Bank Deals Blog - May 2009


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Behind the Scenes with the FDIC and the History of Sheila Bair
Sunday, May 31, 2009 - 6:54 PM CT

60 Minutes replayed their pieice on the FDIC this evening. The first broadcast was in March. 60 Minutes followed FDIC agents in the closure of Heritage Community Bank in Illinois. The 60 Minutes reporter also interviewed the FDIC Chairwoman, Sheila Bair. Here's my March post on this 60 Minutes piece.

For those interested to know more about Bair, this recent Bloomberg article provides a good read. It covers her entire life along with the issues she has faced while serving as the head of the FDIC.
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The FDIC's Weekly National Rates and Rate Caps
Sunday, May 31, 2009 - 6:50 PM CT

The FDIC has started posting average deposit rates and rate caps. Here's the link to their rate tables. It doesn't look pretty. The rate cap for a 12-month CD is only 2.02%.

These rate tables are associated with the FDIC's new rule on "Interest Rate Restrictions on Institutions That are Less Than Well Capitalized." (see FDIC's press release). Here's how the FDIC describes this new rule:
The final rule defines nationally prevailing deposit rates as a direct calculation of those national averages, as computed and published by the FDIC based on data available to it. Reliance on the Treasury yields in the regulation would be discontinued. In recognition of the blurring of local deposit market boundaries brought about by the Internet and other innovations, the final rule also establishes a presumption that locally prevailing deposit rates equal the national rates published by the FDIC. This presumption could be overturned by evidence presented by banks to the FDIC.

The rule applies only to the small minority of banks that are less than well capitalized. As of first quarter 2009, there were 248 banks that reported being less than well capitalized, out of more than 8,200 banks nationwide.

The rule is effective January 1, 2010. Effective immediately, the FDIC will regularly publish national rates and caps, and permit institutions that are less than well capitalized to avail themselves of these rates as a safe harbor for complying with the statutory interest rate restrictions.

According to the FDIC, the rule would only apply to 248 of the 8,200 bank that reported being less than well capitalized (as of Q1 2009). However, it could apply to more banks. The CEO of Libertad Bank provided comments on this new rule earlier this year. You can read his comments here. According to the CEO, his bank is subject to these rate restrictions even though his bank is well capitalized:
I am an executive of a financial institution that is currently subject to Part 337.6 rate restrictions. While the institution I work for has capital ratios that would easily classify the institution as well capitalized if measured by those ratios, the institution previously consented to a written agreement with the FDIC that included a capital maintenance provision, and it is therefore classified as 'adequately capitalized' regardless of its capital ratios, and is therefore subject to Part 337.6 rate restrictions.

I also wonder if other banks may be pressured to lower rates in a way that Ally Bank is being pressured by the ABA (see post).

The Libertad Bank CEO provides many details about the problems of these national rate caps. The average rates are too simplistic. There's not only the issue of these not reflecting internet rates, but also the issue of odd terms. Here's how the CEO describes the issue of odd terms:
When the Law and Regulations were originally contemplated, odd rate maturities were the exception not the rule. Today most financial institutions offer below market interest rates on standard term/maturity fixed-rate time deposits, while offering much more attractive interest rates on odd-term time deposits. Financial institutions do this to match their funding to their liquidity needs and projections, but also as a marketing tactic to make it difficult to directly compare one institution’s time-deposit offerings to another institution’s (and in this case making it difficult, if not impossible, for both banks and the FDIC to use simple averages calculated from ‘standard term maturity’ time deposit data to determine prevailing market interest rates).

There's also the issue of rates related to reward checking accounts. The tables only include Interest Checking, and as you might expect, the average rate is very low. There's no inclusion of reward checking accounts, and the Libertad CEO describes this issue on page 10 of his comments.

If you want to give your opinions on this rule, I included contact information in my ABA-letter post.

Thanks to the reader who emailed me the link to this FDIC rate table.
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2.50% 7-Month Liquid CD at Cental Bank in Florida - Local Only
Sunday, May 31, 2009 - 4:53 PM CT

Update 7/09/09: The 7-month Advanage CD rate has fallen to 2.00% APY.

Central Bank is offering a 2.50% APY 7-month CD. It's called an Advantage CD, and it has two nice liquid features. It gives you the option to withdraw $500 or more one time a month, and you have the option to deposit amounts of $500 or more anytime you want up to the $100,000 maximum balance. Minimum deposit is $5,000. The rate is listed at the bank's rate table as of 5/31/09.

It appears a branch visit is required to open an account. It's a small one-branch bank located in Tampa, Florida.

It was just established in 2007, and thus, it doesn't have a rating at BauerFinancial. Bankrate.com gives the bank 3 stars (performing) for safety and soundness based on 12/31/08 financial data. The bank is a member FDIC (FDIC Certificate # 58377).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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3.49% 49-Month Liquid CD at McFarland State Bank in Wisconsin - Local Only
Sunday, May 31, 2009 - 4:49 PM CT

McFarland State Bank is offering a special 3.49% APY 49-month liquid CD. One of the liquid features includes the ability to make additional deposits of at least $500 any time during the term. You can also request a one-time bump-up in the rate. The new rate will be based on their current 48-month CD rate at the time of the bump request. Minimum deposit is $10,000, and the maximum balance is $250,000. It's also available as an IRA CD. This promotion doesn't seem to be listed at the bank's website. A reader emailed me a scan of the ad that was in the 5/29/09 issue of the Wisconsin State Journal. I've posted the scan at this link.

It appears that a branch visit is required to open an account. The bank is located in McFarland, Wisconsin which is in the suburbs of Madison.

The bank has strong ratings for safety and soundness: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1934 (FDIC Certificate # 2476).

Thanks to the reader who emailed me the scan of the ad.

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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Checking Account with Rates up to 3.00% at Solera National Bank in Colorado
Sunday, May 31, 2009 - 4:45 PM CT

Solera National Bank is offering a checking account with some competitive rates. The account is called Innovations Checking, and it has the following tiered rates as of 5/31/09:
  • 3.00% APY $250K and above
  • 2.50% APY $100K to under $250K
  • 2.25% APY $50K to under $100K
  • 2.00% APY $20K to under $50K
  • 1.00% APY under $20K
These rates along with a description of this account are listed in the Innovations checking document (pdf) as of 5/31/09.

This isn't a reward checking account so it doesn't require debit card usage or direct deposit. Minimum initial deposit is $100. Some of the attractive features include free Bill Pay service and up to 6 surcharge-free ATM transactions per statement cycle.

I called the bank Friday, and I was told that they could open this account by mail. Note, small banks often change their policies on this. According to the CSR, all of the balance qualifies for the rate once your balance reaches a tier. So if you have $250K in the account, all of the $250K will qualify for the 3% APY. Joint accounts are allowed so this can provide at least $500K in FDIC coverage. The CSR didn't know how long this rate may last, but she said it has remained unchanged for the last 4 months.

It's a small, one-office bank that was just established in 2007. It's located in Lakewood, Colorado which is in the suburbs of Denver. Since it's new, BauerFinancial doesn't have rating for it. Bankrate.com gives the bank 3 stars (performing) for safety and soundness based on 12/31/08 financial data. It's a member FDIC (FDIC Certificate # 58534).

Credit for this find goes to FW member ichaelm who mentioned it at this FW thread.
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Bank Deals Weekly Summary for May 30, 2009
Saturday, May 30, 2009 - 5:16 PM CT

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

The interest rate environment has been difficult for savers, but thanks to competition, we still have some deposit deals. Banks that are having financial difficulties often offer the best rates, and Ally Bank (formerly GMAC Bank) is an example. It has been offering top internet rates on its savings accounts and CDs, but if the American Bankers Association (ABA) gets its way, this may come to an end (see post). The ABA sent a letter to the FDIC this week expressing concern about how Ally Bank is offering rates that the ABA considers "well above the market." For the typical brick-and-mortar bank, the rates may be well above the market, but when you look at internet banks which have a much lower cost model, the rates are not excessive.

This issue of banks that are not well capitalized offering above market rates was dealt with by the FDIC at its board meeting yesterday. They've come out with some new rules (FDIC press release). I have some discussion of these new rules in my ABA post. It's not yet clear how much effect this will have on deposit rates. BestCashCow has a good review of these new rules.

One bit of good news this week is that we didn't have any bank failures. It was a rare Friday yesterday without any closures. However, the FDIC did release cease-and-desist orders that were issued in April (FDIC press release). There are quite a few banks on the list that I have reported on for their high CD rates over the last year. With more pressure on regulators to keep deposit rates in check at troubled banks, we may see fewer deals from these banks.

Savings & Money Market Accounts

Last week I highlighted the two good deals at ProvidentNJ Direct and EBSB Direct. A few days after that post, both lowered their promo rates. But the rates are still quite competitive. ProvidentNJ Direct's 3-month guarantee on its savings is now 3.01% APY (see review). EBSB Direct's savings account rate is now 2.62% APY guaranteed through 9/30/09 (see review).

I did another review of the SmartyPig savings account. It's still offering a very competitive 3.05% APY. Hopefully, this will continue into June, but even if the rate drops, based on its 14-month history, the rate should remain very competitive. The account has several unique features which can make it unattractive to those who just want to keep a large sum of money in a liquid account. However, these features also prevent them from being overwhelmed with deposits (see post).

SmartyPig Savings Account is designed to help people save for specific goals. Another type of account that's similar is an installment savings account. Wilshire State Bank continues to offer some attractive rates on these types of accounts, and they're available nationwide. Last Sunday I did a new post with a spreadsheet to show how you can maximize your returns in these types of accounts.

Wachovia's Way2Save account is a little bit like an installment savings account. Like an installment account, the main way to fund the account is with automatic monthly deposits. The Way2Save account still offers a 5% APY along with a 5% bonus on the balance at the end of the first year. The main problem is that they restrict how much you can deposit into the account (see post).

Below is the list of savings account rate changes for this week. Note that Alliant Credit Union's savings account rate hasn't officially been cut, but readers have reported being told that the rate is scheduled to fall starting in June.

Rate Hikes:
  1. None
Rate Drops:
  1. ProvidentNJ Direct Savings 3mo promo - 3.01% (was 3.25%)
  2. EBSB Direct MMA - 2.62% $50K+ (was 2.81%)
  3. Alliant CU Savings - 2.25% scheduled for June (was 2.50%)
  4. Centennial Bank Savings - 2.53% $100K+ (was 2.79%)
  5. Corus Bank MMA - 2.15% (was 2.17%)
  6. Umbrella Bank MMA - 2.05% $50K+ (was 2.15%)
  7. iGObanking Savings - 2.02% (was 2.12%)
  8. Grand Yield Direct - 1.80% (was 1.90%)
  9. Intervest MMA - 1.80% $2.5K+ to 1.90% $100K+ (was 1.90% $2.5K+)
  10. Rainier Pacific Bank MMA - 0.50% (was 0.75%)
Certificate of Deposit Rates

On Wednesday, Treasury yields spiked, with the benchmark 10-year rate topping 3.7%. The fears of inflation should continue as government debt grows and the economy shows signs of improving. So we may start to see some of these signs in long-term CD rates. I didn't see much change this week. There still continues to be more rate cuts than rate increases. We may see more cuts on Monday as credit unions update their rates for June. Alliant Credit Union didn't wait. They cut their CD rates by 25 basis points last week.

The best types of CDs are those that provide some liquidity. Ally Bank (formerly GMAC Bank) continues to offer a no-penalty 9-month CD with a 2.50% APY. If ABA's pressure works, this might not last long. Ally Bank typically changes rates on Friday so we should have almost a week with this rate.

Another CD with a liquid feature is being offered by Amboy Direct. Their 12-month eSavings Time Deposit CD allows additional deposits during the term. When it was first launched in March, the rate was 2.50% APY. It then fell to 2.10%, but this week it went up to 2.35% APY. However, on the downside, they reduced the time when you're allowed to make additional deposits. It's now restricted to only the first 6 months (see review).

Below are some of the best CD deals that are still active.

Best Nationwide CD Deals as of 5/30/09: Also listed are a few savings accounts with rate guarantee periods. The full list of nationwide CD rates is farther down.
  1. 3.01% 3-mo savings account promo at ProvidentNJ Direct (account review)
  2. 2.62% savings promo thru 9/30/09 at EBSB Direct (account review)
  3. 2.50% 4-mo CD at Danvers Bank (account review)
  4. 2.78% 5-mo CD at Franklin Synergy Bank (account review)
  5. 2.52% 6-mo CD at Wilshire State Bank (account review)
  6. 2.50% 9-mo No-Penalty CD & 2.80% 12-mo CD at Ally/GMAC Bank (account review)
  7. 3.03% 12-mo CD at Melrose CU (account review)
  8. 4.60% 1yr & 5.12% 3yr Installment Savings Accounts at Wilshire State Bank (account review)
  9. 3.50% 36-mo CD & 4.00% 60-mo CD at Pentagon FCU, may change on 6/01 (account review)
Best Local CD Deals as of 5/30/09: Some of the best CD deals are from banks and credit unions that don't offer accounts nationwide. Refer to the recap section and the state index section to find all the recent local deals. Here are some of the best deals to note.
  1. 2.75% 6-mo CD ($25K max) at STC Capital Bank in Chicago (account review)
  2. 2.80% 9-mo CD at Connex CU in CT (account review)
  3. 3.25% 12-mo CD at Cornerstone Bank in GA (account review
  4. 3.00% 12-mo CD at First Priority CU in MA (account review)
  5. 3.30% 12-mo CD at Self Reliance New York FCU (account review)
  6. 3.25% 24-mo CD at Jefferson Financial CU in Louisiana (account review)
  7. 3.10% 25-mo CD & 2.65% 6-mo CD at CoreFirst Bank at CO & KS (account review)
  8. 3.00% 25-mo CD at Broadway Bank in Chicago (account review)
  9. 4.50% 60-mo CD & 2.75% 12-mo CD at Urban Trust Bank in FL & MD (account review)
  10. 4.07% 60-mo CD at South Jersey FCU (account review)
Reward Checking Accounts

I reported on three new reward checking accounts this week with rates ranging from 3.05% to 4.01% APY (see below). One of the three at City National Bank is available nationwide, and it offers a 3.28% APY on all balances if the typical monthly requirements are met. The 3.28% is low for reward checking, but the lack of a balance cap could be attractive for those with large savings. One downside is that it appears to require real direct deposit.

To see all of the high yield reward checking accounts available throughout the nation, please refer to my High Yield Checking website.

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

Banking News

Savings Accounts - National

CD Deals - National

Checking/Savings 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 at this page. Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Reward Checking, 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 May 30, 2009

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)
Comments (91)
American Bankers Association Urges FDIC To Force GMAC/Ally Bank to Cut Deposit Rates
Friday, May 29, 2009 - 8:20 AM CT

The American Bankers Association issued a letter on May 27th directed to the FDIC Chairman, Sheila Bair, complaining about Ally Bank (formerly GMAC Bank) offering high deposit rates. Here's an excerpt from the letter:
ABA believes it is completely inappropriate, and indeed risky, for GMAC Bank/Ally Bank to be allowed by the regulators to continue to pay rates well above the market. We urge you to apply the same principles that would apply to other banks in a comparable situation to GMAC/Ally. Thank you for considering our views on this issue.

Haven't deposit rates been driven down low enough? How much more do they want savers to suffer? I'm afraid the ABA isn't alone on its anger over "high" deposit rates. You can hear Jim Cramer's complaints about "high" deposit rates in his Wednesday interview with Sheila Bair. According to Bair, the FDIC will be holding a board meeting today to discuss this issue.

The ABA and the FDIC need to remember what the real problem is. A reader in my previous post summed it up well:
What killed profitability for banks was their idiotic investment in risky mortgages, not their paying 2% interest to savers.

Paying 2% deposit rates isn't the problem. The problem is with the loans. It's hard enough for savers now to live with 2% rates. Don't punish us any more with even lower rates.

As stated in the letter, there is already regulations that prevent certain banks from paying deposit rates that exceed 75 basis points from the rates of similar types of accounts in the bank's normal market area or nationwide. Based on this, I don't consider the rates Ally Bank has been offering as excessive. Their most competitive rates include 2.80% APY for a 12-month CD and a 2.25% APY for the savings account. Subtract 75 basis points and the rates become 2.05% APY and 1.50% APY. These are reasonable for internet accounts. As you can see in my weekly rate summary, many healthy banks are offering internet accounts with rates higher than these.

Thanks to the reader tuphat who mentioned this letter in the Daily News & Deals Page.

UPDATE #3: Here is some contact information to let the FDIC know how you feel about this. The physical mail address used in the ABA letter is:
The Honorable Shiela Bair
Chairman
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429-9990

Several FDIC email addresses are listed in the FDIC Contact Us Page. The Ombudsman may be a good contact regarding the handling of this board meeting and how this new rule was passed. You may also want to write to your congressman and senators. You can write to your Congressman online using this service.

Reward Checking at Risk?

A reader posted this link of comments by two banks on this interest rate restriction rule. One of the banks is Libertad, and its CEO provides 20 pages of comments. Libertad Bank is a small bank that has been offering a reward checking account since last year. On page 10 the Libertad CEO comments about how the FDIC rule may affect reward checking accounts:
Recently the FDIC has indicated that it may consider the bank's 'Rewards Checking' accounts as brokered deposits

UPDATE #2: The FDIC has just issued a press release on its rule changes regarding restricting interest rates. There's also a link to the Final Rule document.

Update: Some reports of the today's FDIC board meeting have come out. According to this Reuters article:
[FDIC] voted to bar a bank with insured deposits from paying interest rates that "significantly exceed" prevailing market rates if the bank is deemed not well capitalized.

And according to this Dow Jones article:
The new rules call for the FDIC to calculate and publish a "national rate" on its Web site that would set the national standard that under capitalized banks would need to adhere to when advertising interest rates on accounts.
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2.50% 12-Month Liquid CD at E-Central Credit Union In California - Easy Membership
Friday, May 29, 2009 - 8:15 AM CT

E-Central Credit Union is offering two special liquid certificates. The most competitive has a 2.50% APY and a 1-year term. The other one has a 2.85% APY and a 3-year term. Minimum deposit is $5,000 (new money). The liquid feature allows you to withdraw funds as often as every 7 days for up to 50% of the initial deposit. Your funds are available 30 days after you open the CD. These special CDs and rates are listed in the credit union's News Center page as of 5/29/09.

This credit union has a history of offering competitive CD specials. My last post was in September 2008 when they were offering a 9-month liquid CD with a 4.10% APY.

Membership is open to anyone who belongs to another credit union. I'm not sure if there are additional requirements for this, but this is what is stated in the credit union's Eligibility page. You can also qualify if you live, work, worship, or attend school in one of many California cities. Please refer to the eligibility page for the full details. Membership requires a $5 fee and a $25 minimum deposit in your savings account.

Branches are located in Pasadena and Los Angeles, California.

The credit union has strong ratings for safety and soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The credit union is federally insured by the NCUA (Charter # 62323).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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3.30% 36-Month CD & 2.02% 5-Month CD at Mt. Washington Bank in MA - Local Only
Friday, May 29, 2009 - 8:10 AM CT

Mt. Washington Bank is offering two competitive CD specials: a 3.30% APY 3-year CD and a 2.02% APY 5-month CD. Minimum deposit is $500. The 3-year CD is also available in an IRA. These rates are listed at the bank's rates page as of 5/29/09.

The bank is also offering a fairly competitive money market account. It's Preferred Money Market Account has a rate of 1.76% APY on balances over $2,500 as of 5/29/09.

At the top of the bank's rate table, it states that they accept deposits only from customers with a Massachusetts residence. Branches are located in South Boston, Dorchester and Jamaica Plain.

The bank's ratings for safety and soundness are a little weak: 2 stars (below peer group) at Bankrate.com and 3 stars (adequate) at BauerFinancial. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1986 (FDIC Certificate # 26552). As a co-operative Massachusetts bank, deposits above the FDIC limits are insured privately by the Share Insurance Fund (see bank's page for more details).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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NCUA's Press Release on the $250K Share Insurance Extension
Thursday, May 28, 2009 - 6:19 PM CT

The new extension of the $250K deposit insurance became official last week when the President signed the Helping Families Save Their Homes Act into law. Deposits at both FDIC-insured and NCUA-insured institutions are now insured up to at least $250,000 per depositor through December 31, 2013. The FDIC was fast to post this change at their website. The NCUA wasn't as fast, but it has finally reported on this change in this press release. Here's an excerpt:
May 26, 2009, Alexandria, Va.- The Helping Families Save Their Homes Act of 2009, signed into law May 20, 2009, includes a provision extending $250,000 share insurance coverage provided by the National Credit Union Share Insurance Fund through December 31, 2013. Previously, this level of coverage was set to expire December 31, 2009. The new law also requires NCUA to use the higher $250,000 standard maximum share insurance amount when making decisions about premiums and administering insurance deposit adjustments.

Remember that it's possible to extend coverage past the basic insurance limit via joint accounts and revocable trust accounts. But there are risks related to this (see my post on extending FDIC/NCUA coverage).
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2.78% 5-Month Online CD at Franklin Synergy Bank - Nationally Available
Thursday, May 28, 2009 - 6:15 PM CT

Update 6/04/09: It has been reported that the eCD term is now 11 months.

Franklin Synergy Bank is offering an online certificate of deposit called the eCD. It has a 2.78% APY and a 5-month term. The eCD is listed at the bottom of the bank's eProducts page as of 5/28/09. Note, the APY is listed as 2.77%, but according to the CSR it's 2.78%.

I was told that the account can be opened online by people from any state. The application link is at the bottom of the eProducts Page. I wasn't able to get many details from the CSR. I recommend calling for more details if you're interested in this CD. The bank's phone number is listed on the right hand side of this application page (615-236-2265).

The bank is a fairly new bank that was established in 2007 with headquarters in Franklin, Tennessee. It's a small bank with $221 million in assets and $173 million in deposits. Since it's new, BauerFinancial doesn't have a rating for it. Bankrate.com gives the bank 3 stars (performing) based on 12/31/08 financial data. The bank is a member FDIC (FDIC Certificate # 58714).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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3.05% 15-Month CD at Johnson Bank in Madison, WI - Local Only
Thursday, May 28, 2009 - 6:10 PM CT

Johnson Bank is having a CD promotion with two attractive rates: 3.05% APY for a 15-month term and a 3.55% APY for a 36-month term as of 5/28/09. Minimum deposit is $25,000. The 3-year CD allows a one-time penalty-free withdrawal of half the principal. This promotion doesn't seem to be listed at the bank's website. A reader emailed me info on it, and I just called for additional info. The above special is available in Madison, WI. The specials and rates vary by city. In Milwaukee, there's a different CD special with lower rates. You can call to check what rates are available in your city. These rates may not last much longer. The reader mentioned that the 3.55% special is scheduled to fall to 3.40% on Monday.

A branch visit is required to open an account. Branches are located through out Wisconsin and in Arizona.

Johnson Bank has some solid ratings for safety and soundness: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1970 (FDIC Certificate # 20296).

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

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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Update on SmartyPig's High Yield Savings Account
Thursday, May 28, 2009 - 9:25 AM CT

Update 8/14/09: SmartyPig announced that the rate is scheduled to fall to 2.01% APY effective 8/17/09.

SmartyPig's savings account now has a history of more than a year of competitive rates. It has been near the top of my weekly rate summary for several months. As of 5/28/09, the rate is 3.05% APY. It has been a while since my last post on SmartyPig, so I thought it would be useful for another post. It's not a typical type of internet savings account. It's designed to be used for saving for specific goals. It's also designed to be a social savings tool (I described this in my first SmartyPig post). Consequently, it may be a little cumbersome to use for those who just want a liquid account for holding their money. I haven't opened this account, but I've reviewed comments of those who have, and I've recently discussed this account with a SmartyPig representative. If you have experience with it, please leave a comment.

Will the Rate Hold?

SmartyPig's rate history is impressive. Here's how their rates have changed since my first SmartyPig post in April 3, 2008:
  • 08/17/09: 2.01% APY
  • 06/22/09: 2.75% APY
  • 04/01/09: 3.05% APY
  • 01/01/09: 3.25% APY
  • 05/01/08: 3.90% APY
  • 04/01/08: 4.30% APY
As you can see, they haven't changed rates often. However, most of their rate changes occur at the start of the month. We'll see how they hold up next week for the start of June. According to the rep the rates are determined by West Bank, the FDIC-institution that holds SmartyPig's deposits, and the rates are subject to change at any time.

One thing to note about West Bank is that they also offer a reward checking account (see post). They had been offering it nationwide. Last month they started restricting new accounts to Iowa, and they cut their top rate from 5% to 4% APY. For many months they had one of the best nationwide reward checking deals with not only a 5% APY but a $50K balance cap. So it appears they attracted a lot of deposits. So this may be a factor in their SmartyPig rate decisions. West Bank isn't so small that they can be easily overwhelmed with deposits. On the other hand, they're not a large bank. As of 3/31/09, FDIC data shows them to have $1.60 billion in assets and $1.19 billion in deposits.

Money Limits & Accessibility:

SmartyPig appears to have made several enhancments over the year to make it easier to move money in and out of your account. You still need to set up at least one goal, and there are restrictions on how you can access your money. Below is a summary of these details based on the SmartyPig FAQ, the SmartyPig Terms & Conditions and from what I was told by the SmartyPig representative:
  • Minimum initial deposit to start a goal is $25, Maximum is $50,000 (T&C)
  • Minimum requirement for a savings goal is $250, Maximum is $250,000 (T&C)
  • Goal must have automatic monthly deposits of at least $10 from an externally linked account (T&C)
  • You can add money to your savings goal at any time (FAQ #43)
  • Maximum deposit limit in a 24-hour period to any savings goal is $50,000 (FAQ #8)
  • Goal can be closed at any time (assuming no recent transactions)
  • Multiple goals can be opened (according to rep)
  • Each goal can be funded by a different externally linked checking or savings account (according to rep)
  • Partial withdrawals are not allowed. You may redeem your funds at anytime, but you have to close the entire goal (FAQ #44)
  • Once closed, you can initate an ACH transfer back to the externally linked account with no fee. There's no longer a check option (FAQ #30)
  • ACH transfers back to your external account take 5-7 business days (FAQ #30)
  • Other options when the goal is closed: 1) transfer funds into the SmartyPig MasterCard Debit Card, or 2) transfer funds to a gift card which can provide some discounts, aka boost (see past examples at MyMoneyBlog).
  • Not allowed to split funds from a goal between ACH, gift card or MasterCard (according to rep)
For those who just want to keep a pool of liquid money earning a high interest rate, the main issue is the requirement of ending a goal before you can ACH back out the money. For that case, you should set up multiple goals. If you need some of that money for spending or for some other good bank deal, just close one or more of the goals. If you plan to make use of the gift cards, you'll want to make sure you don't put too much into that goal.

Some other details I was told by the rep include:
  • No hard credit inquiry, just a soft pull for identification purposes
  • Joint accounts are not available. You can have co-owners who have limited account access. More details on co-owners are in the T&C.
  • No beneficiaries can be listed
The savings accounts are held at West Bank, a FDIC insured bank (Certificate # 15614). If you go to West Bank's website, you'll see a link to SmartyPig so you know without a doubt that SmartyPig is legit.

West Bank's ratings for safety and soundness are fair: 3.5 stars (good) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 12/31/08 financial data.

For other high yield savings accounts, please refer to my weekly rate summary.
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2.87% 18-Month CD IRA & Other High Rates at Pacific Mercantile Bank in CA - Nationally Available
Thursday, May 28, 2009 - 9:20 AM CT

Pacific Mercantile Bank is offering a competitive rate on its IRA CD of 2.87% APY for terms of 18 months and 2 years. The 5-year rate is also 2.87% APY, but this isn't as competitive. Minimum deposit is $7,500. The rates are listed at the bank's IRA rate table as of 5/28/09. The effective date listed is 5/26/09, and I was told rates are usually only updated on Tuesdays. On Monday it had been 2.97% APY.

I called the bank yesterday, and according to the CSR, people in any state can apply for their CDs and IRA CDs. There's an online application, but this requires that you print and mail it in with a copy of your driver's license. Also, I was told for IRAs, they require additional forms. You can call and have them email you those. The online application allows for a formal trust and a payable-on-death trust account.

If you mail a check for your initial deposit, I was told that the rate that is locked is based on the postmark date of the envelope. They also accept wire transfers to fund the CDs (inbound wire transfers are free).

When the CD matures, you can request a wire transfer out ($35 fee). You can also request a free check or have it reinvested in another CD.

Pacific Mercantile Bank's regular CDs have lower rates, but they're fairly competitive. The most competitive is the 12-month CD with a 2.22% APY for a $10K minimum deposit. This is listed in the bank's CD rate table as of 5/28/09.

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

Branch-Only 2.75% Premium Interest Checking Account

On their home page they're listing a checking account with a 2.75% APY. I was told by the CSR that this requires a branch visit. At the bottom of the page, they have a table listing the blended APYs. It appears that the portion of the balance below $1,500 only earns 0.40%. Balances between $1,500 and $100,000 earn 2.75%. This is different than the typical tiered rate account in which the full balance earns the listed rate once you reach a specific tier.

