play a role in the interest rate you secure. High yield certificates of deposits are typically offered around 4% interest for deposits of $5,000 or more, but it will vary from one lending institution to another. The varying interest rates are a good example of why it's important to take some time and compare your options for investing in certificate of deposits. Just as an online bank can offer better rates and terms on checking accounts and money market accounts, they are often likely to have the ability to offer higher rates on their certificate of deposit accounts due to having lower overhead costs for operating expenses.

During times of economic difficulty, a certificate of deposit is a nice option for investing money you can't afford to lose. The potential of losing your money in the stock market is a much greater risk and you can easily lose your money just as fast as you invest it in stocks. Putting your money into a certificate of deposit, on the other hand, guarantees that the interest rate you are given when you invest is locked in for the life of your certificate of deposit and will not change. You know exactly how much money you'll have at the end of your investment term.

While safe investments, the downside of a certificate of deposit is that you are committed to investing for the full length of time you arrange when you set up the investment. If interest rates increase after you've invested your money, you can't just pull the money out of your CD and move it to a new investment (at least not without paying early withdrawal penalties on your certificate of deposit!)

In an uncertain economy, and any time you want to invest money in secure, interest earning options, a certificate of deposit is a practical investment. If you have enough money to deposit to qualify for a high yield certificate of deposit, you'll earn an even more attractive interest rate that does not decrease in value and does not pose any risks of losing your initial investment.

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FDIC Prepares for More Bank Failures
Tuesday, December 16, 2008 - 7:15 PM

On the same day of the Fed's historic rate cut, the FDIC made some important announcements. The first press release reported new assessments for banks. The premiums it charges banks for deposit insurance will go up substantially starting in the first quarter of 2009:
Currently, banks pay between 5 and 43 basis points of their domestic deposits for FDIC insurance. Under the final rule, risk-based rates would range between 12 and 50 basis points (annualized) for the first quarter 2009 assessment. Most institutions would be charged between 12 and 14 basis points.

The FDIC is also discussing a change that will require riskier institutions to pay a larger share of the premiums. These changes are designed to protect the deposit insurance fund amid the weakening economy, but they're probably not good for depositors. It seems likely that the banks will pass these higher premiums to customers resulting in lower deposit rates.

The second press release shows why the new assessments are necessary. The FDIC reported on a large reduction of the Deposit Insurance Fund:
The FDIC also announced that in the third quarter, the Deposit Insurance Fund (DIF) decreased by 23.5 percent ($10.6 billion) to $34.6 billion (unaudited). The reduction in the DIF was primarily due to an $11.9 billion increase in loss provisions for bank failures, which represents the estimated losses for FDIC-insured institutions that are likely to fail over the next 12 months.

The press release also reported that the FDIC approved a $2.24 billion budget for 2009 which is almost twice the 2008 budget:
The 2009 budget represents an increase of more than $1 billion from 2008. ... The increase in spending is largely attributable to continuing work associated with recent bank failures and the provision of contingency funding for the possible continuation of an elevated number of bank failures in 2009.

There have been 25 bank failures so far this year (there were two last Friday), and it appears the FDIC is preparing for many more.
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$40 Checking Account Bonus for Opening EverBank's Checking Account
Tuesday, December 16, 2008 - 7:10 PM

EverBank is offering a $40 bonus to new customers who open an EverBank FreeNet Checking account through the bank's link on BestCashCow.com. A minimum deposit of $40,000 is required to qualify for the $40 bonus. According to BestCashCow, this is a very limited time offer.

EverBank is still offering 4.00% for the first 3 months for new customers who open the FreeNet Checking. With falling interest rates, this is a good deal for money that you don't want to lock into a CD.

Some other important small print of this offer:
  • Customer must maintain an average monthly balance of not less than $40,000 for at least one statement period during the first three statement periods after account opening.
  • Customer may not be a current or former FreeNet Checking Account customer of EverBank.
  • Must keep the account open for 180 days of funding to maintain the bonus.
EverBank has recently made improvements to its account application process allowing people to fund the account with an ACH transfer. However, the initial ACH deposit is limited to $25,000, so this may complicate doing the necessary funding for this promotion.

For more details on EverBank and its accounts, please refer to my previous EverBank post. One thing to note about EverBank is that they offer IRAs for both their CDs and money market account.

EverBank has solid ratings for soundness: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate. Both are based on 9/30/08 data. EverBank has been FDIC insured since 1998 (FDIC Certificate # 34775).

Edit 12/17/08: Added note regarding EverBank IRAs.
Comments (2)
3.50% Reward Checking Account at Venture Bank Direct
Tuesday, December 16, 2008 - 3:43 PM

Update 6/15/09: Per the bank's website "Wise Choice Checking is no longer being offered for new customers. Existing accounts will continue to be serviced."

Venture Bank Direct just introduced a reward checking account called Wise-Choice Checking that's available nationwide. The good news is that this is another internet bank is offering reward checking. The bad news is the rate is only 3.50% APY. Update: As of 3/28/09, this reward checking rate is higher than their online savings account rate which is currently 1.43% APY (originally 3.60%).

To earn the 3.50% APY on balances up to $25,000 (1% for above) and to receive refunds of ATM fees, the typical reward checking monthly requirements must be met:
  • 10 VISA check card purchases
  • one direct deposit or automatic debit
  • receive e-Statements
If these are not met, the rate falls to 0.25%. The minimum initial deposit is $100. There are no minimum balance requirements and no monthly fees. Checks are not free, but I was told that you can choose to decline checks in the application.

If you're not already a Venture Bank Direct savings account customer, you’ll automatically open a Wise-Choice Savings account when you apply for the checking account. I was told that there is no hard credit pull for either accounts. Only the savings account can be used to initiate ACH bank-to-bank transfers. Refer to my Venture Bank Direct savings account review for details about this account and its transfer features.

The Wise-Choice Checking rate is low for a reward checking account, but perhaps they set it with anticipation of a falling interest rate environment. If they keep this rate unchanged, it may unfortunately be competitive 6 months from now. On the other hand, they may intend for the checking to remain below the savings account yield. If that's the case, the reward checking account will only be useful as a free checking account. The reward checking features could come in handy if you're writing large checks and want to continue to earn high interest during the time the checks are outstanding or if you're using ATMs a lot.

Financial/FDIC Review

Venture Bank Direct is part of Venture Bank which is based in Washington State. Since my first review of Venture Bank Direct, Venture Bank's financial ratings for soundness have gone down. It now has a rating of 1 star (troubled) at BauerFinancial and 1 star (lowest) at Bankrate. Both ratings are based on 9/30/08 data. In my first review in August, it had a 3.5-star rating at BauerFinancial and a 2-star rating at Bankrate. These were based on 3/31/08 data.

This Olympian news article reported that Venture Bank's parent announced a record loss for the third quarter. Company officials attributed the bulk of the loss to an investment in preferred shares of Freddie Mac and Fannie Mae.

Venture Bank has been FDIC insured since 1979 (FDIC Certificate # 22868). This can be confirmed at this FDIC page. Note, only the main bank's URL is listed (venture-bank.com) at the FDIC page. I've contacted Venture Bank by using the contact information at this URL, and I've confirmed that venturebankdirect.com is operated by Venture Bank.

Thanks to the reader who emailed me news of this new checking account.

Other Reward Checking Accounts

Last Saturday I reported on a new internet bank that is also offering a reward checking account, and unlike this one, it's paying a rate much higher than online savings account rates (5.25% APY as of 12/16/08). Refer to my nationwide reward checking table for others that can be opened without a branch visit. Note, many of these require mailing in forms and copies of IDs. For the list of all available reward checking accounts, please refer to the front page of my High Yield Checking website.
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Fed Cuts Key Rate to Near Zero
Tuesday, December 16, 2008 - 1:46 PM

The Fed cut its target for the federal funds rate today, but instead of cutting it to a specific level, it established a target range for the federal funds rate of 0 to 0.25%. So I guess you can consider this a cut of over 75 basis points, and it pretty much ends further rate cuts. The Fed's policy statement justified this cut based on the continued weakening economy and diminished inflationary pressures. For savers, here's a sobering excerpt:
the Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time.

Since rates can't go lower, The Fed described various potential methods to support credit markets such as purchasing longer-term Treasury securities.

Competition among banks has kept interest rates up this year as described by this BestCashCow article. Hopefully, this will keep pressure on the banks to keep rates from falling too much. But with the fed funds rate near 0% and with continued economic weakness, I'm afraid we should expect some declines in savings account and CD rates.

I remember back in 2003 and 2004 when the fed funds rate was 1% and online savings accounts were rare, ING Direct's Online Savings Account yield had remained at 2% for much of this time. ING Direct's APY is now 2.75%. Be prepared to see ING Direct and other online banks cutting rates in the next week or two.
Comments (1)
4.25% 18-Month CD at Central Star Credit Union in Kansas
Tuesday, December 16, 2008 - 8:39 AM

Central Star Credit Union is offering a special 4.25% 18-month certificate. Minimum deposit is $1,000. The special is listed on the credit union's front page. It's the #2 offer on the right hand side. I called the credit union yesterday for additional details. I was told that this special CD is scheduled to last through December 2008. There is no maximum deposit, and no checking account is required.

Membership is open to anyone who lives, works or does business in Sedgwick, Butler, Harvey, McPherson or Saline County. Please see the credit union's membership page for more details. Membership requires a minimum deposit of $50 into the savings account.

My last report on this credit union was in February 2008 when it was offering a 5.00% 60-Month CD.

Branches are located in the Kansas cities of Wichita and Haysville. The credit union is federally insured by the NCUA (Charter # 67818).
Comments (2)
4.05% 10-Month CD & 3.65% Checking at East River Bank in Philadelphia
Tuesday, December 16, 2008 - 8:36 AM

Update 12/17/08: The rates for these special CDs have fallen. Please check the bank's website for the latest rates.

East River Bank continues to offer competitive CD specials. The rate has fallen a little since my November 7th post, but it's still competitive. The yield as of 12/16/08 is 4.05% APY for terms of 10, 14 and 20 months.

The bank continues to offer a checking account called Ultimate Checking which pays 3.65% APY for balances of at least $100. I couldn't read the small print of the promotion page, so I called to see if this is a reward checking account. According to the CSR, it's not. There are no other requirements to receive the 3.65% APY, and there is no balance cap. However, the rate can change at any time.

The bank has two offices located in Philadelphia, PA.

East River Bank continues to have solid ratings for financial soundness: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both are based on 9/30/08 data.

East River is a new bank that was just established in 2006. It's FDIC insured (FDIC Certificate # 58171).
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4.15% 12-Month CD & 4.00% 6-Month CD at Friends Bank in Florida
Tuesday, December 16, 2008 - 8:34 AM

Update 12/19/08: These CD rates have fallen. Please check the bank's website for the latest rates.

Friends Bank is listing several competitive CD rates in its rate table as of 12/16/08. These include a 4.00% APY 6-month CD, 4.15% APY 12-month CD and a 4.25% APY 18-month CD. The 18-month CD minimum deposit is $5,000. The others have a minimum deposit of $1,000.

A branch visit appears to be required to open an account. Branches are located in New Smyrna Beach, Ormond Beach and Edgewater, Florida.

Friends Bank has some solid financial ratings for soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate. Both ratings are based on 9/30/08 data. The bank has been FDIC insured since 2000 (FDIC Certificate # 35376).
Comments (2)
One Year CD Yield as High as 4.40% at Generations FCU in Texas
Tuesday, December 16, 2008 - 7:46 AM

Update 12/19/08: The CD rates have fallen. Please check the credit union's website for the latest rates.

Generations FCU continues to offer competitive CD rates. The best rates are on its Jumbo Term Share Certificates. These include a 4.10% APY 6-month CD, a 4.40% APY 12-month CD, a 4.50% APY 24-month CD and a 4.70% APY 36-month CD. Minimum deposit is $100,000. The rates for its Regular Term Share Certificates are 10 basis points lower and require a minimum deposit of $1,000. These are also available in an IRA. These rates are listed in the credit union's rate table as of 12/16/08.

My last post on these CDs was in October.

Membership is open to all those who live, work, worship, attend school or volunteer in Bexar County, Texas. Please refer to the credit union's Membership Page for more details. Membership requires a $5 deposit in the share savings account.

Branches are located through out San Antonio. The credit union is federally insured by the NCUA (Charter # 4015).

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4.20% 12-Month & 4.10% 9-Month CD at Community Banks of Colorado
Tuesday, December 16, 2008 - 7:44 AM

Update 1/25/09: Rates have gone down. Refer to this post for new CD specials as of 1/25/09. Check with the bank for the latest rates.

Community Banks of Colorado is offering four special CD rates: 4.30% APY 18-month, 4.20% APY 12-month, 4.10% APY 9-month and 4.00% APY 6-month. Minimum deposit is $1,000. These rates don't seem to be listed at the bank's website. It was advertised in the 12/12/08 Denver Post. The ad is available online here. I called yesterday afternoon (12/15/08), and I was told that these special rates are still available. It could end on any day. They also offer these as Jumbo CDs with a minimum deposit of $100,000. The Jumbo rates are 10 basis points higher.

A branch visit is required to open an account. Branches are located in several Colorado cities including Denver, Alamosa, Greenwood Village, Buena Vista, San Luis, Avon, Glenwood Springs, Durango, Aspen and Pueblo.

The bank's ratings for soundness are mixed: 3.5 stars (good) at BauerFinancial and 2 stars (below peer group) at Bankrate. Both ratings are based on 9/30/08 data. It has been FDIC insured since 1973 (FDIC Certificate # 21132).
Comments (2)
Which Banks Have and Haven't Applied for the $700 Billion Bailout Funds
Monday, December 15, 2008 - 7:12 PM

The New York Times is tracking the recipients of the $700 bailout funds (also known as TARP funds). Most of the major banks are listed. These include Citigroup, JPMorgan Chase, Wells Fargo, Bank of America, PNC, US Bankcorp, Capital One, Regions, SunTrust, Fifth Third, E*Trade, M&T Bank and BB&T. Some major banks that I've reported on that are NOT listed as of 12/15/08 include:
  • ING Bank ($81.6 billion in assets)
  • HSBC Bank USA ($181.6 billion in assets)
  • Emigrant Bank ($10.7 billion in assets)
  • EverBank ($6.5 billion in assets)
  • Flagstar Bank ($14.1 billion in assets)
  • Corus Bank ($8.4 billion in assets)
Not being on the bailout list doesn't seem to indicate anything about the bank's financial strength. For example, EverBank has a 4-star rating (sound) at Bankrate and Flagstar has a 1-star rating (lowest) at Bankrate.

Thanks to the reader who emailed me this article.
Comments (7)
2-Year CD with Yields Up to 4.40% at Metlife Bank - Nationally Available
Monday, December 15, 2008 - 6:39 PM

Updat 12/22/08: The CD rates have fallen. All rates are now below 4.00%.

MetLife Bank is offering some competitive CD rates. The most competitive is the 24-month certificate of deposit. A minimum deposit of 15,000 is required for decent rates. The 24-month APYs listed at MetLife Bank's rate table as of 12/15/08 include:
  • 4.15% $15K-$25K
  • 4.25% $25K-$50K
  • 4.35% $50K-$100K
  • 4.40% $100K+
Longer term CDs have rates 10 basis points higher. These are also available in an IRA.

Update 12/16/08 #2: A reader mentioned this MetLife Bank CD promotion. It's a special 12-month CD with a 4.15% APY for a minimum deposit of $15K. I just called, and I was told that this expired last week.

I contacted MetLife Bank today using their toll-free number (1-866-226-5638). After waiting 10 minutes, I was able to get hold of a customer service rep. The CSR was quite knowledgeable. She said these rates could change any day, but they typically only change on Mondays. Some of the CD details I was told include:
  • CD can be opened by mail, online or by phone
  • CD can be funded by check, wire transfer or ACH transfer
  • MetLife gives you 15 days to fund the CD to receive the rate that was in effect on the day you applied
  • At maturity, they accept closure instructions by phone
  • CD can be redeemed by ACH transfer to your external account
  • Mailing a check and a wire transfer are other options to receive the funds ($25 fee for outgoing wire transfers)
MetLife Bank's account disclosure (pdf) has other account details. A few important CD details are listed on page 2 and include:
  • Interest compounded daily, credited monthly
  • Grace period at maturity is 10 calendar days
  • CD redeemed during any grace period will not receive interest accrued during the grace period
  • Early withdrawal penalty equals 180 days of interest on the amount withdrawn for terms over one year
MetLife Bank also offers an online savings account and money market account. I first reported on MetLife's money market account back in 2006 when it was offering a $50 bonus. According to the CSR, this bonus is no longer available. I've stopped reporting on MetLife's money market account in my weekly rate summaries since the rates had never been competitive for online accounts. The top yield for both the savings and money market account is currently only 2.65% APY, and this requires a $25K balance.

Update 12/16/08: Regarding a hard credit pull, I emailed MetLife about this. Here is their reply:
When you open a MetLife Bank account, we only pull a soft credit inquiry which will not affect your credit report

MetLife Bank has fair ratings for soundness: 3.5 stars (good) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 9/30/08 data. MetLife Bank has its headquarters in New Jersey. It has been FDIC insured sinc 1999 (FDIC Certificate # 35055).
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Update on Chase Personal Checking Account Bonus
Monday, December 15, 2008 - 6:31 PM

The old $125 Chase Checking Account bonus seem to have expired. The only bonus for a Chase personal checking account that I can find is a $50 bonus at this new promotion page coupon.chaseinformation.com. Chase has often had $100 bonuses. If you need a checking account and you don't want to wait for one of these, the $50 is better than nothing.

At that promotion page enter your email address, and it'll email you a promotion code that can be used at a branch or at Chase's online application. The expiration date listed as of today is 12/31/08.

Some of the important small print of this offer includes:
  • $100 minimum opening deposit of new money
  • Chase Free Checking has no monthly service fee when you have direct deposit or at least 5 debit card purchases per cycle.
  • Limit one personal checking account-related reward/premium per customer, per calendar year.
  • To receive the bonus, the first direct deposit must be completed within 60 calendar days of account opening
  • The cash bonus will be deposited into your new account within 10 days after the initial direct deposit
  • Checking account must remain open for a minimum of six months or the reward will be debited from the account at closing.
  • Cash bonus is considered interest and will be reported on IRS Form 1099-INT.
For more details about the Chase checking account bonus and the Chase checking account, please refer to this previous post. Many people have reported being able to use bank ACH transfers (excluding PayPal) to count as direct deposit. Regarding a hard credit pull, when I opened a Chase checking account last year, I did not receive a hard pull. Some readers have reported a hard pull. Refer to the previous post for details.