Update: A reader received more info about this Premium Interest Checking account at a branch, and he was informed of several monthly requirements the must be met to qualify for the rate. These requirements don't seem to be listed on their website. Please check with the branch for the details.

Branches are located in the California cities of Beverly Hills, Costa Mesa, La Habra, La Jolla, Long Beach, Newport Beach, San Juan Capistrano and Ontario.

The bank's ratings for safety and soundness are a little weak: 2 stars (below peer group) at Bankrate.com and 3 stars (adequate) at BauerFinancial. Both ratings are based on 12/31/08 financial data. The bank is FDIC insured (Certificate # 34940).
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2.65% 13-Month CD at Washington Federal Bank for Savings in Chicago - Local Only
Thursday, May 28, 2009 - 9:18 AM CT

Washington Federal Bank for Savings is offering a special 2.65% APY 13-month CD. This requires that you also open their savings account with a $250 minimum deposit. The current savings account rate is 1% APY. Without the savings account, the CD rate falls to 2.40% APY. Minimum CD deposit is $1,000. This promotion doesn't seem to be listed at the bank's website. A reader commented on this, and I just called to confirm that it's still available as of the morning of 5/28/09. The CSR didn't know how much longer it would last.

The offer is only for local residents. The bank has two branches in Chicago, Illinois.

The bank's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1961 (FDIC Certificate # 30570).

Thanks to the reader who mentioned this promotion in the Daily News & Deals Page.

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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FDIC Chairwoman Bair's Interview on Jim Cramer's Mad Money
Wednesday, May 27, 2009 - 11:23 PM CT

The FDIC Chairwoman, Sheila Bair, was on Jim Cramer's Mad Money today. The FDIC released its first quarter report on the banking industry, so Bair had plenty to say regarding the report. A summary and the video of the interview is available at this CNBC page. Cramer asked Bair an interesting question at around 7:20 into the interview regarding troubled banks that are offering high deposit rates. According to Cramer
We know these banks are killing profitability and hurting the system. Why don't we seize em'?

Bair mentioned that they're planning to finalize rules related to this on Friday. According to Bair:
we are going to be more aggressively using the tools that we have to try to get those deposit rates down.

The new rules will likely be directed to troubled banks. It's already common for the FDIC to prohibit these banks from taking on additional brokered deposits, which are often viewed as risky sources of funding. We'll see Friday what other types of deposits will be affected.

Even though a few banks that are in bad shape offer top rates, I haven't seen many cases of these banks offering rates way above what healthy banks offer. Corus Bank is an example. Cramer asked why a bank like Corus Bank is "allowed to stay in business." Cramer said it "seems like an accident waiting to happen." As you would expect, Bair was careful not to comment on Corus Bank or any bank that's still open and operating. But it's well known that Corus is in bad shape financially. BauerFinancial gives Corus its lowest score (zero) for safety and soundness. As you can see in my weekly rate summary, Corus Bank does offer top money market rates and top rates on 6- and 12-month CDs. However, I wouldn't call these excessive. Their current money market rate is only 2.17% APY, and the 6- and 12-month CD rates are 2.20% and 2.71% APY. There are several healthy banks with higher money market and savings account rates. If Corus Bank slashes its rates in the next few weeks, we'll know why it happened.

Credit for this find goes to FW member Katoo who mentioned this interview in this FW thread.
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CD Shopping Tips from the FDIC - Warning about Newspaper Ads with 5% CDs
Wednesday, May 27, 2009 - 2:56 PM CT

The FDIC recently released its Spring 2009 Consumer News. One article of particular interest is their tips for shopping for a CD. Most of it covers basic info of what to look for when you're shopping for CDs such as early withdrawal penalties, renewal policies, CD ladders and brokerage CDs. And it reiterates the new extension of the $250K insurance coverage through 2013.

The article also mentions those CDs that are often advertised in newspapers with rates way above the competition. The ads typically state that the CD is FDIC insured, but the ads aren't from banks or a credit unions. The institutions usually have names that sound almost like a bank. Here's the advice in the FDIC article:
Beware of an advertised CD rate far above the competition. First, it could be a product issued by a company that is not federally insured and any money invested is at risk. Second, it could be a marketing ploy. "An offer of a very high interest rate may be a lure to promote the sale of non-insured products," said Richard M. Schwartz, an FDIC attorney who specializes in consumer issues. "Some non-bank companies are using the FDIC logo and good name to draw customers in the door for a bank CD, but sooner or later, they're going to try to lock them into a long-term investment that may not be in the customer's best interest."

In one variation, a company may advertise in the local newspaper a 5.0 percent interest rate for a six-month bank CD for consumers with $10,000 to invest. When a customer calls, he or she is told to come to the office to discuss the details. It turns out that the bank is paying only 2.5 percent - not 5.0 percent - but the sales person for the company offers to add enough money to the CD purchase to make up the difference. When the CD matures, there's no similar offer on a new CD and the individual can be steered into purchasing a non-insured investment that may be a poor choice for the consumer but very lucrative for the sellers.

One thing not mentioned by the FDIC is that it's typical that the advertised rate applies only to a maximum deposit. If the maximum is $10,000, and it's a 6-month CD, an extra 2.50% in the interest rate would only cost the financial company $125. The ads often say in the small print that the "promotional incentive included to obtain yield." So the financial company may provide you a $125 bonus that will effectively increase the FDIC-insured bank CD rate from 2.50% to 5.00%. This bonus is like what timeshares offer to people to come in and listen to a sales pitch. That's why it's common for these financial companies to require you to come into their office.
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FDIC's First Quarter Report - Number of Problem Banks Increase to 305
Wednesday, May 27, 2009 - 12:43 PM CT

The FDIC released its first quarter report on the banking industry. As you might expect, there was a big increase in the number of banks in the FDIC's problem list, and the FDIC's Deposit Insurance Fund (DIF) reserve ratio fell again. On the positive side, the banks had a net income of $7.6 billion in Q1 compared to a net loss of $26.2 billion in Q4 2008. Here are a few interesting excerpts from the FDIC press release:
  • FDIC's Problem List grew during Q1 from 252 to 305 institutions, and total assets of problem institutions increased from $159 billion to $220 billion
  • 21 banks failed in Q1 (the largest number since Q4 of 1992)
  • Total insured deposits increased by $82 billion (1.7%) in Q1. Deposits were up 3.5% in Q4 and 9% over the last 12 months
  • DIF balance declined during Q1 by $4.3 billion, to $13 billion on March 31
  • DIF reserve ratio declined from 0.36% to 0.27% in Q1
  • Net income was $7.6 billion in Q1, a decline of $11.7 billion (60.8%) from $19.3 billion in Q1 2008
  • 3 out of 5 banks reported lower net income in Q1 and 1 in 5 was unprofitable
  • Non-interest income increased by $7.8 billion (12.8%)
Deposits continue to rise. In the last year, insured deposits have grown by 9%. I wonder how much of this is due to the new higher coverage limit. But even considering this, deposits have gone up substantially, and this has put downward pressure on deposit rates as banks are taking in more deposits than they can put to use through loans. Also note the increase of non-interest income. I wonder how much of this is due to higher fees.

In addition to the quarterly report, the FDIC updated its database with the banks' financial data for the end of the first quarter. Ratings services like BauerFinancial and Bankrate.com use this data for their star ratings. Recent ratings had been based on 12/31/08 data. Their new ratings based on 3/31/09 data should be out soon.

For more discussion of the quarterly report, refer to this CNN article.

Edit 5/30/09: Corrected the next ratings date.
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2.35% 6-Month CD & 2.50% Money Market Account at CenTrust Bank in Illinois - Local Only
Wednesday, May 27, 2009 - 8:23 AM CT

CenTrust Bank is offering two competitive CD specials: a 2.35% APY 180-day CD and a 2.50% APY 12-month CD. Minimum deposit is $500 ($1,000 for a business account). The small print of the promotion page states that New Charter Accounts receive 0.25% higher rate. Details of the Charter Account requirements are listed at this bank page. These rates are listed in the bank's promotional page (pdf) as of 5/27/09.

The bank also has competitve tiered rates on its money market account: 2.50% APY over $100K, 2.25% APY $50K to $100K, 1.75% APY $10K to $50K and 0.75% $1K to $10K. These rates are listed in the bank's promotional page (pdf) as of 5/27/09.

In previous specials from this bank, a branch visit was required. So I would assume the same holds for these specials. The bank is located in Northbrook, Illinois which is in the northern suburbs of Chicago.

It's a fairly new bank that was established in 2006. Its financial ratings for soundness are a little weak: 2 stars (problematic) at BauerFinancial and 1 star (lowest) at Bankrate.com. Both are based on 12/31/08 data. The bank is FDIC insured (FDIC Certificate # 58158).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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$150 Checking Account Bonus Continues at NuVision Credit Union
Wednesday, May 27, 2009 - 8:22 AM CT

Update 7/02/09: This promotion has been extended. The new expiration date is 9/30/09.

NuVision FCU has again extended the $150 checking account promotion. The offer is now scheduled to last until 6/30/09. To receive the full $150 requires the following:
  • $50 bonus for opening the free checking account with a minimum deposit of $100. Also required is either direct deposit of $200/month OR 5 signature debit card purchases per month for the first 90 days.
  • $50 bonus for keeping the checking account active for 90 days (at least 3 transactions each month)
  • $50 bonus for using online bill pay (at least 3 per month)
Refer to the promotion page (pdf) for the full details.

Readers have reported some success and problems with this promotion in the past.

In my August 2008 post on this promotion, a reader reported being able to open an account and receive the bonus by mailing in the application along with the bonus coupons. Previously I had been told that the promotion would require a branch visit. In order to receive the bonus, you must mail in the coupons with the application.

Update: Readers have just commented that a branch visit is now required for this promotion. This is also now listed in the fine print of the promotion.

Another reader reported problems with the credit union's customer service:
I applied 3 times. They did not call or email me. I emailed them, they said apply again. They did not call or email me so I guess I was not accepted.

Another reader mentioned in my last post on this promotion that his application was rejected, possibly due to a ChexSystem flag for opening more than 3 accounts in the last 90 days.

If you have tried this promotion in the past, please leave a comment.

The credit union still offers a refer-a-friend program which rewards a member $50 for each referral.

Field of membership includes members of the American Consumer Council. Anyone can join this organization with a $6 membership fee. In the online credit union application, it allows you to select this council for eligibility, and it states: "If you are interested in joining the Council and the credit union, click this option and continue applying for membership." See the site for other ways to be eligible to join the credit union without joining this council. You can be eligible via select employer groups and via immediate family.

Branches are located in the California cities of Huntington Beach, Laguna Hills, Lakewood and Seal Beach. There's also a branch in Mesa, Arizona, but it's only accessible to Boeing employees. The credit union is federally insured by the NCUA (Charter # 566).

Thanks to the reader who emailed me info on this new promotion.
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5% Savings Accounts and 7% CDs? Yes, but with Catches
Wednesday, May 27, 2009 - 8:19 AM CT

There a few banks and credit unions that offer very high rates on special savings accounts and CDs. As you might expect, there are catches. The most important one is that they limit how much you can deposit.

One example is Wachovia's Way2Save account which offers 5% APY in its Way2Save savings account combined with a 5% first-year bonus. This is still available nationwide. However, they limit how much you can deposit. They allow you to make a maximum monthly transfer of $100 from your Wachovia checking account. Other ways to get money into this account require more work. They'll transfer $1 from your Wachovia checking into the Way2Save for each debit card purchase, online bill payment or automatic debit transaction. The maximum year-end bonus is $300. But if you just do the $100 monthly transfers, you'll receive about $78 more in a year than you would if you had just put that money into a savings account earning 2%. With today's low interest rates, these special savings accounts and CDs are better deals than they used to be.

I described these special high-yield, low-cap accounts in this April post. Below is a summary of the nationwide deals that are still available. I have some additional local ones in that post that may also still be available. For each account I list the extra amount that you would earn compared to just keeping your money in a 2% savings account.
  • 5% 12-mo Way2Save with 5% year-end bonus (extra $78) at Wachovia (the only bank on the list). This is more of a savings account than a CD. By setting up 12 monthly automatic transfers of $100, you can easily make an extra $78 over the first year (my account review)
  • 7% 12-mo CD $1K Max (extra $50) at Patelco CU. In CA, but with easy membership (my account review)
  • 8% Youth Savings thru 1/1/10 $1K Max (extra $40) at Patelco CU. In CA, but with easy membership (my account review)
  • 5% 5-mo CD $5K Max (extra $62) at People's Trust FCU. In TX, but with easy membership (my account review)
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1.68% Reward Checking Account at City National Bank in Texas - Nationally Available
Tuesday, May 26, 2009 - 10:43 AM CT

Update 3/04/10: The top rate has fallen to 1.68% APY. Refer to the bottom of the post for the rate history.

City National Bank is offering a reward checking account with a 1.68% APY on all balances and with refunds of all ATM fees nationwide if the following monthly requirements are met:

  • 10 debit card purchases
  • monthly direct deposit of payroll or government benefit
  • Receive e-statements and maintain a valid email address

If these are not met, the rate falls to 0.05% for that month. Additional features of the account regardless of the monthly requirements include:

  • $100 minimum initial deposit
  • No minimum balance requirement
  • No monthly service charge
  • Online bill pay for free with direct deposit

There's an online application located at the reward checking page. Using the bank's online chat system, I was told that people from any state can open the account using this online application. The CSR also said that the application process only performs a soft credit inquiry so there should be no ding to your credit score. The bank has an ACH bank-to-bank transfer service, but it has some limitations. The biggest one is that by default there's a $2,500 transfer limit. The CSR said that higher limits are negotiable upon request. So you would probably be better off initiating transfers from another bank. They don't block external ACH transfers. They typically don't place holds on ACH deposits, but large deposits may trigger a 3-7 day hold.

The CSR didn't know how long the rate would last. The current rate is below average for reward checking accounts, however, the lack of a balance cap helps make up for this. So there could be a lot of demand for this account which could put pressure on the rate. This account has been around for a long time. In fact, City National Bank was the first bank to offer reward checking. From this reward checking news article:

The high-yield checking account was born in 1997 out of City National Bank, a small community bank in Taylor, Texas. President Andrew Littlejohn wanted a product that would lessen the impact of the inevitable tide of national banks expanding out of Austin into his small community.

With the goal of customer retention, BancVue built software that would allow City National customers to use electronic banking while earning a higher percentage rate on their checking accounts.


I mentioned the bank in March 2007 as having one of the best nationwide checking accounts. At that time the rate was 4.03% APY which was low compared to many other reward checking accounts so it fell off my radar. The rate has held up well, and I'm surprised it took me this long to write a post on it.

The bank's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1934 (FDIC Certificate # 5548). It's a small bank with one office in Taylor, Texas (northeast of Austin). It has $168 million in assets and $134 million in deposits.

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:

02/26/10: 1.68% APY

01/07/10: 2.05% APY
10/15/09: 2.65% APY
01/22/08: 3.28% APY

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3.01% Reward Checking Account at Community Bank in Louisiana - Local Only
Tuesday, May 26, 2009 - 9:10 AM CT

Update 11/08/09: The top rate has fallen to 3.01% APY. Refer to the bottom of the post for the rate history.

Community Bank is offering a reward checking account with the following rates and features if certain monthly requirements are met:
  • 3.01% APY on balances up to $35,000
  • 1.01% APY on balances over $35,000
  • Refunds all ATM fees nationwide
If requirements are not met, the rate falls to the bank's current NOW Account rate for the lower tier, and ATM fees will not be refunded. The monthly requirements include:
  • 15 debit card purchases
  • Receive e-statements (paper statements mailed for $3 per statement)
Additional features of the account regardless of the monthly requirements include:
  • $100 minimum initial deposit
  • No minimum balance requirement
  • No monthly service charge
There's an application link at the top right side of the reward checking page, however, at the bank's application page, it states that "these services are offered to prospective customers who reside in Community Bank's trade area." Branches are located in the Louisiana cities of Raceland, Thibodaux, LaPlace, Larose, Golden Meadow, Napoleonville and Houma.

The bank has been FDIC insured since 1964 (FDIC Certificate # 19143).

Other Reward Checking Accounts

Community Bank's rate and balance cap are competitive for reward checking accounts. The downside is the required 15 debit card purchases a month. Most reward checking accounts only require 10. It seems like this number has gone up with new reward checking accounts over the last six months.

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:
10/29/09: 3.01% APY (as shown on front page in rotating flash image)
05/26/09: 4.01% APY up to $35K; 1.01% over
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2.50% 8-Month CD & 2.40% Money Market Account at Premier American Bank in South FL - Local Only
Tuesday, May 26, 2009 - 9:08 AM CT

Premier American Bank is offering an attractive CD and money market promotion. The CD promotion includes a 2.50% APY 8-month CD and a 2.35% APY 6-month CD. Minimum deposit is $10,000. The money market account offers a 2.40% APY on balances of at least $25K. The rate falls to 1% for balances between $10K and $25K, and 0.25% for balances under $10K. These rates are listed in the bank's specials page as of the morning of 5/26/09.

The specials page states that accounts must be opened in person. Branches are located in Miami, Surfside and Hialeah Gardens, Florida.

The bank's ratings for safety and soundness have fallen quite a bit since my last post on this bank in July 2008 when BauerFinancial gave it a 3.5-star rating. At BauerFinancial, it now has a 0-star rating (lowest). It also has the lowest rating at Bankrate.com. Both ratings are based on 12/31/08 financial data. Deposits are FDIC insured (FDIC Certificate # 57147), so as I recommend with any bank, make sure to keep under the FDIC limits.

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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3.05% Reward Checking Account (up to $75K) at The Bank of Marion in Southern IL - Local Only
Tuesday, May 26, 2009 - 9:06 AM CT

The Bank of Marion is offering a reward checking account called Kasasa Cash. The account offers the following rates and features if certain monthly requirements are met:
  • 3.05% APY on balances up to $75,000
  • 0.50% on balances over $75,000
  • 0.25% base rate if qualifications are not met
  • Refunds ATM fees nationwide up to $30 per cycle and $3 per ATM
The monthly requirements include:
  • 10 debit card purchases
  • One direct deposit or automatic payment
  • Sign into online banking
  • Receive e-statements
Additional features of the account regardless of the monthly requirements include:
  • $100 minimum initial deposit
  • No minimum balance requirement
  • No monthly service charge
  • Free first order of checks
The bank has an online application at the Kasasa.com website which is another version of CheckingFinder.com. The online application does not accept all zip codes. The account appears limited to areas around Southern Illinois. Branches are located in the Illinois cities of Marion, Carrier Mills, Creal Springs and Eldorado.

The bank has been FDIC insured since 1937 (FDIC Certificate # 15565).

Other Reward Checking Accounts

The Bank of Marion's rate is a little low for reward checking, but the $75K balance cap helps make up for this. The average cap is $25K.

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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Competitive Money Market Account at Delta Community CU - Easy Membership
Monday, May 25, 2009 - 6:57 PM CT

Update 11/07/09: Rates have fallen: New MMA APYs: 1.25% $1K-$10K, 1.40% $10K-$25K, 1.50% $25K-$50K, 1.60% $50K-$100K, 1.75% $100K+. Refer to the credit union's website for the latest rates.

Delta Community Credit Union has a money market account with some competitive rates. The rates include a 2.35% APY for balances over $100K, 2.15% APY for $50K to $100K, 2.00% APY for $25K to $50K, 1.75% APY for $10K to $25K and 1.50% APY for $1K to $10K. These rates are listed at the credit union's dividends page as of 5/25/09. Note, they often update their rates at the start of each month, so the rates may change next Monday.

The Money Market Account offers an ATM card and limited check writing (checks are not free). According to the fees page, there are no monthly fee.

I've done several posts on Delta Community CU, but most have covered their CDs. I haven't noticed their money market rates before. They do have a history of competitive CD rates. Currently, they offer a 2.15% APY 6-month CD and a 2.65% APY 12-month CD. Refer to my last Delta post for more details on their CDs.

Credit union membership is open to members of the GettingAhead Association. This appears open to people from any state who pay a $5 membership fee. You can be immediately eligible for credit union membership if you're a resident of one of several Georgia counties in the Atlanta metro area, work for one of their Select Employer Groups, or via family (not just immediate family). Please see the credit union's eligibility page for more details. Membership requires a minimum $5 deposit into the savings account.

Joining the credit union and opening accounts are much quicker if you can visit a branch. Readers commented on their experience joining this credit union in my November post when the credit union was offering a 4.50% 12-month CD. The reader who joined with a branch visit reported a very easy process.

Branches are located throughout the Atlanta Metro area. There are also branches in Florence, Kentucky (Cincinnati Metro); Salt Lake City, Utah; and Southlake, Texas (Dallas Metro).

Delta Community Credit Union has strong ratings for safety and soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The credit union is federally insured by the NCUA (Charter # 66357). It's a large credit union with $2.9 billion in assets and 181,259 members.

Other Competitive Savings and Money Market Accounts

Another good credit union with competitive savings account and CD rates is Alliant Credit Union (see review). Alliant Credit Union current has higher rates on its savings account vs. Delta's MMA. One advantage of Delta is that they offer 6-month CDs.

For other high yield savings accounts, please refer to my weekly rate summary.

Rate History:
Update 11/07/09: Rates have fallen: New MMA APYs: 1.25% $1K-$10K, 1.40% $10K-$25K, 1.50% $25K-$50K, 1.60% $50K-$100K, 1.75% $100K+.

Update 10/03/09: Rates have fallen: New MMA APYs: 1.50% $1K-$10K, 1.65% $10K-$25K, 1.75% $25K-$50K, 1.85% $50K-$100K, 2.00% $100K+.

Update 9/05/09: Rates have fallen. New MMA APYs: 1.50% $1K-$10K, 1.75% $10K-$25K, 1.85% $25K-$50K, 2.00% $50K-$100K, 2.15% $100K+.
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2.82% 6-Month CD & 3.03% 24-Month CD at SeaComm FCU in Northern NY - Local Only
Monday, May 25, 2009 - 6:55 PM CT

SeaComm Federal Credit Union has several competitive rates for its share and IRA certificates. The best deals are its short- and mid-term certificates which include a 2.82% for 6 months, 2.85% for 12 months, 2.98% for 18 months and 3.03% for 2 years. Minimum deposit for the 6-month certificate is $2,500. Longer-term certificates have a $1,000 minimum. These rates are listed at the credit union's rate table as of 5/25/09.

Membership is open to those who live, work, worship or attend school anywhere in St. Lawrence County or in parts of Franklin County. Membership requires a minimum balance of $5 in the Regular Share Savings Account. Please refer to the credit union's Join-Us Page for more details.

The credit union has strong ratings for safety and soundness: 4 stars (sound) at Bankrate.com and 5 stars (superior) at BauerFinancial. Both ratings are based on 12/31/08 financial data. The credit union is federally insured by the NCUA (Charter # 15672).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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2.73% 12-Month CD & $100 Checking Bonus at Great Southern Bank in St. Louis - Local Only
Monday, May 25, 2009 - 6:53 PM CT

Great Southern Bank is having a grand opening special with several good deals. These include a 2.73% APY 12-month CD and a 2.38% APY 6-month CD. Minimum deposit is $250.

There's also a checking account special with a 1.66% APY and a $100 bonus when the account is opened with either direct deposit or an e-banking package.

These specials don't seem to listed at the bank's website. It was advertised in the 5/24/09 St. Louis Post-Dispatch. The ad is available online here. The offers are scheduled to last through 6/30/09. The checking account appears to only be available at their new Creve Coeur branch. However, I don't see this restriction for the CDs.

Branches are located throughout Missouri and in a few parts of Kansas and Nebraska.

The bank's ratings for safety and soundness are a little weak: 2 stars (below peer group) at Bankrate.com and 3.5 stars (good) at BauerFinancial. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1952 (FDIC Certificate # 29546).

Other High CD Rates and Bank Bonuses

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.

To find other bonus deals, please refer to my bank bonus page which has all of my recent bank bonus posts.
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2.65% 12-Month CD & 2.35% 9-Month CD at Riverside National Bank in East FL - Local Only
Monday, May 25, 2009 - 6:51 PM CT

Riverside National Bank is offering two competitive CD specials: 2.65% APY for 12 months and 2.35% APY for 9 months. Minimum deposit is $5,000. These rates are listed at the bank's CD page as of 5/25/09.

A branch visit appears to be required to open an account. Branches are located in the following Florida counties: Brevard, Indian River, Okeechobee, Martin, Palm Beach, Polk, St. Lucie, Volusia, Highlands and Lake.

The bank's ratings for safety and soundness are weak: 2 stars (problematic) at BauerFinancial and 1 star (lowest) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1982 (FDIC Certificate # 24067).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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Bank Deals Blog is Now on Twitter
Monday, May 25, 2009 - 12:44 PM CT

I finally have a Twitter Page. I've been hesitant to create a Twitter page since I wasn't sure how much value it could add. Many bloggers just feed their blog posts to Twitter which didn't seem too useful. However, a friend suggested another way to use it that could make it much more useful. As I come across deals or banking news, I'll do quick Twitter posts (tweets). Some of these may lead to blog posts. Other deals that aren't that great will just be on Twitter. I've already done 10 tweets today.

Twitter forces you to keep tweets very short (no more than 140 characters). The nice thing about this is that it'll make it easy for me to do quick tweets. A blog post may take me 30 minutes while a tweet may only take me 30 seconds.

I've added a feed of my last 3 Tweets at my Daily News & Deals Page.

I'm new to Twitter, so if you have suggestions about how I can better use it, please leave a comment.

Update: There has been some confusion over my Twitter plans. I still plan to do the same number of Bank Deals blog posts that I've done before. Twitter will just add more info. On the Twitter page, I'll tweet on deals as soon as I find them even those that are not that great. I'll do the same with banking news. From these, I'll write the normal Bank Deals blog posts.

These tweets are viewable by all at my Twitter Page, twitter.com/bankdealsblog.
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How to Maximize the Return of an Installment Savings Account
Sunday, May 24, 2009 - 7:02 PM CT

In the last several months I've posted on several installment savings accounts. There are not a lot of banks offering these. They appear most common among banks that cater to the Korean-American communities. Many of these offer rates much higher than the best CD rates. Examples of rates from Wilshire State Bank (which is available nationwide) as of 5/24/09 include:
  • 5.12% APY 36 months
  • 4.86% APY 30 months
  • 4.86% APY 24 months
  • 4.60% APY 18 months
  • 4.60% APY 12 months
These rates are a little deceptive due to how installment savings account work. With installment accounts, you don't make a lump sum initial deposit. Instead you make equal monthly deposits during the term. So for the first month, you only earn interest on your first monthly installment. The second month you earn interest on the first and second month installment, and this continues through the entire term of the installment savings account. So if you have a contract amount of $10,000 and a 12-month term, you'll make 12 deposits of $813.30. As you can see, the high interest rate doesn't help much early in the term since there's not much of a balance.

As in the case of the Wilshire State Bank installment savings account (Rainbow Savings), you receive the best rate if you set up automatic transfers from a Wilshire State Bank checking account into the installment savings account. If you deposit a lump sum into the checking account, you'll lose out on interest while the money sits in the checking account earning little if any interest. To maximize the amount of interest that you earn, you'll want to set up automatic transfers from an online bank (like at Ally/GMAC Bank) into the checking account.

Update 5/25/09: Several readers have noted that Wilshire State Bank's eLink Savings Account can be used for the automatic deposits, and this savings account continues to pay a very competitive rate of 2.75% APY as of 5/25/09. I have more details on this Savings Account in my Wilshire State Bank review.

I've set up an example of how to calculate a return assuming that you have a lump sum. The spreadsheet combines the interest of the installment savings account and a regular savings account. I've used Google spreadsheets, and I've embedded the spreadsheet below:

These numbers are based on what Wilshire State Bank lists for a 12-month Rainbow Savings Account as of 5/24/09.

The spreadsheet has the following assumptions:
  • Installment savings account interest rate = 4.50%
  • Regular savings account interest rate = 2.00% (and remains the same for the year)
  • Initial balance = $9,759.60
  • 12 monthly deposits of $813.30 into the installment savings account
  • The initial balance minus the first installment is deposited into the regular savings account
  • Interest is compounded monthly
  • No interest is lost during the transfers of the money into the installment account
One thing that the spreadsheet does not take into account is the lost interest during the transfer of the money from the online savings account, to the checking account and finally into the installment savings account. You'll probably lose around one week of interest for the installment amount each month. I estimate that this will lower the effective return by about 4 basis points. You'll lose more if a minimum balance is required in the checking account to avoid fees.

At the bottom of the spreadsheet, I calculate what I call the effective APY which is based on the total return of both the installment savings account and the regular savings account. In this example, the effective APY is 3.40%. So a combination of the installment savings account and an online savings account can allow you to do much better than a comparable CD.

Refer to my installlment savings account page for other banks offering these. For more details about Wilshire State Bank's Rainbow Account, please refer to my Wilshire State Bank review.

For the latest top CD rates, refer to my weekly rate summary.
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Bank Deals Weekly Summary for May 23, 2009
Saturday, May 23, 2009 - 11:45 PM CT

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

The big news for savers this week was the extension of the $250K deposit insurance limit from 12/31/2009 to 12/31/2013. It was a provision of the Helping Families Save Their Homes Act which was signed into law by the President on Wednesday (see post).

Another important legislation that was signed into law this week was the Credit Card Accountability Responsibility and Disclosure Act. For credit card customers who always pay off their balances, it could result in more costly changes than beneficial ones (see post).

The FDIC was also busy this week. BankUnited, FSB, the largest bank headquartered in Florida, was closed on Thursday, and the FDIC arranged for a consortium of investors and private equity firms to acquire the bank. There were also closures on Friday of two small Illinois banks. For all three closures, new banks assumed all regular deposits, even those above the FDIC limits. The only thing depositors may have to worry about is losing their CD rate lock (see post).

Savings Account Rates

The two best savings account deals continue to be at ProvidentNJ Direct and EBSB Direct. Both are providing an intro period with a guaranteed rate which is especially nice these days. ProvidentNJ Direct is offering 3.25% APY for 3 months and EBSB Direct is offering up to 2.81% APY through 9/30/09.

Wilshire State Bank continues to offer a nationally-available installment savings account with rates ranging from 4.60% APY for 12 months to 5.12% APY for 36 months (see review). I've reported on several local-only installment savings accounts in the last couple of months.

Below is the list of savings account rate changes for this week. ShoreBank Direct's savings account had the largest rate drop this week with the rate falling from 2.45% to 2.05% APY.

Rate Hikes:
  1. None
Rate Drops:
  1. UmbrellaBank MMA - 2.15% $50K+ (was 2.25%)
  2. Amegy Bank MMA - 1.80% $10K+ (was 1.95%)
  3. Imperial Capital Bank Chk - 1.10% (was 1.20%)
  4. ShoreBank Direct Savings - 2.05% (was 2.45%)
  5. Capital One/Costco Savings - 1.90% (was 2.06%)
  6. Capital One Savings - 1.85% (was 2.01%)
  7. Heartland Bank Savings - 2.10% (was 2.30%)
  8. Emigrant Direct Savings - 1.55% (was 1.65%)
  9. Corus Bank MMA - 2.17% (was 2.20%)
  10. Zions Bank MMA - 1.92% (was 2.02%)
  11. FNBO Direct Savings - 1.65% (was 1.90%)
Certificate of Deposit Rates

Ally Bank (formerly GMAC Bank) continues to have the best short-term CD deals with a 2.50% APY 9-month no-penalty CD and a regular 2.80% APY 12-month CD. The best long-term CD deals continues to be at PenFed with a 3.50% APY 3-year CD and a 4.00% APY 5-year CD. PenFed updates their rates at the start of each month, so these may not last much longer.

Below are some of the best CD deals that are still active.

Best Nationwide CD Deals as of 5/23/09: The full list of nationwide CD rates is farther down.
  1. 3.25% 3-mo savings account promo at ProvidentNJ Direct (account review)
  2. 2.81% savings promo thru 9/30/09 at EBSB Direct (account review)
  3. 2.50% 4-mo CD at Danvers Bank (account review)
  4. 2.52% 6-mo CD at Wilshire State Bank (account review)
  5. 2.50% 9-mo No-Penalty CD & 2.80% 12-mo CD at Ally/GMAC Bank (account review)
  6. 3.03% 12-mo CD at Melrose CU (account review)
  7. 3.50% 36-mo CD & 4.00% 60-mo CD at Pentagon FCU (account review)
Best Local CD Deals as of 5/23/09: Some of the best CD deals are from banks and credit unions that don't offer accounts nationwide. Refer to the recap section and the state index section to find all the recent local deals. Here are some of the best deals to note.
  1. 3.29% 6-mo CD & 3.87% 15-mo CD at Progressive CU in NY, NY (account review)
  2. 2.75% 6-mo CD ($25K max) at STC Capital Bank in Chicago (account review)
  3. 2.80% 9-mo CD at Connex CU in CT (account review)
  4. 3.25% 12-mo CD at Cornerstone Bank in GA (account review
  5. 3.00% 12-mo CD at First Priority CU in MA (account review)
  6. 3.30% 12-mo CD at Self Reliance New York FCU (account review)
  7. 3.25% 24-mo CD at Jefferson Financial CU in Louisiana (account review)
  8. 3.10% 25-mo CD & 2.65% 6-mo CD at CoreFirst Bank at CO & KS (account review)
  9. 3.00% 25-mo CD at Broadway Bank in Chicago (account review)
  10. 4.50% 60-mo CD & 2.75% 12-mo CD at Urban Trust Bank in FL & MD (account review)
  11. 4.07% 60-mo CD at South Jersey FCU (account review)
Reward Checking Accounts

I reported on six new reward checking accounts this week with rates ranging from 2.55% to 5.15% APY (see below). Heritage Bank is the one offering 2.55% APY, and it's available nationwide. One plus with this account is the lack of a balance cap. All balances qualify for the 2.55%.

To see all of the high yield reward checking accounts available through out 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 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 at this page. Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Reward Checking, 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 May 23, 2009

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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Two Illinois Banks Fail, Impact to CD Customers and the FDIC Special Assessment
Friday, May 22, 2009 - 10:29 PM CT

Two small Illinois banks failed today: Strategic Capital Bank in Champaign and Citizens National Bank in Macomb. These were small banks compared to BankUnited that was seized yesterday. The combined assets of these two banks were only $937 million which is just about 7% of BankUnited's $12.8 billion in assets.

Both closures were similar. The FDIC arranged for another bank to assume all regular deposits, even deposits over the FDIC limits. One difference was the handling of brokered deposits. For the Strategic Capital Bank, all brokered deposits were transferred to the assuming bank. For Citizens National Bank, all brokered deposits will be funded and paid out directly by the FDIC.

Impact to CD Customers

CD customers will have to worry about losing their rate lock. For both cases the assuming banks will be "reviewing the rates." Depositors will have the option to close the CD without an early withdrawal penalty. Unfortunately, the assuming bank can take a while to decide, and the FDIC doesn't report on the decision. If you're a customer of a failed bank, please leave a comment about what the assuming bank decides.

One reader commented in my post on Westsound Bank's closure about the decision of the assuming bank, Kitsap Bank. Kitsap Bank sent letters dated 5/15/09 informing customers that the rates would change as of 5/11/09. I've seen cases in which the assuming bank delayed the notification even more. As you might expect, they decided to cut rates. Westsound Bank had been offering 5.65% APY 5-year CDs in 2007. The highest new rates will only be 3% APY.

So for CD depositors, the most worrisome issue this year for bank closures hasn't been lost money, but the loss of CD rate locks.

Special Assessment on Insured Depository Institutions

Before these closures, the FDIC issued this press release regarding its final rule on special assessments on insured institutions as part of its efforts to rebuild the Deposit Insurance Fund (DIF). With this special assessment, the FDIC projects that the DIF will remain low but positive through 2009 and then begin to rise in 2010. Unfortunately, it sounds like the FDIC Chairman, Sheila Bair, expects the continuation of the very-low deposit rates will make it easier for banks to pay the assessment:
And backed by deposit insurance, deposit funding costs have fallen significantly, approaching historic lows. Indeed, the unique ability of banks to access low-cost, government-backed deposits has contributed to the recent increased profitability of many banks.

There's no mention about how the extension of the $250K coverage limit to 2013 will affect the DIF. If the FDIC can continue to have the assuming banks take over all of the failed banks' deposits, the $250K coverage change may not have a major impact on the DIF. However, as more banks fail, the FDIC may have a harder time finding banks willing to assume all deposits.

Here's a summary of the two failures:

35th Bank Failure of 2009
  • FDIC Press Release
  • Closed Bank: Strategic Capital Bank
  • Location: Champaign, Illinois
  • Size: 1 office, $537 million assets, $471 million deposits
  • Possible Uninsured Deposits: All deposits transferred
  • Assuming Bank: Midland States Bank, Effingham, IL
  • Estimated Cost to Deposit Insurance Fund: $173 million
  • Financial Ratings: 0 star (lowest) at BauerFinancial, 1 star (lowest) at Bankrate.com
36th Bank Failure of 2009
  • FDIC Press Release
  • Closed Bank: Citizens National Bank
  • Location: Macomb, IL
  • Size: 8 offices, $437 million in assets, $400 million in deposits
  • Possible Uninsured Deposits: All deposits transferred, excluding brokered deposits
  • Assuming Bank: Morton Community Bank, Morton, IL
  • Estimated Cost to Deposit Insurance Fund: $106 million
  • Financial Ratings: 0 star (lowest) at BauerFinancial, 1 star (lowest) at Bankrate.com
References:
Thanks to the readers who emailed me and commented on these closures.
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5.15% Reward Checking Account at Mountain Credit Union in North Carolina - Local Only
Friday, May 22, 2009 - 9:52 AM CT

Mountain Credit Union has a rewards checking account with the following rates and features if certain monthly requirements are met:
  • 5.15% APY on balances up to $25,000
  • 1.01% APY on balances over $25,000
  • 0.05% base rate if qualifications are not met
  • Refunds of ATM fees nationwide up to $25 per cycle
The monthly requirements include:
  • 12 signature-based debit card purchases
  • one direct deposit
  • receive e-statements
Additional features of the account regardless of the monthly requirements include:
  • No minimum balance requirement
  • No monthly service charge
  • Multiple accounts can be opened, but requirements must be met for each account
Credit union membership is open to anyone who lives, works, worships or attends school in Buncombe, Haywood, Henderson, Jackson, Macon or Swain county of Western North Carolina or in the Cherokee Indian Reservation. Please refer to the credit union's membership page for the full details. Membership requires a $25 minimum balance in the Main Share Account.

Branches are located in Asheville, Cherokee, Fletcher, Franklin, Sylva and Waynesville, NC. The credit union is federally insured by the NCUA (Charter # 68531).

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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2.14% Reward Checking Account With No Balance Cap at Heritage Bank in MN - Nationally Available
Friday, May 22, 2009 - 9:47 AM CT

Update 7/18/09: The top rate has fallen to 2.14% APY. Refer to the bottom of the post for the rate history.

Heritage Bank is offering a reward checking account with a rate that's low for reward checking, but it has the advantage that all balances can qualify for the top rate. If certain monthly requirements are met, the following rate and features apply:
  • 2.14% APY on all balances
  • 0.10% base rate if monthly requirements are not met
  • Refunds of ATM fees nationwide up to $25 per month
The monthly requirements include:
  • 10 check card purchases
  • one direct deposit or automatic payment (ACH)
  • Receive e-statements
Additional features of the account regardless of the monthly requirements include:
  • $50 minimum opening balance
  • No minimum balance requirement
  • No monthly service charge
There's an online application link at the bank's reward checking page. I was told by the bank's rep that it's available to people in any state.

The bank also offers an online savings account called Heritage Direct Savings which has a rate of 1.50% APY as of 5/22/09. I first posted on this savings account in April 2006 when the rate was 4.60% APY. I stopped reporting on it over the last year since the rate dropped quicker than most of its competitors.

I had noticed Heritage Bank was offering this reward checking account last year, but I didn't pay much attention since the rate was 2.55% which was low at that time. In today's environment, 2.55% APY is higher than what you can get at most internet savings accounts. Since the rate applies to all balances, it may be a reasonable alternative to online savings accounts for those with large balances.

Heritage Bank is based in Minnesota. It's a small bank with $179 million in assets and $143 million in deposits. It has been FDIC insured since 1964 (FDIC Certificate # 19254). The bank's ratings for safety and soundness are fair: 3 stars (adequate) at BauerFinancial and 3 stars (performing) at Bankrate.com. The ratings are based on 12/31/08 financial data.

Other Reward Checking Accounts

Refer to my nationwide list for reward checking accounts available nationwide. One thing to note is that only CBDirect has a nationwide reward checking account without a balance cap ($250K mentioned in the table is a default value for all balances). It has a rate of 3.00% APY as of 5/22/09.

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:
07/10/09: 2.14% APY all balances
06/12/09: 2.24% APY all balances
05/22/09: 2.55% APY all balances; 0.10% base rate
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Consider Opting-Out from Your Banks Courtesy Overdraft Protection
Friday, May 22, 2009 - 12:00 AM CT

Some banks offer what is known as “courtesy overdraft” protection or “bounced protection”. It's different from the traditional overdraft protection in that most customers end up getting courtesy overdraft without even knowing they have it. Often, you have to opt-out if you don't want the protection. At first glance, it seems that having the bank cover you if you make a mistake is a good thing to have – after all, it saves you from embarrassment at the checkout line if you have made a mistake and write a check or swipe your debit card for more than what you have available in your checking account, right?

The problem with courtesy overdraft protection is that if you make a small miscalculation and a transaction goes through causing you to overdraw your account – now you're going to pay an over-the-limit or overdraft fee (typically $39 PER transaction) and suddenly you're paying much more than you expected to pay. If you have automatic payments coming out of your account with courtesy overdraft protection, each time an individual transaction hits your account you're going to pay an additional fee, so if 4 different transactions hit your account in the same day, you will receive a fee for EACH ONE of those transaction! At $39 each, you're looking at spending $156 more than you anticipated – and the error may have been as small as a penny that started the problem!

One of the primary differences between the courtesy overdraft protection and traditional overdraft protection is that the courtesy version may not clear all types of overdrawn transactions. They can pick and choose which transactions to cover and which ones to deny – where as with traditional overdraft protection you pay an annual fee and sign a contract that states all withdrawn transactions are covered under the protection. With traditional overdraft protection, you typically pay interest on any balances overdrawn, instead of a hefty fee per transaction.

Interestingly, banks are also not required to disclose the interest rates of their courtesy overdraft or bounced check protection plans so you may be in for a bit of a shock the first time you make an error in your checking account!

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Rare Thursday Bank Closure - BankUnited, FSB
Thursday, May 21, 2009 - 5:46 PM CT

BankUnited, FSB, the largest bank headquartered in Florida, was closed today by federal regulators. This is only the second time in recent history that a bank was closed on Thursday instead of Friday (The last one was WaMu's closure.) Except for the closure coming on a Thursday, it wasn't much of a surprise. Bloomberg published leaks of the bidding process on Tuesday. A consortium of investors and private equity firms won the bid and will assume the banking operations under a newly chartered bank named BankUnited.

For regular depositors, all of their deposits, even those over the FDIC insurance limits, were transferred to the new bank. The main concern for those with CDs is whether the new bank will choose to let the original CD rates continue until maturity or will it choose to lower the rates. According to the FDIC, "BankUnited will be reviewing rates and will notify you." However, you should be free to withdraw funds without an early withdrawal penalty.

For brokered deposits, it's a little more complicated. Often the assuming bank decides not to assume any brokered deposits since they don't feel they have anything to gain from those customers. However, in this case, it appears most of the brokered deposits will be transferred to BankUnited. Here's the excerpt from the FDIC Q&A #3:
All deposits comprised of principal and interest through the date of the bank failure, EXCLUDING deposits in the name of CEDE & CO, will be funded by the FDIC and transferred to the assuming bank. Funds representing principal and interest through the date of the bank failure for the CEDE & Co., brokered CDs will be paid directly by the FDIC [...] Be advised, however, that from and after the date of closing, BankUnited will accrue and pay interest on deposit liabilities at a rate it shall determine; accordingly, BankUnited shall permit depositors, including brokered depositors, impacted by reduced interest rates, to withdraw their deposits without penalty for early withdrawal.

Except for the possibility of losing the CD rate lock, BankUnited, FSB depositors shouldn't have any problems. Shareholders, however, will likely be wiped out similar to WaMu shareholders last year.

Another interesting thing to note about this closure is the cost to the FDIC's Deposit Insurance Fund which is estimated to be $4.9 billion. BankUnited, FSB is the largest bank to be closed since Downey Savings & Loan Association was closed in November 2008. In that case, the FDIC estimated a cost of only $1.4 billion even though Downey Savings was the same size as BankUnited, FSB in terms of assets ($12.8 billion).

Here's a summary of today's bank failure:

34th Bank Failure of 2009
  • FDIC Press Release
  • Closed Bank: Bank United, FSB
  • Location: Coral Gables, FL
  • Size: 86 offices, $12.8 billion in assets, $8.6 billion deposits
  • Possible Uninsured Deposits: All deposits transferred, excluding $348 million in brokered deposits
  • Acquiring Bank: BankUnited, a newly chartered federal savings bank
  • Estimated Cost to Deposit Insurance Fund: $4.9 billion
  • Financial Ratings: 0 star at BauerFinancial, 1 star (lowest) at Bankrate.com
References:

Update 5/24/09: A reader reported being informed on 5/22/09 by BankUnited that his CDs would continue to maturity without rate changes.
Comments (8)
It's Official: Basic Deposit Insurance Limit is $250K Through 2013
Thursday, May 21, 2009 - 3:57 PM CT

As I mentioned yesterday, the President signed the Helping Families Save Their Homes Act which includes the provision to extend the $250K deposit insurance limit to 2013. The FDIC now has this in their Changes in FDIC Deposit Insurance Coverage Page:
May 20, 2009

Deposits at FDIC-insured institutions are now insured up to at least $250,000 per depositor through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except for IRAs and other certain retirement accounts which will remain at $250,000 per depositor. (This supersedes the October 3, 2008 changes.)

Note, this also applies to the NCUA which covers credit unions. However, I don't see it mentioned at the NCUA website as of 5/21/09. Update 5/22/09: The NCUA website does mention the new $250K limit (see NCUA document), but the NCUA has not yet changed the end date from 12/31/2009 to 12/31/2013. Update 5/28/09: The NCUA now has a press release which confirms this extension.

I'm not sure how exactly they arrived at the 4-year extension. It seemed like for much of this year, bills were written to make the increased coverage permanent. As I mentioned in my May 7th post, an earlier version of this bill actually was written to make the increase permanent.

One thing that isn't mentioned by the FDIC is the effect of the law that was passed in 2006 which raised the IRA limit to $250K. The 2006 law didn't raise non-IRA limits, but it did establish a method for considering an increase in the insurance limits starting in 2011. Here's what the FDIC stated in 2006:
The new law establishes a method for considering an increase in the insurance limits on all deposit accounts (including retirement accounts) every five years starting in 2011 and based, in part, on inflation.

I don't know how this will factor in the decision about the insurance limits in 2014. Hopefully, it won't go back to $100K. It's possible that after 5 years with a $250K insurance limit, there will be strong backing to just keep the $250K limit. Unfortunately, we'll have to live with this uncertainty. A good marketing tactic for banks would be to agree to allow penalty-free early withdrawals on CDs that mature after 2013 if the insurance limit is reduced. That would at least be one less worry for those who plan to open long-term CDs. I'm surprised I didn't see any banks come out with this kind of feature this year.

Remember that it's possible to extend coverage past the basic insurance limit via joint accounts and revocable trust accounts. But there are risks related to this (see my post on extending FDIC/NCUA coverage).
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3.00% 24-Month CD at American Eagle Bank in Illinois - Local Only
Thursday, May 21, 2009 - 3:55 PM CT

American Eagle Bank has two competitive promotional CD rates: a 3.00% APY 24-month CD and a 2.50% APY 14-month CD. The 24-month CD is called the One Giant Step CD. The rate is 2.50% APY for the first 12 months, and 3.50% APY for the second 12 months. Minimum deposit is $1,000. These rates are listed on the CD pages for both the bank's Chicago branch and Kane County branch as of 5/21/09.

There's also a checking account promotion in the Chicago branch with a 2% APY gauranteed for 3 months. Direct deposit is required. The promo is for the Platinum NOW Chekcing which requires a minimum $500 balance to avoid a $10/month fee.

This bank had offered many good deals over the last two years. My last report was in February 2008 when it was offering a 4.50% 7-month CD

Accounts can only be open by residents of the Chicago metro area or Kane County.

The two branches of this bank are under two different FDIC charters: American Eagle Bank of Chicago (FDIC Certificate # 58514) and American Eagle Bank in South Elgin of Kane County (FDIC Certificate # 57359). Both of the banks are under the same bank holding company, Orchid Financial Bancorp, Inc. Since they have separate charters, they have different financial ratings: The South Elgin bank has 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. The Chicago bank has 3 stars (performing) at Bankrate.com, and BauerFinancial doesn't have a rating for the Chicago Bank since it was recently established in 2007. These ratings are based on 12/31/08 financial data.

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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2.75% 6-Month CD, 3.25% 24-Month CD & Other High Rates at Jefferson Financial Credit Union in Louisiana - Local Only
Thursday, May 21, 2009 - 3:52 PM CT

Jefferson Financial Credit Union has some very competitive short-term and mid-term CD and IRA rates. These include a 2.75% APY 6-month CD, a 3.00% APY 12-month CD and a 3.25% APY 24-month CD. Minimum deposit is $10,000. Lower rates are available for a $1,000 minimum. These rates are listed at the credit union's CD rate tables as of 5/21/09.

Membership is open to all Jefferson Parish residents. Also eligible are employees of certain Select Employee Groups. Please refer to the credit union's Membership Eligibility Page for more details. Membership requires a one-time $5 fee and a minimum balance of $25 in the Primary Savings Account.

Branches are located in the Louisiana cities of Metairie, Harvey, Kenner and Jefferson.

The credit union's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The credit union is federally insured by the NCUA (Charter # 60738).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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3.03% 13-Month CD & 2.52% 7-Month CD at Alabama 1st Capital Credit Union - Local Only
Thursday, May 21, 2009 - 3:51 PM CT

Alabama 1st Capital Credit Union (soon to be Alabama One CU) is offering two competitive certificate specials: 3.03% APY for 13 months and 2.52% APY for 7 months. Minimum deposit is $1,000. These rates are listed in the credit union's rate sheet as of 5/21/09 (click on the Account Disclosure and Fee Schedule link at the credit union's rates page). The rate sheet has a 4/23/09 date so these specials may not last much longer.

Membership is open to everyone who lives, works, attends school, or worships in Tuscaloosa, Morgan, Mobile, Baldwin, Escambia, Monroe and Washington counties in Alabama. Please refer to the credit union's About Page for more details.

Branches are located in Tuscaloosa and Mt. Vernon, Alabama.

The credit union's ratings for safety and soundness are a little weak: 3 stars (adequate) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The credit union is federally insured by the NCUA (Charter # 63295).
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2.30% Online Savings Account at Newtown Savings Bank in CT - Nationally Available
Thursday, May 21, 2009 - 10:43 AM CT

Update 10/26/09: The rate has fallen to 1.60% APY. Refer to the bottom for the rate history.

Newtown Savings Bank is offering an online savings account called U-Sweep. As of 5/21/09, the rate is 2.30% APY on all balances. It has no minimum balance requirements and no monthly fees. It also has an ACH transfer service for electronic deposits and withdrawals. One downside is that you're required to mail or fax in application forms.

Update 6/10/09: When I first posted on this the CSR stated that this account was limited to the Connecticut area. Perhaps since the account was so new, the CSR wasn't properly informed. I sent an email yesterday asking again, and this time, I was told it is available nationwide.

They have a decent FAQ page with several account details. Below are some of the important features from the FAQ and from what I was told by the CSR:
  • Application must be mailed or faxed (FAQ)
  • No minimum balance requirements or monthly fees (FAQ)
  • Interest is earned daily and credited monthly (FAQ)
  • No hard credit inquiry (CSR)
  • Beneficiaries are allowed (CSR)
  • No check writing and no ATM card (CSR)
  • Electronic statements only (CSR)
  • ACH Bank-to-Bank Transfer Service Features:
  • No limit on the number of withdrawals. CSR said it's treated as a checking account so it doesn't have the savings account regulation D limitations of 6 withdrawals per month
  • No limit on the number of linked accounts (FAQ)
  • Allows linking to checking or savings accounts (FAQ)
  • No size limitations on the ACH transfers (CSR)
  • ACH transfers are free (CSR)
  • Incoming/outgoing transfers will clear overnight provided you complete our transaction before 1:00pm (FAQ)
Newtown Savings Bank has branches in the Connecticut counties of Fairfield, Litchfield and New Haven.

The bank's ratings for for safety and soundness are fair: 3.5 stars (good) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1960 (FDIC Certificate # 18199).

Thanks to the reader who mentioned this account in the Daily Deals & News Post.

For other high-yield savings accounts available nationwide, refer to my weekly rate summary.

Rate History:
10/26/09: 1.60% APY
06/16/09: 1.80% APY
06/10/09: Received confirmation that U-Sweep savings account is available nationwide
05/21/09: 2.30% APY
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2.76% 12-Month CD, 2.97% 24-Month CD & Other High Rates at Quantum National Bank in GA
Thursday, May 21, 2009 - 9:36 AM CT

Update 6/27/09: The bank is now limiting CDs to Georgia residents. Some of the CD rates have fallen. As of 6/27/09, the 12-month rate is 2.66% APY and the 18-month rate is 2.82% APY.

Quantum National Bank is offering several competitive rates for its mid- and long-term CDs. These include 2.76% APY for 12 months, 2.97% APY for 24 months, 3.10% APY for 30 months and 3.50% APY for 60 months. Minimum deposit is $1,000. These rates are listed at the bank's rate table as of 5/21/09. The rate table was last updated on 5/18/09.

Update 6/27/09: The bank is now limiting CDs to Georgia residents. This is stated at the top of the bank's rate table.

There's an online application available at the bank's CD page, and according to the bank's CSR, they allow out-of-state applications. Not all accounts may be available nationwide such as the IRAs and business accounts. Also, as a small bank, these policies can often change so if you're interested in these CDs, I recommend calling before you apply. The application allows funding by check or wire transfer. According to the CSR, the rate locks at the time they receive the money. I was also told the early withdrawal penalty is 6 months of interest.

Quantum Bank used to have competitive rates on its Hi-Rate Checking. Back in 2007, the rate had been 4.51% APY, but it's down to only 1.11% APY for balances over $10,000. It's not too bad if you compare it to the checking accounts at Charles Schwab or E*Trade Bank. It offers free checks and Bill Pay. There's a $15/month service charge for balances that fall below $2,500 (unless you're 55 or older).

Quantum Bank is located in Suwanee and Milton, Georgia which are just north of Atlanta.

The bank's ratings for safety and soundness are a little weak: 3 stars (adequate) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1995 (FDIC Certificate # 34110).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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2.50% 6-Month CD, 3.00% 24-Month CD & Other High CD Rates at Police and Fire FCU in PA
Thursday, May 21, 2009 - 9:34 AM CT

Police and Fire Federal Credit Union continues to offer very competitive rates. The CD rates range from 2.40% APY for a 3-month term to 4.00% APY for a 60-month term. The 2.80% APY 15-month CD and the 3.00 APY 24-month CDs are especially competitive. The same rates also apply to IRA certificates. Minimum deposit is $500. These rates are listed in the credit union's rate table as of 5/21/09.

The credit union also has a competitive savings account with a yield of 2.25% APY for a minimum balance of $2,500 as of 5/21/09. This same rate is also available as an IRA money market account and an education savings account.

I last posted on this credit union in April. The rates have gone down, but they remain competitive.

The credit union has an online application for its certificates. However, you must first be a member and have money already in one of the credit union's liquid accounts. Once you become a member, you can use an online bank to push money into the credit union savings account via an ACH transfer. Once the money is in there, you should be able to purchase the CD using this online application. This approach has worked well for me at Navy FCU.

In addition to Philadelphia police and firefighters, membership is also open to other employee groups and associations. Please refer to their Membership Page for the full details. The association and organization list is long, and one that's included is the Pennsylvania SPCA (see update below). I would recommend checking with the credit union to verify this before trying to join.

Update 5/21/09: Readers have reported being told by the credit union that the Pennsylvania SPCA was incorrectly listed as an Association/Organization. It should be listed under Employers. So only employees of the SPCA (not members) can qualify.

The credit union has an online membership application which seems to allow online funding. A minimum deposit of $5 is required.

Branches are located in Philadelphia and its suburbs.

The credit union has strong ratings for safety and soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 12/31/08 financial data. It's a large credit union with $2.9 billion in assets and 160,579 members. The credit union is federally insured by the NCUA (Charter # 2551).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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Checking Account with 2% APY and $50 Bonus at Level One Bank in Michigan - Local Only
Thursday, May 21, 2009 - 9:32 AM CT

Level One Bank has an interest checking account paying 2.00% APY along with a $50 gift card bonus for opening the account. Minimum balance of $1,500 is required to open the account, to receive the 2% APY and to avoid a monthly fee. The bonus requires one of the following activities be done within 60 days of account opening: 1) two direct deposits of at least $150, 2) two Online Bill Payments of at least $150, and 3) 10 debit card purchases of at least $30. The offer ends on 6/01/2009. This promotion and checking account rate are listed at the bank's home page as of 5/21/09.