Chase Branch Locations

Chase has branches in many states but not all. There are no branches in California. States with Chase branches include Arizona, Colorado, Connecticut, Florida (Southwest), Illinois, Indiana, Kentucky, Louisiana, Michigan, New Jersey, New York, Ohio, Oklahoma, Texas, Utah, West Virginia and Wisconsin.

Chase is FDIC insured under JPMorgan Chase Bank, N.A. (FDIC Certificate # 628).

Credit for this find goes to this FW thread.
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New FDIC Rules Making it Tougher on Bank Start-Ups
Monday, December 15, 2008 - 9:03 AM

Last Friday the fifth Atlanta-area bank of 2008 was seized by the FDIC. Apparently, the FDIC has taken notice. According to this MSNBC article, the FDIC may be implementing what is effectively a ban on new banks in metro Atlanta and other distressed areas nationwide. There's no official ban, and the FDIC denies even an informal ban, but the FDIC is becoming more discriminating in who it approves nationwide.

The article describes some of the tougher guidelines that the FDIC is implementing in the bank approval process. Here's one that I found interesting:
banks are required to present a plan to generate deposits from the wider community, beyond the so-called "friends and family" of the organizing group.

One way bank start-ups can meet this requirement is to embrace the internet. Make it easy for people to apply and fund the accounts online. Provide an online interface that allows easy and fast electronic deposits and withdrawals. With so many online savings accounts, it's hard to compete. However, there are still not many internet reward checking accounts. I just reported on one Saturday from a new internet bank that claims opening the account can be done totally online.
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4.00% 7-Month Add-On CD at America's Credit Union in WA - Easy Membership
Monday, December 15, 2008 - 9:00 AM

Update 2/14/09: New lower rate Super Bump Flex Certificates have been posted: 2.50% APY 3-month

Update 1/24/09: New lower rate Super Bump Flex Certificates have been posted: 3.25% APY 6-month and 2.75% APY 3-month

Update 12/15/08: The term of the Super Bump Flex CD has changed from 15 to 7 months.

America's Credit Union continues to list a competitive yield on its Super Bump Flex Certificate. It's a 4.00% APY 15-month certificate with a minimum deposit of $500. This rate is shown in the credit union's rate table as of 12/15/08. The 4% APY is nice, but what makes this a very good deal is the add-on feature of the Super Bump Flex certificate. This is described in the Truth-in-Savings disclosure (pdf):
You may make deposits of at least $100 at any time during the term of your Flex Certificate provided the principal balance does not exceed $100,000.

The certificate also has a rate-bump feature, but I doubt this will be useful in the next 15 months.

My last post on this credit union was in early October when it was offering a 5% 24-month Super Bump Flex Certificate. That 5% CD didn't last through October, but this 4% CD continues. The 4% was nothing special, but now with interest rates plummeting, it's a great deal. It can be especially useful if you have CDs maturing in the next few months.

Several readers commented about their experience joining this credit union in my previous post. Here are a few of the useful comments:

Application related comments:

They told me that they would fax me the application. Then they just need that back in mail with a notarized copy of drivers' license and SS card and they require a $50 deposit into a savings account before you can open the cd.

Rate locks moment account is opened. It does NOT lock with a postmark. To be sure of rate you would have to wire funds AND get the application and notarized documents to them.

I live in Portland Oregon, but drove into the most Southern branch of America's Credit Union. If you go into the branch, they waive the fee to join the association. This is something to consider if you are relatively close to a branch. I saved notarizing my documents, FedEx/mailing fees, and I saved the $33 joining fee.

CD features related comments:

The rate is locked in for the term. Any time deposits are made you are still getting the rate the CD was opened. The term does not change with the deposits.

The interest rate hike applies NOT if the interest rates go up in general, but ONLY and ONLY if the credit union opts to raise the rate on THIS specifi product. IF that happens (don't hold your breath) then YOU must find out about it and call them to have them hike it. They will not raise it unless you call them.

Anyone seems to be eligible to join this credit union via membership into an association. Below is an excerpt from the credit union's About Us Page:
We do not have zip code or employment restrictions. Just join the Association of the United States Army. Membership is open to everyone!

Civilian membership into this association costs $33. You can be immediately eligible to join the credit union if you are in the military. Please refer to the About Us Page for the full details.

Branches are located in the Washington State cities of Fort Lewis, DuPont, Olympia, Lakewood, Tacoma, Spanaway and University Place.

America's Credit Union continues to have decent financial ratings for soundness: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both are based on 9/30/08 data. The credit union is federally insured by the NCUA (Charter # 9373).
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4.30% 12-Month CD at Peoples Credit Union In South Florida
Monday, December 15, 2008 - 8:57 AM

Update 12/19/08: The CD rate has fallen. Please check the credit union's website for the latest rates.

Peoples Credit Union is offering a special certificate with a yield as high as 4.30% APY for a 12-month term. Minimum deposit is $1,000. The base APY is shown to be 4.00% in the credit union's rate table as of 12/15/08. Higher rates are available with the following checking account activities:
  • 0.10% added for an active checking account
  • 0.10% added for direct deposit
  • 0.10% added for e-statments
My last report on this credit union was in early November when this 1-year CD had a top yield of 4.50%.

Membership is open to anyone who lives, works or owns property in Miami-Dade or Broward County. You can also be elgible via select employer groups. See their membership page for details. Membership requires a $5 membership fee and a minimum deposit of $5 into the share savings account.

Branches are located in Miami, North Miami, Hialeah and Pembroke Pines, Florida.

Peoples Credit Union continues to have solid financial ratings for soundness which is not too common for South Florida financial institutions offering high rates. Current ratings include 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 9/30/08 data. The credit union is federally insured by the NCUA (Charter # 67677).
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$100 Checking Account Bonus at Wainwright Bank in Massachusetts
Monday, December 15, 2008 - 8:55 AM

Wainwright Bank is offering a $200 Series EE Savings Bonds for opening a new Value Checking with Direct Deposit. The promotion is shown in the checking account page as of 12/15/08. One important thing to note is that the current value of EE Savings Bonds is only half the face value (see Treasury's EE Savings Bond page). I think this may be one reason why the Treasury continues to issue these bonds. It's good for gifts since many people assume they're getting twice as much.

Some important details about the bonus include:
  • must have a recurring payroll, Social Security or public assistance Direct Deposit made to the account
  • limit one bond per household
  • bond will be mailed within 90 days of account opening
  • account must be in good standing with active Direct Deposit at time of Bond mailing
  • initial value of Bond will be reported to the IRS as interest
Some important details about the Personal Value Checking Account include:
  • $10 minimum to open
  • $6 monthly service charge waived with direct deposit, otherwise a $500 minimum balance required
  • Monthly service charge waived for customers under the age of 19 or 65 and over
  • free online bill pay
The bank does have an online application, but I'm not sure if out-of-state people would be eligible for the bonus. I tried to contact the bank, but I couldn't get through to a CSR. You probably would have better luck with a branch visit. Branches are located in Boston, Cambridge and several other cities of Massachusetts. The bank is a member FDIC (FDIC Certificate # 27009).

Thanks to the reader who mentioned this bonus in the Finding the Best Deals post.
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Wachovia Checking Account Bonuses, News, CDs and Other Deals
Sunday, December 14, 2008 - 6:49 PM

Wachovia is still offering $75 bonuses for opening a new checking account at several of its new branches around the country. These are not listed at Wachovia's website, but they're often advertised in newspapers. They've recently been advertised in Daytona Beach Florida, San Francisco and Southern California. These links point to the online ads for these promotions. Here are the addresses of these new financial centers:
  • Daytona Beach: Palm Coast Town Center, 836 Belle Terre Parkway 386-437-3306 (expires 2/15/09)
  • San Francisco: Market and Kearny, 690 Market Street, 415-986-7275 (expires 2/15/09 extended to 4/09/09)
  • Moreno Valley: 27060 Fir Avenue, 951-488-9927 (expires 3/15/09)
A reader also commented that a new branch in San Mateo, California has this same promotion. In October, I had reported on this promotion for a new Wachovia Dallas branch. This may still be available.

To receive the $75, you must:
  • Open the free checking account at their new financial center
  • Fund the checking account with a minimum intial deposit of $100
  • Make 10 transacations within the first 60 days. Transactions can include debit card purchases, check transactions, ATM withdrawals, BillPay and ACH debits.
Some of the important small print of this offer includes:
  • Limit one offer per household
  • Credit in your account will appear within 120 days of account opening
  • Value of bonus will be reported to the IRS
Wachovia Checking Account Details

Wachovia's free checking account has the basic components of free checking: no minimum balance requirements, no monthly fees, etc. A reader in the previous post mentioned that Wachovia does a hard credit pull (both Experian and TransUnion have been mentioned). Unless you can get the "at work" checking account, checks are typically not free, but they are optional. Prices vary by state. A reader had mentioned that Wachovia offered 50 duplicate checks for $8. There is a $25 fee if the account is closed before 6 months. In addition to the hard pull, Wachovia also does a ChexSystem verification.

Wachovia's $25 Refer-A-Friend Bonus

Wachovia still has a $25 refer-a-friend bonus for opening a checking account. They'll send a $25 Wachovia Visa Gift Card to both the referrer and the referee. If you want one, email me your first and last name to bankdeals at gmail dot com, and I'll send you one. Wachovia now allows this to be done online similar to ING Direct.

Wachovia Certificates of Deposit

For those with Wachovia CDs, the rates and terms should remain unchanged during and after the Wells Fargo acquisition. Wachovia still has some competitive rates on its Featured CDs. However, they've gone down quite a bit in the last month. The 7-month and 12-month CD rates are listed at their Featured CD Page. However, the longer term ones are not listed. Based on my conversation with a Wachovia CSR yesterday, they now only have one long-term Feature CD, the 60-month term. The current APY is 4.50% for Texas (it may vary by your zip code). This 5-year CD APY had been 5.15%.

Way2Save Account

If you open a Wachovia checking account, you might also want to open a Way2Save account. By setting up monthly automatic transfers of $100, you should be able to earn about $72 over what you would earn in a 3% savings account in the first year (see my Way2Save review).

Other Wachovia News

Wells Fargo's planned acquisition of Wachovia appears to be costing Wells Fargo more than they may have expected. It was recently reported that Wells Fargo intends to take a $40 billion charge in the fourth quarter for the Wachovia purchase. According to this Reuters article Wachovia shareholders are set to vote on the merger on December 23.

Thanks to the reader who mentioned these new-branch bonuses in the comments.
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4.32% 21-Month CD at Olin Community Credit Union in Illinois
Sunday, December 14, 2008 - 5:03 PM

Update 12/19/08: The CD rate has fallen. Please check the credit union's website for the latest rates.

Olin Community Credit Union is offering a special 21-month share certificate with an APY of 4.32% (4.25% interest rate). Minimum deposit is $1,000. It's also available in an IRA. The special is listed at the credit union's rate table as of 12/14/08. The rate table has a date range of 12/12/08 to 12/18/08.

Membership is open to anyone who lives, works, or maintains an address in any of the following counties in Illinois: Madison, Macoupin, Montgomery, Bond, Fayette, Jersey, Greene and Calhoun. You can also be eligible via select employee groups. Please refer to the credit union's About Us Page for more details. Membership requires a minimum balance of $5 in the Primary Savings Account. There's also a membership fee of 25 cents (Not sure why they worry about such a small fee).

Branches are located in the cities of Bethalto, Alton, East Alton, Godfrey and Jerseyville.

The credit union has some strong ratings for soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 9/30/08 data. The credit union is federally insured by the NCUA (Charter # 63932).
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5.00% 24-Month CD at Frankenmuth Credit Union in Michigan
Sunday, December 14, 2008 - 4:44 PM

Frankenmuth Credit Union is offering a special 5.00% APY 24-month Premier CD. Minimum deposit is $500, and money must be new to the credit union. It requires a Premier Checking Account. The credit is also offering a 20-month CD with an APY of 4.25%. This only requires a minimum deposit of $5,000. These rates are listed in the credit union's rate table as of 12/14/08.

Membership is open to anyone who lives, works, worships or is educated in Saginaw, Tuscola, Bay or Genesee County, Michigan. Please refer to the credit union's Who Can Bank Here Page for more details. Membership requires maintaining a regular savings account which requires a $100 aggregate balance to avoid a $5/month service charge.

Branches are located in Frankenmuth, Saginaw and several nearby towns.

The credit union has fair ratings for soundness: 3 stars (adequate) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 9/30/08 data. The credit union is federally insured by the NCUA (Charter # 61755).

The name of this credit union and city has a holiday-like sound. It reminds me of frankincense and myrrh.
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4.00% 7-Month CD at Northfield Bank in New York & New Jersey
Sunday, December 14, 2008 - 4:16 PM

Update 12/17/08: The 7-month CD APY has fallen to 3.50%. Please check with the bank for the latest rates.

Northfield Bank is offering a special 4.00% APY 7-month CD. Minimum deposit is $2,500. This special is listed on the bank's home page and in this promotion page (pdf) as of 12/14/08. Also listed is a money market account with an APY of 3.00% for balances over $15K. There's a $10/month fee for balances under $500.

It appears a branch visit is required to open an account. Branches are located in the New York cities of Staten Island and Brooklyn, and in the New Jersey cities of Avenel, East Brunswick, Linden, Milltown, Monroe and Rahway.

The bank has a 5-star rating for soundness (superior) at BauerFinancial based on 9/30/08 data. For some reason Bankrate doesn't have a rating for this bank. Northfield Bank has been FDIC insured since 1983 (FDIC Certificate # 28710).
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Bank Deals Weekly Summary for December 13, 2008
Saturday, December 13, 2008 - 3:07 PM

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

The Fed has its last scheduled meeting for the year next Monday and Tuesday. Unfortunately for savers, the federal funds rate futures show the highest probability is for a 75 bps rate cut which would result in a target federal funds rate of 0.25%. With unemployment increasing and with continued financial turmoil, investors are looking for security, and this has pushed T-Bill rates down to 0% (see post). So I'm afraid the future doesn't look good for savers.

Savings Account Rates

Rates continued to trend down. The good news is that the rate leaders held. There remains 3 banks with non-promo yields of around 4%. Out of these 3, I would recommend DollarSavingsDirect. I can't say if this will have a better chance maintaining 4%, but it's a better online bank that's easier to open and easier to move money.

Below is the list of savings account rate changes for this week. The full list of savings account rates is farther down.

Rate Hikes:
  1. None
Rate Drops:
  1. Mutual Bank MMA 3-mo promo - 3.55% APY (was 3.80%)
  2. OneUnited - 3.35% APY (was 3.75%)
  3. CapOne/Costco Savings - 3.37% APY (was 3.50%)
  4. CapOne Savings - 3.25% APY (was 3.40%)
  5. E-LOAN Savings Plus - 2.90% APY $10K+, 3.30% APY $50K+ (was 3.10%/3.40%)
  6. E-LOAN Savings - 2.41% APY $5K+ (was 2.51%)
  7. Discover Bank MMA - 3.00% APY, 3.10% APY $50K (was 3.04%/3.14%)
  8. VirtualBank - 1.51% APY $100+, 2.53% APY $25K+, 2.74% APY $50K+ (was 2.20%/3.05%/3.20%)
Nationwide Certificate of Deposit Rates

CD rates trended down this week even more than savings account rates. Large rate drops occurred at State Bank of India, Intervest Bank and Nationwide Bank. Many other banks had smaller cuts. These included GMAC, Imperial Capital, E-LOAN, Discover and Capital One.

Some of the best CD rates are now at credit unions which have been slower to cut rates. However, credit unions don't always move slowly on rates. We learned that this week when Agriculture FCU came out with a 4.25% APY 10-month no-penalty CD last Monday. It ended Tuesday afternoon. Another good CD deal that's ending is the 4.50% APY 12-month CD at Delta Community CU. It's scheduled to end today.

There continues to be some good CD deals available nationwide, and these are listed below. The full list of nationwide CD rates is farther down.
  1. 4.00% 6-mo CD at Navy FCU (account review)
  2. 4.36% 12-mo & $25 bonus for new E-LOAN customers (account review)
  3. 4.00% 8-mo CD & 4.50% 16-mo CD at Digital Credit Union (account review)
  4. 4.25% 18-mo CD at Nova Bank (account review)
  5. 4.75% 3-year CD at PenFed (account review)
  6. 5.00% 5-year CD at Chase/WaMu (account review)
  7. 5.10% 5-year CD at Navy FCU (account review)
Local Certificate of Deposit Rates

Several small banks and credit unions have been offering some hot CD deals, but you have to live near one of their branches to qualify. Below is a list of some of the best ones that are still available. Note, these deals often don't last long, so please check with the institution. For more local deals, please refer to the new local CD deals and the state section below.
  1. 4.75% 5-mo CD in RI (account review)
  2. 4.33% 6-mo CD in WA (account review)
  3. 4.58% 12-mo CD in DC & MA (account review)
  4. 4.50% 12-mo CD in Houston (account review)
  5. 4.50% 22-mo CD in Indiana (account review)
  6. 4.50% 24-mo CD in Michigan (account review)
  7. 5% 24-mo / 4.50% 12-mo CD in Pennsylvania (account review)
Reward Checking Accounts

I posted on four new reward checking accounts with yields ranging from 4.00% to 6.00% APY (see below). Two of the four allow people from any state to open an account. One is Cornerstone Bank in North Dakota. The APY is only 4.35%, but it applies to balances up to $50K. Also the APY above $50K is a very respectable 3.01%. The downside is that it must be opened by mail. I just posted on a reward checking account today that can be done all online from an internet bank. It pays 5.25% APY, but the cap is the typical $25K.

For my full list of reward checking accounts around the nation, please refer to my High Yield Checking website.

Recap for the Week - Links to This Week's Posts

Banking News

CD Deals - National

Checking/Savings Account Bonuses

Credit Cards

Reward Checking Accounts

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 6th, Nov 29th, Nov 22nd, Nov 15th, Nov 8th, Nov 1st, Oct 25th, Oct 18th and Oct 12th.

Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Reward Checking, 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 13, 2008

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:

Various Deposit Account Deals


High Yield Reward Checking Accounts - Open to All


Checking and Saving Accounts at Local Banks/Credit Unions

Recent CD Specials at Local Credit Unions and Banks


Bank Account Alternatives


Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)
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GMAC's Problems and its Effect on GMAC Bank - What Can be Learned from Lehman Brothers
Saturday, December 13, 2008 - 8:40 AM

GMAC Financial Services, the parent of GMAC Bank, continues to struggle to raise the capital it needs to become a bank holding company. According to this Bloomberg article:
[GMAC has] sweetened terms on a debt swap designed to save the firm from bankruptcy and extended the deadline for a fourth time to lure more investors. ... Without the swap, GMAC has said its application to become a bank will fail, and analysts have said bankruptcy would likely follow

Lehman Brothers Bank

I'm not sure how all of these problems at GMAC will affect GMAC Bank. If GMAC files for bankruptcy, it's quite possible that GMAC Bank will continue without changes. That is was happened at Lehman Brothers Bank, FSB which is a subsidiary of Lehman Brothers. I emailed Lehman Brothers Bank yesterday, and here is the reply I received:
Lehman Brothers Bank, FSB is not included in the bankruptcy. The bank is operating as normal.