I called the bank, and I was told that a branch visit is required to open the account. According to the CSR, they only use ChexSystem in the application with no hard credit inquiry. Regarding the interest rate, it is a promo rate. Before the promo, the CSR said the rate was 1.25%.

Branches are located in the Michigan cities of Farmington Hills, Novi and Wixom which are in the suburbs of Detroit. It's a fairly new bank that was established in 2007 (FDIC Certificate # 58604).

Other Bank and Credit Union Bonuses

To find other bonus deals, please refer to my bank bonus page which has all of my recent bank bonus posts.
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Credit Cardholders' Bill of Rights, Effects on Rewards and Some Remaining Cash Reward Cards
Wednesday, May 20, 2009 - 7:33 PM CT

As expected, the Senate passed the Credit Cardholders' Bill of Rights Act (H.R.627). The House is expected to pass it, and it will likely be signed by the President by the end of the week. The WSJ Wallet Blog and this CNN Money article have good summaries of what these new credit card rules will mean to consumers. As I mentioned in yesterday's credit card post, these new rules may encourage the credit card companies to cut back on their reward programs. As the WSJ Wallet post mentioned, "The future of rewards programs is also up in the air." However, this Motley Fool commentary thinks it's foolish for credit card companies to charge their best customers:
I'm a credit card deadbeat, and I'm proud of it. And if credit card companies think they're going to start making any more money off me, then they'd better think again

I don't think I could have said it any better. Let's hope that the credit card companies think this way.

In my yesterday's post, I mentioned PenFed's attractive cash reward credit card (see post). I should have also mentioned this post which describes Charles Schwab's 2% cash back credit card and also lists some of the other lesser-known cash back credit cards. Fidelity also has a 2% cash back credit card (see post). And finally, this FW thread has a few other good ones including the Associated Bank Cash Rebate Card which still has 5% cash back for everyday purchases.
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2.85% 12-Month CD and Other Competitive CD Rates at Vacationland FCU in Ohio - Local Only
Wednesday, May 20, 2009 - 7:32 PM CT

Vacationland Federal Credit Union is offering several competitive rates on its certificates and IRAs. Some of the best rates include 2% APY for 3 months, 2.25% APY for 6 months, 2.85% APY for 12 months and 3.15% APY for 36 months. Minimum deposit is $500. These rates are listed at the credit union's rate table as of 5/20/09.

Membership is open to anyone who lives, works, worships, or attends school in Erie County, Ohio. Refer to the credit union's Who Can Join Page for more details. Membership requires a minimum balance of $25 in the share savings account.

Branches are located in Sandusky and Vermilion, Ohio.

The credit union has strong ratings for safety and soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The credit union is federally insured by the NCUA (Charter # 11293).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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$100 Checking Account Bonus at Chase
Wednesday, May 20, 2009 - 7:28 PM CT

Update 6/28/09: The expiration date has been extended to 7/24/09.

Chase is offering another bonus for its checking account. This is only $100. Many of the past ones have been $125. Nevertheless, if you need a checking account, it can be an easy $100. Chase has set up a special page at coupon.chaseinformation.com. Offer expires 6/23/09, and it requires a branch visit. Here are the required steps to receive the bonus:
  • Enter your email address in the promo page, and they'll email you the coupon with a unique code
  • Print out the email and bring it to your nearest Chase branch
  • Open a new Chase Checking(sm) account by 6/23/09 with a $100 minimum deposit
  • Set up direct deposit OR make five debit card purchases within 60 calendar days of account opening
Some of the important small print of this offer include:
  • $100 minimum opening deposit of new money
  • Chase Checking(sm) 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
  • The first direct deposit or 5 debit card purchases must be posted to account within 60 calendar days of account opening
  • The reward will be deposited into your new account within 10 business days after the initial direct deposit or 5 debit card purchases have been posted to your account
  • 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
Note, the offer is not available in California. Instead, there's a link to another promo page (from WaMu). However, if you click the Apply-Now button in that WaMu page, it tells you that the "Offer has expired".

Below are some additional details regarding these Chase Checking:

Avoiding a Charge for Checks

When you open the Chase Checking, you may be charged $23 for the first order of checks. You are allowed to turn down the checks. So make sure to mention this when you apply. When I applied two years ago, they offered me a special version of the checking account which included one free box of checks.

Direct Deposit

It has been reported by several of my readers that Chase treats transfers initiated from online banks or from PayPal as direct deposits. However, there have been some recent reports that PayPal no longer works. You might want to try the ACH as soon as you open the account. If you don't receive anything after the first month, you can always add a real direct deposit before the end of the 60 days.

Hard Credit Pull

I checked my credit report after I opened this Chase checking account in 2007, and I did not receive a hard credit inquiry. I only received a soft pull via Experian. Perhaps it was due to the fact that I already had a Chase credit card. A reader in my last post also didn't receive a hard pull. One commenter in this previous post mentioned receiving a hard pull via Trans Union. Note, the hard credit pull temporarily dings your credit score.

Checking Account Details

Some more important info about the checking account is available at Chase. Without direct deposit or the 5 debit card purchases, there's a $6/month fee. There's a $2 fee for using non-Chase ATMs.

Chase Branch Locations

Chase has branches in many states but not all. There are no branches in California. They're still in the process of converting WaMu branches into Chase branches, so you may not be able to use WaMu branches for these Chase promos yet. 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 MyMoneyBlog.
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Extension of FDIC's $250,000 Deposit Insurance Limit Is Almost Law
Wednesday, May 20, 2009 - 7:26 AM CT

Update: On Wednesday afternoon, the President signed this bill into law. The extension of the $250K coverage to 12/31/2013 is now official.

On Tuesday both the House and the Senate passed an amended version of Bill S.896 which includes a provision to extend the temporary increase in deposit insurance from December 31, 2009 to December 31, 2013. This applies to both FDIC and NCUA. You may not hear much about this provision in the media since it's just a tiny part of the bill which primarily deals with mortgage foreclosure prevention and enhancement in mortgage credit availability. The bill passed easily in both the House and Senate, so it appears very likely that it should soon be signed by the President and become law. More information on this bill is available at the Thomas Database page.

This news article also has a good summary of this bill including the deposit insurance provision. In addition to the deposit insurance, the bill also would increase the borrowing authority of both the FDIC and NCUA. This gives the agencies more time to rebuild deposit-insurance funds and provide more flexibility in setting assessments. There's also a provision that should make it easier on the credit unions as the NCUA deals with the losses related to the corporate credit unions.

For the deposit insurance, it's not the permanent increase that many had wanted, but at least it adds another 4 years to the current $250,000 basic coverage. Unfortunately, new 5-year CDs will go into 2014 which will extend past the temporary increase. It's quite possible that it could be extended again, but no one knows for sure.

Once it becomes law, the FDIC and NCUA should provide the official details. It should be basically the same as we have now except that the higher coverage limit won't end until 12/31/2013. So with $250K as the basic coverage limit, joint accounts will be covered up to $500K. Also, extra coverage can still be available through revocable trusts.

The insurance limit change started in late September and early October 2008 after the first bailout bill failed to pass the House. A new version of the bill was written, and it included a temporary increase to the basic FDIC and NCUA deposit insurance from $100,000 to $250,000. This revised bailout bill passed Congress and was signed by President Bush on October 3, 2008. The deposit increase was scheduled to end on December 31, 2009.

Before this $250K coverage took effect, it was possible to extend insurance coverage way above $100K through revocable trust accounts. However, it's not as straightforward as staying under the basic limit. There's always the worry that a FDIC claims agent will find something wrong with how the revocable trusts are done which would reduce the coverage. When you're under the basic limit (currently $250K), there's much less doubt. To review some of these issues, refer to my post on extending FDIC/NCUA coverage.

To review the latest FDIC and NCUA rules for deposit insurance, please refer to my FDIC and NCUA deposit insurance post.

Thanks to the reader who mentioned this news in the Daily Deals & News Post.
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2.80% 9-Month CD at Connex Credit Union in Connecticut - Local Only
Tuesday, May 19, 2009 - 7:18 PM CT

Connex Credit Union is offering a special 9-month CD with a rate of up to 2.80% APY. This rate requires the credit union's Choice Checking which requires full direct deposit or a $5 monthly fee is imposed. Without Choice Checking, the CD rate is 2.55% APY which is still very competitive for a 9-month term. Minimum deposit is $500, and the maximum is $250,000. This promotion is listed at the credit union's What's New page as of 5/19/09.

Membership is open to anyone who lives, works, worships or attends school in New Haven, Hartford or Middlesex County. Refer to the credit union's Membership Page for more details. Membership requires a minimum $25 balance in the Regular Share Savings Account.

Connex Credit Union has fair to strong ratings for safety and soundness: 3 stars (performing) at Bankrate.com and 5 stars (superior) at BauerFinancial. Both ratings are based on 12/31/08 financial data. The credit union is federally insured by the NCUA (Charter # 68511).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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3.00% 18-Month CD at Holbrook Cooperative Bank in MA - Local Only
Tuesday, May 19, 2009 - 7:15 PM CT

Update 5/23/09: The CD rates have fallen. Please check the bank's website for the latest rates.

Holbrook Cooperative Bank is offering a very competitive rate of 3.00% APY on its 18-month and 24-month CD. Minimum deposit is $1,000. Early withdrawal penalty is 6 months of interest. This rate is listed at the bank's CD rates page as of 5/19/09.

It appears that a branch visit is required to open an account. It's a small bank with one office located in Holbrook, Massachusetts which is about 10 miles south of Boston.

The bank's ratings for safety and soundness are fair: 3.5 stars (good) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1986 (FDIC Certificate # 26600).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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2.50% Money Market Account at OceanFirst Bank in New Jersey - Local Only
Tuesday, May 19, 2009 - 7:09 PM CT

OceanFirst Bank is having a promotion on its BlueChip Investment Account with a 2.50% APY on balances of at least $15,000, and up to $500,000. The rate is guaranteed to August 1, 2009. The rate for balances under $15,000 is 0.50%, and a $25,000 minimum balance is required to avoid monthly fees. This special doesn't seem to be listed at the bank's website. A reader mentioned this promo in the comments, and I contacted the bank today for more details. According to the CSR, a branch visit is required.

More details about this BlueChip Investment Account are listed in the bank's Personal Savings Page. The account offers free checks and a Visa Check Card. It has unlimited check writing privileges; however, a minimum check amount of $250.00 is required. With this checking feature and name, it almost looks like a money market fund, but according to the bank this account is considered an FDIC-insured savings account.

Branches are located mostly in Ocean County and Monmouth County, New Jersey.

OceanFirst Bank has some strong ratings for safety and soundness: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. The bank has been FDIC insured since 1938 (Certificate # 28359).

Thanks to the reader who mentioned this promotion in the Daily Deals & News Post.
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Future of Credit Card Rewards?
Tuesday, May 19, 2009 - 9:32 AM CT

Credit card customers who are careful to pay off their balances each month have long profited from credit cards with cash-back rewards. Some of these rewards were subsidized by those credit card customers who didn't pay off their balances and paid high interest and fees. Now that Congress is likely to pass new credit-card legislation with restrictions on fees and interest-rate changes, there's talk that credit card companies will strike back by reducing the perks given to the responsible customers. According to this New York Times article:
Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.

This is already happening to Chase credit card customers. Many Chase Freedom Card customers received letters informing them of upcoming changes. These include:
  • restricting the 3% cash back from 3 of 15 categories to just gas, groceries and fast food
  • bonus redemption of a $250 check for $200 in rewards will end effective 6/30/09
  • $30 annual fee (waived for the first year)
Several commenters in my last credit card post recommended ways to reach the $200 level before the $50 bonus ends. If your Chase rewards are being cut, you may want to consider the Pentagon Federal Credit Union's cash reward credit card (see post).
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4.01% Reward Checking Account at Coastal Community Bank in Washington State - Local Only
Tuesday, May 19, 2009 - 9:30 AM CT

Coastal Community Bank is offering a reward checking account called Green Rewards Checking. The account offers the following rates and features if certain monthly requirements are met:
  • 4.01% APY on balances up to $25,000
  • 1.01% APY on balances over $25,000
  • 0.05% base rate if qualifications are not met
  • Nationwide ATM fee refunds of up to $25 per month
The monthly requirements include:
  • 10 debit card purchases
  • One ACH direct deposit or auto debit
  • Receive e-statements
Additional features of the account regardless of the monthly requirements include:
  • $100 minimum opening balance
  • No minimum balance requirement
  • No monthly service charge
  • Free Online Bill Pay
There's an online application, however, I was told by a bank rep that they require you to come into one of their branches to open the account. Branches are located in the Washington State cities of Everett, Darrington, Monroe, Sultan, Freeland, Stanwood and Spokane.

The bank has been FDIC insured since 1997 (FDIC Certificate # 34403).

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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4.75% Reward Checking Account at Andrew Johnson Bank in Tennessee - Local Only
Tuesday, May 19, 2009 - 9:28 AM CT

Andrew Johnson Bank is offering a reward checking account called Sky High Checking. The account offers the following rates if certain monthly requirements are met:
  • 4.75% APY on balances up to $25,000
  • 0.50% APY on balances over $25,000
  • 0.25% base rate if qualifications are not met
The monthly requirements include:
  • 20 debit card purchases
  • one bank draft or deposit such as direct deposit
  • receive e-statements
Additional features of the account regardless of the monthly requirements include:
  • $100 minimum initial deposit
  • No minimum balance requirement
  • No monthly service charge
  • 4 foreign ATM fees refunded per statement cycle
  • Free Online Bill Pay
It appears a branch visit is required to open an account. Branches are located in the Tennessee cities of Greeneville, Morristown and Jonesborough.

The bank has been FDIC insured since 1975 (FDIC Certificate # 22015).

Other Reward Checking Accounts

The 20 debit card purchases a month is one of the toughest reward checking account requirements I've seen. The average is only 10. On the plus side, the top rate is above average.

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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2.60% 12-Month CD & Other Competitive Rates at NavyArmy FCU in Texas - Local Only
Tuesday, May 19, 2009 - 9:25 AM CT

NavyArmy Federal Credit Union continues to list some competitive certificate rates. These include a 2.00% APY for 3 months, 2.35% APY for 6 and 9 months, 2.60% APY for 12 months and 2.75% APY for 24 months. Minimum deposit is $1,000. The rates for Jumbo CDs with a $100,000 minimum deposit are up to 10 to 15 basis points higher. Higher IRA certificates are also available for the 1 and 2 year terms. These rates are listed in the credit union's rate table as of 5/19/09.

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 $15 membership fee and a minimum deposit of $25 in the savings account. Most credit unions don't have a membership fee so this may be something you can negotiate. The credit union does have a history of competitive CD rates so the upfront cost may still be worth it.

Branches are located in the Texas cities of Corpus Christi, Kingsville, Beeville, Portland and Rockport.

NavyArmy FCU has some decent ratings for safety and soundness: 3 stars (performing) at Bankrate.com and 5 stars (superior) at BauerFinancial. Both ratings are based on 12/31/08 financial data. The credit union is federally insured by the NCUA (Charter # 9998).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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4.01% 60-Month CD & 3.37% 37-Month CD at Cardinal Bank in VA, MD & DC - Local Only
Tuesday, May 19, 2009 - 9:23 AM CT

Cardinal Bank is offering some competitive rates on its long-term CDs and IRAs. These include a 4.01% APY 5-year CD, a 3.57% APY 4-year CD and a 3.37% APY 37-month CD. Minimum deposit is $1,000. The 5-year CD is also eligible for preferred rates for those with a President's Club account. These rates are listed in the bank's rates page (pdf) as of 5/19/09.

It appears a branch visit is required to open an account. Branches are located in several Virginia cities, in Bethesda, Maryland and in Washington, DC.

The bank's ratings for safety and soundness are fair to strong: 3 stars (performing) at Bankrate.com and 4 stars (excellent) at BauerFinancial. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1998 (FDIC Certificate # 34733).

Other High Certificate of Deposit Rates

For those near Bethesda or Landover Hills, Maryland, Urban Trust Bank continues to offer the best long-term CD rates in the nation as of 5/19/09 with a 4.50% APY 60-month CD and a 4.00% APY 39-month CD (see post).

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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4.00% 60-Month CD at Fidelity Bank of Florida - Local Only
Tuesday, May 19, 2009 - 9:21 AM CT

Fidelity Bank of Florida is offering a special 5-year CD with a 4.00% APY. Minimum deposit is $10,000 and $4,000 for an IRA CD. The bank also has competitive rates on its NOW Checking and tiered money market account. The money market account has rates up to 2.00% APY for a $100K balance. These rates are listed at the bank's rates page as of 5/19/09.

It appears that a branch visit is required to open an account. Branches are located in the Central Florida cities of Merritt Island, Longwood and Port Richey.

The bank's financial ratings for safety and soundness are a little weak: 2 stars (below peer group) at Bankrate.com and 3 stars (adequate) at BauerFinancial. Both are based on 12/31/08 data. The bank has been FDIC insured since 1990 (FDIC Certificate # 33198).

Other High Certificate of Deposit Rates

For those in Florida near Orlando, Tampa or Jacksonville, Urban Trust Bank continues to offer the best long-term CD rates in the nation as of 5/19/09 with a 4.50% APY 60-month CD and a 4.00% APY 39-month CD (see post).

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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ING Direct's Electric Orange $50 Promo, Debit Cards and EO Updates
Monday, May 18, 2009 - 7:16 PM CT

Update 7/09/09: A reader has received a new Electric Orange promo with a new code EM295. The promo page is the same as before, www.ingdirect.com/electric50. The new expiration date is July 31, 2009.

Update 6/28/09: A FatWallet member mentioned in this thread that he received an email with this offer that's good through 7/15/09.

ING Direct has a $50 promotion for opening a new Electric Orange Checking account. The promo page is located at www.ingdirect.com/electric50. The reference code is EM258, and the account must be opened by 5/31/2009. It appears that you need to already be an Orange Savings account customer to qualify. A reader forwarded me this promo email, and I called ING Direct to verify if others can qualify. According to the CSR, existing ING Direct customers without an EO account should qualify. Note, in past promotions readers have reported receiving an invalid code response if they didn't qualify.

I also asked the CSR if a new customer could open the Orange Savings Account first, and then qualify for this EO promo. The CSR thought that this might be possible. She didn't sound too confident so your miles may vary. ING Direct still has the refer-a-friend bonus for both the savings and the EO (the new customer receives $25 and the referrer receives $10). For the refer-a-friend bonus, you'll need a minimum initial deposit of $250. If you're interested in this 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.

Debit Card Usage Requirement and Why Banks Encourage This

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. To see why banks want to encourage this kind of debit card usage, check out this article.

Electric Orange Issues and Updates

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. As of 5/18/09, the APYs are 0.25% for under $50K, 1.60% for $50K to $100K and 1.65% for $100K and above. It's hard to believe that in November 2006 the rate tiers were 3%, 5.05% and 5.30%.

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 online banks. 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)

Thanks to the reader who sent me the info on this promotion.
Comments (6)
What Savers Should Expect as Banks Recover
Monday, May 18, 2009 - 10:31 AM CT

This Kiplinger article describes how banks are in the process of recovering. As you might guess, it's a slow process, and unfortunately, the near-term environment doesn't bode well for savers. First, higher FDIC assessments will be costing banks more. From the article:
higher Federal Insurance Deposit Corporation (FDIC) assessments will sting, taking a bite out of banks' precious capital cushions. "Last year, we paid $8,000 for FDIC insurance," says Terry Jorde, CEO of CountryBank USA in North Dakota. "This year, we could pay up to $150,000, and that takes away from our ability to lend."

Credit unions are also facing a similar issue.

The other issue is that many banks are being flooded with deposits:
Among smaller banks, jittery customers are flooding those perceived as stable with deposits.

And banks are having difficulty in making new loans:
Already some more-aggressive banks are eager to lend but are finding few qualified and interested borrowers.

So with a flood of deposits combined with few loans, it doesn't look good for deposit rates.

With the potential for more rate cuts, it may seem hopeless to switch banks just for what may be a temporary hike in interest rates. Just remember that this is what banks are hoping people will think. Competition is an important factor that is preventing deposit rates from falling to near zero percent. The more we are willing to move our money, the more competition there will be.
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3.00% 24-Month CD & Other Competitive CD Rates at International Bank of Chicago
Monday, May 18, 2009 - 9:47 AM CT

International Bank of Chicago is listing four competitive CD rates: a 2.25% APY 6-month CD, a 2.50% APY 12-month CD, a 2.75% APY 18-month CD and a 3.00% APY 24-month CD. Minimum deposit is $10,000. These rates are listed at the bank's rate table as of 5/18/09.

A reader who mentioned these rates noted that the bank tends to change their CD rates very infrequently. So as rates at other banks drop, these rates get more and more competitive.

The bank has an deposit application form with instructions for opening an account by mail. The application allows for the account to be opened with multiple beneficiaries, and it appears to allow for both formal and informal revocable trusts. There's also an initial deposit form in which you must specify that the deposit will be done by either personal check or by wire transfer. A wire transfer is a better option since they state below the rate table that "the rate you receive is determined by the date we receive your deposit." I wasn't able to get more info by calling this morning. I've sent an email to confirm that they accept out-of-state deposits and for further CD details.

Branches are located in Chicago and its suburbs of Stone Park and Bellwood.

The bank has solid ratings for safety and soundness: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has FDIC insured since 1992 (FDIC Certificate # 33708).

Thanks to reader who emailed me news of these CD rates.

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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3.00% 12-Month CD and other High CD Rates at Atlanta Postal Credit Union - Local Only
Monday, May 18, 2009 - 9:46 AM CT

Atlanta Postal Credit Union is listing several competitive certificate and IRA rates. Below is a list of the most competitive CD rates listed in the credit union's rate table as of 5/18/09.
  • 2.25% APY 91-day
  • 2.50% APY 6-month
  • 3.00% APY 12-month
  • 3.25% APY 24-month
  • 3.35% APY 36-month
  • 3.50% APY 48-month
  • 3.75% APY 60-month
Minimum deposit is $500. Above the rate table it states that the rates are effective from May 14, 2009 through May 20, 2009.

Membership is primarily based on select employee groups. In addition to active or retired US Postal Service employees, several other employee groups are listed. Also, all federal employees, active or retired, working or residing in most 310 and 312 zip code area of Georgia are eligible. Membership requires a $25 minimum deposit into a share savings account. Please refer to the credit union's membership page for more details.

The credit union has some solid financial ratings for safety and soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 12/31/08 data. Atlanta Postal Credit Union is federally insured by the NCUA (Charter # 67389).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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2.75% 12-Month CD and Other High CD Rates at Montauk Credit Union in New York City - Local Only
Monday, May 18, 2009 - 9:43 AM CT

Montauk Credit Union continues to list competitive rates on its share certificates. The rates are down from February, but they remain very competitive. Below is the full list of CD and IRA rates as listed at the credit union's rate table as of 5/18/2009:
  • 2.75% 12-month
  • 2.90% 18-month
  • 3.00% 24-month
  • 3.15% 36-month
  • 3.35% 48-month
  • 3.75% 60-month
Note, they only do simple interest, so there's no compounding. A reader reported that they'll deposit the interest in your credit union savings account every quarter. You can also request for them to send you a check.

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.

A reader reported that she had to go into the branch to join. According to the reader, the office is in a teeny "storefront" on west 26th Street just off 6th Avenue. The process of opening a CD appears to be a little odd. Here's how the reader described it:
I had to send them a letter telling them I wanted to open a CD, and then someone called me to give me the "go-ahead". I put the check in the mail today.

The credit union's financial ratings for safety and soundness have gone down a bit since my February post, but they remain fair to strong: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 12/31/08 data. The credit union is federally insured by the NCUA (Certificate # 63231).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.

Edit 5/19/09: Corrected CD interest payment options based on reader's info.
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4.05% Reward Checking Account at Community National Bank in Kansas - Local Only
Sunday, May 17, 2009 - 6:22 PM CT

Update 11/22/09: The top rate has fallen to 4.05% APY. Refer to the bottom of the post for the rate history.

Community National Bank is offering a reward checking account with the following rates and features if certain monthly requirements are met:
  • 4.05% APY on balances up to $25,000
  • 1.01% APY on balances over $25,000
  • 0.25% base rate if qualifications are not met
  • Refunds all ATM fees nationwide
The monthly requirements include:
  • 10 check card purchases
  • One direct deposit or one automatic payment
  • Receive e-statements
Additional features of the account regardless of the monthly requirements include:
  • $100 minimum initial deposit
  • No minimum balance requirement
  • No monthly service charge
  • Multiple accounts can be opened, but requirements must be met for each account
There's an online application, but the application states that they require an in-person branch visit to complete the new account process. Branches are located in the Kansas cities of Seneca, Tonganoxie, Basehor and Sabetha.

The bank has been FDIC insured since 1984 (FDIC Certificate # 25665).

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:
11/06/09: 4.05% APY up to $25K;
05/17/09: 5.01% APY up to $25K; 1.01% over; 0.25% base
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4.01% Reward Checking Account at Willamette Community Bank in Oregon - Local Only
Sunday, May 17, 2009 - 6:20 PM CT

Willamette Community Bank is offering a reward checking account called Platinum Rewards Checking. The account offers the following rates and features if certain monthly requirements are met:
  • 4.01% APY on balances up to $35,000
  • 1.01% APY on balances over $35,000
  • 0.10% base rate if qualifications are not met
  • Refunds all ATM fees nationwide
The monthly requirements include:
  • 10 debit card purchases
  • One direct deposit, online bill pay or ACH debit
  • Access online banking
  • Receive e-statements
Additional features of the account regardless of the monthly requirements include:
  • No minimum balance requirement
  • No monthly service charge
  • Free Online Bill Pay
  • Multiple accounts can be opened, but requirements must be met for each account
There's an online application via CheckingFinder.com, but it appears to be limited to Oregon residents. Branches are located in Albany and Lebanon, Oregon.

The bank has been FDIC insured since 2003 (FDIC Certificate # 57513).

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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4.07% 60-Month CD & 2.53% Money Market at South Jersey Federal Credit Union - Local Only
Sunday, May 17, 2009 - 6:18 PM CT

Update 6/20/09: The 60-month CD and MMA rates have fallen. Please check the credit union's website for the latest rates.

South Jersey Federal Credit Union cut their rates since my March post but they continue to offer competitive CD rates. These include a 2.63% APY for 12 months and 4.07% APY for 5 years. Minimum deposit is $50,000. Lower rates are available for a $20,000 minimum and a $1,000 minimum deposit. The same rates are also available for IRA certificates. There's also a money market account with a very competitive rate: 2.53% APY for a minimum deposit of $25,000. These rates are listed at the credit union's rate table as of 5/17/09.

Membership is open to anyone who lives, works, worships or attends school in any of the following New Jersey communities: Atlantic City, Bridgeton, Camden, Millville, Pleasantville, Salem and Vineland. You can also be eligible via select employers or via family. Please see their membership eligibility page for more details. Membership requires a one-time $10 fee and a minimum deposit of $25 into the Statement Savings account.

Branches are located in the New Jersey cities of Deptford, Camden, Pleasantville, Egg Harbor Township, Vineland and Voorhees.

The credit union is federally insured by the NCUA (Charter # 3951).

Thanks to the reader who emailed me news of these rates.

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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2.48% 6-Month CD, 2.78% 12-Month CD & Other High Rates at First Asian Bank in Las Vegas - Local Only
Sunday, May 17, 2009 - 6:15 PM CT

First Asian Bank has cut its rates since my April post, but it continues to offer several competitive CD rates. The APY's include 2.18% for 3 months, 2.48% for 6 months, 2.78% for 12 months, 2.80% for 24 months, 3.00% for 36 months and 3.28% for 60 months. Minimum deposit is $1,000. There's also an 18-month IRA CD listed with 3.08% APY. One nice feature of these CDs is a mild early withdrawal penalty (only 90 days of interest for the long-term CDs). The bank's money market account has the same rates as it did in April with a 2.08% APY for minimum balance of $50,000. These rates are listed on the bank's rate table as of 5/17/2009.

It appears a branch visit is required to open an account. The bank has two branches in Las Vegas, Nevada. The phone numbers and addresses of these branches are listed at the bottom of the home page.

It's a fairly new bank that was established in June 2007. Consequently, BauerFinancial doesn't have a rating for it. Bankrate.com gives it a 3-star rating (performing) based on 9/30/08 data. The bank is FDIC insured (FDIC Certificate # 58499).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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2.60% 19-Month CD & 2.40% 10-Month CD at Foster Bank in Chicago - Local Only
Sunday, May 17, 2009 - 6:13 PM CT

Foster Bank is offering two CD specials with competitive rates: 2.60% APY for a 19-month term and 2.40% APY for a 10-month term. Minimum deposit is $1,000, and the maximum is $100,000. The specials are listed in two promo pages that are linked in the bank's home page as of 5/17/09.

It appears that a branch visit is required to open an account. Branches are located in Chicago, Arlington Heights, Niles, Naperville and Lincolnshire.

The bank has some solid ratings for soundness: 3 stars (performing) at Bankrate and 3.5 stars (good) at BauerFinancial. Both ratings are based on 12/31/08 financial data. Foster Bank has been FDIC insured since 1989 (FDIC Certificate # 27447).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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Bank Deals Weekly Summary for May 16, 2009
Saturday, May 16, 2009 - 6:34 PM CT

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

An important question for savers is how fast will the economy recover? As the economy improves, inflation will rise which will lead to higher interest rates. The tough question is how fast and how severe will inflation be? With the Fed printing money and with the federal government's massive spending programs and deficits, there are worries about high inflation around the corner. Based on this, savers may want to avoid locking their money into long-term CDs. However, high inflation in the next year is no sure thing. This Naked Capitalism post describes other complexities in this issue and makes a case that deflationary forces will likely continue to dominate for some time into the future. So you may not want to place all of your bets on higher interest rates in the next year.

Savings Account Rates

As we've seen over the last 6 months, this interest rate environment is very depressing for savers as savings account rates keep falling week after week. What can help reduce this frustration are savings accounts which provide a rate-guarantee period. I posted on a new bank this week with such an offer. EBSB Direct is guaranteeing 2.81% APY for balances over $50K until 9/30/09 on new savings accounts (see review). Another savings account promo that I posted on in late April is still available at ProvidentNJ Direct. They're offering a 3.25% APY guaranteed for 90 days (see review). Another one of these promos is being offered by Acacia Federal Savings Bank. When I first posted on it in late March they were offering a modest 2.25% APY guaranteed until 9/30/09. I just noticed on their home page it's now listed as 2.50% APY. However, if you click on the image with the 2.50%, it takes you to a promo page that's still showing 2.25%. So I'll have to call Monday to find out which is correct. Update 5/18/09: I called this morning and was told the 2.25% APY is the correct rate.

Other banks have done similar intro-rate promos this year, and they haven't lasted long. The latest example is at Choice Financial which had been guaranteeing 3.76% for 30 days along with a standard rate of 3.26% APY for balances over $100K. On Tuesday the rates were cut by a full percentage point on both the promo and standard rates. Another example was at Clear Sky Accounts which launched its savings account in early January with a 3.75% APY guaranteed through 3/31/09. In February the bank stopped accepting new applications and even limited new deposits by existing customers. So in today's rate environment, don't expect these promos to last long.

Installment Savings Accounts

If you want rates over 4% there is another alternative besides reward checking accounts. It's called an installment savings account. However, the effective interest rate that you earn will likely be much less than what's advertised. I've reported on several local-only installment savings accounts in the last couple of months. One that is available nationwide is at Wilshire State Bank (see review). The rates range from 4.60% APY for a 12-month term to 5.12% APY for a 36-month term.

The important thing to remember for installment savings accounts is that you don't make a lump sum deposit. Deposits are spread across the term with equal deposits made each month. Before the auto deposits are made into the installments savings accounts, money will have to be in the bank's checking account which will earn little if any interest. With the help of an online bank that has an ACH transfer service, you could arrange for most of the money to be sitting in a high yield savings account before it's transferred to the checking and then into the installment account. If you assume a 2% APY in the online savings account for the entire year and the 4.60% APY 12-month installment savings account, your one-year return for a lump sum initially deposited into the savings account will be close to 3.40%. However, if you deposited the lump sum into the bank's checking account which earns little if any interest, your one-year return will be around 2.47%.

Below is the list of savings account rate changes for this week. The one big disappointment was the large rate cut at the new Choice Financial. On the plus side, Corus Bank raised its money market account rate by 2 basis points (a tiny increase is better than nothing).

Rate Hikes:
  1. EBSBdirect Savings - 2.81% $50K+ thru 9/30/09 (new)
  2. Bank of American Fork Savings - 2.20% $1K+ (new)
  3. Corus Bank MMA - 2.20% (was 2.18%)
Rate Drops:
  1. Bank Provident Online - 1.90% (was 2.00%)
  2. Imperial Capital iMMA - 1.17% to 1.86% (was 1.35% to 2.03%)
  3. Imperial Capital iChk - 0.91% (was 1.20%)
  4. Mutual Bank MMA - 2.01% (was a 2.21% 3mo promo)
  5. Zions Bank MMA - 2.02% (was 2.10%)
  6. OneUnited - 1.75% (was 2.00%)
  7. HSBC Direct Savings - 1.55% (was 1.65%)
  8. Intervest MMA - 1.90% (was 1.95%)
  9. Choice Financial Savings - 1.76% to 2.26% (was 2.76% to 3.26%)
  10. Citibank USA - 1.50% (was 1.65%)
  11. ADB Bank MMA - 2.10% (was 2.25%)
Certificate of Deposit Rates

The big news for CDs this week was at GMAC Bank which changed its name to Ally Bank (see post). The one significant change was the addition of the no-penalty CD. It has a 9-month term with a very competitive rate of 2.50% APY. With this CD, you can protect yourself from falling rates over the next 9 months. If rates do rise over this time or if you just need the money, you can close the CD early without an early withdrawal penalty. The only downside is if rates are still low after 9 months. In that case you would have been better off earning a higher rate in a longer term CD.

Unfortunately, there are not many options of earning higher rates for longer terms. Pentagon Federal Credit Union continues to be one of the better deals with its competitive rates for terms of 3, 4, 5 and 7 years.

Some of the CD deals I reported on in previous weeks (like at PenFed) continue. Below are some of the best new and old ones that are still active.

Best Nationwide CD Deals as of 5/16/09: The full list of nationwide CD rates is farther down.
  1. 3.25% 3-mo savings account promo at ProvidentNJ Direct (account review)
  2. 2.81% savings promo thru 9/30/09 at EBSB Direct (account review)
  3. 2.50% 4-mo CD at Danvers Bank (account review)
  4. 2.52% 6-mo CD at Wilshire State Bank (account review)
  5. 2.50% 9-mo No-Penalty CD & 2.80% 12-mo CD at Ally/GMAC Bank (account review)
  6. 3.03% 12-mo CD at Melrose CU (account review)
  7. 3.50% 36-mo CD & 4.00% 60-mo CD at Pentagon FCU (account review)
Best Local CD Deals as of 5/16/09: Some of the best CD deals are from banks and credit unions that don't offer accounts nationwide. Refer to the recap section and the state index section to find all the recent local deals. Here are some of the best deals to note.
  1. 3.29% 6-mo CD & 3.87% 15-mo CD at Progressive CU in NY, NY (account review)
  2. 2.89% 7-mo CD & 3.05% MMA at Raymond Bank in WA (account review)
  3. 2.75% 6-mo CD ($25K max) at STC Capital Bank in Chicago (account review)
  4. 3.00% 9-mo CD at Pacific Transportation FCU in CA (account review)
  5. 3.25% 12-mo CD at Cornerstone Bank in GA (account review
  6. 3.00% 12-mo CD at First Priority CU in MA (account review)
  7. 3.30% 12-mo CD at Self Reliance New York FCU (account review)
  8. 3.10% 25-mo CD & 2.65% 6-mo CD at CoreFirst Bank at CO & KS (account review)
  9. 3.00% 25-mo CD at Broadway Bank in Chicago (account review)
  10. 4.50% 60-mo CD & 2.75% 12-mo CD at Urban Trust Bank in FL & MD (account review)
Reward Checking Accounts

I reported on three new reward checking accounts this week with rates ranging from 4.01% to 5.01% APY (see below). BancVue, the creator of the reward checking account, has helped several institutions launch reward checking accounts branded as Kasasa Cash accounts. The name change doesn't mean much to me, but of more significance is the new Kasasa Saver account. This is designed to be a companion account with the Cash account that may appeal to those with liquid savings over the balance caps of the Cash accounts. You can move money that's over the cap in the Cash account to the Saver account. If you meet the typical reward checking requirements, the Saver account will receive a respectable interest rate for all balances without any small balance cap. The Saver interest rate isn't at the reward checking level, but it's comparable to online savings account rates. So this Kasasa Cash/Saver pair can be a good option for those with large balances and who just want to stick with one bank. Unfortunately, there are not many banks and credit unions offering this pair. The only one offering it nationwide is First Arkansas Bank & Trust which does have a history of competitive rates (see post).

One bit of disturbing news in regards to reward checking accounts happened this week at Arizona Bank & Trust. Many readers reported receiving a letter from the bank informing them that they are closing all out-of-state accounts as of July 1st. It appears this bank may have been overwhelmed by their 6% promo they offered early last year. In the past when small banks attracted too many customers, they just stop accepting out-of-state applications, and that's what Arizona Bank & Trust did last year. But now they're taking it to another level by closing these accounts. I have not seen other banks take such extreme measures, and I hope this doesn't start a trend. Unfortunately, it appears banks may close deposit accounts for any reason (per OCC).

To see all of the high yield reward checking accounts available through out 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

Credit Card Deals

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 at this page. Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Reward Checking, 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 May 16, 2009

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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No Bank Failures But One Credit Union Liquidation
Saturday, May 16, 2009 - 7:08 AM CT

Yesterday was one of the few Fridays this year with no bank closures. However, a credit union was closed yesterday. Here are excerpts from the NCUA's press release:
The National Credit Union Administration (NCUA) was appointed liquidating agent of Rouge Employees Credit Union in Dearborn by the Michigan Office of Financial & Insurance Regulation on May 15, 2009. Effective May 18, 2009, Rouge Employees Credit Union members will be served by Chief Financial Federal Credit Union (formerly Chief Pontiac Federal Credit Union) of Pontiac, Michigan.

Chief Financial Federal Credit Union purchased and assumed Rouge Employees Credit Union’s assets, loans and shares, enabling Rouge’s members to continue to receive uninterrupted credit union service. Rouge’s declining financial condition led to the closure and subsequent purchase and assumption by Chief Financial Federal Credit Union. Rouge Employees Credit Union had $23 million in assets and served 6,200 members.

It appears all of the members' deposits are covered. There's no mention of deposits over the insured limits. The Michigan State regulators have a more informative press release. According to this press release, "all of their deposits are protected."

Another thing mentioned in the Michigan press release is that this was the nation’s fifth federally-insured credit union closure this year. There have been 33 bank failures this year. Most of the credit unions liquidated last year were even smaller than Rouge. It seems like large credit unions that are in bad financial shape are more likely to be placed into NCUA conservatorship than immediately liquidated. Recent examples include Eastern Financial Credit Union in Florida and the two corporate credit unions.

References:
Thanks to the reader who mentioned this liquidation in the comments.
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GMAC Bank Changes Name to Ally Bank - New 2.50% 9-Month No-Penalty CD
Friday, May 15, 2009 - 9:29 AM CT

Update 3/03/10: Savings Account and MMA APYs have fallen to 1.30% (were 1.39%). No-penalty CD APY has fallen to 0.99%. Refer to Ally Bank's website for the latest rates.

GMAC Bank has changed its name to Ally Bank with a new website at Ally.com. With all the bad press related to GM and GMAC, I guess the bank decided it needed to separate itself from GMAC. However, Ally Bank remains "part of the GMAC family of companies." Here's a press release describing this change.

The old website, gmacbank.com, now points to ally.com (they also have allybank.com). They must have paid quite a bit to get this 4-letter domain name. The new website seems to be fully functional. I just logged into my account, and everything seems okay. I don't know if this is new to this website, but they now allow you to select electronic statements if you don't want paper statements mailed. Also, you can set up alerts to warn you with an email when the balance falls below a certain level.

The savings account and money market account rates and features appear to have remained the same. They continue to have no minimum balance requirements and no fees. This was implemented several months ago. There used to be a $500 minimum balance to avoid a monthly fee.

For the certificates of deposit, they removed the minimum balance requirements. You can now open a CD with $0. I'm not sure why anyone would want to open a CD with less than $100. If a CD rate is 1% higher than a savings account rate, you would only make $1 more per year with $100.

The CD rates remain the same except for the 9-month CD which has a very competitive rate of 2.60% APY. The 1-year CD rate continues to be one of the best rates in the nation with a 2.80% APY. I have more info on the CDs in this previous post.

New No-Penalty CD

There's a new No-Penalty CD with a 9-month term. The rate is 2.50% APY which is very competitive even without the no-penalty feature. Here's how the No-Penalty CD FAQ describes this feature:

you can withdraw your money 6 days after funding - and anytime thereafter - and you won't be charged a fee. Just remember, if you do make an early withdrawal it must be for the full balance plus all interest earned.


And they seem to make it easy to withdraw the money. According to the FAQ, they accept instructions by phone, secure email or regular mail. Before this website change a reader had mentioned they were no longer accepting instructions for CD closures by their secure email.

One thing that has not change is they still don't offer IRAs. But they do offer some other types of accounts that not many online banks provide. According to their FAQ, they do allow custodial accounts and trust accounts.

I've had accounts at GMAC Bank for the last three years, and I've been very pleased with the bank. In addition to the history of competitive rates, they have one of the best ACH transfer services with fast transfers, short holds, and easy linking of new accounts.

I wonder how much the GMAC name had hurt the bank in attracting deposits. I'm sure with the bad publicity of GM and GMAC, depositors have been scared away. This has probably contributed to the high deposit rates they've been offering the last year. They were not always this competitive. If the new name helps, they may not have to be quite as competitive.

If GMAC goes bankrupt, what happens to Ally Bank? As I've mentioned before, if may not result in a bank failure. When Lehman Brothers filed for bankruptcy last year, Lehman Brothers Bank continued to operate (see post).

If you stay below the FDIC limits, there's not much to worry about. Ally Bank deposit accounts are FDIC insured (FDIC Certificate # 57803). On the new Ally website, there's a new page describing how you can go over the basic FDIC limits (currently $250K) and still be insured.

Rate History:

Update 3/03/10: Savings Account and MMA APYs have fallen to 1.30% (were 1.39%). No-penalty CD APY has fallen to 0.99%

Update 2/17/10: Savings Account and MMA APYs have fallen to 1.39% (were 1.44%)

Update 2/09/10: Savings Account and MMA APYs have fallen to 1.44% (were 1.49%)

Update 12/08/09: Savings Account APY has fallen to 1.50% (was 1.59%). MMA APY has fallen to 1.50% (was 1.55%).

Update 11/25/09: Savings Account rate has fallen to 1.59% (was 1.64%). MMA remains at 1.55% APY. 12-month CD remains at 1.90% APY.

Update 11/13/09: Rates have risen! Today's rates at Ally Bank: Savings Account - 1.64% APY (was 1.55%), MMA remains at 1.55% APY, 12-month CD - 1.99% APY (was 1.95%), no-penalty 9-month CD - 1.49% APY (was 1.50%).

Update 10/30/09: Rates have fallen. Today's rates at Ally Bank: Savings Account - 1.55% APY (was 1.70%), MMA - 1.55% APY (was 1.65%), no-penalty 9-month CD - 1.50% APY (was 1.60%), 12-month CD - 1.95% APY (was 2.00%).

Update 10/16/09: Rates have fallen. Today's rates at Ally Bank: Savings Account - 1.70% APY (was 1.80%), MMA - 1.65% APY (was 1.70%), no-penalty 9-month CD - 1.65% APY (was 1.75%), 12-month CD - 2.00% APY (was 2.05%).

Update 10/02/09: Rates have gone up! Today's rates at Ally Bank: Savings Account - 1.80% APY (was 1.75%), MMA - 1.70% APY, no-penalty 9-month CD - 1.85% APY, 12-month CD - 2.05% APY (was 2%).

Update 8/07/09: Today's rates at Ally Bank: Savings Account - 1.70% APY (was 1.75%), MMA - 1.65% APY (was 1.70%), no-penalty 9-month CD - 1.85% APY, 12-month CD - 2.00% APY.

Update 8/28/09: Today's rates at Ally Bank: Savings Account - 1.75% APY (was 1.70%), MMA - 1.70% APY (was 1.65%), no-penalty 9-month CD - 1.85% APY, 12-month CD - 2.00% APY.

Update 7/31/09: Today's rates at Ally Bank: Savings Account - 1.75% APY (was 1.85%), MMA - 1.70% APY, no-penalty 9-month CD - 1.90% APY, 12-month CD - 2.00% APY. Refer to Ally Bank's website for the latest rates.

Update 7/17/09: Today's rate cuts at Ally Bank include: Savings Account - 1.85% APY (was 1.95%), no-penalty 9-month CD - 1.90% APY (was 2.00%), 12-month CD - 2.05% APY (was 2.10%)

Update 7/10/09: Today's rates cuts at Ally Bank include: Savings Account - 1.95% APY (was 2.00%), Money Market Account - 1.70% APY (was 1.80%), no-penalty 9-month CD - 2.00% APY (was 2.05%), 12-month CD - 2.10% APY (was 2.25%)

Update 7/03/09: Today's Ally Bank rate cuts include: Money Market Account - 1.80% APY (was 1.85%), no-penalty 9-month CD - 2.05% APY (was 2.15%), 12-month CD - 2.25% APY (was 2.30%)

Update 6/19/09: Rates continue to drop: Savings account rate is now 2.00% APY. 12-month CD rate is now 2.30% APY, and the no-penalty 9-month CD rate is now 2.15% APY.

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2.90% 15-Month CD at Linn Area Credit Union in Iowa - Local Only
Friday, May 15, 2009 - 9:19 AM CT

Linn Area Credit Union is offering a special 15-month CD with a 2.90% APY. Minimum deposit is $1,000. The special is listed at the credit union's CD rate page as of 5/15/09.

The credit union continues to offer a high-yield reward checking account. As of 5/15/09, the rate is 5% APY for balances up to $25K. I first posted on this account exactly a year ago.

Membership is open to anyone who lives or works in Linn, Buchanan, Delaware, Jones, Cedar, Johnson, Iowa and Benton Counties. Membership requires a minimum deposit of $5 in the share savings account. Please refer to the credit union's Membership Page for more details.

Branches are located in Cedar Rapids and Marion, Iowa.

Linn Area Credit Union has fair to strong ratings for safety and soundness: 3 stars (performing) at Bankrate.com and 5 stars (superior) at BauerFinancial. Both ratings are based on 12/31/08 financial data. The credit union is federally insured by the NCUA (Charter # 63602).
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2.75% 13-Month CD at PeopleFirst Bank in Illinois - Local Only
Friday, May 15, 2009 - 9:07 AM CT

PeopleFirst Bank is having a grand opening special with a 2.75% APY 13-month CD. Minimum deposit is $2,500. This is listed at the bottom of the bank's CD rate table as of 5/15/09.

It appears that a branch visit is required to open an account. Branches are located in Joliet and Shorewood, Illinois which are about 40 miles southwest of Chicago.

PeopleFirst Bank was established not too long ago in 2007, so it's still not rated by BauerFinancial. Its rating for safety and soundness at Bankrate.com is 3 stars (performing) based on 12/31/08 financial data. It's a member FDIC (FDIC Certificate # 58597).
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How Much Should You Save In Your 401K?
Friday, May 15, 2009 - 12:00 AM CT

There seems to be two primary schools of thought surrounding 401k retirement plans – you either love 'em or hate 'em. If you're working for an employer who offers 401k plans and have decided to use the account to save for your retirement, you're probably wondering how much you should save in your 401k. Here are some guidelines and tips for deciding how much to save through 401k accounts:

Let employer decide how much you should be contributing. If your employer offers an “employer match” on your 401k contributions, you want to contribute enough to at least gain the full benefit of what your employer will match. If you don't contribute at least the full amount of the employer match, you're losing out on free money, basically.

Let your age and when you began investing determine how much to contribute. One school of thought says you should save a percentage equal to half of your age. If you start investing at the age of 20; you would contribute 10% of your income. If you start at 30, you would contribute 15% of your income. For individuals who start at 20 and contribute 10% of their income for as long as they work before they retire – chances are they'll never have to increase their contributions to match their age (the contribution would naturally increase as the person moved up in their careers and made higher amounts of income). For individuals who don't start contributing to a 401k or any retirement plan until later in life; they would need to increase contributions with each birthday to always contribute a percentage equal to half of their age in order to have enough money to retire on.

Of course, these are just guidelines, and there is no “one-size-fits-all” approach to selecting a savings amount to ensure there is enough money to retire on. Consult a professional financial advisor for assistance calculating your retirement needs and how you intend to get that money saved before you retire.

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2.81% Savings Account Guaranteed to 9/30 at EBSB Direct - Nationally Available
Thursday, May 14, 2009 - 8:12 AM CT

Update 12/12/09: The top rate has fallen to 1.67% APY for balances of $50K+. There is no more rate guarantee period. Refer to the bottom of the post for the rate history.

EBSB Direct is a new online division of East Boston Savings Bank, and they're offering a good deal on their online savings account. As of 5/14/09, they're guaranteeing a 2.81% APY on balances over $50,000 through 9/30/2009. The rate is 2.00% APY for balances from $5,000 to $50,000. Minimum balance to open is $5,000. Maximum balance is $1 million.

The high rate along with the rate guarantee makes this a good deal for those with a large enough balance. Besides the rate, another nice feature appears to be a solid ACH bank-to-bank transfer service. According to the bank's FAQ, they allow unlimited number of links to external accounts, and the links are set up online via trial deposits. One feature that's not mentioned in the FAQ is the limit on the size of the transfers. Banks often have small limits that make it difficult to transfer money. I called this morning, and according to the CSR, the limit is a respectable $150,000 per transfer (in or out). One negative is a $5,000 minimum balance requirement to earn interest and to avoid a monthly fee.

Below are some of the important features of the account as described at the website documentation, at the bank's FAQ and from info I received from the bank's CSR:
  • Account Opening:
  • Available nationwide (CSR)
  • $5,000 minimum opening deposit (Doc)
  • Can be opened online and funded with ACH transfer from an existing account (Doc)
  • Credit report will not be accessed (FAQ)
  • Do not allow beneficiaries or living trusts (CSR)
  • Account Fees/Features:
  • $5,000 minimum to earn interest (Doc)
  • $15 monthly fee if balance falls below $5,000 (CSR)
  • Visa Debit card is available (Doc)
  • No check writing (CSR)
  • Limit of 6 withdrawals per month as typical from a savings account (FAQ)
  • No limits on the number of deposits (FAQ)
  • Interest is compounded and credited monthly (CSR)
  • Only paper statements are mailed once a month or once a quarter if no activity (FAQ)
  • ACH Bank-to-Bank Transfer Service:
  • Initial funding source info is kept so you can initiate future transfers without having to relink account (FAQ)
  • Trial deposits are used to verify linked accounts (FAQ)
  • Allows unlimited number of links to your accounts at other financial instutitions (FAQ)
  • Transfers are limited to $150,000 per transfer for both inbound and outbound (CSR)
East Boston Savings Bank has strong ratings for safety and soundness: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate. Both ratings are based on 12/31/08 financial data. The bank has over $1 billion in assets and $812 million in deposit. It has been FDIC insured since 1991 (FDIC Certificate # 33510). Deposits over the FDIC limits are insured by the private Depositors Insurance Fund (DIF). According to the DIF website: "The combination of FDIC and DIF insurance provides customers of Massachusetts-chartered savings banks with full deposit insurance on all their deposit accounts. No depositor has ever lost a penny in a bank insured by both the FDIC and the DIF." Note, readers have mentioned several issues with DIF, so it's important to know that it is not the same as the FDIC guarantee.

With any new online bank, I always try to be extra careful to make sure it's legitimate. I was a little concerned since there's no clear connection between EBSBdirect.com and the bank's main website, EBSB.com that's listed at the FDIC. However, both EBSBdirect.com and EBSB.com link to the same service, ibanking-services.com, for the online application. So EBSBdirect.com appears legit.

Credit for this find goes to BestCashCow.

For other high-yield savings accounts, refer to my weekly rate summary

Edit: Added info on beneficiaries/living trusts

Account History:
12/08/09: 1.67% APY $50K+ (can't find rates for other tiers)
10/03/09: 1.77% APY $50K+, 1.25% APY $5K-$50K
07/21/09: 1.55% APY $50K+, 1.25% APY $5K-$50K
07/01/09: 1.75% APY $50K+, 1.25% APY $5K-$50K
06/19/09: 2.02% APY $50K+, 1.50% APY $5K-$50K
06/02/09: 2.22% APY $50K+ no more guarantee period
05/26/09: 2.62% APY $50K+ guaranteed to 9/30/09
05/14/09: 2.81% APY $50K+ guaranteed to 9/30/09, 2.00% APY $5K to $50K
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2.75% Money Market Account for 6 Months at ShoreBank in Chicago, Cleveland & Detroit
Wednesday, May 13, 2009 - 12:06 PM CT

ShoreBank is having a money market promotion with a 2.75% APY for balances of at least $25,000. The rate is guaranteed for 6 months. This money market account is different than their online savings account. This promotion doesn't seem to be listed at the bank's website, and it appears to be a branch offer. A reader mentioned this promotion in the comments, and I just called for additional details. According to the CSR, this offer is scheduled to end on Friday, 5/15/09. And according to the CSR, it can be opened by phone in addition to at a branch. I wasn't connected with the account opening CSR so I don't know all the details and I don't know if there would be any complications in opening this account and qualifying for this promotion by phone. If you receive more details, please leave a comment.

Features of their money market account are described in this account comparison chart (pdf). It requires a $2,500 minimum balance to avoid a $15/month fee.

ShoreBank Direct continues to offer a very competitive yield on its online savings account. As of 5/13/09, the rate is 2.45% APY on all balances. Unlike the money market account, there's no monthly service fees, and it can be opened online (see account review).

ShoreBank is based in Chicago. It also has branches in Cleveland and Detroit.

The bank's ratings for safety and soundness are a little weak: 2 stars (problematic) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 12/31/08 financial data. It has been FDIC insured since 1939 (Certificate # 15640).

Thanks to the reader who mentioned this promotion in the comments.
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Kasasa - The New Name of Reward Checking and Savings Accounts
Wednesday, May 13, 2009 - 9:48 AM CT

When I first came across Kasasa.com, it appeared to be a new competitor to BancVue's reward checking. However, from the Kasasa About Page I learned that it was just new offerings from BancVue and FIRST ROI. Here's how BancVue's CEO describes Kasasa at their Kasasa blog:
By partnering with Kasasa, community banks and credit unions gain a level of product development awesomitude that until now was only afforded to the big banks.

But unlike the big guys (you know the ones that caused a worldwide economic crisis and might have cost someone you know their job), Kasasa doesn't use it's R&D skills to figure out how to squeeze more and more and more fees out of you. Instead, we try to figure out how to give more and more and more back to you.

BancVue and FIRST ROI already have CheckingFinder, so I wasn't sure of the purpose behind Kasasa.com. But after reviewing their website and blog, it appears they're trying to expand their reach. Some examples of this include:
  • Using Blogger and Twitter to appeal to the younger generation
  • Kasasa Tunes that rewards customers with free iTunes downloads rather than high interest
  • Kasasa Giving that donates interest that your account earns
Even though you may not be interested in the above features, they may help savers who are mainly concerned with earning a high interest rate. If the banks can attract a wider segment of society who have smaller savings and spend more, that should help these accounts remain profitable for the banks. And that should help the banks maintain the high rates. We need more reward checking account customers with balances under $5,000 and who make $1,000/month in debit card purchases. Those people are going to be much more profitable for the banks than those with $25,000 balances who spend just $20/month in debit card purchases.

New Savings Accounts

There is one new Kasasa product that should appeal to savers. It's called Kasasa Saver. It's designed as a companion savings account to the checking, Kasasa Cash. It should appeal to those who have balances that go over the balance caps of the checking accounts. Let's say you have $100,000 and the checking has a cap of $25,000. You can earn the high interest on the $25,000 in the checking, and $75,000 can be in the savings account. The savings account typically has lower rates than the checking, but they're competitive with the national online savings accounts. You'll still have to meet the checking requirements to earn the high rates on the savings accounts. So if you forget, you'll lose out on a month of interest on a lot of money.

There are currently not too many Kasasa providers and fewer that offer Kasasa Saver. Also, not all offer their products nationwide. One that offers all Kasasa products nationwide is a bank that has long offered the reward checking account, First Arkansas Bank & Trust (FAB&T). I first reported on this bank in December 2007 when it was offering a nationwide 6.06% reward checking account without a balance cap. They became too popular, and they slashed their rate to 4.44% in February 2008. In addition, they reduced the balance cap to $50K. That was a disappointment, but that was probably a good move that allowed them to maintain that rate and balance cap. After more than a year, they continue to offer the same 4.44% APY for balances up to $50K which makes them one of the best deals on my nationwide reward checking list.