I reported on Lehman Brothers Bank in September 2007 when it was offering very competitive CD rates. The rates have remained low this year, even after the Lehman Brothers bankruptcy. The bank remains FDIC insured.

GMAC Bank's Latest Ratings for Soundness

GMAC Bank's ratings for soundness have recently changed a little:
  • BauerFinancial: 3 stars (adequate) based on 9/30/08 data vs. 3.5 stars (good) based on 6/30/08 data
  • Bankrate.com: 4 stars (sound) based on 9/30/08 data vs. 3 stars (performing) based on 6/30/08 data.
It's interesting to see how the ratings differ.

Risks for GMAC Bank Depositors

If you're a GMAC Bank depositor and you have under the FDIC insured limits, the ratings are not really important. GMAC Bank is FDIC insured (FDIC Certificate # 57803). Two common misconceptions that I hear over and over are the risk to accrued interest and the risk of delayed access. FDIC insures both the principal and the accrued interest. When a bank closes, you typically have access to your account from the acquiring bank on the next business day. When IndyMac and WaMu closed this year, I was able to access my online accounts as normal the next business day. There can be some delays if you're using POD accounts to extend your coverage or if you have brokerage deposits. For more FDIC info, please refer to my FDIC post on recent coverage changes.

There's no risk of losing your insured deposits, but there are some minor risks when a bank fails. As we've seen this year when banks like WaMu are closed, there's a good chance that the savings account rates may go down significantly after the new bank takes control. There's also a chance that the new bank may decide not to honor the failed bank's CD rates. You still have the option to close the CD without any early withdrawal penalty.

My Experience with GMAC Bank

I've been very happy with my GMAC Bank accounts. Besides the high rates, the best part of GMAC Bank has been their ACH transfer system. I can easily add links to many other external accounts. Transfers are fast (often completing in one or two days), and hold times are no more than two days. For more details about these accounts, please see my GMAC Bank review.
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4.00% Reward Checking Account at Evantage Internet Bank
Saturday, December 13, 2008 - 7:22 AM

Update 4/22/09: The top rate is scheduled to fall to 4.00% APY starting 5/5/09.

Evantage Bank is an internet banking division of Southwest State Bank. It offers a reward checking account and a high yield savings account. The rewards checking account pays 4.00% APY on balances up to $10,000 (1.00% for above) and refunds ATM fees worldwide if the following monthly requirements are met:
  • 10 check card purchases
  • receive electronic statements
If these are not met, the rate falls to 0.25%. There are no minimum balance requirements and no monthly maintenance fees. Minimum initial deposit is $1.

Online Savings Account

Update 4/22/09: Starting 5/05/09, the rate is scheduled to drop to 2.00% APY for up to $35K, 1.00% for above.

Their internet savings account is called Mega Money Market. The current APY is 3.10%. This looks like a pretty typical online savings account with no minimum balance requirements or monthly fees. Like the checking, minimum initial deposit is $1. It should really be called a savings accounts since there doesn't seem to be any check writing privileges. However, it does come with a check card.

Bank-to-Bank Transfers

Once the account is opened, bank-to-bank ACH transfers are limited to $1,500 a day (per FAQ). The best way to get larger amounts into and out of this account will probably be to use another online bank to push and pull funds.

Checking Accounts for those with Bad Credit

Evantage Bank also offers a checking account for those with bad credit or no credit. It's called You're Approved Checking. You pay the price for not having good credit. There's no interest and there's a $5 monthly maintenance fee.

Totally Online Application Process

According to one of Evantage Bank FAQs, it's a totally online bank that allows people to open new accounts "online without having to wait on signatures, faxes or the U.S. mail." Another FAQ describes the application process. It states that the entire process usually takes 1-5 business days depending upon how you fund your account. It allows electronic ACH funding. They use the trial deposit method to verify account ownership. You also have the option to mail a check.

The online application uses the Cashedge system. Accounts are available nationwide. The only restriction shown is in the first page of the Cashedge application which states "All applicants must be U.S. residents and at least 18 years of age."

Financial/FDIC Overview

Evantage Bank is the internet banking division of Southwest State Bank. Evantage Bank is listed in the left sidebar of Southwest State Bank's website. Southwest State Bank is a small bank located in Oklahoma. According to the FDIC data on this bank, it has 16 employees, $119 million in assets and $61 million in deposits based on 9/30/08 data. It has been FDIC insured since 1934.

The bank has some strong ratings for soundness: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 9/30/08 data.

Thanks to the reader who emailed me news of this bank.

Other 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.

Rate History:
05/05/09: 4.00% APY up to $10K; 1.00% APY over $10K / MMA 2.00% APY up to $35K; 1.00% over
03/12/09: 5.25% APY up to $10K; 2.25% APY over $10K; 0.25% base rate / MMA 3.10% APY up to $35K; 1.65% over
12/13/08: 5.25% APY up to $25K; 2.25% APY over $25K; 0.25% base rate / MMA 3.10% APY

Edit 4/4/09: Updated ACH limitations.
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25th Bank Failure of 2008: Sanderson State Bank in Texas
Friday, December 12, 2008 - 5:57 PM

It's another 2-bank-failure Friday (hopefully we won't see more failures today). Sanderson State Bank in Texas was closed today by Texas regulators, and the FDIC was named receiver. Here's the FDIC's press release link, and here's a summary of the closure:
  • Closed Bank: Sanderson State Bank
  • Location: Sanderson, TX
  • Size: 1 branch, $37 million assets, $27.9 million deposits
  • Possible Uninsured Deposits: ALL deposits transferred to acquiring bank
  • Acquiring Bank: The Pecos County State Bank
  • Cost to Deposit Insurance Fund: $12.5 million (estimated)
  • 2008 closures: 25th bank to be closed this year
  • Financial Ratings: 2 star at BauerFinancial, 1 star at Bankrate.com
This was a very small bank located in the rural area of west Texas. It would be interesting to see how the FDIC officials arrived into Sanderson town. I would think it would have been hard for them to go unnoticed.

Like the Georgia bank that failed today this one is an All-Deposit Transfer in which the acquiring bank assumed all deposits including those above the FDIC limits. Also like the previous bank failure, the new bank hasn't decided if they'll continue the failed bank's rates. And as is common, CD customers of the failed bank can close their CDs without an early withdrawal penalty. The FDIC's Q&A's has the details.

BauerFinancial was a little off on this one. It gave the bank a 2-star rating based on 9/30/08 data. The 2-star rating indicates problematic, but it's two levels above zero, the lowest rating. Bankrate gave it a 1-star rating, its lowest rating.

Here's the FDIC list of all the recent bank failures. I just posted on the new documentation from the FDIC and NCUA that covers all the recent deposit insurance changes (see post).

Thanks to the readers who sent me news of this closure.
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24th Bank Failure of 2008: Haven Trust Bank in Duluth, Georgia
Friday, December 12, 2008 - 5:06 PM

Haven Trust Bank in Georgia was closed today by Georgia regulators, and the FDIC was named receiver. Here's the FDIC's press release link, and here's a summary of the closure:
  • Closed Bank: Haven Trust Bank
  • Location: Duluth, GA
  • Size: 4 branches, $572 million assets, $515 million deposits
  • Possible Uninsured Deposits: ALL deposits transferred to acquiring bank
  • Acquiring Bank: Branch Banking & Trust (BB&T)
  • Cost to Deposit Insurance Fund: $200 million (estimated)
  • 2008 closures: 24th bank to be closed this year
  • Financial Ratings: 0 star at BauerFinancial on 9/30 data (1 star on 6/30/08 data), 1 star at Bankrate.com on 6/30/08 and 9/30/08 data
This is yet another bank failure that is an All-Deposit Transfer in which all deposits including those over the FDIC limits were covered.

It appears BB&T hasn't agreed to continue Haven Trust Bank's CDs at the existing rates. According to Q&A #13, "BB&T will be reviewing rates and will provide further information soon." As always, all interest accrued through today will be paid at the existing rate. Also, customers have a choice to close their CDs without penalty (Q&A #11).

So even though the CD customer won't lose any principal or interest, he may lose out on future returns from a high yield. My last report on this bank was in October when it was offering a 4.75% 13-month CD. I'm sure most Haven Trust customers who opened these CDs will be hoping that BB&T allows these to continue with this rate until maturity. If you have a Haven Trust CD, please keep us up-to-date on what BB&T decides.

This is another example of the ratings from BauerFinancial and Bankrate being a good prediction of the potential for a closure. Both had given Haven Trust Bank their lowest ratings for soundness.

Another interesting thing to note about the closure is that it's the 5th bank failure in the Atlanta area this year.

Here's the FDIC list of all the recent bank failures. I just posted on the new documentation from the FDIC and NCUA that covers all the recent deposit insurance changes (see post).

Thanks to the readers who sent me news of this closure.
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RevolutionCard's $100 Credit Card Bonus
Friday, December 12, 2008 - 4:31 PM

The RevolutionCard Credit Card is offering a bonus of up to $100 for applying for the credit card and by making $50 purchases with the card between 11/15/08 and 1/31/09. Your statement is credited $5 for each purchase of at least $50. This can be done up to 20 times for a maximum credit of $100. The promotion is listed on the front page as of 12/12/08.

This RevolutionCard is a product of RevolutionMoney which launched RevolutionMoneyExchange (a PayPal like service) earlier this year. I reported on their $25 sign-up bonus that they had offered when they launched (I don't think this $25 bonus is offered any longer).

Better Security

For those concerned with credit card theft and/or identity theft, the RevolutionCard has some nice features which are described in the benefits page:
  • Each transaction requires your 4 digit PIN
  • Neither your name or other personal data is listed on the card
  • allows you to create temporary PINs for online purchases

The only problem with this credit card is that it might not be accepted in many places. There's a list of who accepts it at this webpage. Not all stores accept PIN-based cards.

Thanks to the readers who emailed me or commented on this promotion.
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WaMu's $100 Checking Account Bonus and WaMu News
Friday, December 12, 2008 - 3:52 PM

WaMu has been sending out a lot of mailers and emails with a $100 checking account bonus. Several readers have mentioned this promo. It's also mentioned in this FW thread. Unfortunately, the bonus seems to require a unique promo code. Details about this promo are described at this special WaMu page free.wamu.com. The small print describes how this is a targeted offer:
  • For accounts opened in person, you must present the original letter sent to you
  • For accounts opened by calling toll-free 1-800-685-1644, you must refer to the promotion code in the letter mailed to you
  • For accounts opened by visiting free.wamu.com, you must submit your promotion code from the letter mailed to you
I called to see if they would provide the code, but I had no luck. For those who receive the mailer or email, it seems like an easy $100. Here are few of the details about promotion:
  • Open the WaMu Free Checking account with a $100 minimum opening deposit of new money
  • Bonus will be deposited into your account within 12 weeks after account opening
  • Bonus is subject to IRS and other tax reporting
It appears Chase has no immediate plans to end WaMu's free checking account. Unlike Chase's free checking, WaMu's Free Checking doesn't require direct deposit to avoid monthly fees. Also, WaMu gives you free checks for life and allows free outgoing wire transfers worldwide. This account is required if you want WaMu's Online Savings Account to be free of monthly fees. However, the savings account APY is now only 2%, so there's no longer much incentive to open this. If you're considering closing the savings account, this blog post provides some warnings and tips. And here's a FW thread with another example of problems that can occur.

Thanks to the readers who have emailed and commented about this offer.

WaMu News

For WaMu's depositors, the closure of WaMu by the Feds didn't cause any problems (except that deposit rates have fallen a lot). Also, the seizure resulted in no cost to the Deposit Insurance Fund. However, WaMu shareholders were wiped out, and as this Seattle news article describes, there are 3 class-action lawsuits related to this issue. There have been accusations that the Feds' justification for the closure, the bank run, was more a walk than a run, and it shouldn't have resulted in the seizure. This essay on the WaMu seizure makes an interesting case on how the shareholders were unfairly treated by the Feds.
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4.26% 24-Month CD & 4.00% 12-Month CD at FNBO Direct
Friday, December 12, 2008 - 10:36 AM

FNBO Direct is offering some competitive CD rates. These include a 4.26% APY for a 24-month term, 4% APY for 12 and 18-month terms and 3.75% APY for 6 and 9-month terms. These rates are listed in FNBO Direct's CD disclosure as of 12/12/08. Minimum deposit is $500.

As described in their CD page, you must first have a FNBO Direct savings account to be able to open a CD.

CD Details

I did a review of these CDs last year. One thing to note is that these CDs are technically callable CDs. From the CD disclosure:
We may accelerate the maturity or call this account at our option on any maturity upon 30 days written notice.

However, I've been told by FNBO Direct that this callable feature is unlikely to be used:
Our CDs are callable, however, even in our parent company, we have never called our CDs to come due early.

Online Savings Account, the Good and the Bad

Many readers had problems with FNBO Direct during their 6% promotion last year. Some readers reported receiving requests for employment history with threats of account holds. In many cases, holds were actually placed on accounts (see post).

I've had the savings account since May of 2007, and so far I've been fortunate not to have any problems with the savings account. The yield is still competitive at 3.25% APY, it has no minimum balance requirements or monthly fees, and it has an ACH electronic transfer service. The main downside is the slow ACH transfers that can take 3 to 5 days to transfer with at least 2 days in which the transferred money is not earning interest. Please see my full review of FNBO Direct's savings account for more details.

Checking and Cash Back Credit Card

FNBO Direct also offers its savings account customers an internet checking account and a cash back credit card (see post). Their internet checking account is called Online BillPay since online bill pay replaces paper check writing. It's similar to ING Direct Electric Orange account. One advantage is a higer interest rate for balances under $50K. It pays 2.25% APY as of 12/12/08. See the Online BillPay Account Disclosure for more details.

Financial/FDIC Overview

FNBO Direct is part of First National Bank of Omaha. Deposit accounts opened through FNBO Direct are FDIC insured through First National Bank of Omaha (FDIC Certificate # 5452). For those looking for a strong bank, FNBO seems to be in good shape. They continue to have 4 stars (sound) at Bankrate.com. This is based on 9/30/08 data. FNBO is shown to be a little weaker at BauerFinancial with 3.5 stars based on 9/30/08 data.
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3.60% Reward Checking Account at CornerStone Bank in North Dakota
Friday, December 12, 2008 - 10:34 AM

Update 10/22/09: The bank now only accepts new customers from ND and MN. Rates are no longer listed at the bank's website. Call bank for latest rates.

CornerStone Bank is offering a rewards checking account that pays 3.60% APY for balances up to $50,000 (1.50% for above) and refunds ATM fees nationwide if the following monthly requirements are met:
  • 10 debit card purchases
  • one direct deposit or automatic payment
  • electronic statements
  • log into online banking
If these are not met, the rate falls to 0.25%. Minimum initial deposit is $100. There are no minimum balance requirements and no monthly fees.

The top yield of 4.35% as of 12/12/08 is a little low for reward checking accounts, but this is good for balances up to $50K. Another plus is a high yield of 3.01% for balances over $50K. Typically, the yield for balances over the cap is 1% or lower.

Update 10/22/09: It has been reported that the bank has changed its policy and now only accepts applications from residents of North Dakota and Minnesota.

I spoke with a banking rep, and I was told they can open accounts by mail from people outside of North Dakota. They'll mail you the documentation. They require a copy of your driver's license and a notarized signature card. Their toll-free number is 1-888-297-2100. I learned they started this reward checking account in October 2007, and the top APY had been 5.01%.

Branches are located in the North Dakota cities in Enderlin, Fargo, Sheldon, Fort Ranson, Lisbon and Bismark. The bank has been FDIC insured since 1934 (FDIC Certificate # 13198).

Other Rewards 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: Added info on its availability for people outside of ND.

Rate History:
10/22/09: No longer available nationwide. Bank only accepts ND and MN residents.
03/11/09: 3.60% APY up to $50K; 1.50% APY over $50K
12/12/08: 4.35% APY up to $50K; 3.01% APY over $50K

Edit 6/14/09: Removed link to out-of-date checking page.
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3.75% Money Market Account Guaranteed through 6/1/09 at Suburban Bank & Trust in Chicago
Friday, December 12, 2008 - 10:31 AM

Suburban Bank & Trust has as money market account promotion with a 3.75% APY on balances over $25,000. The yield is guaranteed through 6/01/2009. This special doesn't seem to be listed on the bank's website. It was advertised on 12/11 in the My Suburban Life newspaper. The ad is available online here.

Some important small print of the ad:
  • Must be opened by December 31, 2008 with $25K of new money
  • 3.75% APY requires a SBT personal checking account with direct deposit or an active SBT consumer loan
  • Also required is online banking with electronic statements
  • Without above requirements, an APY of 3.50% applies to balances over $25K
  • APY for balances under $25K: 0.25% $3K-$10K, 0.35% $10K-$25K
  • $25 minimum balance fee for balances under $3K

A branch visit appears to be required to open an account. Branches are located in Chicago and throughout the Chicago suburbs.

The bank has some good ratings for soundness: 3.5 stars (good) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 9/30/08 data. The bank has been FDIC insured since 1971 (FDIC Certificate # 20443).
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4.00% 6-Month CD & 4.25% 14-Month CD at United Financial Bank of Florida
Friday, December 12, 2008 - 10:29 AM

Update 1/20/2009: These CD rates are no longer available. Please check the bank's website for the latest rates.

United Financial Bank of Florida is offering two competitive promotional CD rates: 4.25% 14-Month CD and a 4.00% APY CD for terms from 3 to 6 months. Minimum deposit is $500. These rates are listed at the bank's rate table as of 12/12/08. The rate table also lists an introductory yield of 3.50% APY for its money market account for initial deposits of at least $5,000.

A branch visit is required to open an account. The bank is located in Lake Mary which is just north of Orlando.

This bank is a division of United Midwest Savings Bank in Ohio. The parent bank is offering a similar CD promotion for those in Ohio. I posted on this on Wednesday.

The bank's financial ratings are a little weak: 3.5 stars (good) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. These ratings are based on 9/30/08 data. The bank has been FDIC insured since 1986 (FDIC Certificate # 32441).
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Delta Community Credit Union's 4.50% 12-month CD Ending on Dec 13th
Friday, December 12, 2008 - 8:33 AM

Like many other banks and credit unions, Delta Community Credit Union is ending their CD special early. Their 4.50% APY 12-month CD has been available since early November, and it was supposed to last through December. A reader noted this end-date yesterday. I called and was told the same thing this morning.