Here are the current rates at FAB&T as of 5/13/09:

For the checking account, Kasasa Cash:
  • 4.44% APY up to $50K
  • 1.76% APY over $50K
  • 0.05% if requirements are not met
For the savings account, Kasasa Saver:
  • 2.04% APY on all balances
  • 0.05% if Kasasa Cash requirements are not met
It's interesting to note that there's not much difference between 1.76% that's earned in Kasasa Cash for balances above $50K vs. 2.04% in the Kasasa Saver. Why not just give 2.04% in the Kasasa Cash rather than adding the complication of another account? I guess one advantage is that it's a little more secure. You don't have all of your balance in a checking account that can be accessed with a debit card. In that case, perhaps they should have the savings account have the highest rate. You would only have to keep enough in the checking account to cover the debit card purchases. However, that could reduce how much people may spend with their debit cards so that may be a negative from the bank's point of view.

Other banks have higher rates on their Kasasa Saver accounts. One example is Bank of Little Rock which offers a 3.01% APY on all savings account balance if the Kasasa Cash requirements are met. The Kasasa Cash account has a top rate of 4.51% APY for balances up to $25K. Over $25K, the rate drops to 0.60%. In this case, the savings account makes more sense than at FAB&T. I have more details in my Bank of Little Rock review. Note, unlike FAB&T, the Kasasa online application for Bank of Little Rock appears to be limited to Arkansas zip codes.

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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2.65% 6-Month CD, 3.10% 24-Month CD & Other Competitive CD Rates at CoreFirst Bank & Trust in KS & CO
Wednesday, May 13, 2009 - 7:56 AM CT

Update 8/16/09: The Pick Your Term CD rate has fallen to 1.50% APY. The 2-year CD rate has fallen to 2.40% APY. Please check the bank's website for the latest rates.

Update 8/01/09: The Pick Your Term CD rate has fallen to 2.25% APY. Please check the bank's website for the latest rates.

Update 7/11/09: The Pick Your Term CD rate has fallen to 2.50% APY.

CoreFirst Bank & Trust has a special Pick Your Term CD with a 2.65% APY. Terms range from 3 months to 12 months. Minimum deposit is $10,000. There's also a special 21-month CD with a 2.70% APY; however, the bank's standard 2-year CD is actually a much better deal with a 3.10% APY. Minimum deposit is $1,000. These rates are listed at the bank's CD rate table as of 5/13/09.

There's an online application, however, account selection appears limited to checking and money market accounts. They also say you can open an account by calling (1-800-280-0123) or visiting a branch. I've sent an email asking if they accept out-of-state CD applicants without a branch visit. Update: A reader has confirmed that a branch visit is required for all of their products.

Branches are located in the Kansas cities of Topeka, Emporia, Manhattan and Kansas City, and in Denver, Colorado.

The bank has respectable ratings for safety and soundness: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1959 (FDIC Certificate # 18100).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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2.45% 9-Month CD at Eastbank in New York - Local Only
Wednesday, May 13, 2009 - 7:54 AM CT

Eastbank is offering a competitive 9-month CD with a rate of 2.45% APY. Minimum deposit is $2,500. The rate is listed at the bank's rate table as of 5/13/09.

It appears a branch visit is required to open an account. Branches are located in New York City and in Flushing.

Based on the look of their website, they appear to do a good job at keeping expenses low. Perhaps that's why they have such strong financial ratings for safety and soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1984 (FDIC Certificate # 25749).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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5.01% Reward Checking Account at Founders Bank in Texas
Tuesday, May 12, 2009 - 9:42 AM CT

Update 8/08/09: This account is no longer available nationwide. Only Texas residents are allowed to apply.

Founders Bank is offering a reward checking account called Kasasa Cash. The account offers the following rates and features if certain monthly requirements are met:
  • 5.01% APY on balances up to $10,000
  • 2.25% on balances over $10,000
  • 0.05% base rate if qualifications are not met
  • Refunds all ATM fees nationwide
The monthly requirements include:
  • 10 debit card purchases
  • One direct deposit or automatic payment
  • Access online banking
  • Receive e-statements
Additional features of the account regardless of the monthly requirements include:
  • $100 minimum initial deposit
  • No minimum balance requirement
  • No monthly service charge
  • Free Online Bill Pay
The bank has an online application at the Kasasa.com website which is another version of CheckingFinder.com. The online application only accepts zip codes from Texas.

Founders Bank is located in Sugar Land, Texas. The bank has been FDIC insured since 2007 (FDIC Certificate # 58710).

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

Other Reward Checking Accounts

The $10K balance cap for the top rate is low for reward checking accounts. However, the rates (for both below and above this cap) are better than average.

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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2.64% 6-Month CD & Other Competitive Rates at American First National Bank in Texas
Tuesday, May 12, 2009 - 9:39 AM CT

American First National Bank has a CD promotion with a 2.64% APY for terms of 6, 9 and 12 months. Minimum deposit is $1,500. There's also a Jumbo CD rate of 2.75% APY for the same terms. Minimum deposit is $100,000. An even better deal is available for their IRA CD which has a 3.50% APY for terms of 12 and 18 months. These rates are listed at the promotions page as of 5/12/09.

There's also a good savings account deal listed in their savings account page. It's the VIP Savings Account and it has a 3.25% APY as of 5/12/09. Minimum opening balance is $10,000. On the down side, only 6 withdrawals per quarter are allowed. There are no limit for deposits. There's a rate guarantee period, but unfortunately, it appears I found this too late. The guarantee period ended on 4/30/09. Now the rate is subject to change.

Since this is an Asian-American bank, I thought they may offer an installment savings account. And sure enough, they do. At the bottom of their savings account page, they describe the Installment CD for terms of 1, 2 and 3 years. They don't list the rates. If you find out the rates, please leave a comment.

It appears a branch visit is required to open accounts. Branches are located in Houston, Dallas and their suburbs.

The bank has decent ratings for safety and soundness: 3.5 stars (good) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1998 (FDIC Certificate # 34656).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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2.65% 11-Month CD at Baxter Credit Union in IL & WI
Tuesday, May 12, 2009 - 9:38 AM CT

Baxter Credit Union (BCU) is offering another CD special. The rate is lower than last month, but it's still competitive. The new rate is 2.65% APY and it's available for terms from 11 months to 23 months. Minimum deposit is $500. This special is listed in the credit union's rate table as of 5/12/09. Their CD specials typically last for the entire month.

BCU continues to offer a reward checking account (see post).

Membership is open to those who live or work in the Illinois counties of Cook (north of Route 58), Dupage, Kane, Lake and McHenry, in the Village of Schaumburg, and in the Wisconsin County of Kenosha. You can also be eligible based on employer groups and family members. Please refer to the Membership Page for more details. Membership requires a minimum balance of $5 in the savings account.

BCU's ratings for safety and soundness are mixed: 4 stars (excellent) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The credit union is federally insured by the NCUA (Charter # 68187). It's a large credit union with $1.4 billion in assets and 137,461 members.

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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2.53% 12-Month CD and 2.07% Money Market Account at Gold Canyon Bank in Arizona
Tuesday, May 12, 2009 - 9:36 AM CT

Gold Canyon Bank has some competitive rates on its CDs and money market account. The best CD deal is its 12-month term which has a 2.53% APY for a $50K minimum deposit. A 2.48% APY is available with only a $10K minimum. The money market account has tiered interest rates with a 2.02% APY for balances of $10K to $25K, a 2.07% APY for balances of $25K to $100K and 2.17% APY for balances from $100K to $250K. These rates are listed at the bank's rate table as of 5/12/09.

It appears a branch visit is required to open an account. Branches are located in Gold Canyon and Peoria, Arizona which are in the suburbs of Phoenix.

The bank's ratings for safety and soundness are a little weak: 3 stars (adequate) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 2006 (FDIC Certificate # 58066).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
Comments (11)
New High-Yield Online Savings Account at Bank of American Fork - Nationally Available
Monday, May 11, 2009 - 6:44 PM CT

Update 9/05/09: Rate for balances of $1K to $250K has fallen from 1.75% to 1.60% APY. Over $250K, the rate has fallen from 1.80% to 1.70% APY.

Bank of American Fork has started an online savings account called SaveSmart Direct. The rates are fairly competitive. As of 5/11/09, it has the following tiered interest rates:
  • 0.50% APY for $10 to under $1,000
  • 2.20% APY for $1,000 to under $250,000
  • 2.30% APY for $250,000+
Unlike some other recent new internet bank launches, there's no intro period. So these rates are subject to change weekly. The rates aren't exceptional, but it's always nice to see a new internet bank. The more competition, the better it'll be for savers.

The FAQ and disclosure have some of the account details, but as usual, there are few details describing the ACH bank-to-bank transfer system. I received some of these details from a bank representative today. One issue with their ACH system is that withdrawals are limited to $10,000 per day. However, this limit can be temporarily increased if you call.

Below are some of the important features of the account as describe in the bank's FAQ, in the bank's disclosures and from info I received from the bank's rep:
  • Account Opening:
  • Consumer accounts available nationwide. Business accounts only available to applicants with Utah business license (Rep)
  • $10 minimum opening deposit (Disc)
  • Can be opened online and funded with ACH transfer from an existing account (FAQ)
  • Application allows for up to 6 beneficiaries (FAQ)
  • No hard credit inquiry, just a soft pull via Equifax for ID verification purposes (Rep)
  • ChexSystem is used. Past ChexSystem inquiries should not cause application from being rejected (Rep)
  • Account Fees/Limitations:
  • $1.50 monthly fee if balance is under $10 on the last day of the statement cycle (Disc)
  • $1 fee for each outbound transfer that exceeds 3 per month (Disc)
  • Maximum number of outbound transfers is 6 per month (Disc)
  • No limit on number of deposits (Rep)
  • Account Features:
  • Interest compounded and credited monthly (Disc)
  • If you close your account before interest is credited, you will receive the accrued interest (Disc)
  • Interest rates may change weekly (Disc)
  • Paper statements are mailed by default, but eStatements can be selected when you're logged into online banking (FAQ)
  • ACH Bank-to-Bank Transfer Service:
  • ACH transfer for initial funding done without trial-deposit verification (Rep)
  • Once account is opened, the funding account is not automatically linked for future transfers (Rep)
  • Up to 3 linked accounts are allowed (Rep)
  • Links can be added through an online-only process that involves the typical trial-deposit method (Rep)
  • By default, inbound transfers are limited to $100,000 per day. Outbound transfers are limited to $10,000 per day. Customer service can temporarily increase limits on request. (Rep)
  • Transfers can take 2 to 4 business days depending on the time of day the transfer is initiated (FAQ)
Bank of American Fork has average ratings for safety and soundness: 3 stars (adequate) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 12/31/08 financial data.

The bank is based in Utah with 12 offices. It's a small bank with less than a billion in assets. As of 12/31/08, it has $877.8 million in assets and $785.5 million in deposits. The bank has been FDIC insured since 1934 (FDIC Certificate # 12773).

For other high-yield savings accounts, refer to my weekly rate summary.

Edit 5/12/09: Corrections made to the ACH in/out limits.

Account History:
Update 9/05/09: Rate for balances of $1K to $250K has fallen from 1.75% to 1.60% APY. Over $250K, the rate has fallen from 1.80% to 1.70% APY.
Update 7/11/09: Rate for balances of $1K to $250K has fallen from 1.95% to 1.75% APY. Over $250K, the rate has fallen from 2.00% to 1.80% APY.
Update 6/04/09: Rate for balances of $1K to $250K has fallen from 2.20% to 1.95% APY. Over $250K, the rate has fallen from 2.30% to 2.00% APY.
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3.01% Reward Checking Account at The Farmers Bank - Georgia Residents Only
Monday, May 11, 2009 - 9:23 AM CT

Update 11/09/09: The reward checking account is no longer listed at the bank's website.

The Farmers Bank has a reward checking account with the following rates and features if certain monthly requirements are met:
  • 3.01% APY on balances up to $25,000
  • 1.01% APY on balances over $25,000
  • 0.10% base rate if qualifications are not met
  • Unlimited ATM fee refunds
The monthly requirements include:
  • 12 debit card purchases
  • one direct deposit or automatic payment
  • receive e-statements
Additional features of the account regardless of the monthly requirements include:
  • $50 minimum initial deposit
  • No minimum balance requirement
  • No monthly service charge
  • Free Online Bill Pay
There's an online application, but on the second page of the application it states that "The bank will accept applications from residents of Georgia or those persons soon to be." So it appears to be a Georgia-only deal.

The bank is located in Forsyth, Georgia. It has been FDIC insured since 1952 (FDIC Certificate # 14913).

Thanks to the reader Atlanta Wolf who mentioned this account in the Daily Deals & News Post.

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:
07/17/09: 3.01% APY up to $25K
05/11/09: 4.01% APY up to $25K; 1.01% over; 0.10% base
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Competitive Jumbo Money Market and CD Rates at Teachers FCU in New York
Monday, May 11, 2009 - 9:22 AM CT

Teachers Federal Credit Union is offering a special 11-month Jumbo certificate with a 2.60% APY. Minimum deposit for Jumbos is $100,000. The credit union also has competitive rates on its Tiered Money Market Account with a 2.42% APY for a $100,000 balance and a 2.16% APY for balances between $50,000 and $100,000. These rates are listed in the credit union's rate table as of 5/11/2009.

Membership is open to those who live, work or worship in parts of Suffolk County. Also eligible are employees, students, family members and volunteers of Suffolk County schools, colleges and other sponsor groups. Please refer to the credit union's Membership Eligibility page for the full details. Membership requires a $1 deposit in the Share Savings Account.

Teachers FCU has strong ratings for safety and soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The credit union federally insured by the NCUA (Charter # 8116). It's a large credit union with $2.7 billion in assets and 189,227 members.

Thanks to the reader who mentioned this money market account in the comments.
Comments (31)
PenFed's Cash Back Credit Card Adds Another 5% Category
Sunday, May 10, 2009 - 6:20 PM CT

Pentagon Federal Credit Union has added a new limited-time cash back offer on its Visa Platinum Gas Cash Reward Credit Card. You can now receive 5% cash back for your first $4,000 of airfare purchases per month. This is a limited time promotion. Airfare purchases must be made before July 31, 2009 to qualify for 5% cash back promotion, thereafter such purchases receive 1.25% cash back.

The other cash back features of this credit card remain the same:
  • 5% cash back from gas purchases at the pump
  • 2% cash back on all supermarket purchases
  • 1.25% cash back from all other purchases
And unlike other cash back credit cards like from Citi, you don't have to wait until you have accumulated enough cash back to get reimbursed. The cash rewards are credited to you each month.

PenFed also continues to offer a good deal on balance transfers. The limited time rate is 2.99% APR for the life of your transferred balances.

A few notes mentioned by readers about this PenFed credit card:
  • One reader reported Walmart Supercenter purchases being counted as a supermarket purchase. Not all readers have reported this, so your miles may vary.
  • PenFed has been known to be tight on granting credit. A reader reported being declined due to a large outstanding balance on one of his cards. When PenFed finally issued him a credit card, it came with only a $1,000 credit limit.
  • To get the 5% cash back at gas stations, you must pay at the pump. A reader in New Jersy reported that he wasn't able to get the 5% since New Jersey doesn't allow self-service
Anyone can qualify for membership into PenFed. For these details and my experience with PenFed, please refer to my Pentagon FCU review.

Here's a list of some of the other competitive banking products offered by PenFed:
Accounts can be opened online, but for those who prefer branches, PenFed has branches in several parts of the country including Washington DC, Maryland, Virginia, New Jersey, New York, Colorado, North Carolina, Hawaii, Puerto Rico, Missouri and Texas.

PenFed's rating for safety and soundness at BauerFinancial remains at 5 stars (superior) based on 12/31/08 data.

PenFed is one of the largest credit unions in the US with $13 billion in assets and 846,803 members. It's federally insured by the NCUA (Charter # 227).

Thanks to the reader who mentioned this new cash back feature in the comments.
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Ohio's SaveNOW Bonus Program Provides a Little Help to Savers
Sunday, May 10, 2009 - 6:16 PM CT

The government hasn't made it easy on savers over the last couple of years as interest rates have plummeted, but here's an example of a state government that's trying to help a little. The State of Ohio launched in April a savings program called the SaveNow Bonus. Here's how the Ohio Treasurer described it:
The initiative, an investment of the Ohio Treasury, rewards Ohioans for furthering their financial education by providing them with a 3.25% interest bonus in their savings account. Participants will receive the bonus upon the satisfactory completion of a requisite one-year period of financial instruction.

Unfortunately, the interest bonus is limited to $5,000.

Not all banks in Ohio have signed on. According to the Cincinatti Business Journal, participating banks include PNC/National City, Liberty Savings, Wayne Savings and MainSource Savings.

4% Deal at Liberty Savings Bank

Liberty Savings Bank has a special savings account for this program called the SaveNOW Savings account. The savings account has a base rate of 0.75% APY as of 5/10/09. After one year, you can qualify for an extra bonus rate of 3.25%. Here are some of the important features as listed at the bank's SaveNOW page:
  • No minimum balance; only $10 to open
  • No monthly service fee
  • Maximum balance on which you can earn the interest rate bonus is $5,000
  • Deposits can be made to the account any time and should not exceed $500 at a time
Compared to a 2% savings account, you can earn up to $100 more in this account over a year.

Liberty Savings Bank also offers a reward checking account that currently pays 4.01% APY on balances up to $25K (see post). It also offers a companion savings account called reward savings that allows you to earn 2.01% APY on all balances if you meet the reward checking requirements.

Liberty Savings Bank has been FDIC insured since 1984 (FDIC Certificate # 32242).

Thanks to the reader who mentioned this SaveNOW account in the Daily Deals & News Post.
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4.01% Reward Checking Account at Westbound Bank in Houston
Sunday, May 10, 2009 - 6:12 PM CT

Westbound Bank has a reward checking account called Super Smart Checking. The account offers the following rates and features if certain monthly requirements are met:
  • 4.01% APY on balances up to $25,000
  • 1.01% on balances over $25,000
  • 0.10% base rate if qualifications are not met
  • ATM fee refunds up to $25 per cycle
The monthly requirements include:
  • 20 debit card purchases
  • one direct deposit
  • receive e-statements
Additional features of the account include:
  • $100 minimum initial deposit
  • $4.99/month service charge if the above requirements for the top rate are not met
  • free Safety Checks
  • free online Bill Pay
The bank also offers a reward checking account with fewer requirements, but with a lower rate. It's called Smart Checking, and it has the following rates and features if these monthly requirements are met:
  • 3.01% APY up to $25,000
  • 1.01% APY over $25,000
  • 0.10% if requirements are not met
  • ATM fees nationwide refunded up to $25 per cycle
Monthly requirements include:
  • 15 debit card purchases
  • one direct deposit
Unlike the Super Smart Checking, the Smart Checking has no monthly fee regardless of meeting the monthly requirements.

Branches are located in the Houston, Texas and its suburbs of Katy and Bellaire.

The bank has been FDIC insured since 1934 (FDIC Certificate # 58417).

Other Reward Checking Accounts

I was surprised to see the monthly fee mentioned in the bank's disclosure. The vast majority of reward checking accounts have no monthly fee even if you don't meet the monthly requirements. Also, most only require 10 debit card purchases per month rather than 20. Perhaps these added requirements will make it easier for the bank to maintain the high yield.

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 7/04/09: Added info on the Smart Checking Account.
Comments (1)
2.88% 18-Month Add-On CD and Other Competitive Rates at First Savings Bank Northwest in WA
Sunday, May 10, 2009 - 6:03 PM CT

First Savings Bank Northwest is offering competitive rates on its CDs and money market account. The best CD deal is its Grow With Us CD which offers a 2.88% APY for an 18-month term. Minimum deposit is $500. It has an add-on feature that allows additional deposits at any time. .

Another competitive CD rate is its 36-month CD which has a 3.46% APY. All of the bank's CDs with terms of 12 to 48 months offer a once-annual bump option. If rates go up, you can receive a rate increase. Another nice feature is that the long-term CDs only have a 3-month early withdrawal penalty. Refer to the bank's disclosure page for the full details.

These rates are listed at the bank's rates page as of 5/10/09 and are effective through 5/13/09.

Their Treasury Indexed Money Market Account is also a good deal. With very low Treasury rates, there's currently no benefit for indexing rates to Treasury Bills. However, it has an interest rate floor of 2.00% (2.02% APY) which makes for a competitive money market rate. Minimum balance to open and earn this rate is $5,000. There's a $6/month service charge if the balance drops below $1,000 during the statement period. The first 40 standard printed checks are free. The 2.00% interest rate floor is as of 5/10/09 and is subject to change. Refer to the bottom of the bank's disclosure for the full details.

The bank has an online application that is intended to be printed and mailed with your check and copy of your driver's license. It appears they may accept out-of-state applications. I've sent an email to confirm. Update 5/11/09: A bank official replied and said that these CDs are available nationwide. Only business account applicants are required to be Washington State residents.

First Savings is located in Renton, Washington which is in the suburbs of Seattle.

The bank has fair ratings for safety and soundness: 3 stars (performing) at Bankrate.com and 3.5 stars (good) at BauerFinancial. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1935 (FDIC Certificate # 29058).

Thanks to the reader who emailed me news of this bank.
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3.00% 9-Month CD at BankFinancial - Chicago Area Only
Sunday, May 10, 2009 - 5:59 PM CT

BankFinancial is again offering a competitive rate on a Spectrum Express CD. It's advertising a 3.00% APY for a 9-month term. Minimum deposit is $10,000, and the maximum is $250,000. New money is required. This rate doesn't appear to be listed at the bank's website. It was advertised in the 5/8/09 edition of the Suburban Life newspaper. The ad is available online here.

Before my last post on this bank, I called and was told that they update rates every Thursday so this rate should last at least through Wednesday 5/13/09.

The ad also lists a Spectrum Express Money Market Account with a 2.25% APY for balances over $10K. The bank's rate table shows the rate as 2.00% APY so I'm not sure if the rate has already gone down or if there's a special rate associated with this advertisement.

These Spectrum Express products are only available at one of the bank's three Express Branches. These are located in the Chicago suburbs of Skokie, Addison and New Lenox. These express branches are suppose to be completely automated. Opening accounts are done by a Virtual Client Representative via a 42-inch monitor. It'll be interesting to see how convenient these branches are.

The bank has fair ratings for safety and soundness: 3 stars (performing) at Bankrate.com and 4 stars (excellent) at BauerFinancial. Both ratings are based on 12/31/08 financial data. BankFinancial has been FDIC insured since 1935 (FDIC Certificate # 28808).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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Bank Deals Weekly Summary for May 9, 2009
Saturday, May 9, 2009 - 5:37 PM CT

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

How will the stress test results that the government released on Thursday affect savers? In my Thursday post I discussed one opinion that these big banks that are being forced to raise capital will likely not raise deposit rates. This WSJ article is a little more optimistic, and has predictions that these banks may become more aggressive with deposit rates.

The government will likely not let these 19 biggest banks fail. The banks most likely to fail are the small banks like the one that failed yesterday. If you stay under the FDIC limits, you should not have to worry. This might be easier if the bill that passed the Senate last week becomes law. It extends the $250K coverage limit for 4 more years (see post).

Savings Account Rates

I reported on another new internet savings account this week. It's being offered by Choice Financial Group, and they're offering a tiered savings account with standard rates as high as 3.26% APY. There's also a 3.76% APY intro yield, but this is guaranteed only for 30 days (see post).

ProvidentNJ Direct continues to offer an internet savings account with a 3.25% APY guaranteed for 90 days. After the intro period, it becomes a tiered account with a 2.25% APY for balances over $10K (see post). Soon after I reported on this, several readers reported being rejected in the application possibly due to ChexSystem reports that showed too many recent inquiries. There's a ChexSystem inquiry each time you apply for a bank account, so ChexSystem can be used by banks if they want to avoid rate chasers. In my opinion, this is an abusive use of ChexSystem which should only be used for banks to ensure you've been responsible with your past bank accounts. On the positive side, recent comments show more applications are being accepted. So it appears they may have started to de-emphasize ChexSystem inquiries.

I reported on another installment savings account this week. This latest one is at Hanmi Bank which is located in California, and they are offering rates as high as 5.92% APY (see post). Wilshire State Bank continues to offer high rates on its Rainbow Installment Savings account which is available nationwide. The rates range from 4.60% APY for a 12-month term to 5.12% APY for a 3-year term (see post).

Below is the list of savings account rate changes for this week. The two big disappointments this week were at E*Trade Bank and Provident Direct which both cut their savings account rates below one percent. E*Trade Bank cut the rate on its Complete Savings Account from 1.20% to 0.95%, and Provident Direct made a much larger rate cut with the rate falling from 1.25% to 0.50%. Provident Bank is now part of M&T Bank, and it appears M&T Bank has decided not to offer any decent rates. Both M&T Bank's e-Money Market account and OnBank savings account offer the pathetically low rate of 0.50%. It's hard to believe that their rates used to be over 5%.

Rate Hikes:
  1. Choice Financial - 2.76% $5K+, 3.01% $25K+, 3.26% $100K+ (new)
Rate Drops:
  1. Intervest MMA - 1.95% (was 2.05%)
  2. Amegy Bank MMA - 1.95% $10K+ (was 2.00%)
  3. CapOne/Costco MMA - 1.60% (was 1.70%)
  4. CapOne MMA - 1.40% (was 1.50%)
  5. E*Trade Max-Rate Chk - 0.40% (was 0.50%)
  6. Union Federal Savings - 2.05% (was 2.10%)
  7. ETrade Complete Savings - 0.95% (was 1.20%)
  8. Provident Direct Savings - 0.50% (was 1.25%)
Certificate of Deposit Rates

In addition to the high yield savings account, Choice Financial Group is offering a 13-month internet CD with a rate of 3.01% APY. It also has an add-on feature, however, it caps the additional deposits to the amount of the initial deposit (see post).

Some of the CD deals I reported on in previous weeks continue. Below are some of the best new and old ones that are still active.

Best Nationwide CD Deals as of 5/09/09: The full list of nationwide CD rates is farther down.
  1. 3.25% 3-mo savings account promo at ProvidentNJ Direct (account review)
  2. 2.50% 4-mo CD at Danvers Bank (account review)
  3. 2.52% 6-mo CD at Wilshire State Bank (account review)
  4. 2.50% 9-mo CD at Doral Bank Direct (account review)
  5. 3.04% 12-mo CD at Melrose CU (account review)
  6. 3.01% 13-mo CD at Choice Financial - Add-On Feature (account review)
  7. 2.80% 12mo CD at GMAC Bank (account review)
  8. 4.00% 60-mo CD at Pentagon FCU (account review)
Best Local CD Deals as of 5/09/09: Some of the best CD deals are from banks and credit unions that don't offer accounts nationwide. Refer to the recap section and the state index section to find all the recent local deals. Here are some of the best deals to note.
  1. 3.29% 6-mo CD & 3.87% 15-mo CD at Progressive CU in NY, NY (account review)
  2. 2.89% 7-mo CD & 3.05% MMA at Raymond Bank in WA (account review
  3. 2.85% 6-mo Liquid CD at Saehan Bank in CA (account review)
  4. 2.75% 6-mo CD ($25K max) at STC Capital Bank in Chicago (account review)
  5. 3.00% 9-mo CD at Pacific Transportation FCU in CA (account review)
  6. 3.25% 12-mo CD at Cornerstone Bank in GA (account review
  7. 3.00% 12-mo CD at First Priority CU in MA (account review)
  8. 3.30% 12-mo CD at Self Reliance New York FCU (account review)
  9. 2.85% 12-mo Add-On CD at Nara Bank in CA, NY & NJ (account review
  10. 3.00% 25-mo CD at Broadway Bank in Chicago (account review)
  11. 4.50% 60-mo CD & 2.75% 12-mo CD at Urban Trust Bank in FL & MD (account review)
Reward Checking Accounts

I reported on four new reward checking accounts this week with rates ranging from 4.01% to 5.50% APY (see below). At least one of the four is available nationwide. There have been many rate cuts in May, and I remain busy updating the tables. My full list of reward checking accounts is getting close to 400. If you can't find one that's local, refer to my nationwide list.

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 at this page. Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Reward Checking, 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 May 9, 2009

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)
Comments (8)
33rd Bank Failure of 2009: Westsound Bank in Washington State
Friday, May 8, 2009 - 9:49 PM CT

I thought we may get through today without a bank failure, but there was one late closure in Washington State. Westsound Bank was closed by state regulators and the FDIC has arranged for another bank to assume all of the deposits, except those from brokers. So the typical depositor won't lose any money even if they have uninsured deposits.

CD Depositors May Lose Their Rate Lock

The main concern for those with CDs is whether the assuming bank will choose to let the original CD rates continue until maturity or choose to lower the rates. Here's what the FDIC describes in its Q&A # 13:
All interest on deposits accrued through Friday, May 8, 2009, will be paid at your same rate. Kitsap 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 Friday, May 8, 2009.

There may be many depositors with high CD rates at Westsound. I reported on this bank two years ago when they were offering 5.65% APY for a 5-year term. If you're one of those depositors, please let us know what the new bank decides. Also, make sure to keep checking with the new bank for their decision. If they decide to lower the rates, it may take effect on May 9th, and if the new rate is very low, you won't want the money to sit there for too long. Unfortunately, in this current interest rate environment, it's going to be hard to find high CD rates. If they do lower the rates, at least you're allowed to close the CD without an early withdrawal penalty.