Anyone can join this credit union via an association membership. However, for those who don't live near one of their branches in Georgia, I don't know if it's possible to get this deal before it ends tomorrow. A reader who noted this end-date said he was able to join and open the CD from Los Angeles. He was able to fund the CD by going to a local credit union which is part of the credit union service centers network.

For more details about this CD special, this credit union and how to join, please refer to my original review of this deal. Several commenters shared their experience with this credit union. Joining and opening an account definitely appears to be easier and quicker if you can make it to a branch.

One Other 4.50% CD Deal

There's still a 4.50% CD deal at another credit union that's easy to join. It's at Digital Credit Union, and the CD has a term of 16 months. I first reported on this special on October 20th, so it may not last much longer either. They also have a 4% APY 8-month CD special. Please refer to my review of this deal for the full details.

I'm afraid CD rates are falling fast. Banks that have cut their CD rates this week include GMAC, E-LOAN, State Bank of India and Discover Bank. It may soon be difficult to find a 4% rate for terms of under 2 years.
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4.25% 18-Month CD (Nationwide) & 3.75% Checking Until 6/30/09 (PA/NJ) at Nova Bank
Thursday, December 11, 2008 - 11:02 AM

Update 12/16/08: A reader has reported being told by a branch manager that today (12/16/08) will be the last day for this 4.25% 18-month CD.

Nova Bank is listing a CD special and a checking account special on its front page as of 12/11/08. Unfortunately, only the CD is available nationwide. The CD special has an APY of 4.25% and a term of 18 months. Minimum deposit is $500.

You can apply for the CD using their online application. According to the CSR, when you submit the application, you'll have to print the signature card and mail it in with your check and two forms of ID. I was told that the rate locks based on the postmark date.

At CD maturity, there's a 7-day grace period. If you don't want to have it automatically renew, I was told you have to mail or fax them written instructions. You can request them to mail you a check or have them wire transfer the funds. The wire transfer out fee is $25.

The CD details are described on page 16 of the disclosure document. Early withdrawal penalty is 180 days of interest for CD terms 12 months or longer.

3.75% Checking Account Promotion

Unlike the CDs, I was told the checking accounts can only be opened at one of their branches. The checking account has a 3.75% APY on all balances guaranteed until 6/30/09 as long as certain electronic requirements are met. Requirements are:
  • direct deposit or an ACH debit
  • sign up for free Online Banking and Bill Pay
  • receive a PBB or NOVA Check Card
If electronic requirements are not met, the APY will be 3.50%. The NO Fee Interest Checking has no minimum balance requirement and no monthly maintenance fees.

Branches are located in the Pennsylvania counties of Philadelphia, Montgomery, Delaware and Chester, and in the New Jersey cities of Deptford and Woodbury Heights.

Nova Bank's financial ratings for soundness are fair: 3.5 stars (good) at BauerFinancial based on 9/30/08 data and 3 stars (performing) at Bankrate.com based on 6/30/08 data. The bank has been FDIC insured since 1988 (FDIC Certificate # 27148).
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3.00% Reward Checking Account at Buckhead Community Bank in Georgia
Thursday, December 11, 2008 - 11:00 AM

Update 7/04/09: The top rate has fallen to 3.00% APY.

Buckhead Community Bank is offering a reward checking account called MAX Reward Checking. It pays 3.00% APY on balances up to $100,000 (1.00% for above) and refunds ATM fees if the following monthly requirements are met:
  • 10 signature based debit card purchases
  • one direct deposit or automatic payment
  • receive electronic statements
If these are not met, the rate falls to 1.01% APY. Minimum initial deposit is $100. There are no minimum balance requirements and no monthly maintenance fees.

The bank has an online application but at the bottom of the first page it states that they're not accepting applications outside the State of Georgia.

Branches are located in Atlanta, Cumming, Suwanee, Alpharetta, Sandy Springs and Gainesville. The bank has been FDIC insured since 1998 (FDIC Certificate # 34663).

Thanks to the reader who mentioned this reward checking account in the comments.

Other 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.

Rate History:
08/06/09: base rate changed from 0.25% to 1.01%
07/01/09: 3.00% APY up to $100K; 1.00% over $100K
05/26/09: 4.00% APY up to $100K; 1.10% over $100K
01/21/09: 4.00% APY up to $100K; 1.00% over $100K
12/11/08: 4.00% APY up to $50K; 1.00% over $50K

Edit 7/18/09: Updated Max Reward Checking URL
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CD Rates from 3.85% for 3-mo Term to 4.20% for 24-mo Term at NavyArmy FCU in Texas
Thursday, December 11, 2008 - 10:58 AM

NavyArmy Federal Credit Union is listing some competitive certificate rates. These include a 3.85% APY for terms of 3, 6 and 9 months, a 4.00% APY for a 12-month term and a 4.20% APY for a 24-month term. Minimum deposit is $1,000. The one and two year terms are also available in an IRA. These rates are listed in the bank's rate table as of 12/11/08.

Membership is open to those who live, work, worship or attend school in one of the following Texas counties: Aransas, Bee, Jim Wells, Kleberg, Nueces and San Patricio. Refer to the credit union's Who-Can-Join page for more details. Membership requires a $10 membership fee and a minimum deposit of $25 in the savings account.

Branches are located in the Texas cities of Corpus Christi, Kingsville, Beeville, Portland and Rockport. The credit union is federally insured by the NCUA (Charter # 9998).
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Bank of America's $50 Checking Account Bonus
Thursday, December 11, 2008 - 10:55 AM

Bank of America has long offered this USPS movers checking account bonus. Last year the bonus had been $100. Unfortunately, the bonus amount has fallen, and it's now $50. But if you're looking to open a Bank of America checking account, it's better than nothing.

Here's the link to the promotional page. The promo code is AOU261208. The new expiration date is 2/27/09. It's available through the online application or in any BofA branch. I noticed in the online application that you can select the MyAccess Checking, and there's a note that it's a special online only offer in which it'll be free with no direct deposit requirement and no minimum balance required.

Some important details from the offer's small print include: The minimum deposit required to open a new, personal checking account and receive the bonus offer is $100. Offer does not apply to second or multiple checking accounts and/or existing checking customers. Money will be deposited within 90 days of opening your new account. Limit one check per household. Value of the offer will be reported to the IRS on Form 1099.

Hard Credit Pull

There are some things to note regarding BofA. First, many have reported that BofA does a hard credit inquiry on your first checking account. A reader noted in a previous BofA post that he received two pulls when he did this promo in early 2008. A hard credit inquiry can ding your credit score a little for a few months.

Receiving the Bonus

It can take patience and persistence to receive the bonuses. The bonuses that I've received only came after reminding them using their online message system. Others have had to make many calls to a banking rep. Not everyone has been successful; however, several readers have reported success with this promo in my 2007 post. A reader noted that the account must remain open 180 days.

Fees

Make sure you keep an eye on your statements to make sure no fees start popping up. You might want to make a copy of the application where it states that the MyAccess Checking will be free. BofA also charges for things that you might expect are free. For example, if you make an outgoing ACH transfer, there's a $3 charge (see BofA page).

Customer Service

There have been many reports of bad customer service at BofA. Here's an interesting one that was recently posted at the Consumerist.

One other note about Bank of America checking is that if you want online access, make sure you sign up for a debit card. You'll need that to gain online access.

Other Bank Bonuses

Some other recent bonuses of note:
  • ING Direct $50 bonus for its Electric Orange Checking (bonus review)
  • WTDirect $50 to $250 bonus for its savings account (bonus review)
  • ETRADE $25 bonus for its Complete Savings (bonus review)
  • Citibank $25 bonus for its Ultimate Savings (bonus review)
Refer to my bank bonus page for all of the recent bank bonuses.
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4.10% 12-Month CD & 3.90% 6-Month CD at Earthstar Bank in PA - Nationally Available
Thursday, December 11, 2008 - 8:47 AM

Earthstar Bank has two competitive CD specials: a 4.10% APY 12-month CD and a 3.90% APY 6-month CD. Minimum deposit is $500, and new money is required. These rates are listed in the bank's rate table as of 12/11/08.

According to their Q&A Page, you can apply for accounts in person, by phone/mail or over the internet. The online application allows for multiple beneficiaries and allows funding by check, ACH or wire transfer. When I contacted the bank before a previous post, I was told by the banking rep that people in any state can apply online. I was told that you'll need to mail in two copies of IDs.

The name is a little weird for a bank, but it's a real bank. Branches are located in Philadelphia, Southampton and Ambler, Pennsylvania.

The bank's financial ratings for soundness are weak: 2 stars (problematic) at BauerFinancial and 1 star (lowest) at Bankrate.com. BauerFinancial's rating is based on 9/30/08 data. Bankrate's rating is based on 6/30/08 data. The bank has been FDIC insured since 2001 (FDIC Certificate # 35561).

3.90% 6-Month CD Competitive?

I'm afraid so. Rates continue to fall. State Bank of India just dropped its 6-month CD yield from 4.32% to 3.70% APY. Imperial Capital Bank had been offering a 3.95% APY 6-month CD. It's now 3.75% APY. I have two credit unions on my weekly rate summary with a 6-month CD yield at or above 4%, but each has issues.
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4.15% 12-Month CD at Park Avenue Bank in New York City
Thursday, December 11, 2008 - 8:43 AM

Park Avenue Bank has come out with another attractive CD special. This new CD has a 12-month term with an APY of 4.15%. Minimum deposit is $25,000.

As is typical, this special isn't listed at the bank's website. A reader commented on this new deal, and I just called for additional details. According to the CSR, it just started yesterday (12/10/08). So it may last for awhile, but there's no guarantee. It does NOT require a checking account, and it's available at all of their branches.

A branch visit is required to open an account. Branches are located in Brooklyn and Manhattan.

Park Avenue Bank's rating for financial soundness at BauerFinancial has gone down. The new rating is 1 star (troubled) which is based on 9/30/08 data. It had been 2 stars when it was based on 6/30/08 data. The bank also has a 1 star rating (lowest) at Bankrate.com based on 6/30/08 data. The bank has been FDIC insured since 1987 (FDIC Certificate # 27096).

Thanks to the reader mrthnman who mentioned this special in the Finding the Best Deals post.

My last post on this bank was in October when it was offering a 5.20% 18-month CD. As you can see, the rate environment has worsened considerably for savers. A 4.15% APY is now close to the top 12-month yield for banks.
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Will Opening a Deposit Account Affect My Credit Score?
Thursday, December 11, 2008 - 12:00 AM

There are two types of inquiries that can be made to an individual's credit report - “hard” and “soft”. An inquiry is when a company requests access to your credit history. If you are applying for credit, the company will perform a “hard inquiry”, which typically results in recalculation of your credit score. The more hard inquiries you have the lower your score will be – and if you are already starting out with less than perfect credit, a hard inquiry will ding your score more than someone with great credit before the hard inquiry occurs. Other inquiries to your credit report that are not used for lending decisions are considered “soft inquiries” and are generally used to gather information like confirmation of your identity.

That being said, opening a new deposit account used to only be a “soft” pull of your credit, but increasingly is becoming a common reason for a “hard” inquiry. It depends on the bank you are opening an account with, and is often difficult to know in advance whether the inquiry will be a 'soft' or 'hard' inquiry of your credit history. You might try asking before applying, but in some cases the person helping you open your deposit account will not even know for sure!

A forum on FatWallet.com has started a list of banks and users have been submitting details as to whether each bank does a hard or soft pull of your credit for various bank accounts opened. You might want to check the list if you are concerned with the number of hard inquiries your credit history has been getting prior to opening a new bank account.

According to the consumer-created list on FatWallet, it seems none of the most popular online banks are using hard inquiries for opening savings accounts, but banks offering money market and checking accounts are regularly doing hard pulls in an effort to figure out how much overdraft protection you should be allowed as this amount is directly tied to your credit score.

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0% T-Bills, FDIC Trust, GMAC Problems and other Banking News of the Day
Wednesday, December 10, 2008 - 6:58 PM

There were several banking related news stories today. Thanks to the readers who emailed me or commented on these. Below are a few of the most interesting ones.

Zero Rate Treasury Bills: As reported by this CNN article, the Treasury auctioned $30 billion worth of 28-day bills Tuesday at a yield of 0%. Investors are desperately looking for safety and security. This can't be good for bank deposit rates.

Trusting the FDIC: Many people may be staying away from banks because they don't trust the FDIC. The FDIC had a press release today in response to a CNBC/Portfolio.com survey which showed that 31% of consumers surveyed had little or no confidence that their money would be safe if their bank were to fail. The FDIC reiterated the fact that FDIC insured savings were backed by the full faith and credit of the United States government. It also mentioned some of the recent changes including the new temporary $250K coverage which I last mentioned in this post.

More Problems at GMAC: CNN reports that GMAC Financial Services (parent of GMAC Bank) has said it's coming up well short in its efforts to raise the capital needed to become a bank holding company. GMAC applied to the Federal Reserve in November to become a bank holding company so it can be eligible for some of the $700 billion bailout funds. This MarketWatch article has some more details and commentary on GMAC's troubles.

Strongest US Bank? Which is the strongest bank: Bank of America, Wells Fargo or JPMorgan Chase? According to this Financial Week article, it's Chase.
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4.50% 22-Month CD & $150 Checking Bonus at Advance Financial FCU in Indiana
Wednesday, December 10, 2008 - 6:55 PM

Advance Financial FCU is offering an attractive CD promotion and a checking account promotion. The CD promotion includes a 4.00% APY 11-month CD and a 4.50% APY 22-month CD. Minimum deposit is $500. These are also available as IRA certificates. These rates are listed in the credit union's rate table as of 12/10/08.

The $150 checking account promotion requires opening a Better Than Free Checking Account. Three $50 bonuses are awarded for separate activities:
  • $50 American Express Gift Card is awarded for signing up for a free ATM/Debit card
  • $50 cash reward for direct deposit
  • $50 cash reward for using free Online Bill Pay
The credit union's promotion page has the details. It's scheduled to last through 12/31/08. One of the nice perks with this checking account is free checks.

Membership is open to anyone who lives, works, worships, volunteers or attends school Lake County, Indiana. You can also be eligible via family members (and not just immediate family). Please refer to the credit union's membership page for the full details. Membership requires a minimum deposit of $5 into the regular share savings account.

Branches are located in the Indiana cities of East Chicago, Schererville and Gary. The credit union is federally insured by the NCUA (Charter # 24078).
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4.00% 11-Month CD at LA Financial Credit Union in California
Wednesday, December 10, 2008 - 6:53 PM

Update 1/27/09: The rate of this special 11-month CD has fallen to 3.50% APY.

La Financial Credit Union is offering a promotional 11-month certificate with an APY of 4.00%. Minimum deposit is $1,000. It's also available as an IRA certificate. This promo is listed in the credit union's rate table as of 12/10/08. The CD will automatically renew as a 12-month term. As is common with CDs, I would assume you can close the CD at the end of the 11-month term during the grace period.

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 who mentioned this special in the Finding the Best Deals post.
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4.00% CD for Terms of 6 to 18 Months at Brickyard Bank in Illinois
Wednesday, December 10, 2008 - 6:51 PM

Brickyard Bank is offering a CD promotion with an APY of 4.00% for terms of 6, 9, 12 and 18 months. Minimum deposit is $10,000, and the money must be new to the bank. This special doesn't seem to be listed at the bank's website. A reader emailed me info on this, and I verified the special with the bank today (12/10/08). The promotion could end at anytime. A branch visit is required to open an account.

Branches are located in Lincolnwood and Skokie, Illinois which are in the northern suburbs of Chicago.

The bank's ratings for soundness are weak: 2 stars (problematic) at BauerFinancial and 1 star (lowest) at Bankrate.com. Both ratings are based on 6/30/08 data. The bank has been FDIC insured since 1979 (FDIC Certificate # 22811).
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4.25% 14-Month CD & 4.00% 5-Month CD at United Midwest Savings Bank in Ohio
Wednesday, December 10, 2008 - 8:36 AM

United Midwest Savings Bank is offering two competitive promotional CD rates: 4.25% 14-Month CD and a 4.00% APY 5-month CD. Minimum deposit is $500. These rates are listed at the bank's rate table as of 12/10/08. The rate table has an October date, so I contacted the bank. The banking rep confirmed that these are still available. As usual, they can end at anytime.

A branch visit is required to open an account. Branches are located in the Ohio cities of DeGraff, West Manchester and Columbus. There's also an office in Falmouth, Kentucky under the name Pendleton Savings Bank which is a division of United Midwest.

The bank's financial ratings are a little weak: 3.5 stars (good) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. These ratings are based on 6/30/08 data. The bank has been FDIC insured since 1986 (FDIC Certificate # 32441).

Other Top Ohio Certificate of Deposit Rates:

Refer to my Ohio CD Deals page for other high Ohio CD rates. There are two deals that I posted on in late November that still seem to be available based on what's listed at the banks' websites. These include a 4.75% 24-month CD and a 5.25% 45-month CD.

Nationwide deals are listed in my weekly rate summary. Rates are changing fast, so please check the banks' websites for the latest rates.
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4.58% 12-Month CD at Transportation FCU in DC & MA
Wednesday, December 10, 2008 - 8:16 AM

Transportation FCU is offering a special one-year 4.58% APY term share certificate. Minimum deposit is $500, and new money is required. This rate is listed on the credit union's front page and in this promotion page as of 12/10/08.

Unfortunately, it's not easy to be eligible to join. Eligibility is primarily based on select employer groups. Employees of Department of Homeland Security, Transportation Security Administration and the US Coast Guard nationwide are eligible. Other employers and a few associations are listed in the areas of Washington DC and Boston, Massachusetts. Please refer to the credit union's Membership Information Page for more details. Membership requires a minimum $5 deposit into a share savings account.

Branches are located in Washington DC and in Cambridge, MA.

The credit union has some strong ratings for soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 6/30/08 data. The credit union is federally insured by the NCUA (Charter # 3140).
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4.05% 12-Month CD at Astoria Federal Savings in New York
Wednesday, December 10, 2008 - 8:05 AM

Astoria Federal Savings Bank is offering a competitive 1-year CD with an APY of 4.05%. Minimum deposit is $500. The 2-year CD is also fairly competitive with an APY of 4.25%. These rates are listed in the bank's rate table as of 12/10/08.

It appears a branch visit is required to open an account. Astoria has 85 branches located in Brooklyn, Queens, Nassau, Suffolk and Westchester.

Astoria has some decent ratings for soundness: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 6/30/08 data. The bank has been FDIC insured since 1937 (FDIC Certificate # 29805).

Thanks to the reader who emailed me news of this CD.

Other Top CD Rates in New York:

State Bank of India in New York City had been offering a very high 1-year and 6-month CD rate for the last week (see post). New rates may be posted for today. These CD rates were way above the rates of their competitors, and they were listed on Bankrate. So I would be surprised if they'll be continued for another week.