Brokered Deposits and Internet Accounts

Insured brokered deposits will be paid out directly by the FDIC instead of being assumed by the new bank. Brokered deposits are often looked down upon since those deposits are often considered "hot money" that won't stick around if rates fall. So as in this case, the assuming bank may choose not to acquire these deposits. With the internet making it easy to open accounts and move money online, internet accounts could be considered hot money also. It appears there is some recognition of this. In the Q&A #5, another type of deposits are grouped with brokered deposits:
Deposits purchased through a non-DTCC broker or deposits that may have been solicited via a money desk, internet subscription service or otherwise opened through an internet account or similar program will receive an FDIC insurance check.

I'm not sure if this refers to online savings accounts, but it sounds close. Those accounts are still FDIC insured, but it appears deposits over the FDIC limits won't be covered.

Planning For More Closures

There's a new sign that Fridays will remain busy for the FDIC far into the future. The FDIC announced that it "will open a temporary satellite office in Jacksonville, Florida, to manage receiverships and to liquidate assets from failed financial institutions primarily located in the eastern states." That's probably a good location being in the middle between Georgia and Florida. The FDIC doesn't plan to even start moving in there until September, so they must be expecting an increasing number of closures for some time to come.

Here's a summary of today's bank failure:

33rd Bank Failure of 2009 in Washington State
  • FDIC Press Release
  • Closed Bank: Westsound Bank
  • Location: Bremerton, Washington
  • Size: 9 offices, $334.6 million in assets, $304.5 million deposits
  • Possible Uninsured Deposits: All deposits transferred, excluding brokered deposits
  • Acquiring Bank: Kitsap Bank, Port Orchard, WA
  • Estimated Cost to Deposit Insurance Fund: $108 million
  • Financial Ratings: 0 star at BauerFinancial, 1 star (lowest) at Bankrate.com
References:
Comments (28)
High Yield Savings Account and CD at Choice Financial - Nationally Available
Friday, May 8, 2009 - 9:35 AM CT

Update 7/24/09: Rates have dropped. Rate Builder Savings: 2.26% APY 30-day intro, 1.26% APY $5K-$25K, 1.51% APY $25K-$100K, 1.76% APY $100K+. Rate Builder 13-mo CD: 2.21% APY.

Update 5/12/09: Rates have dropped. Rate Builder Savings: 2.76% APY 30-day intro, 1.76% APY $5K-$25K, 2.01% APY $25K-$100K, 2.26% APY $100K+. Rate Builder 13-mo CD: 2.51% APY. Rates are from disclosure.

Choice Financial has two attractive deposit account deals: a savings account with a rate of up to 3.26% APY and a 13-month CD with a rate of 3.01% APY. The bank calls these their RateBuilder accounts. The savings account and CD are available nationwide. There's also a high-yield checking account for those in Minnesota, Montana and the Dakotas.

The savings account has a 30-day intro rate of 3.76% APY. After the intro period, the following tiered interest rates apply:
  • 2.76% APY $5K to $25K
  • 3.01% APY $25K to $100K
  • 3.26% APY $100K and over
The above rates are listed at the RateBuilder Page as of 5/08/09. Note, the disclosure lists the rates for the bottom two tiers as interest rates rather than APY.

One downside to this account is that interest is only credited quarterly, and if the account is closed before the interest is paid, you'll lose the accrued interest. Some other features mentioned on the website and the disclosure (pdf) include:
  • Minimum opening deposit of $5,000
  • $2/month fee if balance falls below $5K on any day of the month
  • Interest credited and compounded quarterly
  • $50 closing fee if closed within first 90 days
  • If account is closed before the interest is paid, you'll lose the accrued interest
  • Typical limit of 6 withdrawals per month
RateBuilder Certificate of Deposit

There's also a good deal on the RateBuilder CD. As of 5/08/09, the rate is 3.01% APY for a 13-month term. Minimum deposit is $5,000. Some additional details mentioned in the disclosure (pdf) includes:
  • 13-month term
  • $5,000 minimum deposit
  • Interest will be compounded and credited annually
  • Early withdrawal penalty equals 6 months of interest on the amount withdrawn
  • Grace period at maturity of 10 calendar days
  • Add-on feature: You will be able to make additional deposits to the CD up to the original deposit amount without extending the term of the CD
Additional Details from the Customer Service Representative

For some additional details about the savings and CD, I called the bank's customer service number at 1-877-380-3623. At first, the voice message informed me that they were busy with other customers and that I should leave a message. Instead of leaving a message, I called back a little later and was quickly connected to a CSR. According to the CSR, they rolled out these RateBuilder accounts about 4 weeks ago. She said the posted rates are accurate. Some additional things I was told by the CSR include:
  • No hard credit inquiry. They just use ChexSystem
  • ACH service provided to allow electronic funding of savings account and CD. You can also mail a check
  • Savings account has an ACH transfer service. Transfers are free, and there are no size limitations on transfers (CSR didn't appear too knowledgeable about this)
  • CD rate locks at the time that the application is submitted
There were two interesting features mentioned in the disclosure that I tried to confirm with the CSR:

Savings account bonus: As described in the disclosure: Electronic gift certificate issued after receiving opening deposit valued at $10. Electronic account anniversary gift certificate issued one year from account opening date valued at $25 if your account has an average daily balance $500 on the account anniversary date. The CSR confirmed this. She said that the gift cerificate is for some online store.

Add-On Deposits in the CD: As descrbied in the disclosure: After the account is opened, you may make an unlimited amount of deposits. The total of the deposits may not exceed original amount of the opening deposit. The CSR did not think you could make additional deposits. Leave a comment if you are able to confirm. The add-on feature is limited in value since the add-on is capped to the initial deposit. Update: Another CSR confirmed that the CD does have this add-on feature.

Update: I received additional info from a CSR by email (I'm impressed by the speed of the replies). Below is what I received:

More RateBuilder CD info from the CSR:

The CD does have an add-on feature. You will be able to make additional deposits to the CD up to the original deposit amount without extending the term of the CD.

The CD starts earning interest on the business day that they receive the initial deposit. The CD rate that you will receive on the CD is the rate as of the date that they receive the application.

When the CD matures, you may elect to have those funds withdrawn by a mailed check, ACH transfer or wire transfer. You can close the CD over the phone. They'll use security questions to verify your identity.

More RateBuilder Savings Account info from the CSR:

I confirmed that they had mistakenly listed the rates instead of the APYs for the first two tiers on the RateBuilder webpage. It was correct in the disclosure. I've corrected the rates above.

The CSR didn't provide many additional details on their ACH bank-to-bank transfer service. They do seem to have such a service, and transfers are free.

You may fund the account by mailing a check, wire transfer or by ACH. This also applies to the RateBuilder CD.

Health Savings Account

Thc CSR confirmed that their Health Savings Accounts (HSA) are also available nationwide. A reader commented that she has been happy with their HSA for the last 3 years. It's a tiered account with rates that range from 1.04% APY to 2.53% APY as of 5/08/09. Refer to their HSA rates page for the latest info, and for general info and good nationwide options on HSAs, refer to this post.

Overview of Choice Financial Group

Choice Financial is a small bank with 11 branches in North Dakota. You can review the details about their financials at this FDIC page. They have some solid ratings for safety and soundness: 3.5 stars (good) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1934 (FDIC Certificate # 9423).

Thanks to the reader who emailed me news of these online accounts.
Comments (10)
3.01% Reward Checking Account at Patriot Bank in Florida
Friday, May 8, 2009 - 9:32 AM CT

Update 3/02/10: It has been reported that the balance cap for the top rate will be falling to $35K starting 3/10/10. Refer to the bottom of the post for the rate history.

Patriot Bank has a reward checking account called Revolutionary Checking. The account offers the following rates and features if certain monthly requirements are met:

  • 3.01% APY on balances up to $35,000
  • 1.01% on balances over $35,000
  • 0.15% base rate if qualifications are not met
  • refunds of ATM fees of up to $25 per cycle

The monthly requirements include:

  • 10 debit card purchases
  • one direct deposit or automatic payment
  • access online banking
  • receive e-statements

Additional features of the account regardless of the monthly requirements include:

  • $100 minimum initial deposit
  • no minimum balance requirement
  • no monthly service charge
  • Free Online Bill Pay

Update 3/02/10: The online application now states that they are only accepting applications from Florida.

There's an online application at the bank's Revolutionary Checking page. I sent an email to see if it's available nationwide, and according to the reply I received, they can open accounts through the mail without a branch visit. To open the account, they need a copy of your driver's license and copy of a utility bill (for address verification). These can be faxed or mailed. Make sure to check with the bank for the latest instructions since small banks often change their account availability policies.

Patriot Bank is located in west central Florida in the cities of Trinity, Port Richey, Palm Harbor, New Port Richey and Clearwater. The bank has been FDIC insured since 2004 (FDIC Certificate # 57789).

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:
03/10/10: 3.01% APY up to $35K

11/12/09: 3.01% APY up to $50K
05/08/09: 4.01% APY up to $50K; 1.01% over; 0.15% base

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Saving For College with 529 Accounts
Friday, May 8, 2009 - 12:00 AM CT

The Internal Revenue Code created a college savings plan in 1996 called the 529 Plan. It's named after Section 529 of the Internal Revenue Code.

Even though 529 Plans are operated by each state, you can use a 529 plan to meet the costs of any qualified college nationwide. You may live in New York and invest in a NY 529 plan, and your child may use the funds for a college in California.

All states have at least one 529 plan available, and the plans differ from one state to the next. Depending on who manages the accounts, there are different fees associated with each 529 account and you can do a little research and find the plan with the lowest fees. Most states offer tax incentives to investor of 529 plans, and federal tax law provides a number of special tax benefits that make investing in these educational plans easy.

There are two ways to enroll in a 529 plan: you can either apply directly with a 529 plan manager in your state, or through a financial advisor.

529 Plans are categorized as either a savings plan or a prepaid plan:

Savings Plans: similar to 401K or IRAs. You choose how to invest in mutual funds or similar investments. Your account value increases or decreases based on the investments you select.

Prepaid Plan: allows you to prepay for public college educational costs. You can also convert those savings to use for out-of-state colleges or private institutions with the Independent 529 Plan used for private colleges.

Opening a 529 plan for young children is a smart move. They have many years to maximize the savings before they'll head off to college. Most 529 plans allow you to set up automatic deductions from your bank account to fund the account; and there are a variety of services that make it possible to receive gifts from friends and family to your 529 account: including FreshmanFund.com and Upromise.com.

The biggest concern parents have about opening a 529 account is what happens to the money saved if your child doesn't go to college? If they withdraw the money for non-educational expenses, it will cost them a penalty fee. However, 529 accounts can be transferred to any family member – so if a sibling decides to go to college, that money can be transferred with no fees to the other family member (or perhaps even saved for your grandchildren!)

Comments (9)
Bank Stress Test Results - Impacts to Depositors?
Thursday, May 7, 2009 - 6:23 PM CT

The results of the government's stress tests were released today. Out of the 19 banks that were assessed, 10 are being required to raise a total of $75 billion in capital to ride out potential losses due to the recession. Here's the breakdown of the required capital based on the Overview of Results that's available at the Federal Reserve website:
  • Bank of America - $33.9 billion
  • Wells Fargo - $13.7 billion
  • GMAC - $11.5 billion
  • Citigroup - $5.5 billion
  • Regions - $2.5 billion
  • SunTrust - $2.2 billion
  • KeyCorp - $1.8 billion
  • Morgan Stanley - $1.8 billion
  • Fifth Third - $1.1 billion
  • PNC - $0.60 billion
I'm a little surprised to see how much capital GMAC requires. It's by far the smallest of those other three banks that make up top four on the list. It'll be interesting to see what effect this will have on GMAC Bank. This bad PR may scare away some deposit dollars which may force GMAC Bank to raise interest rates.

The question about how these stress test results will impact consumers is discussed in this Mercury News article. According to the article, bank customers will probably not see many changes. Banks could sell off some units, but this won't have much effect except possibly on customer service. Regarding increases in deposit rates, an economist interviewed in the article didn't think higher deposit rates would be able to help the banks fast enough to meet the deadlines required by the government. It's more likely we'll see higher bank fees and credit card rates.
Comments (5)
Extension of FDIC's $250,000 Deposit Insurance Limit Gets Closer - May Not Become Permanent
Thursday, May 7, 2009 - 8:13 AM CT

On Wednesday the Senate passed the bill S.896 to prevent mortgage foreclosures and enhance mortgage credit availability. One of the provisions of this bill is the extension of the FDIC's $250,000 deposit insurance limit. According to this AFP article, the bill extends the limit through 2013. So it appears the $250,000 limit may not be made permanent. I tried to find exactly what the bill states at the Library of Congress Thomas Database. Here's the summary page of S.896. The only mention I could find of the FDIC was in the "All Information" section which had the following:
Amends the Federal Deposit Insurance Act (FDIA) and the Federal Credit Union Act (FCUA) to: (1) increase deposit insurance coverage permanently to $250,000; and (2) increase the borrowing authority of the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA).

Amends the FDIA to: (1) extend to eight years the time period applicable to a Deposit Insurance Fund (DIF) restoration plan; and (2) revise requirements for special assessments to recover the loss to the DIF arising from actions taken to contain systemic risk with respect to certain insured depository institutions.

From the bill it appears the increase would be permanent. I don't know where 2013 came from. But the AFP isn't the only place that mentions a temporary extension. This American Bankers Association (ABA) statement also mentions that this extension is temporary. If you can find more details of this bill, please leave a comment.

Update: A reader found the latest version of the bill here. It does extend the $250K coverage limit to December 31, 2013.

The bill now goes to the House. It seems likely that the bill will become law. It had strong support in the Senate passing 91 to 5, and the ABA is for it.

History of the FDIC's $250,000 deposit insurance limit

This is now the fourth bill to contain this FDIC coverage limit change. I first reported on H.R. 384 in January which like this current bill, the FDIC coverage change was part of a much larger bill. Then in March I reported on H.R. 786 which was a bill just for the FDIC coverage limit change. In late April, the measure was buried deep inside another bill, H.R. 1106, which primarily dealt with mortgages.

The insurance limit change started in late September and early October 2008 after the first bailout bill failed to pass the House. A new version of the bill was written, and it included a temporary increase to the basic FDIC and NCUA deposit insurance from $100,000 to $250,000. This revised bailout bill passed Congress and was signed by President Bush on October 3, 2008. The deposit increase is only temporary, and is scheduled to end on December 31, 2009.

Before this $250K coverage took effect, it was possible extend insurance coverage way above $100K through revocable trust accounts. However, it's not as straightforward as staying under the basic limit. There's always the worry that a FDIC claims agent will find something wrong with how the revocable trusts are done which would reduce the coverage. When you're under the basic limit (currently $250K), there's much less doubt. To review some of these issues, refer to my post on extending FDIC/NCUA coverage.

To review the latest FDIC and NCUA rules for deposit insurance, please refer to my FDIC and NCUA deposit insurance post.
Comments (1)
3.00% Reward Checking Account at Public Service Credit Union in Indiana - Local Only
Thursday, May 7, 2009 - 8:10 AM CT

Update 12/31/09: The top rate has fallen to 3.00% APY.

Public Service Credit Union has a reward checking account called Smart Checking. The account offers the following rates if certain monthly requirements are met:
  • 3.00% APY on balances up to $40,000
  • 1.00% APY on balances over $40,000
  • 0.01% base rate if qualifications are not met
The monthly requirements include:
  • 10 debit card purchases (credit only, not PIN-based)
  • one ACH deposit or withdrawal
  • receive e-statements
Additional features of the account regardless of the monthly requirements include:
  • No minimum balance requirement
  • No monthly service charge
  • Free Online Bill Pay
I don't see any mention of refunds of ATM fees. However, according to the credit union, they're part of the Alliance One Network where you can find surcharge free ATM's.

Membership is open to those who live or work in Allen County, Indiana. You can also be eligible via family or select employer groups. Please refer to the credit union's membership requirements page for the full details.

Branches are located in Fort Wayne, Indiana. The credit union is federally insured by the NCUA (Charter # 64275)

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:
12/31/09: 3.00% APY up to $40K
11/01/09: 3.51% APY up to $40K
06/03/09: 4.01% APY up to $40K; 1.00% over; 0.01% base
05/07/09: 5.50% APY up to $40K; 1.00% over; 0.10% base
Comments (11)
$200 Capital One Checking Bonus in CT, LA, NY, NJ & TX - YMMV
Thursday, May 7, 2009 - 8:05 AM CT

Update 7/10/09: A reader reported receiving an email from Capital One for this same promotion on July 9th.

Capital One has been mailing offers of a $200 bonus for opening a new checking account with direct deposit at a Capital One Branch. Minimum opening deposit is $50, and you must mention the promo code RC2. Some important details in the small print include: You must enroll in payroll/direct deposit within 90 days of account opening. Qualifying individuals will receive a $200 credit to their checking account approximately 6-8 weeks after the first direct deposit.

Credit for this find goes to FW member pp65us who mentioned it at FW thread.

I've labeled it "Your Miles May Vary" (YMMV) since the small print of the offer states that you must present the mailer to qualify. However, a couple of readers at the FW thread have mentioned that their Capital One branch accepted a printout of the webpage. So there's a chance for those who didn't receive the offer in the mail to get the bonus. With the bonus being $200, it may be worth the effort to give it a try. If your branch accepts it, please leave a comment. The two branches that were reported to accept the webpage printout were in New York City and New Jersey.

Other Capital One Bonuses

Capital One Direct Banking is still offering a $50 bonus that's available nationwide. This requires that you open the online savings account and have $10K or more in it on 5/29/09 (see post).

Costco members can get up to a $60 bonus and receive little higher rates (see post).

As of 5/07/09, the Online Savings Account has a rate of 2.01% APY for balances of at least $10,000 (1.01% for below). Minimum initial deposit is $1, and it has no monthly service fees. I have more details on this account in this review.

The High Yield Money Market Account has a less competitive yield (1.40% APY for all balances as of 5/07/09). Unlike the savings account, it offers limited check writing, and the checks are free.

The main downside with these two accounts is a slow ACH transfer system. Reports are that it takes at least 3 business days to complete an electronic transfer with at least 2 days of losing interest.

Capital One used to have some competitive CD rates, but they're currently not competitive.

Capital One has two FDIC charters:
I've been told by a Capital One banking rep that new deposits are held by Capital One, N.A. The FDIC shows Capital One, N.A. to hold most of the deposits, so this seems to be correct.
Comments (2)
2.89% 7-Month CD & 3.05% Money Market at Raymond Federal Bank in Washington State - Local Only
Wednesday, May 6, 2009 - 6:48 PM CT

Update 5/19/09: The rates have fallen. Please check the bank's website for the latest rates.

Raymond Federal Bank continues to offer competitive CD specials. The latest ones include a 7-month and 30-month CD. The 7-month CD yields range from 2.79% APY for a $100 minimum deposit to 2.94% APY for a $50,000 minimum. The 30-month CD yields range from 3.10% APY for a $100 minimum deposit to 3.25% APY for a $50,000 minimum. CDs are also available in an IRA.

The bank also has an attractive rate on its Premier Plus Money Market account. The current rate is 3.05% APY. Minimum to open and earn this interest is $20,000. The rate falls to 1.01% for balances under $20,000.

These rates are listed in the bank's rate table as of 5/06/09.

The bank appears to require a branch visit to open accounts. Branches are located in the Washington State cities of Raymond, Long Beach and South Bend.

I last reported on this bank in early April when it was offering a 3.14% 16-month CD. I must have missed the money market account.

Raymond Federal Bank has strong ratings for safety and soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1934 (FDIC Certificate # 28266).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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3.25% 12-Month CD at a Cornerstone Bank in Georgia - Local Only
Wednesday, May 6, 2009 - 6:45 PM CT

Update 6/20/09: The CD special is no longer listed at the bank's website. Please refer to the bank's website for the latest rates and specials.

Cornerstone Bank is offering a promotional one-year CD with a rate of 3.25% APY. Minimum deposit is $5,000, and the maximum is $100,000. It's also available for IRA and business accounts. This rate is listed at the bank's promotion page as of 5/06/09.

Based on past reports, this bank requires new customers to come into the branch to open accounts. Branches are located in Atlanta, Decatur and Sandy Springs, Georiga.

The bank's ratings for safety and soundness are weak: 2 stars (problematic) at BauerFinancial and 1 star (lowest) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 2001 (FDIC Certificate # 35027).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
Comments (3)
3.25% 2-Year CD at USAA Bank - Nationally Available but Membership Restrictions
Wednesday, May 6, 2009 - 9:31 AM CT

USAA Bank is offering a 3.25% APY 2-year promotional CD. Minimum deposit is $1,000. The offer expires 5/31/09. The small print states that you must be eligible for USAA property and casualty insurance.

This promotion doesn't seem to be listed at USAA's website. A reader reported being emailed this offer. The email included this link to a webpage that describes the offer and provides a link to the online application. I just called USAA, and the CSR said that those who qualify for USAA property and casualty insurance, but did not receive the offer should still qualify for this promotion. Make sure to mention the offer code CEO CD. The phone number is (800) 531-8132.

To be eligible for USAA insurance, you must have some military connection. Details are provided at this USAA page.

USAA Bank is also offering a $100 checking bonus through 5/31/2009 (see post). It has the same eligibility requirements as this CD.

USAA Bank's deposit products are now available to all

A commenter in the previous post mentioned that USAA Bank now allows any U.S. citizen to open a checking account. I was also told this today by the USAA CSR. According to the CSR, their bank deposit products are open to all. However, their loans and insurance still require the military connection. For this CD and checking promotion, you'll still need the military connection to qualify since you must be eligible for USAA property and casualty insurance.

USAA Bank's Free Checking account has many perks including free worldwide ATM use and free checks. USAA Bank also has a history of competitive rates on its CDs (see post).

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 (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 12/31/08 data.

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

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
Comments (1)
Competitive Money Market, Savings and CD Rates at United Central Bank in TX, CA, GA, MD & VA
Wednesday, May 6, 2009 - 7:20 AM CT

United Central Bank is offering competitive rates on many of its deposit accounts. For the Global Money Market, the rate of the bottom tier is 2.39% APY for balances of $5K to $75K. The rate is 2.59% APY for balances from $75K to $300K. The top rate is 3.10% APY for balances over $1 million. Minimum balance to avoid a $10 monthly service charge is $5K.

There's also a good deal on their Global Savings account. The top rate is 2.50% APY for balances over $50K. The rates for the lower tiers are also fairly competitive with a 2.00% APY for balances from $25K to $50K and 1.50% APY for under $25K. Minimum balance to avoid a monthly fee is $1K.

United Central Bank also offers a installment savings account called the Fixed Rate Super Saver Installment CD. The rate is 3.40% APY for terms from 12 to 60 months. The installment savings account requires that you make monthly deposits during the term. It requires a checking account which will be debited monthly to fund the installment account.

My last post on this bank was in November 2008 when they had some good deals on promotional CDs. Their current CD rates aren't great, but they're competitive. The most competitive are the short term rates which include 2.00% APY for 3 months, 2.25% APY for 6 months and 2.50% APY for 12 months. These rates are also available in IRAs.

The above rates are listed at the bank's rates page as of 5/06/09.

It appears a branch visit is required to open an account. Branches are located in several cities in Texas, California, Georgia, Maryland and Virginia. Some of the major cities include Los Angeles, Austin, Houston and Dallas.

United Central Bank has fair ratings for safety and soundness: 3.5 stars (good) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 12/31/08 data. The bank has been FDIC insured since 1984 (FDIC Certificate # 25330).

Thanks to the reader calwatch who mentioned this bank and money market account in the Daily Deals & News Post.

Other High Rates

For other top savings, money market accounts, CDs and installment savings accounts, refer to the following pages:
Comments (20)
Installment Savings Account with High Rates at Hanmi Bank - CA Only
Tuesday, May 5, 2009 - 7:16 PM CT

Hanmi Bank is offering some competitive rates on its Prime Installment Savings Account. The yields range from 4.34% APY for a 12-month term to 5.65% APY for a 60-month term. Below is the full list of rates as listed at the bank's Prime Installment Savings Page as of 5/05/09:
  • 4.34% APY 12-month
  • 4.34% APY 18-month
  • 4.86% APY 24-month
  • 4.86% APY 30-month
  • 5.13% APY 36-month
  • 5.39% APY 48-month
  • 5.65% APY 60-month
I was concerned that the rates may be out-of-date since there's an August effective date. I just called the bank, and I confirmed these rates are still available. I wasn't able to get additional details such as if there are higher rates with auto transfer. Update 5/9/09: Readers have reported that you get an extra 0.25% if you have auto transfer.

The installment savings account requires that you make monthly deposits during the term. The deposits earn a guaranteed interest rate, and you'll receive the contract amount at maturity if you maintain the monthly deposits.

Some important features of Hanmi's Prime Installment Savings account include:
  • The interest rate and APY in effect at account opening will be paid until maturity.
  • The minimum contract amount is $1,000. The contract amount may increase in multiples of $1,000 with a maximum of $100,000 (updated 10/08/09)
  • Interest will be compounded daily, and interest will be credited to your account quarterly.
  • If you withdraw before term, a penalty of three months interest on the amount of the withdrawal will be imposed.
  • If you do not withdraw after maturity, your account will be transferred to a Regular Savings Account.
Hanmi Bank's non-internet accounts require a branch visit. Branches are located in several California cities including Los Angeles, Irvine, San Diego, Rancho Cucamonga, San Francisco and Santa Clara.

Credit for this find goes to FW member krk77 who mentioned it in this FW thread.

Hanmi Bank's Internet CDs

Hanmi Bank had some excellent CD deals earlier this year. Currently, they have some fair deals on their internet CDs: 2.53% APY for 12 months and 2.28% APY for 9 months. These rates are listed in the bank's online accounts overview page as of 5/05/09. Even though you can apply online for these, you still must be a California resident.

Financial Overview

Hanmi Bank is having a tough time in this financial crisis. The bank's holding company issued 1st quarter results which showed continued troubles. The CEO stated that "we continued to experience higher delinquency rates and an increase in non-performing loans as a result of the prolonged economic slowdown." It's interesting to note in the results the bank mentioned an increase in the total cost of average interest-bearing deposits. It stated that this "was due in large part to an aggressive promotion (commenced in December 2008 and concluded in early March 2009) of flexible time deposits with attractive rates." In January they were offering a 4.20% 6-month CD which allowed unlimited deposits during the term. It appears this did attract a large amount of deposits.

As you might expect, Hanmi Bank's ratings for safety and soundness are weak: 1 star (lowest) at Bankrate and 3 stars (adequate) at BauerFinancial. Both are based on 12/31/08 data. As I recommend with any bank, it's best to stay under the FDIC limits. The bank has been FDIC insured since 1982 (Certificate # 24170).

Other Installment Savings Accounts

These installment savings accounts seem to be popular among Korean American banks. In the last couple of months, I've posted on several with high rates. Similar to NewBank, most are located around California and New York and require a branch visit. However, Wilshire State Bank is offering one that is available nationwide via an online application. It has rates up to 5.12% APY for a contract term of 3 years (see post). To find other installment savings accounts, refer to my Installment Savings Account Page.

Edit 10/08/09: Updated maximum contract amount to $100K. There used to be no limit.
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3.20% 24-Month & 2.71% 12-Month CD at Wheatland Bank in Illinois
Tuesday, May 5, 2009 - 9:10 AM CT

Wheatland Bank is offering a few competitive CD rates. The most competitive are the 12-month CD with a 2.71% APY and the 2-year CD with a 3.20% APY. Terms over 2-years also have a 3.20% APY. Minimum deposit is $2,500. Rates apply to personal, business and IRA CDs. These rates are listed at the bank's rate table as of the morning of 5/05/09.

The bank also has a decent rate on its money market account. It's currently 2.00% APY for balances over $2,500. When I last posted on this bank in September 2008, the rate was 3.44% APY. So it has some history of competitive rates.

It appears a branch visit is required to open accounts. The bank is located in Naperville, IL which is in the Chicago metropolitan area.

It's a fairly new bank that was just established in 2007. Consequently, it doesn't have a rating at BauerFinancial. Bankrate gives the bank 3 stars (performing) in its Safe & Sound ratings. This is based on 12/31/08 financial data. The bank is FDIC insured (FDIC Certificate # 58429).

Thanks to the reader who mentioned this bank in the Daily Deals & News Post.