To find other high CD rates in New York, refer to my New York bank deals page. Nationwide deals are listed in my weekly rate summary. Rates are changing fast, so please check the banks' websites for the latest rates.
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Brokerage Certificates of Deposit and IRAs
Tuesday, December 9, 2008 - 8:16 PM

Fidelity's new Retirement Rewards American Express Card (see post) reminded me of a readers's email which described his experience with Fidelity's IRA and their brokerage CDs. For those with IRA's, it can be difficult to chase CD deals at banks and credit unions. It can be a hassle to do the trustee-to-trustee direct transfers and make sure it's completed before the offered rate expires. Brokerage CDs can help with this. With an IRA account at a discount brokerage like Fidelity, you can buy brokerage CDs from the IRA account. So there's no trustee-to-trustee transfers to worry about.

You can see the CD rates and terms available at Fidelity from their Certificates of Deposit page. The reader mentioned that Fidelity's CD rates haven't been that competitive, but they've started offering CDs from newly-born banks that used to be investment banks (Morgan Stanley, Goldman Sachs, etc.). These have been more competitive especially for terms of 5 to 7 years. I just checked new issue offerings as of 12/09/08, and the top rates for terms of 3 to 5 years range from 4% to 4.50%.

Some important details about these brokerage CDs as described by Fidelity:
  • All new issue CDs offered by Fidelity are fee-free
  • The CDs Fidelity offers come from multiple sources.
  • All CDs offered by Fidelity are FDIC-insured.
Here's an overview of Brokerage CDs and their advantages as provided by Fidelity:

Overview:
Investing in brokerage CDs is similar to bank CDs, in that investors agree to place their funds with the issuing bank for the term of the CD, and the CD earns interest at a specified rate. At maturity (or earlier if there is a call option) the investors' funds plus interest will be returned. During the term of the CD your funds will earn an interest rate stated at the time of initial deposit.

Advantages of Brokerage CDs:
  • Liquidity - Brokerage CDs, like those offered by Fidelity Investments, may be traded on the secondary market and thus are generally more liquid than bank CDs. Although a brokerage CD will return an investor's principal at maturity, its value if sold prior to maturity will fluctuate based on size, time remaining before maturity and the level of interest rates.
  • Flexibility - A brokerage CD is portable and can be transferred from one brokerage firm to another, which allows the owner to consolidate assets at one firm.
CDs at Other Discount Brokerages:

Charles Schwab and Vanguard also offer brokerage CDs. Here are their CD pages along with a sample of the current CD rates:
  • Charles Schwab CDs: Rates as of 12/09/08: 3.80% APY for 12-24 month CDs, 4.05% APY for 31-42 month CDs
  • Vanguard CDs: Rates as of 12/09/08: 3.55% for 18-month, 4.35% for 3-year, 4.75% 5-year
Downsides of a Brokered Certificate of Depost

One downside with brokered CDs is that if the bank that holds the CD fails, there can be a long delay before you can get access to the money. The FDIC needs the brokers to provide detailed customer account information which can take more than a month. A reader in this post had a brokered CD through Schwab that was held by a bank that failed last Spring. He was told he would have to wait up to 6 weeks for his money.

Another downside can be early withdrawals. Instead of a fixed early withdrawal penalty, you have to sell it on the secondary market. As Fidelity describes, this can provide more liquidity. However, the value you can get in the secondary market may be much less than you had expected. A good description of this risk is described at this webpage. The webpage describes how the soundness of a bank can make a big difference in the value of the CD in the secondary market:
The bank issuing these CDs was rated 3 stars out of five by BauerFinancial, and it seems that the secondary market doesn't like this kind of bank. Yes, these CDs were FDIC insured. But apparently the market doesn't like long-term CDs from banks rated lower than four stars.

The author of this page mentioned he had bought a 10-year CD.

Thanks to the reader who emailed me info on Fidelity IRA and their CDs.

Edit 6/16/09: Updated Fidelity URL to their CD page.
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Fidelity's 2% Cash Back American Express Credit Card
Tuesday, December 9, 2008 - 7:18 PM

Fidelity Investments introduced a new cash back credit card called The Fidelity Retirement Rewards American Express Card. It adds an extra 0.50% on the cash back rewards as compared to their 1.50% cash back Rewards Visa Signature Card. Here's a list of the features as described at Fidelity's page:
  • Turn 2% of purchases into a contribution for your Fidelity IRA
  • No limits on cash rewards
  • No annual fee
  • You'll earn 2 points for each $1 you spend on purchases
  • Reach 5,000 points after you make $2,500 in purchases and $50 can be automatically swept into your Fidelity IRA as a current year contribution or other Fidelity account
  • Enjoy more flexibility with additional WorldPoints rewards options, including travel, merchandise, travel, and other rewards
Even though it's pitched as a way to help increase your IRA contributions, it does allow the cash back money to be swept into accounts other than the IRA. This includes the non-retirement Fidelity brokerage account and MySmartCash account (see post). This is described in the credit card's terms and conditions.

It was just last week when Charles Schwab came out with their 2% cash back credit card (see post). It's nice to see more competition with these credit cards.
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3.00% Reward Checking Account at Global Credit Union in WA & ID
Tuesday, December 9, 2008 - 10:49 AM

Update 6/22/09: The top rate is scheduled to fall to 3.00% APY effective 7/01/09. Refer to the bottom of the post for the rate history.

Global Credit Union is offering a reward checking account called eVelocity Checking. It pays 3.00% APY on balances up to $10,000 (0.25% for above) and refunds ATM surcharges if the following monthly requirements are met:
  • 12 debit card purchases
  • one automated deposit or withdrawal of at least $100
  • receive eStatements
  • log into online banking
If these are not met, the rate falls to 0.25%. There are no minimum balance requirements or monthly service fees.

Reward checking with a 6% APY is rare these days. I was told this checking account was launched in June 2008. Hopefully, the 6% will last, but there's no guarantee.

Membership is open to anyone who lives or works in Washington State or in the Idaho counties of Kootenai, Benewah, Shoshone or Latah. You can also qualify for membership if you have a family member who qualifies. Please refer to the credit union's FAQ page for more details. Membership requires you to maintain a credit union savings account, but this has no minimum balance requirement.

For those who don't live near a credit union branch, I was told by the credit union's CSR that you could apply for membership and open this checking account by mail. Branches are located in the Washington cities of Spokane, Kennewick and Pasco, and in the Idaho cities of Coeur d'Alene, Moscow and Post Falls.

The credit union is federally insured by the NCUA (Charter # 68237).

Thanks to the reader who emailed me news of this reward checking account.

Other 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.

Rate History:
07/01/09: 3.00% for up to $10K
12/31/08: 6.00% for up to $10K
12/09/08: 6.00% for up to $30K
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4.08% 10-Month CD at Bank 1440 in Arizona
Tuesday, December 9, 2008 - 10:47 AM

Bank 1440 is offering a special 10-month CD with an APY of 4.08%. Minimum deposit is $10,000, and new money is required. Early withdrawal penalty is 30 days of interest. This CD special is listed on the bank's home page as of 12/09/08.

A branch visit appears to be required to open accounts. Branches are located in Phoenix and Peoria, Arizona.

It's a new bank that was established in June 2007. Since it's new, it doesn't have a rating at BauerFinancial. It has a 3-star rating (performing) at Bankrate.com based on 6/30/08 data. The bank is a member FDIC (FDIC Certificate # 58460).

I was wondering why they had the name 1440. It's the number of minutes in a day (24 x 60).
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4.20% 15-Month CD at Arizona Federal Credit Union
Tuesday, December 9, 2008 - 10:45 AM

Arizona Federal Credit Union is offering a competitive 15-month certificate with an APY of 4.20%. Minimum deposit is $500. This is listed in the credit union's rate table as of 12/09/08.

Arizona FCU often offers a special 15-month CD. My last post on this credit union was in September 2007 when it was offering a 5.85% 15-month CD. As you can see, the rate environment for savers is much worse now than what it was last year.

Membership is open to anyone who lives, works, worhships or attends school in Maricopa County, Pinal County or the City of Tucson. Please refer to the credit union's Membership page for the full details. Membership requires a minimum $25 in the share savings account.

Ariona FCU has some weak ratings for soundness: 2 stars (problematic) at BauerFinancial and 1 star (lowest) at Bankrate.com. Both ratings are based on 6/30/08 data. The credit union is federally insured by the NCUA (Charter # 1747). It's a large credit union with $1.8 billion in assets and 225,621 members.
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4.25% 12-Month CD at Cyprus Credit Union in Utah
Tuesday, December 9, 2008 - 9:56 AM

Cyprus Credit Union has a certificate promotion with two competitive rates: 4.25% APY for a one-year term and 3.75% APY for a half-year term. Minimum deposit is $1,000, and these are also available in an IRA. New money is required. This special is listed on the credit union's home page as of 12/09/08.

When I wrote my last post on this credit union in October 2007, I contacted the credit union about their certificates. According to the service rep, the early withdrawal penalty is 1-month of interest for terms of 12 months and under. For terms over 12 months, the penalty is 3 months.

Membership is open to any Utah resident who is willing to make a $3 donation to the Community Recreation Association (CRA). Please see the credit union's membership page for more details. Membership requires a minimum $25 deposit into your savings account.

Branches are located in the Utah cities of South Jordan, West Valley City, Salt Lake City, Centerville, Herriman, Magna, Riverton, Sandy and Saratoga Springs. According to the service rep, Utah residents can join and open accounts by mail. It will require a notarized signature card and copies of your driver's licences and social security card. Please contact the credit union for more details.

Cyprus Credit Union's ratings for soundness are mixed: 4 stars (excellent) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 6/30/08 data. The credit union is federally insured by the NCUA (Charter # 24688).
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4.00% 6-Month CD at Temecula Valley Bank in California
Tuesday, December 9, 2008 - 9:37 AM

Temecula Valley Bank is offering a CD promotion that includes a 6-month CD with an APY of 4.00%. Minimum deposit is $1,000, and the money must be new to the bank. There are also two other special CDs, but these are less competitive: 3.60% APY 12-month CD and a 3.35% APY 9-month CD. These rates are listed at the bank's rate page as of 12/09/08.

It appears a branch visit is required to open an account. Branches are located in the California cities of Temecula, Murrieta, Corona, Carlsbad, El Cajon, Escondido, Fallbrook, Rancho Bernardo, San Marcos, Solana Beach and Ontario.

Temecula Valley Bank was recently in the news when the bank fired its president and CEO. According to this SignOnSanDiego.com article, the bank "has seen its nonperforming loans soar throughout this year as home builders failed with their new projects."

As you might expect the bank's ratings for soundness are a little weak: 3 stars (adequate) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 6/30/08 data. Temecula Valley Bank has been FDIC insured since 1996 (FDIC Certificate # 34341).
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Bank of America's 4.01% 48-Month CD in FL and MA
Tuesday, December 9, 2008 - 9:35 AM

Bank of America is offering 4.01% APY for its Standard Term CDs with terms from 48 to 59 months. Rates vary by state, so you'll have to check to see if it's available for your state. I've verified this for Florida and Massachusetts. The yield for most states is only 2.51% APY. These states include TX, IL, PA, NC, GA, OH, CO, AZ and VA. Also note, this rate is listed as of 12/09/08, and it can change daily. Credit for this find goes to BestCashCow.

To receive this 4.01% APY, you either have to open the CD online or you must be an Advantage Checking, Money Manager, Premier, Private Bank, or Small Business client managed customer.

It's definitely not the best 4-year CD rate, but it's not too bad in today's rate environment. For those who want to stick with a major bank, this may be an option.

Some other top 4- and 5-year rates from major banks:
  • 5% 60-month CD and 4% 48-month CD at WaMu and Chase (WaMu is now part of Chase). For more details, please refer to this post.
  • 4.50% 60-month CD at Wachovia (soon to be part of Wells Fargo). Note, this is a Featured CD, and it's not listed at Wachovia's website. I was quoted this rate on Saturday for Texas. This had been 5%.
For the full list of long-term CD rates, please refer to my weekly rate summary.
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4.00% 5-Month No-Penalty CD at First Priority Credit Union in MA
Monday, December 8, 2008 - 7:03 PM

First Priority Credit Union is offering a special 4.00% APY 5-month share certificate. Minimum deposit is $1,000. The CD has a no-penalty withdrawal feature which allows you to make a one-time withdrawal and incur no penalties after the first 5-days of the term. This is also available as an IRA certificate. The 4% APY is listed on the credit union's home page as of 12/08/08.

Membership is open to those who live and work in Massachusetts' Essex County or Suffolk County. Also eligible are employees, retirees and family members of the Postal Community. Please refer to the credit union's Membership page for more details. Membership requires a minimum deposit of $25 into your share savings account.

Branches are located in Boston, East Boston, Lowell and Waltham, MA. The credit union is federally insured by the NCUA (Charter # 66593).

The credit union has some strong ratings for soundness: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate. Both ratings are based on 6/30/08 data.
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4.40% 7-Month CD & 4.50% 13-Month CD at Ocean Bank in South Florida
Monday, December 8, 2008 - 6:56 PM

Ocean Bank is offering a CD promotion with two competitive rates: 4.40% APY for a 7-month term and a 4.50% APY for a 13-month term. Minimum deposit is $2,500. These specials don't seem to be listed on the bank's website. A reader emailed me news of these, and I contacted the bank today and verified that these are available as of 12/08/08. The CSR said that rate can change at anytime.

A branch visit appears to be required to open accounts. Branches are located in Miami-Dade and Broward County.

Ocean Bank has been offering very aggressive special CD rates for the last year. My last post was on October when the 13-month CD APY was 4.75%.

Ocean Bank has been hit hard in the real estate slump and credit crisis. They've had to deal with many bad loans. South Florida Business Journal has reported that they recently filed foreclosure lawsuits against an industrial site owner and a condo developer.

Ocean Bank's financial ratings for soundness are weak: 2 stars (problematic) at BauerFinancial and 1 star (lowest) at Bankrate.com. Both are based on 6/30/08 data.

The bank has been FDIC insured since 1982 (FDIC Certificate # 24156).
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$50 Electric Orange Checking Account Bonus at ING Direct
Monday, December 8, 2008 - 4:15 PM

ING Direct has a promotion for opening a new Electric Orange Checking account. The promo page is located at www.ingdirect.com/dvr . Copy and paste this in your browser. This promotion was intended for Tivo/DirectTV customers, but it should apply to anyone who doesn't already have an EO account. Be sure to enter the code EODVR in the reference code box in the application. The $50 does require a little work. You're required to use your Electric Orange Debit Card Card to make at least 3 signature-based purchases in the first 45 days after your account has been opened. Signature-based means that you have to use it like a credit card without providing your PIN.

I called ING Direct today and confirmed that this promotion should work for anyone who doesn't already have an EO account. It should even be good if you only have an Orange Savings Account. Update 12/11/08: Readers who already have or had the Orange Savings Account have reported receiving an invalid code response.

I also asked if this could be stacked with the $25 refer-a-friend bonus. Unfortunately, I was told it would not. Another advantage of this bonus over the refer-a-friend bonus (besides the extra $25) is that it does not require a minimum $250 initial deposit. The downside is that it does require those 3 debit card purchases. If you would still prefer the refer-a-friend bonus, email me at bankdeals at gmail dot com with your full name. Make sure you specify if you want the EO account or savings account.

A few important details about the Electric Orange Account:
  • ING Direct does a hard credit pull when you apply for the EO (see ING Direct's FAQ)
  • I've read that overdraft protection is mandatory for the account. So if you have bad credit score, your application could be declined.
The EO yields have fallen quite a bit for balances under $50K. As of 12/08/08, the APYs are 1% for under $50K, 2.90% for $50K to $100K and 3.25% for $100K and above.

ING Direct is known for its easy online interface rather than the best rates. However, it does have a few features that are not the best for an online bank. These have to due with their ACH transfer system. The downsides include:
  • limit of 3 linked checking accounts
  • Linked account must be a personal checking account, not a brokerage, money market or savings account
  • ING Direct places a hold of 5 business days for deposits (initial deposit has a 10-day hold)
One important improvement ING Direct made a year or two ago was the capability to add links online without having to send in a voided check.

ING Direct's bank deposit products are FDIC insured (FDIC Certificate # 35489)

Credit for this find goes to Slickdeals user PAMomma1 who posted it at SD thread.
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4.35% 15-Month CD at Champion Bank in Missouri - Nationally Available
Monday, December 8, 2008 - 4:12 PM

Update 12/10/08: The 13-month and 15-month CD specials are no longer listed in the bank's rate table. CD deals sure don't last long these days.

Champion Bank is offering a special 4.35% APY 15-month CD. There's also a special 13-month CD with an APY of 4.25%. Minimum deposit is $1,000. These are available as regular, IRA and business accounts. The rates are listed in the bank's rate table as of 12/08/08.

Champion Bank also offers a reward checking account, but the yield has fallen quite a bit lately. The yield as of today is 3.35% APY for balances up to $25K. For more info on this checking account, please refer to this post. For those with large balances, they have the Marathon Money Market Account with an APY of 3.50% for balances over $26K as of 12/08/08.

My last post on this bank was in September when they were offering a 4.35% 11-month CD. At that time I was told that you can open accounts by mail. Here is part of the email reply that I received:
Yes, Champion Bank is able to open an account for a customer residing anywhere in the United States. Once the application has been submitted, you will be contacted,and a request will be made for two forms of identification for each signer, as well as a check for the deposit. The account will not officially be opened until the funds have been received.

The main branch is located in Creve Coeur, Missouri which is in the suburbs of St. Louis. It's a new bank that was just established in 2006. The bank is FDIC insured (Charter # 58362).
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3.75% Money Market Account with Yield Guaranteed for One Year at Apple Bank for Savings in New York
Monday, December 8, 2008 - 4:09 PM

Apple Bank for Savings has a promotion in which you can earn 3.75% APY guaranteed for 12 months on its savings account or money market account. It's called Advantagebanking, and it requires a Grand Yield Advantage NOW Checking Account that has a minimum of 6 customer transactions per statement cycle. Otherwise the APY earned will be permanently reduced to the low tier rate of the standard Advantage account (currently 1.25%). The 3.75% APY applies to all balances up $200K. Minimum deposit to open and avoid a $25 monthly fee is $10,000.

This offer doesn't seem to be listed at the bank's website. It was advertised in the 12/03/08 edition of the NY Daily News. The ad is available online here. I just called Apple Bank today, and I was told this promotion is still active. The CSR did not know how long it would last. She said rates typically change on Tuesdays but there is no indication that it'll end tomorrow.

Some additional details I received from the banking rep include: branch visit is required to open the money market and checking accounts, and they only do a ChexSystem verification in the application without a hard credit pull. Also, I was told that the Grand Yield Advantage NOW Checking Account requires a $2,500 minimum balance to avoid a monthly fee.

Apple Bank for Savings has branches in Manhattan, Bronx, Brooklyn, Queens, Westchester, Suffolk, Nassau and Staten Island, New York.

Grand Yield Direct is the online savings account that Apple Bank started in 2006. That savings account continues to offer a decent yield (currently 3% APY), but they haven't added any new online products since it began. Please refer to this post for more details on this savings account.

Apple Bank for Savings continues to have strong ratings for soundness: 4 stars (sound) at Bankrate and 5 stars (superior) at BauerFinancial. Both ratings are based on 6/30/08 data. The bank has been FDIC insured since 1943 (FDIC Certificate # 16068).
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4.25% 10-Month No-Penalty CD at Agriculture FCU - Easy Membership
Monday, December 8, 2008 - 9:12 AM

Update 12/09/08 6:00pm EST: The CD special has ended. They must have attracted a ton of deposits.

Agriculture FCU has just started a new risk free certificate with an APY of 4.25% and a 10-month term. Minimum deposit is $5,000, and the money must be new to the credit union. The risk free option gives you the opportunity to make one penalty free withdrawal during the term of the certificate. The credit union's promotion page lists the 4.25% APY as of 12/08/08.

The reader who informed me of this special mentioned that it will likely end this Friday (12/12/08). Last year when AFCU was offering a 6% 10-month CD, it launched the promo on Monday, and it ended on Friday. The small print of the promo states that it could any at any time.

To make it even more flexible, you should be able to open several of these CDs (each has a minimum of $5,000). When you compare it to a savings account, you have much of a savings account liquidity but you also have a higher rate that's locked for 10 months. If interest rates continue to decline, this rate lock could come in handy.

I emailed the credit union in October about their previous Risk-Free CD. Here is an excerpt of their reply:
you can withdraw the entire amount and all the dividends will be included with the withdrawal up to the date the withdrawal was made. Yes you can request to have this done by phone , email, secure email or by mail. No, there is no limit to the number of certificates that you wish to have opened.

Easy Membership

Field of membership includes members of CityDance Ensemble. CityDance has open membership to anyone that pays membership dues of $20.00. This membership can be done at the same time that you apply for credit union membership. They have an online membership application in which you can join CityDance for $20, join the credit union for a $5 initial deposit to the Primary Share account, and open the CD. You do not have to renew your CityDance membership to maintain membership at the credit union.

The FOM also includes those who live, work or worship in Washington DC plus other group affiliations. See site for the full details.

Save $5: The membership page has a special promo for new members
We’ll deposit the required minimum balance of $5.00 to their accounts when they use promotion code 1234 to join.

I joined AFCU and opened a CD in November 2006. For more information on AFCU and the CDs, please refer to my November 2006 AFCU post. If you already are a member of AFCU and want to open another account online, please see my July 2007 post in which I described my experience opening my second AFCU CD.

Back in 2006 and 2007, AFCU had many great CD specials with rates of 6% or higher. There haven't been too many great CD specials since then, but their CD rates have remained fairly competitive.

Branches are located in Washington DC, Riverdale, Maryland, and Alexandria, Virginia. AFCU is also part of National Shared Branching network in which you can use local credit unions to access your account and conduct many transactions.

AFCU has some strong financial ratings for soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both are based on 6/30/08 data. The credit union is federally insured by the NCUA (Charter # 16400). It has $201.6 million in assets and 23,599 members.

Thanks to the reader who emailed me info on this new special.
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3.75% Money Market Promo Guaranteed for 3 Months at Dime Savings Bank
Sunday, December 7, 2008 - 7:07 PM

Dime Savings Bank is offering a special passbook money market promotion with a 3.75% APY guaranteed for 3 months from account opening. This promotion is listed at the bank's website as of 12/07/08. Refer to this page for the official details. The promotion & account disclosure has the details:
  • 3.75% APY on all balances up to $100,000 guaranteed for 3 months from opening
  • 0.50% APY on balances over $100,000
  • $10 monthly fee for balances under $2,500
  • Passbook must be presented each time a deposit or withdrawal is made
  • Bank reserves the right to require 7 days prior notice of withdrawal from this account
  • Current non-promo rates: 3.25% APY $75K+, 2.75% APY $50K-$75K, 2.50% APY $25K-$50K, 1.10% APY $1K-$25K

In the account application, it appears people from any state can apply online. The application directions state "to apply online, you must be 18 or older, a U.S. citizen and have a U.S. address." However, I don't know how or if they enforce the passbook requirement. When I contacted the bank in November regarding a special CD, I was told that people in any state could apply. However, previous specials had been limited to residents of New York, New Jersey and Connecticut.

Branches are located throughout the Greater New York metro area.

Dime Savings Bank has some solid financial ratings for soundness: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 6/30/08 data. It has been FDIC insured since 1943 (FDIC Certificate # 16012). It's based in Brooklyn, New York, and it has $3.7 billion in assets.

Other Money Market Account Promotions

There are other money market promotions with higher yields. Two good ones include those offered by EverBank and 1st Constitution Direct. Please refer to my weekly rate summary for these latest promotions.
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4.00% 4-Month CD & 4.20% 13-Month CD at Second Federal Savings Bank in Chicago
Sunday, December 7, 2008 - 6:34 PM

Update: The CD rates have changed. Please check with the bank for the latest rates.

Second Federal Savings continues to offer a special 4.00% APY 4-month CD and a 4.20% APY 13-month CD. Minimum deposit for the 4-month CD is $2,500, and the minimum for the 13-month CD is $5,000. These rates are listed at the bank's promotion page as of 12/07/08.

It appears that a branch visit is required to open an account. Branches are located in Chicago and in Cicero, Illinois.

In my last post on this bank, a commenter described some poor customer service he experienced when he tried to open a CD at this bank. He called to confirm the special CD rate before visiting the branch. After driving an hour to reach the branch, he was told that the CD had been discontinued at 11:00am, and the branch manager refused to honor the rate even though they had quoted the rate to him earlier in the day. As listed on 12/07/08 at the Better Business Bureau website, this bank has a "unsatisfactory record with the BBB due to a failure to respond to a complaint."

The bank has some decent financial ratings for soundness: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. It has been FDIC insured since 1934 (FDIC Certificate # 27986).
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4.25% 7-Month CD at Altura Credit Union in California
Sunday, December 7, 2008 - 5:54 PM

Altura Credit Union is offering a special 7-month certificate with an APY of 4.25%. This requires the credit union's Honors Checking Account. A lower yield of 4.00% APY requires only a regular free checking account. Minimum deposit is $1,000.

This special doesn't seem to be listed at the credit union's website. A reader emailed me news of this Friday, and I contacted the credit union Friday for additional details. According to the CSR, the special is scheduled to last through 12/31/08. It's available at all of their branches. When I asked if they do a hard credit inquiry, the CSR said they do not run your credit for a checking account.

The Honors Checking Account has a $10 monthly fee, but this can be waived for combined deposit balances of $10,000.

Membership is open to anyone who lives, works, attends school, or worships in Riverside County, San Diego County or in the cities of Anaheim, Garden Grove, Irvine, Santa Ana, Rancho Cucamonga, Ontario or Fontana. Membership requires a $12 fee. Please refer to the Credit Union Membership Page for more details. According to this page, $7 of the fee is for members' equity. I'm not sure if this is a deposit in their regular share savings account. Note, this account has a minimum balance requirement of $250 to avoid a $2/month fee.

Altura Credit Union is federally insured by the NCUA (Charter # 62799).

Thanks to the reader who emailed me news of this promotion.
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4.00% 6-mo CD, 4.25% 12-mo CD & Other High Yield CDs at Bay Ridge FCU in Brooklyn, NY
Sunday, December 7, 2008 - 5:33 PM

Bay Ridge Federal Credit Union is offering several competitive CD rates. These range from 4.00% APY for a 6-month term to 5.25% APY for a 5-year term. Minimum deposit is $20,000. These are also available in an IRA certificate with only a $500 minimum. A $500 minimum in the regular certificates result in rates 25 basis points lower. The full list of CD rates are shown below. This is based on the credit union's rate table as of 12/07/08:

Term        APY for $20K min
6  months   4.00%
12 months   4.25%
24 months   4.50%
36 months   4.75%
48 months   5.00%
60 months   5.25%

A reader who mentioned these rates in the comments (thanks), also mentioned a special 4.25% APY 7-month CD that is being advertised by the credit union. It's not listed on the website.

Membership eligibility is primarily based on association membership and employer groups. Please refer to the credit union's Membership Page for details. There are some associations listed, but I'm not sure how easy it would be to join these.

The credit union is located in Brooklyn, New York. It's federally insured by the NCUA (Charter # 78).
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Bank Deals Weekly Summary for December 6, 2008
Saturday, December 6, 2008 - 4:59 PM

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

With the latest reports of high unemployment and recession, it appears likely that we'll get another big rate cut by the Fed in their December 16th meeting. The highest probability is now for a 75 basis-point rate cut which would take the target federal funds rate to 0.25%. BestCashCow has an interesting review of this and how the US economy is looking similar to Japan's economy in the 1990s.

Savings Account Rates

Savings account and CD rates continued to trend down this week. Countrywide and WaMu cut their online savings account rates yet again. These had top yields earlier this year, but now both are no longer competitive. The largest rate drop was at iGObanking which lowered its checking account yield from 3.80% to 2.80% APY. At least iGObanking's online savings account APY remains at 3.28%.

The only rate increase this week was at EverBank which raised the rate of its 3-month promo from 3.93% to 4.00%. As was seen with iGObanking, rate guarantees are nice in this interest rate environment. However, several banks don't have much history of competitive rates when the promo period ends. EverBank is one that has kept its ongoing money market account rate competitive. It's standard yield is currently 3.21% APY.

1st Constitution Direct has been offering a promo similar to that of EverBank with a 3-month 4% APY. Several readers who have this account have reported that the bank has offered them a 3-month extension of this promo rate. One reader has even reported receiving a second 3-month extension (see post). It's nice to see a bank rewarding existing customers rather than just new customers.

Below is the list of savings account rate changes for this week. The full list of savings account rates is farther down.

Rate Hikes:
  1. EverBank's 3-mo promo - 4.08% APY / 4.00% rate (was 4.01%/3.93%)

Rate Drops:
  1. iGObanking checking - 2.80% APY (was 3.80%)
  2. Flagstar MMA - 3.55% APY (was 3.65%)
  3. Alliant CU savings - 3.50% APY (was 3.75%)
  4. AmboyDirect eSavings - 2.79% APY (was 3.25%)
  5. CapOne/Costco MMA - 3.00% APY (was 3.20%)
  6. CapOne MMA - 2.75% APY (was 3.00%)
  7. Discover MMA - 3.04% APY / 3.14% APY $50K+ (was 3.14%/3.25%)
  8. Amegy Bank - 3.00% APY $10K+ (was 3.10%)
  9. Countrywide SavingsLink - 2.40% APY $10K+ / 2.50% APY $50K+ (was 2.65%/2.75%)
  10. WaMu Savings - 2.00% APY (was 2.25%)
  11. AmTrustDirect e-MM - 1.75% APY (was 2.75%)

Nationwide Certificate of Deposit Rates

CD rates also trended down this week, and there were some big drops. Large CD rates cuts occurred at OnBank, iGObanking, Century Bank Direct, Sovereign Bank and ViewPoint Bank. Wachovia ended its 5% APY 60-month Featured CD. I just called today and was told the new yield is 4.50%. However, Chase/WaMu continues to offer a 5% 60-month CD (see post).

One nice surprise this week was at State Bank of India, New York. Its 6-month and 12-month CD yields were increased to 4.32% APY and 4.68% APY (see post).

Christian Community Credit Union has long been offering a 4.50% APY CD special with terms of 7 to 18 months. It now has a 5% APY CD special for terms of 24 months to 60 months. The credit union has easy membership qualifications. The main issue with this credit union is its lack of NCUA insurance. It only has private insurance via American Share Insurance (ASI). ASI is a legitimate provider of private deposit insurance, but I can't say how well it'll be able to hold up. I have more details about this credit union and the issue of ASI at this post.

There continues to be some good CD deals available nationwide, and these are listed below. The full list of nationwide CD rates is farther down.
  1. 4.36% 12-mo & $25 bonus for new E-LOAN customers (account review)
  2. 4.50% 12-mo CD at Delta Community Credit Union (account review)
  3. 4.00% 8-mo CD & 4.50% 16-mo CD at Digital Credit Union (account review)
  4. 4.50% 2-year CD at Family First Credit Union (account review)
  5. 4.75% 3-year CD at PenFed (account review)
  6. 5.00% 5-year CD at Chase/WaMu (account review)

Local Certificate of Deposit Rates

Several small banks and credit unions have been offering some hot CD deals, but you have to live near one of their branches to qualify. Below is a list of some of the best ones that are still available. Note, these deals often don't last long, so please check with the institution. For more local deals, please refer to the new local CD deals and the state section below.
  1. 5% 7-mo CD ($15K max) in several states (account review)
  2. 4.75% 5-mo CD in RI (account review)
  3. 4.33% 6-mo CD in WA (account review)
  4. 4.50% 12-mo CD in Houston (account review)
  5. 5% 24-mo / 4.50% 12-mo CD in Pennsylvania (account review)
  6. 5.25% 45-mo CD in IN & OH (account review)

Reward Checking Accounts

I posted on six new reward checking accounts with yields ranging from 4.51% to 5.26% APY (see below). Two of these six are available to people in any state. The best one is at Belvoir Federal Credit Union which offers a 5.01% APY for balances up to $50K. The credit union has easy membership qualifications. The other one is at Bank of Sierra. This reward checking yield is only 4.51% APY for balances up to $25K. On a positive side, the bank provides an online application.

For my full list of reward checking accounts around the nation, please refer to my High Yield Checking website.

Recap for the Week - Links to This Week's Posts

Banking News

CD Deals - National

Checking/Savings Account Bonuses

Credit Cards

Reward Checking Accounts

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 29th, Nov 22nd, Nov 15th, Nov 8th, Nov 1st, Oct 25th, Oct 18th, Oct 12th and Oct 4th.

Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Reward Checking, 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 6, 2008

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:

Various Deposit Account Deals


High Yield Reward Checking Accounts - Open to All


Checking and Saving Accounts at Local Banks/Credit Unions

Recent CD Specials at Local Credit Unions and Banks


Bank Account Alternatives


Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)
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23rd Bank Failure of the Year: First Georgia Community Bank
Saturday, December 6, 2008 - 7:22 AM

First Georgia Community Bank was closed yesterday by Georgia regulators, and the FDIC was named receiver. Here's the FDIC's press release link, and here's a summary of the closure:
  • Closed Bank: First Georgia Community Bank
  • Location: Jackson, GA
  • Size: 4 branches, $237.5 assets, $197.4 million deposits
  • Possible Uninsured Deposits: ALL deposits transferred to acquiring bank
  • Acquiring Bank: United Bank, GA
  • Cost to Deposit Insurance Fund: $72.2 million (estimated)
  • 2008 closures: 23rd bank to be closed this year
  • Financial Ratings: 0 star at BauerFinancial, 1 star at Bankrate.com
This is yet another bank failure in which all deposits including those over the FDIC limits were covered. The last time there was potential loss of uninsured deposits was the October 24th closure of Alpha Bank & Trust. These All-Deposit Transfers seem to be more common these days.

The main risk for CD customers when a bank fails is that the new bank is allowed to change the rate, and it appears United Bank may decide to do this. As described in this Q&A:
All interest on insured deposits accrued through Friday, December 5, 2008, will be paid at your same rate. United Bank will be reviewing rates and will provide further information soon.

If you deposited funds through a broker, the interest will accrue and be paid through December 5, 2008.

So even though the CD customer won't lose any principal or interest, he may lose out on future returns from a high yield. Also, there is a risk that there could be some delay before the new bank allows you to close the CD. A reader of a previous bank failure had his CD changed to a much lower rate at the date of the bank closure, and the new bank didn't provide for a quick way to close the CD by mail.

On a positive side, CD customers will be allowed to withdraw funds out of their CDs without an early withdrawal penalty (see Q&A #11). This is typical of most bank failures. However, it's not guaranteed. JPMorgan Chase did not allow this when it took over WaMu, but Chase also did not change any rates or terms of existing WaMu CDs. That was okay with me since I had opened a 5% 1-year CD at WaMu two months before its closure.

First Georgia Community Bank had been offering some high CD rates. My last post on this bank was in August 2008 when it was offering a 4.75% APY 15-month CD. Hopefully, United Bank will allow customers with this CD to continue earning this rate to maturity. If you opened a CD at First Georgia Community Bank, please leave a comment about how this goes.

Another thing to note from my previous post on First Georgia Community Bank is that both BauerFinancial and Bankrate gave the bank their lowest rating for soundness. The bank had even been noted by the Atlanta newspaper for its problems and its high Texas ratio.

Here's the FDIC list of all the recent bank failures. I just posted on the new documentation from the FDIC and NCUA that covers all the recent deposit insurance changes (see post).

Thanks to the readers who sent me news of this closure.
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The Painless Guide to Switching Checking Accounts
Saturday, December 6, 2008 - 12:00 AM

The thought of trying to move your money and automatically scheduled bill payments from one checking account to another is often enough to prevent people from changing checking accounts. It may be easier to just stick with what you've got, but if you want to maximize your earnings or benefit from features offered through another banking institution, you'll have to be willing to do a little legwork to switch your money and any automatically scheduled payments from one checking account to another. While it may seem overwhelming at first, you can just follow this guide for virtually painless switching of checking accounts - and you'll be set up in no time!

Step 1: Review The Previous Month's Statement for Automatic Payments

If you have online banking with your current checking account, log in and view last months transactions. If you don't have online banking set up, get out your paper statement for the last month. Make a list of any payments that are automatically deducted from your checking account (meaning you do not physically write and send a check or initiate the online payment yourself).

Make another list of any items that you regularly initiate an online payment for – these are transactions that don't occur automatically, but you don't write checks for them either. You'll need to update your payment information in the online accounts of these creditors in order to continue making your payments through this method.

Step 2: Direct Deposits and Automatic Savings Transfers

Make another list of all income sources that are directly deposited into your checking account. Typically this would be your payroll direct deposit from your employer; but may also include child support or other direct deposit transactions.

If you have set up an automatic savings plan through your checking account, you will want to write down the details as well, so you remember to cancel the automatic transfer from checking to savings and to set it up again with your new checking account.

Step 3: Open the New Checking Account

Open your new checking account with a small deposit to get it set up if your funds are limited; if you have access to a sizable amount of money you can make a larger deposit and immediately start setting up your automatic bill payments again through this new account.

Order your checks if you use physical checks, and take note of the routing and account numbers for your new account. You will need this information to start transferring your automatic payments, direct deposits and automatic savings transfers.