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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Up to $120 Savings/Checking Account Bonus at Umpqua Bank in CA, OR & WA
Tuesday, May 5, 2009 - 9:07 AM CT

Umpqua Bank has a promotion called the Sweet Saver in which you can earn up to $120 for having 12 months of automatic transfers from an Umpqua checking to savings account. The bank has set up a special microsite at savehardspendsmart.com that describes this promotion. Here are the steps to receive the bonuses:
  • Open an Umpqua Sweet Saver savings account, along with an Umpqua Free Checking account, before August 28, 2009
  • Using umpqua.online banking, set up an automatic funds transfer from your Umpqua Free checking to the Umpqua Sweet Saver account of at least $50 per month and make sure your savings account balance grows by at least $50 per month
  • Umpqua will add in $10 a month through April 2010.
Some important details:
  • Only available to residents of CA, OR and WA (according to online application FAQ)
  • Minimum opening balance for both accounts is $100
  • Savings account has a $200 minimum balance to avoid a $3/month fee
  • Savings account balances will earn a promotional fixed interest rate of 0.50% through 4/30/2010 the promotional period
  • Maximum funds credit $120
  • Offer limited to one per customer, customer will be defined by tax identification number
  • All offers subject to credit approval
  • Funds credit is tax reportable
There's an online application provided by Andera that allows electronic funding using your existing checking or savings account. In the FAQ of this application, it states that they are not currently able to offer financial services for those outside of California, Oregon and Washington State.

With a 0.50% interest rate, you won't want to put more than the minimum balance necessary to qualify for the $10 credits. You'll lose a little by keeping a balance in this account, but the $10 credits more than makes up for this loss. Let's say that your average balance for the year is $600. If that $600 was earning 2.5% instead of 0.5%, that will cost you about $12 in interest.

Umpqua Bank's personal free checking has no monthly fees, first order of checks is free and online bill payment is free (for up to 15 bills per month). The only issue I see with the account is that there's a $2 fee for ATM withdrawals at other institutions.

Branches are located mostly in Northern California and in Oregon with a few branches in Washington State.

The bank has been FDIC insured since 1953 (FDIC Certificate # 17266).

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

Other Bank and Credit Union Bonuses

To find other bonus deals, please refer to my bank bonus page which has all of my recent bank bonus posts.
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2.85% 24-Month Add-On CD at NexBank in Texas
Tuesday, May 5, 2009 - 9:06 AM CT

NexBank is offering an attractive CD promotion. It's a 24-month CD with a yield of 2.85% APY. The minimum deposit is $10,000. The rate is listed at the bank's promotion page as of 5/05/09. It's not the best rate for a 2-year CD, but it has a nice add-on feature. Additional deposits of $10,000 or more are allowed anytime. There's also a bump feature which is typically less useful. It allows customers to bump-up the rate once per a 12-month period to the rate of NexBank's current 24-month CD offering.

When I contacted this bank last year about a similar promotion, I was told out-of-state customers can apply without a branch visit. Since these policies can often change, I recommend contacting the bank if you're interested.

Branches are located in Dallas and Plano, Texas.

NexBank has fair ratings for safety and soundness: 3.5 stars (good) at BauerFinancial and 3 stars (performing) at Bankrate.com. These ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1934 (FDIC Certificate # 29209).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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$100 Checking Account Bonus at American Eagle Credit Union in MO & TX
Tuesday, May 5, 2009 - 9:04 AM CT

American Eagle Credit Union is offering up to $100 for opening a new checking account and adding some free services. The promotion requires some work to receive the full $100:
  • $25 for opening a new checking account with a Visa Check Card
  • $25 for direct deposit and one transaction
  • $25 for enrolling in bill pay and paying 3 bills
  • $25 for doing all three
The offer is good through 6/30/2009.

For Missouri, membership is open to those who live or work in St. Louis, St. Charles, Franklin or Jefferson County. For Texas, membership is open to those who live or work in the city of Paris, Lamar County, and in parts of the Dallas metro area. There are also other areas and several select employer groups in which you can be eligible to join. Please refer to their About page for the full details. Membership requires a minimum $5 deposit in the savings account.

American Eagle Credit Union is a division of Anheuser-Busch Employees' Credit Union. Consequently, there are branches in several states including California, Colorado, Florida, Georgia, Missouri, New Hampshire, New Jersey, New York, Ohio, Texas and Virginia. Anheuser-Busch Employees' Credit Union also has this same checking account promotion.

The credit union is federally insured by the NCUA (Charter # 62715).

Other Bank and Credit Union Bonuses

To find other bonus deals, please refer to my bank bonus page which has all of my recent bank bonus posts.
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Higher Monthly Fees and Minimum Balance Requirements for EverBank's Yield Pledge Money Market Account
Monday, May 4, 2009 - 7:39 PM CT

It's yet another example of banks raising fees. EverBank is changing their monthly fee on their Yield Pledge Money Market account. Readers have mentioned that they've received notice from EverBank of account changes that will be effective on June 1, 2009. The new fee is already listed in the Truth-in-Savings document located at the bottom of EverBank's Yield Pledge MMA page:
In any month when average monthly balance is below $5,000 monthly fee....$8.95

The minimum balance used to be $1,500 with a monthly fee of $4.95.

EverBank is not alone. Last month Amboy Direct announced a new monthly fee on its Premium Savings Accounts. Commenters in that post also mentioned that UFB Direct started charging a monthly fee of $5 for balances under $10K on its Absolute Savings Account. And Bank of America recently announced new fees on its MyAccess Checking account.

It's bad enough that we're facing record low interest rates on our savings. Monthly fees can turn the effective interest rate negative. For example, the ongoing yield on the EverBank MMA is currently 1.65% APY. With that interest rate, it takes a balance of about $6,500 just to earn $8.95 of interest in one month.

For those who want to take advantage of EverBank's 3-month intro rate of 2.51%, you may be better off with the FreeNet Checking which is still free of monthly fees if you don't have Online Bill Pay. Refer to this this post for more details on EverBank and these accounts.

Thanks to the readers who informed me of this higher fee.
Comments (33)
4.01% Reward Checking Account at Countybank in SC
Monday, May 4, 2009 - 8:56 AM CT

Update 1/29/2010: Countybank cut its top rate to 4.01% APY. Also, the online application is now only accepting zip codes from South Carolina.

Countybank is offering a reward checking account called Kasasa Cash. The account offers the following rates and features if certain monthly requirements are met:

  • 4.01% APY on balances up to $25,000
  • 1.01% on balances over $25,000
  • 0.02% base rate if qualifications are not met
  • Refunds of ATM fees nationwide

The monthly requirements include:

  • 10 debit card purchases
  • one direct deposit or automatic payment
  • sign in to your online banking
  • receive e-statements

Additional features of the account regardless of the monthly requirements include:

  • $100 minimum initial deposit
  • no minimum balance requirement
  • no monthly service charge
  • Online Bill Pay appears to be $7.95/mo (see summary) - according to CSR, it may be free. Contact bank for details.

There's an online application at the bank's Kasasa Cash Page. The "Apply Now" button takes you to the Kasasa website that provides an online application. You can also search at Kasasa.com for reward checking accounts. The Countybank application used to allow all zip codes. However, a reader has reported that it now only accepts zip codes from the following states:

  • North Carolina
  • South Carolina
  • Georgia
  • Florida
  • Tennessee

Update 1/29/2010: I checked zip codes for the above states at the Kasasa application page, and only SC zip codes were accepted. It appears they have reduced availability to only SC.

I thought Kasasa.com was another reward checking provider to give BancVue and FIRST ROI (the main provider and marketer for reward checking accounts) some competition. But according to Kasasa's About Us Page, "Kasasa products are created, marketed and serviced by BancVue and FIRST ROI." Perhaps they wanted to give reward checking a fancier name.

Countybank is based in South Carolina with branches in Greenwood, Lexington and Greenville. The bank has been FDIC insured since 1934 (FDIC Certificate # 9155). Update: The bank has strong ratings for safety and soundness: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 12/31/08 financial data.

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:

01/29/10: 4.01% APY up to $25K (application only accepts zip codes from SC)
05/04/09: 4.75% APY up to $25K; 1.01% over; 0.02% base

Edit 1/29/10: Application only accepts zip codes from SC
Edit 8/08/09: Application only accepts zip codes from some states
Edit 7/10/09: Application no longer accept West Coast zip codes.
Edit 5/31/09: Corrected 2nd tier rate.
Edit 5/27/09: Corrected cost of bill pay. It appears to be $7.95/mo instead of free (5/28/09 - may actually be free)

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3.00% 2-Year CD & Other Competitive CD Rates at First Republic Bank in Several States
Monday, May 4, 2009 - 8:55 AM CT

Update 5/09/09: The CD rates have fallen. Please check the bank's website for the latest rates.

First Republic Bank continues to offer a few good CD deals. Some of the rates are down from last month, but they remain competitive. Most of the top rates are CDs with mid and long terms. These include 3.00% APY for 2 years, 3.50% APY for 3 years, 3.75% APY for 4 years and 4.00% APY for 5 years. Minimum deposit is $5,000. There's also a 10-month liquid CD with a fair rate of 2.05% APY. Minimum deposit is $10,000. Refer to this previous post for details about the liquid features.

These rates are listed in the bank's rate table as of 5/04/09 for certain parts of the country. You have to enter your zip code to see the table. The above rates were based on a Los Angeles zip code. In the past these rates have been the same for all of the areas where they have branches.

First Republic has branches located in nine major metropolitan areas: San Francisco, Los Angeles, Santa Barbara, Newport Beach, San Diego, Las Vegas, Portland, Boston and New York City.

First Republic is a division of Merrill Lynch Bank & Trust Co., FSB which is a member FDIC (FDIC Certificate # 34571). Merrill Lynch was acquired by Bank of America last year, and a reader mentioned in the last post that Bank of America has let it be known in February that it seeks to sell First Republic. Merrill Lynch Bank & Trust Co.'s financial ratings for soundness are fair: 3 stars (adequate) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 12/31/08 financial data.

Thanks to the reader who mentioned these latest CD rates in the Daily Deals & News Post.

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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3.51% Reward Checking Account at Lapeer County Bank & Trust Co. in Michigan
Sunday, May 3, 2009 - 6:08 PM CT

Update 10/04/09: The top rate has fallen to 3.51% APY.

Lapeer County Bank & Trust Co. has a reward checking account called Green Rewards Checking. The account offers the following rates and features if certain monthly requirements are met:
  • 3.51% APY on balances up to $50,000
  • 0.20% APY on balances over $50,000
  • 0.20% base rate if qualifications are not met
  • ATM refunds nationwide up to $25 per cycle
The monthly requirements include:
  • 12 debit card purchases
  • one direct deposit or ACH automatic payment or one payment using Online Banking's Bill Pay
  • receive e-statements
Additional features of the account regardless of the monthly requirements include:
  • $25 minimum initial deposit
  • No minimum balance requirement
  • No monthly service charge
  • Free Online Bill Pay
  • Multiple accounts can be opened, but requirements must be met for each account
There's an online application, but in the FAQ it states that you need to complete your new account opening with an in-branch visit. Branches are located in the Michigan cities of Lapeer, Attica, Fostoria, Imlay City and Metamora.

The bank has been FDIC insured since 1934 (FDIC Certificate # 14913).

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:
10/01/09: 3.51% APY up to $50K
05/03/09: 4.51% APY up to $50K; 0.20% over; 0.20% base
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2.50% 9-Month CD at Danvers Bank in Massachusetts
Sunday, May 3, 2009 - 6:06 PM CT

Danvers Bank is offering a special CD rate of 2.50% APY for terms of 9 and 12 months. Minimum deposit is $500. These rates are listed on the bank's rate table as of 5/03/09.

As of 5/3/09, Danver Bank continues to offer an online 4-month CD with a 2.50% APY and a 2.05% APY online savings account. As I described in this February post, these online accounts are available nationwide. The 9 and 12-month special CDs are not listed in the online application and may require a branch visit.

They also offer a high-yield reward checking account that can be opened online (see post).

Branches are located in several Massachusetts cities including Boston, Danvers, Salem and Wilmington.

The bank has been around since 1850 and has been FDIC insured since 1985 (Certificate # 90185).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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3.10% 24-Month CD & Other CD and Money Market Deals at AnchorBank in WI
Sunday, May 3, 2009 - 6:02 PM CT

Update 5/09/09: The CD rates have fallen. Please check the bank's website for the latest rates.

AnchorBank continues to offer competitive rates on its CD specials. One is a 2.70% APY 13-month CD. Minimum deposit is $5,000. The other is a special 3.10% APY 2-year CD. Minimum deposit is $10,000. The rate is 3.00% APY for a $500 minimum. These rates are listed in the bank's CD rate table as of 5/03/09. Note, it requires you to enter a Wisconsin zip code. I'm not sure if rates vary by zip code.

The 2-year CD is called the Collector's Addition CD. It allows deposits of $100 or more anytime prior to maturity. However, the disclosure states that the interest rate may vary if you use the option of depositing into the account. Also, they reserve the right to refuse deposits.

There's also a good deal on a 7-month CD that the bank calls Seven Month Rising Rate CD. The interest rate is 2.30% APY for the 7-month period as of 5/03/09. At the end of the 7 months, you can opt out or automatically opt up to a guaranteed higher interest rate for the next six months. Currently that rate is 2.70%. So if you keep the CD for 13 months, the rate is 2.50% APY.

These rates are down since my March post on this bank, but the rates remain competitive.

Money Market Account with 2.10% APY through 10/01/09

There's also a money market account special with a 2.10% APY guaranteed to 10/01/2009 on balances of at least $25,000. For balances under $25,000 but over $10,000, the rate falls to 0.72%. The rate goes way down to 0.10% for balances under $10,000. Maximum deposit is $250,000.

A branch visit appears to be required to open an account. Branches are located throughout Wisconsin including the cities of Green Bay, Madison and Milwaukee.

AnchorBank's ratings for safety and soundness are a little weak: 2 stars (problematic) at BauerFinancial and 1 star (lowest) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1938 (FDIC Certificate # 29979).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
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2.75% Savings Account at Regal Financial Bank in Washington State
Sunday, May 3, 2009 - 5:59 PM CT

Update 5/09/09: The savings account rate has fallen to 2.50% APY. Please check the bank's website for the latest rates.

Regal Financial Bank is offering a savings account called Emerald Savings with a rate of 2.75% APY for balances of $2,500 to $250,000. The rate is 0.50% for balances under $2,500. These rates are listed at the bank's rate table as of 5/03/09. According to a reader who mentioned this account, the rate has recently fallen from 3% to 2.75% APY.

My last post on this bank was in February when they were offering a 4% 12-month CD. Currently, they don't seem to be offering any good CD deals.

After my February post, the bank began restricting accounts to Washington State residents. Regal Financial is a small bank based in Seattle, Washington. The bank's ratings for safety and soundness have gone down a bit and are a little weak: 3 stars (adequate) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 2002 (FDIC Certificate # 57236).

Thanks to the reader Rav who mentioned this bank in the Daily Deals & News Post.
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Bank Deals Weekly Summary for May 2, 2009
Saturday, May 2, 2009 - 11:21 PM CT

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

Based on the FOMC meeting last Wednesday, I'm afraid deposit rates will likely stay low for a while. The Treasury gave more bad news for savers by issuing the second lowest I Bond fixed rate in the I Bond history even when the inflation component was -5.56% (see post).

Savings Account Rates

Another new internet savings account appears to have been overwhelmed by depositors. Darby Direct has restricted new accounts to only Georgia residents. They had been offering this account nationwide. This is another example of banks restricting their internet accounts. Doral Bank Direct and Clear Sky Accounts had similar issues earlier this year when they launched promos. Both are now accepting new nationwide applications, but their hot deals are over.

I reported on a new hot savings account deal this week. It's the new internet bank ProvidentNJ Direct which is offering a savings account with a 3.25% APY for 3 months (see post). Hopefully, this will last for a while.

Wilshire State Bank continues to offer high rates on its Rainbow Installment Savings account. The rates range from 4.60% APY for a 12-month term to 5.12% APY for a 3-year term (see post).

Below is the list of savings account rate changes for this week. OnBank continues to disappoint with yet another rate cut (0.75% to 0.50%). It's hard to believe they were one of the rate leaders last year. On the positive side, Bank of Internet increased its online savings account rate from 2.00% to 2.06% APY.

Rate Hikes:
  1. ProvidentNJ Direct - 3.25% 3mo promo (new)
  2. Bank of Internet - 2.06% (was 2.00%)
Rate Drops:
  1. Grand Yield Direct - 1.90% (was 2.05%)
  2. Darby Direct Savings - now restricted to GA residents
  3. UmbrellaBank MMA - 2.00% (was 2.05%)
  4. Salem Five Direct Chk - 1.40% to 1.55% (was 1.50% to 1.65%)
  5. Flagstar MMA - 2.20% (was 2.30%)
  6. Alliant CU Savings - 2.50% (was 2.75%)
  7. Alliant CU Checking - 2.25% (was 2.50%)
  8. Centennial Bank Savings - 1.77% to 2.79% (was 2.28% to 3.30%)
  9. OnBank Savings - 0.50% (was 0.75%)
  10. 1st Constitution Savings - 2.50% 3mo promo, 2.05% stnd (was 2.75%/2.50%)
  11. M&T Bank savings - 0.50% (was 0.75%)
  12. WaMu Savings - 0.75% (was 0.85%)
  13. DollarSavingsDirect - 2.00% (was 2.05%)
  14. Schwab Bank Investor Checking - 0.75% (was 1.00%)
  15. Schwab Bank Investors Savings - 1.75% (was 2.00%)
  16. Clear Sky Accounts - 2.05%, Now accepting new applications
  17. Broadway Anniv Savings - no longer available
  18. Union Federal Savings - 2.10% (was 2.25%)
  19. Nationwide Bank MMA - 2.15% (was 2.24%)
Certificate of Deposit Rates

Several credit unions lowered their CD rates for May including Alliant CU, Consumers CU and Delta Community CU. On the plus side, Pentagon FCU and Melrose CU kept their CD rates the same, and they remain competitive. Unfortunately, credit unions are starting to catch up to banks with lower rates. On the positive side, GMAC Bank increased their 12-month CD rate from 2.75% to 2.80% APY. A few other banks also increased some of their longer term rates. Perhaps we're nearing a bottom for rates.

Some of the CD deals I reported on in previous weeks continue. Below are some of the best new and old ones that are still active.

Best Nationwide CD Deals as of 5/02/09: The full list of nationwide CD rates is farther down.
  1. 3.25% 3-mo savings account promo at ProvidentNJ Direct (account review)
  2. 2.50% 4-mo CD at Danvers Bank (account review)
  3. 2.53% 6-mo CD at Wilshire State Bank (account review)
  4. 2.50% 9-mo CD at Doral Bank Direct (account review)
  5. 3.04% 12-mo CD at Melrose CU (account review)
  6. 2.80% 12mo CD at GMAC Bank (account review)
  7. 4.00% 60-mo CD at Pentagon FCU (account review)
Best Local CD Deals as of 5/02/09: Some of the best CD deals are from banks and credit unions that don't offer accounts nationwide. Refer to the recap section and the state index section to find all the recent local deals. Here are some of the best deals to note.
  1. 3.29% 6-mo CD & 3.87% 15-mo CD at Progressive CU in NY, NY (account review)
  2. 2.85% 6-mo Liquid CD at Saehan Bank in CA (account review)
  3. 2.75% 6-mo CD ($25K max) at STC Capital Bank in Chicago (account review)
  4. 3.00% 9-mo CD at Pacific Transportation FCU in CA (account review)
  5. 3.00% 12-mo CD at First Priority CU in MA (account review)
  6. 3.10% 10-mo CD at Pacific Crest Savings Bank in WA (account review)
  7. 3.30% 12-mo CD at Self Reliance New York FCU (account review)
  8. 2.85% 12-mo Add-On CD at Nara Bank in CA, NY & NJ (account review
  9. 3.04% 15-mo CD at Athol-Clinton Co-operative Bank in MA (account review)
  10. 3.25% 17-mo CD at Royal Asian Bank & Royal Bank America in PA, NY & NJ (account review)
  11. 3.00% 25-mo CD & 2.70% 13-mo CD at Broadway Bank in Chicago (account review)
  12. 4.50% 60-mo CD & 2.75% 12-mo CD at Urban Trust Bank in FL & MD (account review)
Reward Checking Accounts

I reported on 5 new reward checking accounts this week with rates ranging from 4.00% to 4.15% APY (see below). Two of the accounts are available nationwide, and one of these has a cap of $50K. Like savings account rates, rates are falling on many of these reward checking accounts. There were many rate drops on May 1st. I'm in the process of updating my High Yield Checking website and also my nationwide table.

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 at this page. Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Reward Checking, 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 May 2, 2009

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)
Comments (6)
Three Banks Fail Today - 30th, 31st & 32nd Failures for 2009
Friday, May 1, 2009 - 11:23 PM CT

This was another busy Friday for the FDIC. Three banks were closed today: Silverton Bank, N.A. in Georgia, Citizens Community Bank in New Jersey and America West Bank in Utah. Silverton Bank wasn't a typical bank. It was a commercial bank that only served other banks. It did not take deposits directly from the general public. The FDIC has created a bridge bank that it'll control for the next 60 to 90 days allowing for it to be liquidated in an orderly fashion.

The other two banks were the more typical type of banks. For both of these closures, the FDIC was able to find another bank to assume all deposits. So no depositors will lose any money. The only potential concern for depositors will be the decisions by the acquiring banks on the CD interest rates. They're free to lower the CD rates starting May 2nd. However, depositors are free to withdraw funds without an early withdrawal penalty.

One interesting note about America West Bank in Utah is that it was one of the few Utah banks that offered a reward checking account. It'll be interesting to know how the new bank will handle the interest rates. Will they pay the reward rates for depositors who qualified during the previous month or just the base rate.

Here's a summary of the three failures:

30th Bank Failure of 2009 in Georgia
  • FDIC Press Release
  • Closed Bank: Silverton Bank, National Association
  • Location: Atlanta, GA
  • Size: 6 regional offices, $4.1 billion in assets, $3.3 billion deposits
  • Possible Uninsured Deposits: All deposits expected to be within the FDIC's insurance limits
  • Acquiring Bank: None
  • Estimated Cost to Deposit Insurance Fund: $1.3 billion
  • Financial Ratings: ? star at BauerFinancial, 1 star (lowest) at Bankrate.com
31st Bank Failure of 2009 in New Jersey
  • FDIC Press Release
  • Closed Bank: Citizens Community Bank
  • Location: Ridgewood, NJ
  • Size: 1 office, $45.1 million assets, $43.7 million deposits
  • Possible Uninsured Deposits: All deposits transferred, including brokered deposits
  • Acquiring Bank: North Jersey Community Bank, Englewood Cliffs, NJ
  • Estimated Cost to Deposit Insurance Fund: $18.1 million
  • Financial Ratings: 0 star (lowest) at BauerFinancial, 1 star (lowest) at Bankrate.com
32nd Bank Failure of 2009 in Utah
  • FDIC Press Release
  • Closed Bank: America West Bank
  • Location: Layton, UT
  • Size: 3 offices, $299.4 million assets, $284.1 million deposits
  • Possible Uninsured Deposits: All deposits transferred, including brokered deposits
  • Acquiring Bank: Cache Valley Bank, Logan, UT
  • Estimated Cost to Deposit Insurance Fund: $119.4 million
  • Financial Ratings: 0 star (lowest) at BauerFinancial, 1 star (lowest) at Bankrate.com
References:
Thanks to the readers who emailed me news of these closures.
Comments (20)
New I Bond Rates - Government Gives No Incentives to Buy
Friday, May 1, 2009 - 9:26 AM CT

I was hoping that the Treasury would give responsible savers a little bit of good news by issuing a respectable fixed rate on the Series I Savings Bonds today. No luck. The new fixed rate is a pathetic 0.10%. The inflation component is now -5.56% which was already known on April 15th. This results in a new composite rate of zero percent. The composite rate is typically the sum of the fixed rate and the inflation component, but since the composite rate can't go below zero, it's just zero percent.

Unfortunately, all previouslly issued I Bonds will also be zero percent for 6 months. Refer to my previous post to see when your I Bond will start the 6-month period of 0% interest. The old I Bonds with high fixed rates are still good deals even with this 6-month period. When inflation returns, the rates will look much better.

For more information on I Bonds, refer to my April post, and for the official information, refer to the Treasury Direct website.
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Popularity of Shorter Term CDs
Friday, May 1, 2009 - 9:08 AM CT

There are circumstances today that make CD terms under one year more appealing than terms of one year and over. One bit of news supporting this is the latest CD rate changes at GMAC Bank in which the 6-month rate dropped and the 1-year rate increased.

One obvious reason for the higher demand of shorter term CDs is the expectations of higher inflation next year when the effects of the huge deficit spending hits the economy. Higher inflation typically leads to higher interest rates as the Fed will try to keep inflation in check.

Another reason why people may be preferring shorter terms is the temporary provision of the basic $250,000 FDIC deposit insurance limit. It's still scheduled to return to $100,000 after December 31, 2009. If you have an individual account (not a revocable trust), principal and interest over $100,000 would no longer be covered in 2010 assuming the government doesn't extend or make permanent the $250,000 coverage. I haven't heard any banks allowing penalty free early withdrawals if the coverage limit drops. So those over $100,000 will either have to live with the uninsured deposits or take an early withdrawal penalty to keep under the limits.

Bills to make the $250K limit permanent have been in Congress through out this year. Refer to this post for my last status.

Even if the $250K limit is not made permanent, you can still can be insured above $100K through joint accounts and revocable trust accounts. Refer to this post for details, and this post for recent deposit insurance coverage changes that make it easier to set up revocable trust accounts that qualify for higher coverage.
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GMAC Bank Raises the 12-Month CD Rate
Friday, May 1, 2009 - 9:04 AM CT

GMAC Bank raised its 1-year CD rate today from 2.75% to 2.80% APY. Unfortunately, its 6-month CD rate fell from 2.25% to 2.15% APY. Rates for all the other terms remain the same. GMAC Bank's 9-month CD is also competitive with a 2.30% APY. Typically, GMAC Bank changes rates on Fridays so this should last at least through next Thursday.

Refer to GMAC Bank's CD rates page and their FAQ page for the official CD details. Some things to note include:
  • Minimum deposit is $500
  • CD can be opened online or by phone
  • CD can be funded by ACH electronic funds transfer or by check
  • If funded by check, rate does not lock until check is received
  • Early withdrawal penalty is 180 days of interest for terms over one year, 90 days of interest for shorter terms
  • 10 day grace period at maturity in which you can close CD without penalties
  • Interest can be posted monthly, quarterly, semi-annually or annually
  • Multiple POD beneficiaries are allowed (may need to be set up by phone or secure message)
  • No IRA accounts provided
GMAC Bank's money market and savings account rates remained the same, and they're still very competitive: 2.25% APY for the Online Savings Account and 1.90% APY for the Money Market Savings Account as of 5/1/2009. GMAC Bank continues to be my favorite online bank due to its ACH bank-to-bank transfer service (see my latest OSA review).

GMAC Bank's Future?

GMAC Bank's parent, GMAC Financial Services, has been hurt with big losses in both its mortgage and auto loan businesses. The latest news is that GMAC has "reached an agreement to provide auto financing for Chrysler's dealers and customers and in turn will receive capital from the government." In late December, the Federal Reserve allowed GMAC to become a bank holding company. GMAC then received $5 billion from the Treasury Department's bailout fund. So with GMAC continuing to receive help from the government, there doesn't seem to be any immediate concern about bankruptcy.

If GMAC goes bankrupt, what happens to GMAC Bank? It may not mean a bank failure. When Lehman Brothers filed for bankruptcy last year, Lehman Brothers Bank continued to operate (see post)

If you stay below the FDIC limits, there's not much to worry about. GMAC Bank deposit accounts are FDIC insured (FDIC Certificate # 57803).

One thing to note is that the current basic $250K deposit insurance limit is only temporary and is scheduled to go back to $100K on December 31, 2009. Some references on this issue:
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$100 Checking Account / Direct Deposit Bonus at Bank of the West in Several States
Friday, May 1, 2009 - 9:03 AM CT

Bank of the West has a new promotion in which you can earn $100 for opening any new personal checking account with monthly direct deposit of at least $250. The promotion details are listed in bank's promo page at www.bankofthewest.com/neighbor. Checking account must be opened by 6/19/09. Some important details mentioned in the small print include:
  • First recurring direct deposit must be posted to your account within 60 calendar days of your account opening date
  • Bonus will be credited to your account within 60 days after satisfaction of conditions
  • Offer valid for a new personal checking account opened from with $100 or more from a financial institution other than Bank of the West
  • Offer does not apply to second or multiple checking accounts and/or existing checking customers
  • Limit of one $100 bonus per household per calendar year
  • Value of the offer reported to the IRS on Form 1099
I called Bank of the West yesterday, and the CSR wasn't too helpful for additional details. It appears to be available at all of Bank of the West branches. Make sure to check with local branch. They do have an online application, but I don't know if you'll qualify for this promotion if you apply online.

Branches are located throughout the Western and Midwestern states including Oklahoma, Kansas, Minnesota, Nebraska, Colorado, Arizona, Nevada, Wyoming, Washington, Oregon and California. The bank has been FDIC insured since 1934 (FDIC Certificate # 3514).

Thanks to the readers who emailed me news of this promotion.
 
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