Step 4: Cancel Automatic Payments and Savings Transfers

From the lists you've created, contact each of the creditors who receive their payment automatically through your old checking account. If you don't have a lot of money in the newly opened account, simply cancel the automatic payment and inform them you will be mailing your next payment manually. If you were able to open your checking account with a good amount of money, you can just switch the payment details from your old checking account to your new checking account without interrupting the automatic payment plan service, and avoid having to mail a check manually.

If you have an automatic savings transfer, you can choose to temporarily stop it while you are setting up the new checking account or again, if you have enough money in the new account already simply switch the details to the new account and resume making your automatic savings transfers through the new account immediately.

Step 5: Change Payroll Direct Deposit

Once you are sure there are no more automatic payments and savings transfers coming out of your old checking account, you can switch the payroll direct deposit (and any other sources of income that gets directly deposited) into your new checking account. Sometimes this takes one to two weeks to make the change, depending on the employer and the payroll department.

Step 6: Set Up Automatic Bill Payments and Savings Transfers

As soon as you see your first payroll direct deposit going into the new checking account, you can refer back to your list and re-set up the automatic bill payments again if you weren't able to do that at the same time as opening the checking account.

You will also be able to automatically transfer your money into your savings account once you set it up to withdraw from the new checking account.

If you had creditors and expenses that you would log into the website and initiate a payment, now is a good time to log into each of your accounts and update the payment method section of your profile. This will tell the account where to pull the money from – and you'll be able to specify your new checking account details for making payments here on out.

Step 7: Close the Old Checking Account, Enjoy the New One

After you've changed any automatically made transactions through the old checking account, verify that any outstanding checks or payments you've initiated have all cleared. As long as all transactions have posted to the account, at this time you should be able to safely close your old checking account and begin using your new checking account exclusively.

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An Overlooked Way to Save Money
Saturday, December 6, 2008 - 12:00 AM

Frugality is not for everyone. You just can't convince everyone that the effort to clip coupons, skip the coffee shop latte over making your own coffee or buying store brands is worth the few dollars you save week to week. There are a number of ways that money can be saved that are often overlooked though, and if you happen to be overlooking the items from this list - you could be paying much more than a few bucks a week unnecessarily.

Subscription Overhaul

People spend more money on subscriptions than they even realize, at times. Subscriptions can include anything that you pay monthly (or regularly, anyway) for - like magazines, newspapers, websites, cable television, music services, gyms. Subscriptions are great tools for business owners because it gives them a way to predict their incoming funds - but for the consumer, not so good! You're paying whether you remember you have the subscription or not - even if you forget to use it! In some cases, a subscription saves you money over paying per use - for example, if you're someone who visits the gym three to five days per week religiously - you would never benefit from paying $5 or $10 per visit. On the other hand, if you go to the gym an average of just three times a month, you MAY be better off paying per visit (or skipping the gym altogether for free forms of exercise).

Spend some time analyzing the things you pay for through subscription or regular monthly fees. Are you paying for Netflix or Blockbuster movies by mail? Figure out how many movies you actually watch and what they cost you per movie. For most people, hitting the movie store on the way home to rent a DVD once a week might be less expensive than paying per month.

Cancel any subscriptions you don't need or don't make use of. Replace it with a pay-as-you-go version that works better and saves you money. If you've got a subscription to Rhapsody or other music service for example, but regularly only listen to one or two songs - just pay $.99 per song on iTunes rather than a monthly subscription. What about cable tv? If you're not an avid watcher of 321 channels that you pay $102 a month for, maybe you'd be better off buying the episodes of the shows you DO want to watch at $1.99 per episode each month? Figure it out on paper and see for yourself.

The amount you save on subscriptions each month can work more to your advantage in an interest bearing savings or checking account than it can paying for subscriptions on services you barely use.

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New FDIC and NCUA Documentation with Latest Deposit Insurance Coverage Changes
Friday, December 5, 2008 - 9:10 AM

Update 5/20/09: For the status of the extension of the $250K coverage limit increase, please refer to this post.

Both the FDIC and NCUA have come out with new documentation explaining the recent changes in deposit insurance coverage. The FDIC just recently published consumer news where they describe the recent changes:
  • The basic limit on federal deposit insurance coverage has been temporarily increased from at least $100,000 to at least $250,000 per depositor
  • The basic FDIC insurance limit is scheduled to return to $100,000 on January 1, 2010.
  • The FDIC has eased the rule governing the insurance coverage of revocable trust accounts
  • Through year-end 2009, certain checking accounts at participating institutions will be fully insured by the FDIC, no matter how much money is in them

The National Credit Union Administration (NCUA) has a new document called Your Insured Funds (pdf). Some have questioned if the NCUA guarantee may be weaker than the FDIC guarantee. The introduction page states that:
The Share Insurance Fund is backed by the full faith and credit of the United States Government.

The NCUA deposit insurance coverage and the recent changes closely mirror that of the FDIC. One detail that is a little different is the NCUA's definition of a payable on death (POD) account:
A POD account shows the intent of the account's owner that upon his or her death the funds will pass to one or more named beneficiaries. Typically, this intent is shown in the titling of the account by using words such as: in trust for or payable on death to.

The FDIC still requires the POD or similar term be specified in the account title.

Edit 5/20/09: Updated NCUA link and document title
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4.25% 12-Month CD at RTN Federal Credit Union in MA - Easy Membership
Friday, December 5, 2008 - 9:01 AM

RTN Federal Credit Union is offering a 4.25% APY 12-month certificate. Minimum deposit is $50,000. Balances from $1K to under $50K earn only 3.51% APY. It'salso available as an IRA CD. These rates are listed in the credit union's rate table as of 12/05/08.

In addition to select employee groups, you can also qualify for membership in this credit union by joining either the Gore Place Society or the Waltham Historical Society. Individual membership for the Gore Place Society is $30. Please refer to the credit union membership page for more details. Credit union membership requires a minimum deposit of $25 into the main share savings account.

Branches are located in the Massachusetts cities of Waltham, Amesbury, Peabody, Lawrence, Marlborough and Tewksbury. The credit union is federally insured by the NCUA (Charter # 24311).

The credit union's financial ratings for soundness are fairly strong: 5 stars (superior) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 6/30/08 data.

Other Top One-Year Certificate of Deposit Rates

CD rates have been trending down. Online banks like GMAC and iGObanking have recently cut their CD rates. For CD terms around 12 months, internet banks no longer have the best rates.

The best 12-month CD deal currently available nationwide (as of 12/05/08) is at State Bank of India (FDIC insured) which is offering an APY of 4.68% (see post).

Two good credit union CD deals for terms around one year include the 4.50% APY 12-month CD at Delta Community CU (see post) and the 4.50% APY 16-month CD at Digital Credit Union (see post). Delta Community CU is based in Georgia and Digital is based in Massachusetts. Both have easy membership qualifications allowing people in any state to join and open accounts.

Other Bank Deals: For the latest deals, please refer to my Best Deals of the Day post and my Weekly Rate Summary.
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3.22% Reward Checking Account at Crow River Bank in Minnesota
Friday, December 5, 2008 - 8:59 AM

Update 7/18/09: The top yield has fallen to 3.22% APY. Refer to the bottom of the post for the rate history.

Crow River Bank is offering a reward checking account called EZ Reward Checking which pays 3.22% APY on balances up to $25,000 (0.50% for above) and refunds ATM fees up to $5 per item for a maximum of $25 per cycle if the following monthly requirements are met:
  • 10 debit card purchases
  • one direct deposit or ACH debit
  • receive electronic statements
  • access internet banking
If these are not met, the rate falls to 0.15%. There are no minimum balance requirements and no monthly service fees. The bank does not allow customers to open multiple accounts. So you can't extend the high yield to larger balances.

There's an online application. However, I contacted the bank, and the banking rep said you have to come into a branch to open this checking account if you do not currently have an account. Branches are located in Delano and Mound, Minnesota which are about 15 miles west Minneapolis.

The bank has been FDIC insured since 1982 (FDIC Certificate # 23986).

Other 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.

Rate History:
07/14/09: 3.22% APY up to $25K; 0.50% over $25K; 0.15% if requirements not met
01/17/09: 4.12% APY up to $25K; 0.75% over $25K; 0.25% if requirements not met
12/05/08: 5.22% APY up to $25K; 1.36% over $25K; 0.50% if requirements not met
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5.01% Reward Checking Account at Ocean Communities FCU in Maine
Friday, December 5, 2008 - 8:57 AM

Update 3/04/10: The balance cap has fallen to $10K. Refer to the bottom of the post for the rate history.

Ocean Communities FCU is offering a reward checking account called Ocean Star Checking that pays 5.01% APY on balances up to $10,000 (1.01% for above) and refunds ATM fees nationwide up to $999 per cycle if the following monthly requirements are met:

  • 12 Visa check card purchases
  • one direct deposit or ACH payment
  • receive electronic statements

If these are not met, the rate falls to 0.20%. There are no minimum balance requirements and no monthly service fees. Multiple accounts can be opened, but requirements must be met for each account.

Membership is open to people who live or work in most communities in York or Cumberland counties in Maine. Please refer to the credit union's Information Page for more details. Membership requires a minimum balance of $50 in the share savings account.

Branches are located in Biddeford, Kennebunk, Old Orchard Beach, Sanford and York. The credit union is federally insured by the NCUA (Charter # 5890).

Other Rewards 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.

Rate History:

01/31/10: 5.01% APY up to $10K

12/05/08: 5.01% APY up to $25K

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4.00% 5-Month CD at Garden Savings FCU in New Jersey
Friday, December 5, 2008 - 8:56 AM

Garden Savings FCU is offering a special 5-month share certificate with a yield of 4.00% APY. The credit union also has fairly competitive long-term CDs with an APY of 4.59% for terms of 4 and 5 years. One nice feature of these CDs is a mild early withdrawal penalty of only 90 days of interest. Minimum deposit is $500. These rates are listed in the credit union's rate table as of 12/05/08.

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).

Garden Savings FCU has decent ratings for soundness: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at BauerFinancial. Both ratings are based on 6/30/08 data.
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5.00% 55-Month CD at Freedom FCU in Maryland
Friday, December 5, 2008 - 8:54 AM

Freedom Federal Credit Union is offering a special 55-month certificate with a yield of 5.00% APY. Interest rate is 4.91%. Minimum deposit is $1,000. It's also available as an IRA certificate. The special CD is listed on the credit union's front page as of 12/05/08. More details are available in the promotion page (pdf).

Membership is open to those who live, work, worship or attend school in Harford County, Maryland. Please refer to the credit union's Join-Us Page. Membership requires a minimum balance of $5 in the share savings account.

Branches are located in the Maryland cities of Bel Air, Gunpowder and Havre De Grace. The credit union is federally insured by the NCUA (Charter # 8550).

The credit union's ratings for soundness are fair: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 6/30/08 data.
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4.01% Reward Checking Account at Provident Community Bank in South Carolina
Thursday, December 4, 2008 - 6:51 AM

Update 9/19/09: The top rate is scheduled to fall to 4.01% effective 9/23/09.

Provident Community Bank is offering a reward checking account called Dream Checking that pays 4.01% APY on balances up to $50,000 (1.01% for above) and refunds ATM fees worldwide without limits if the following monthly requirements are met:
  • 10 Visa debit card purchases
  • one direct deposit or ACH auto debit
  • receive electronic statements
  • access online banking
If these are not met, the rate falls to 0.10%. Minimum opening deposit is $100. There are no monthly service charges.

Update 7/11/09: It has been reported that the bank now limits accounts to two per individual.

There's an online application, however, I was told they require you to come into one of their branches to complete the paper work. Branches are located in the South Carolina cities of Union, Jonesville, Winnsboro, Laurens, Rock Hill and Simpsonville.

The bank has been FDIC insured since 1934 (FDIC Certificate # 28997).

Other 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.

Rate History:
09/23/09: 4.01% APY up to $50K;
02/18/09: 4.51% APY up to $50K
12/04/08: 5.26% APY up to $50K; 1.01% over; 0.10% base
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4.50% 24-Month CD Family First Credit Union in Michigan
Thursday, December 4, 2008 - 6:49 AM

Family First Credit Union is offering a competitive 24-month CD yield of 4.50% APY. Its 18-month CD is also competitive with an APY of 4.25%. The 18-month CD has a minimum deposit of $500. The 24-month CD minimum is $1,000, and it's also available as an IRA certificate. These rates are listed at the credit union's rate table as of 12/04/08.

According to the credit union's Join-Us page, membership is open to any retiree age 55 or older, receiving a pension, no matter where they live. Membership is also open to anyone living, working, worshiping or going to school in Saginaw or Bay County. Membership requires a minimum deposit of $10 in the savings account.

Update 12/08/08: A reader reported being informed by the credit union that he had to live within a 3 county area in Michigan and had to come in to a branch office for application.

Branches are located in Saginaw and Freeland, Michigan. The credit union is federally insured by the NCUA (Charter # 61909).

The credit union has fair ratings for soundness: 3 stars (adequate) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 6/30/08 data.
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5.32% 5-Year Jumbo CD at USAA Federal Savings Bank
Thursday, December 4, 2008 - 6:45 AM

Update 12/06/08: The CD rates have gone down. Please refer to the bank's website for the latest rates.

USAA Federal Savings Bank is offering some competitive long-term CD rates. The highest rate is the Super Jumbo 5-year CD which has an APY of 5.32%. This requires a minimum deposit of $175,000. An APY of 5% is available for a $1,000 minimum deposit. Below is a list of all of the CDs with terms of 3 years and more. I didn't list the shorter terms since those rates are not as competitive. These are based on the bank's rate table as of 12/04/08:


USAA's Certificate of Deposit rates as of 12/04/08:

             APY          APY       APY
Term       $1K-$95K   $95K-$175K   $175K+
-------    --------   ----------  -------
3 years     4.00%        4.25%     4.51%
4 years     4.50%        4.55%     4.81%
5 years     5.00%        5.05%     5.32%
7 years     5.00%        5.05%     5.32%

You can join USAA online, however, to be eligible to join, you must have some military connection. Here are the full eligiblity details.

The bank's CD page describes the features of the CDs. A link to the Depository Agreement is on the bottom of this page. Some of the details of these CDs include:
  • Interest can be added back to the CD balance or credited to another account monthly
  • For CDs with a term over one year, interest may only be paid monthly, quarter or annually.
  • Grace period is 10 calendar days at maturity when you can close the CD without penalty
  • Early withdrawal penalty for terms of over 1 year to 5 years is 180 days of interests (if they consent on the withdrawal)
In addition to competitive CD rates, USAA offers a free checking account with many perks including free worldwide ATM use, free checks and Deposit@Home that allows customers to deposit checks using their home scanner and PC.

In addition to banking services, USAA is well known for providing top services in auto insurance and mutual funds. The consumer advocate, Clark Howard, has mentioned USAA many times. You can read some of his commentary here and here.

USAA Federal Savings Bank is headquartered in San Antonio, Texas. It has been FDIC insured since 1983 (FDIC Certificate # 32188). The bank has solid financial ratings for soundness: 5 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 6/30/08 data.
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4.05% 6-Month CD, 4.25% 12-Month CD and Other High CD Rates at RomAsia Bank in New Jersey
Thursday, December 4, 2008 - 6:42 AM

RomAsia Bank has some competitive CD rates. Below is a list of these CD rates as shown in the bank's rate table (pdf) as of 12/04/08:
  • 4.05% APY 6-month
  • 4.10% APY 9-month
  • 4.25% APY 12- & 13-month
  • 4.35% APY 18-month
  • 4.50% APY 24-month
These rates require a checking/savings relationship. Otherwise, the rates are 1% lower. A reader had mentioned that the free checking qualifies. The initial minimum deposit is $50. Minimum CD deposit is $2,500.

The bank continues to offer a competitive money market account with a top yield of 3.75% APY for balances of at least $25K. A lower yield of 2.75% APY applies to balances from $5K to $25K. These rates are close to what I reported on in July.

A branch visit appears to be required to open an account. The bank's office is located in Monmouth Junction, New Jersey. It's a new bank that was just established with FDIC membership in June (FDIC Certificate # 58702).
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4.68% 12-Month CD & 4.32% 6-Month CD at State Bank of India, New York
Wednesday, December 3, 2008 - 6:53 PM

Update 12/10/08: The CD rates have fallen. Please check the bank's website for the latest rates.

There were two big CD rate hikes at State Bank of India in New York today. The 6-month CD APY is now 4.32%, and the 12-month CD APY is 4.68%. These rates are way above other 6 and 12-month CD rates nationally available. However, the rates for the longer terms declined. Below is a summary of the rates listed at the bank's rate table as of 12/03/08. I've also included the old rates so you can see how the rates have changed. It almost looks like they may have intended the 6 and 12-month CD yields to be 3.32% and 3.68%. However, 4.32% and 4.68% are listed for all four tiers, so there appears to be no mistakes.

Old and New CD Yields as of 12/03/08

Term      Old APY   New APY   Change
6 month   4.06%     4.32%     +0.26
1 year    4.16%     4.68%     +0.52
2 year    4.27%     4.01%     -0.26
3 year    4.27%     4.22%     -0.05
5 year    5.15%     4.73%     -0.42

The minimum deposit is $5,000. In the past they used to have higher rates for larger deposits, but currently the rates are the same across for all tiers.

The rate table has a date range of 12/03/2008 to 12/09/08. These CDs are offered through the bank's New York branch and can be opened by mail.

Some important details mentioned in the bank's CD page include:
  • They are not currently offering in-trust-for, POD and trust accounts.
  • For those who want interest payements, interest is paid quarterly to your transaction account at SBI.
  • Early withdrawal penalty is 30 days of interest for the 6-month CD, 90 days of interest for 1 and 2-year CDs, 180 days for the 3 year CD, and 270 days for the 5 year CD. The bank reserves the right to refuse such withdrawals.
  • 10 calendar day grace period at maturity of the CD
  • If you're a new customer applying by mail, you will need to provide a notarized copy of your driver's license (according to a commenter)
I and several readers have reported delays and issues in reaching the bank's customer service. The New York office appears to be understaffed. You can see more comments about their customer service in my July post. A reader in a previous post mentioned that he has always used emails for communicating with State Bank of India, and they have almost always replied within 24 hours.

My last report on State Bank of India was in October when it was offering a 4.58% 1-year CD. I first reported on this bank in November 2005. They have often had competitive CD rates and have advertised on Bankrate.com. This is the US operation of State Bank of India and is FDIC insured (FDIC Certificate # 33682). According to Wikipedia, State Bank of India is the largest bank in India, and it's the second largest bank in the world measured by the number of branch offices.

Thanks to the reader who emailed me news of these CD rates.
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High-Interest Reward Checking Account at Belvoir Federal Credit Union in Virginia
Wednesday, December 3, 2008 - 6:49 AM

Update 10/13/2011: The balance cap has been reduced to $15,000. Refer to the bottom of the post for the rate history.

Belvoir FCU is offering a reward checking account called CU Xcel Checking which pays 3.25% APY on balances up to $15,000 (0.50% for above) and refunds ATM fees nationwide without limit if the following monthly requirements are met:
  • 15 check card transactions (including ATM)
  • one direct deposit or electronic withdrawal or payment
  • receive e-Statements
  • access online banking
If these are not met, the rate falls to 0.10%. There's no minimum opening balance or minimum balance required to receive the rewards. Also, there are no monthly service fees. Members are not allowed to open multiple CU Xcel Checking accounts, so you can't extend the high yield to larger balances.

Update 2/2/09: A reader reported being told that a member has to live in specific Virginia counties to be eligible for the account. Thus, I'm no longer considering this account available nationwide.

You can be eligible to join Belvoir by being a member of Friends of Manassas Battlefield. This is one of the eligible groups in the credit union's field of membership. There's a minimum $15 fee for joining Friends of MNBP. Readers have mentioned that the credit union does require verification from the group in order to process the credit union membership application. This was based on reports from 2006, so please verify with the credit union.

Belvoir FCU's Field of Membership also includes all active duty or retired members of the US Armed Forces and those living or working in Southeastern Fairfax County or North Woodbridge, Virginia.

The credit union has branches in Woodbridge and Alexandria, Virginia and several in Fort Belvoir. It's federally insured by the NCUA (Charter # 5356).

Other 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.

Rate History:
02/01/11: 3.25% APY up to $15K, 0.50% over, 0.05% base
07/01/10: 3.00% APY up to $25K
01/01/10: 3.50% APY up to $25K
09/12/09: 4.01% APY up to $25K
02/01/09: 4.01% APY up to $50K
12/03/08: 5.01% APY up to $50K, 1.01% over, 0.10% base
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4.33% 6-Month CD with Add-On Feature at SnoCope FCU in Washington State
Wednesday, December 3, 2008 - 6:47 AM

Update 12/19/08: This CD rate has fallen. Please check the credit union's website for the latest rates.

SnoCope Federal Credit Union is offering an attractive APY of 4.33% on its 6-month certificate. Minimum deposit is $500. It allows one additional deposit during the term. This CD is listed in the credit union's rate table as of 12/02/08.

Membership is open to anyone who lives, works, worships or goes to school in Snohomish County, Washington. You can also be eligible via select employer groups. Please refer to the credit union's Who Can Join Page for more details. Membership requires a $5 membership fee and a $10 minimum balance in the Prime Savings Account.

SnoCope FCU is located in Everett, WA. The credit union is federally insured by the NCUA (Charter # 12761).
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High-Yield Reward Checking Account at Bank of the Sierra in California
Wednesday, December 3, 2008 - 6:44 AM

Update 12/03/10: The top rate has fallen to 2.09% APY. Refer to the bottom of the post for the rate history.

Bank of the Sierra is offering a reward checking account that pays 2.09% APY on balances up to $25,000 (0.50% for above) and refunds ATM fees nationwide up to $25 per cycle if the following monthly requirements are met:

  • 12 check card purchases
  • one direct deposit or automatic payment
  • one online bill payment
  • Receive eStatements

If these are not met, the rate falls to 0.12%. The minimum initial deposit is $50. Bill Pay is free, and there are no monthly service charges and no minimum balance requirements. Multiple accounts can be opened, but requirements for each account must be met to receive the high yield.

The account can only be opened online. I called the bank, and according to the banking rep, it's available to people in any state. The online application uses the andera.com service, and it appears to allow electronic ACH funding. Update 4/25/2010: The start of the application now states that the account is limited to residents of CA and WV.

Branches are located in several Central California cities including Fresno, Bakersfield, Hanford and Porterville. The bank has been FDIC insured since 1978 (FDIC Certificate # 22597).

Other 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 8/08/09: Added ATM fee refund info and estatement requirement.

Rate History:

12/03/10: 2.09% APY up to $25K; 0.50% over

07/03/10: 3.09% APY up to $25K

04/23/10: Account is now limited to CA & WV

12/03/09: 4.09% APY up to $25K
12/03/08: 4.51% APY up to $25K; 1.01% over; 0.12% base

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4.00% 3-Month CD at Oregon Coast Bank
Wednesday, December 3, 2008 - 6:42 AM

Oregon Coast Bank is offering a 91-day CD with an APY of 4.00%. Minimum deposit is $10,000. This rate is listed in the bank's rate table as of 12/3/08.

The bank also offers a Health Savings Account that currently pays 5.10% APY. The bank's HSA page has the details of this account. There is a $25 opening fee, and a $2 monthly fee if the account balance falls below $2,500.

It appears a branch visit is required to open an account. Branches are located in the Oregon cities of Newport, Pacific City, Lincoln City and Waldport. The bank has been FDIC insured since 2002 (FDIC Certificate # 57373).
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Charles Schwab Visa 2% Cash Back Credit Card
Tuesday, December 2, 2008 - 6:56 PM

Charles Schwab is offering a new cash back credit card called the Schwab Bank Invest First Visa Signature credit card. It gives you unlimited 2% cash back on purchases. Here's a list of the features:
  • no limit on the cash back you can earn
  • no minimum monthly purchase amount
  • no annual fee
  • no foreign exchange transaction fees
  • cash back automatically deposited into a Schwab One brokerage account each month
According to the Schwab FAQ, there are "no monthly account service fees and no minimum balance requirements for the Schwab One account when it is linked to your Schwab Bank Invest First card."

If you open the brokerage account, you may also want to open the Schwab Bank High Yield Investor Checking account. I last reviewed this checking account in this September post.

One thing to note is that you'll likely receive 2 hard credit pulls if you apply for the credit card and the brokerage account (3 if you also apply for the checking account).

Discover, Capital One, Citi and Chase have their cash back credit cards, but they all have different cash back percentages for different categories. Many of them have limits on the cash back, and you have to request the money once you reach certain levels. The unlimited 2% cash back combined with the simplicity makes this Schwab credit card one of the best in my opinion.

Below are some other less well known good cash back credit card deals:
Countrywide Bank used to offer a 2% cash back credit card that was linked to your Countrywide savings or money market account. I couldn't find any mention of it on their website. I called and verified that they ended this credit card a couple of months ago.

If you have any other recommended cash back credit cards, please leave a comment.

Credit for this find goes to this FW thread and the reader who emailed me news of this new card.
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High-Yield Reward Checking Account at Hyperion Bank in Philadelphia
Tuesday, December 2, 2008 - 10:04 AM

Update 11/03/10: The account is no longer available for new accounts. Refer to the bottom of the post for the account history.

Hyperion Bank is offering a reward checking account called HyperInterest Checking that pays 2.51% APY on balances up to $25,000 (1.15% for above) and refunds up to $600 a year in ATM fees if the following monthly requirements are met:

  • 10 signature-based debit card purchases
  • one direct deposit or ACH payment
  • receive electronic statements

If these are not met, the rate falls to 0.25%. There are no monthly service charges and no minimum balance requirements.

The account page has an "Open Now" button, but according to the banking rep, you have to come into the bank's office to complete the application process. This account was started about a month ago so hopefully the high rates will last for a while, but there's no guarantee.

It's a small bank located in Philadelphia, PA. The bank has been FDIC insured since 2006 (FDIC Certificate # 58371).

Other 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.

Account History:

11/03/10: 2.51% APY; 1.15% over (back on website)

06/04/10: 3.00% APY (not listed on website)

03/01/10: 4.26% APY up to $25K; 1.25% over

01/19/10: 4.26% up to $30K, 1.25% over
07/01/09: 5.01% APY up to $30K, 1.50% over
12/02/08: 5.01% APY up to $50K, 2.10% over, 0.25% base

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4.00% 3-Month CD at Hudson Vally FCU in New York
Tuesday, December 2, 2008 - 10:01 AM

Hudson Valley FCU has a special 3-month certificate with an APY of 4.00%. Minimum deposit is $500, and it has no maximum. It's also available as an IRA certificate. This special CD is listed on the credit union's front page as of 12/02/08.

There's also a new-member promotion in which the credit union will deposit $10 into the new member's account at the time of account opening.

Membership is open to anyone who lives, works, worships, volunteers or attends school in Dutchess, Ulster or Orange County, New York. Please refer to their Membership page for more details. Membership requires a minimum deposit of $5 into your savings account.

Branches are located in several cities in New York State. The credit union is federally insured by the NCUA (Charter # 15802). It's a large credit union with $2.4 billion in assets and 210,338 members

I last reported on this credit union in March when it was offering a 4.10% 12-month CD special.
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4.75% 5-Month CD at Coventry Credit Union in Rhode Island
Tuesday, December 2, 2008 - 9:59 AM

Coventry Credit Union is having a new-branch promotion with a special 5-month CD with an APY of 4.75%. Minimum deposit is $1,000, and there is no maximum deposit. According to the credit union's website, the special CD will be available at all of the credit union branches from 12/04/08 to 12/19/08.

As part of the new-branch promotion, the credit union is offering $50 for signing up for direct deposit. Also, the first 100 new members who open a checking account will receive a $25 gift certificate.

The credit union is vague about membership qualifications. The About Us Page makes it appear it has easy qualifications. Please contact the credit union for details. Membership requires a minimum balance of $5 in the share savings account. There's also a $5 membership fee, but the credit union will waive this as part of this new-branch promotion.

Update 12/03/08: A reader was informed by the credit union that no out-of-state applications are allowed. You must apply in person.

Branches are located in the Rhode Island cities of Coventry, Manville, West Warwick and West Greenwich.

The credit union's financial ratings for soundness are mixed: 4 stars (excellent) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 6/30/08 data. The credit union is federally insured by the NCUA (Charter # 66595).
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4.15% 1-Year CD & 4.50% 3-Year CD at Montauk Credit Union in New York
Tuesday, December 2, 2008 - 9:57 AM

Update 12/18/08: The CD rates have gone done. Please check the credit union's website for the latest rates.

Montauk Credit Union is listing some competitive rates on its share certificates as of 12/02/08. The yields include 4.15% APY for 12 and 18 months, 4.25% APY for 2 years, 4.50% APY for 3 and 4 years, and 4.75% APY for 5 years. These are also available in an IRA.

According to the credit union's About page, anyone is eligible to join:
MCU has an "open charter" which enables us to extend membership to anyone.

It seems like New York has some favorable credit union laws. This charter is similar to what Melrose Credit Union has. Melrose CU is also in New York, and I've been reporting on its high yield CDs for the last couple of years (my last Melrose CU post).

Montauk Credit Union membership requires a minimum deposit of $25 in the share savings account.

It's a small credit union with one office located in New York, NY.

The credit union's financial ratings for soundness appear fairly strong: 5 stars (superior) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 6/30/08 data. The credit union is federally insured by the NCUA (Certificate # 63231).
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$50 to $250 New Account Bonus at WTDirect
Monday, December 1, 2008 - 7:40 PM

Update 6/03/09: The rate has fallen to 1.76% APY.

Update 3/06/09: The savings account APY has fallen to 2.01% APY. A reader reported being told that this Winter Bonus is scheduled to post on 3/13/09.

Update 02/05/09: The savings account APY has fallen from 2.81% to 2.51%.
Update 12/24/08: It appears WTDirect has extended this promo to 12/31/08.

WTDirect is offering another new account bonus similar to what it offered last August except you need a balance twice as much to earn the same amount. Here's the WTDirect promotion page, and here's a summary of the bonus:
  • Open new account using promo code WTG3DNC
  • Link an existing bank account to your WTDirect account during the application
  • Fund account by initiating an online transfer by 12/22/08
  • Bonus depends on average balance from 1/1/09 to 2/28/09
  • Cash bonus will deposited into your WTDirect account in mid-March
Here are the bonus levels:
  • $250 bonus for $50,000 balance
  • $200 bonus for $40,000 balance
  • $150 bonus for $30,000 balance
  • $100 bonus for $20,000 balance
  • $50 bonus for $10,000 balance
Some important small print:
  • This offer is available to new WTDirect clients only
  • There is no minimum balance required to open the account
  • Clients may transfer funds in and out of the WTDirect account during the promotion period (1/1/09 - 2/28/09) and the bonus will be based on the average balance level during that time
  • WTDirect reserves the right to cancel or modify this promotion at any time without notice.
The last item in the small print is an important point. WTDirect ended the August promo more than a week before the scheduled end date.

For the best case this promotion will effectively add about 3% to your rate during the promo period. The standard APY is currently 3.06% for balances over $10,000.

Several readers have reported receiving the last bonus, so WTDirect seems to honor its promises. In addition, those who participated in the last promo were given the chance to earn an extra 0.50% for 4 months in the savings account.

WTDirect Account Details:

The main downside to this account is that you earn only 0.50% for balances under $10K (except for the first 60 days). So this may not be an account you'll want for the long term. WTDirect has better documentation than many other online banks. Here are the links along with some relevant details:
  • Account Details - no monthly fees
  • FAQs - allows unlimited linked accounts, high limits on transfers
  • Account funding FAQs - fund by electronic funds transfer with trial deposit verification or by mailing in a check
Readers have reported that WTDirect does not do a hard credit inquiry in the application. It has also been reported that the trial deposits are debited from your funding account. A reader has provided his experience with the speed of the trial deposits and other account opening issues in the comments here, here and here.

FDIC Insurance:

WTDirect is a division of Wilmington Trust FSB which has been FDIC insured since 1994 (FDIC Certificate # 33911).

Thanks to the reader who mentioned this promotion in the finding deals post.
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14-Month CD Special at Banco Popular with Yields from 4.00% to 4.35%
Monday, December 1, 2008 - 9:23 AM

Banco Popular is offering a competitive 14-month CD special. Yields vary by state. The highest rate seems to be in Central Florida with an APY of 4.35%. In New York the APY is 4.15%, and in California it's 4.00%. Minimum deposit is $1,000.

These aren't listed at Banco Popular's website. A reader mentioned seeing these advertised, and I just called for additional details. I was only able to check rates for these 3 states. If you receive a rate quote for your location, please leave a comment. They have a toll-free number at 1-800-377-0800. Press zero to connect to a CSR, and ignore the multiple requests for your account number.

According to the CSR, these rates are scheduled to last through Thursday, 12/04/08. These may change on Friday. No checking account is required, and these should be available for both new and existing customers.

Branches are located in California, Florida, Illinois, New Jersey, New York and in Arlington, Texas. Rates vary by state, so make sure to call to verify.

Checking Account Bonus: Banco Popular has a special website for promotions being offered at New York and New Jersey branches. There's a bonus of up to $125 for opening a Totally Free Checking Account: $25 for another bank's debit card and unused checks, $50 for adding direct deposit and $50 for using their online bill pay. There's also a $50 business checking account bonus.

4.36% 1-year CD and $25 signup bonus: E-LOAN continues to offer a special 4.36% APY 12-month CD and a $25 signup bonus for new customers. This is available nationwide until 12/18/08. Please refer to my previous post for more details about this promotion. E-LOAN is a subsidiary of Banco Popular North America.

Financial Overview: It was reported that Banco Popular's parent, Popular Inc., has received preliminary approval to sell $950 million of preferred stock to the Treasury as part of the government's bank rescue plan.

Banco Popular North America financial ratings are a little weak: 3 stars (adequate) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 6/30/08 data.

The bank is a member FDIC (FDIC Certificate # 34967).
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4.18% 6-Month CD at Florida Bank of Commerce
Monday, December 1, 2008 - 8:44 AM

Florida Bank of Commerce is offering a special 6-month CD with a 4.18% APY. Minimum deposit is $500, and the maximum is $99,000. New money is required. This special doesn't seem to be listed at the bank's website. A reader mentioned that it was advertised in last week's Orlando Sentinel. I just called and verified that it's available today (12/01/08). The banking rep could not say how much longer it would last.

I was told that a branch visit is required to open an account. Branches are located in the Central Florida cities of Orlando, Kissimmee, Lake Mary and Winter Park.

It's a fairly new bank that was established in late 2005. Its financial ratings for soundness are a little weak: 3 stars (adequate) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 6/30/08 data. The bank is FDIC insured (FDIC Certificate # 58081).
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4.50% 12-Month CD at Transstar FCU in Houston
Monday, December 1, 2008 - 8:27 AM

Transtar Federal Credit Union is offering a holiday special certificate with a 4.50% APY and a 12-month term. Minimum deposit is $1,000. The offer is scheduled to last through 12/31/08, but it could end early.

Membership is open anyone who lives, works or worships in parts of Houston, Texas. You can also be eligible to join via select employee groups. Please refer to the credit union's Membership Page for more details. Membership requires a minimum balance of $5 in the regular savings account.

The financial ratings for soundness are mixed: 5 stars (superior) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 6/30/08 data. The credit union is federally insured by the NCUA (Charter # 7482).
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4.05% 5-Month CD at Home Savings of America in California
Monday, December 1, 2008 - 8:26 AM

Home Savings of America is offering a special 5-month CD with a 4.05% APY. Minimum deposit is $100. There's also a 13-month CD with an 3.90% APY. These rates are listed in the bank's California rate table. The bank's other rate table seems to apply to all other states, and it doesn't have the 5-month term. Instead the 4.05% APY applies to a 19-month term.

The bank has a new account application on its website with instructions for mailing, so anyone in California may be able to qualify for this 4.05% 5-month CD special. Please call to verify. California branches are located in Laguna Woods and Seal Beach. The main office is located in Minnesota.

The bank's financial ratings for soundness are a little weak: 3 stars (adequate) at BauerFinancial and 1 star (lowest) at Bankrate.com. Both ratings are based on 6/30/08 data. The bank has been FDIC insured since 1934 (FDIC Certificate # 29178).

Thanks to the reader who emailed me the scan of the ad for this promotion.
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4.70% 38-Month CD & 4.18% 13-Month CD at Bank of Shorewood in Illinois
Monday, December 1, 2008 - 8:23 AM

Bank of Shorewood is offering a certificate of deposit and IRA promotion with three competitive rates. These include a 4.70% APY 38-month CD, a 4.30% APY 25-month CD and a 4.18% APY 13-month CD. Minimum deposit is $1,000. This promotion is listed at the top of the bank's rates table as of 12/01/08.

Several details of the CDs are listed in the bank's CD page. Important details regarding the CDs with maturities of 1 year and longer include: interest compounded monthly, early withdrawal penalty of 180 days interest and grace period is 10 calendar days.

It appears a branch visit may be required to open an account. Branches are located in the Illinois cities of Shorewood, Plainfield and Elwood. These cities are about 20 miles southwest of Chicago.

The bank's financial ratings for soundness are mixed: 3.5 stars (good) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 6/30/08 data. Bank of Shorewood has been FDIC insured since 1978 (FDIC certificate # 22637)
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