Bank Deals Blog - December 2009


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New Year's Eve Credit Union Liquidation
Thursday, December 31, 2009 - 7:27 PM

The last institution to fail in 2009 turned out to be a credit union. The NCUA just reported that it liquidated HeritageWest Federal Credit Union of Tooele, Utah. Chartway Federal Credit Union purchased and assumed HeritageWest Federal Credit Union’s assets, loans and shares. Unlike many credit union liquidations this year, this one wasn't tiny. It had $311 million in assets and served 40,000 members.

It appears that no member will lose any of their deposits that are over the NCUA limit. However, the NCUA press release doesn't provide many details. The FDIC does a better job on reporting on these details.

According to the NCUA press release, this is the 15th liquidation of a federally insured credit union in 2009. The number of bank failures in 2009 is 140. The last bank failures occurred on December 18th.

HeritageWest's ratings for safety and soundness were at the lowest level at both BauerFinancial (0 star) and Bankrate (1 star).

References:
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Update on ASI, Velocity Credit Union and Private Deposit Insurance
Thursday, December 31, 2009 - 12:16 PM

In September I posted on a Texas Credit Union, Velocity, which was trying to convert its NCUA federal deposit insurance to private insurance provided by American Share Insurance (ASI). Before the credit union can make this change, they must allow its members to vote on it. One of the reasons Velocity gave for this switch was the premium that NCUA was charging all credit unions to bail out the corporate credit unions. That's no longer an advantage. This CUNA article just reported that ASI "will charge its client credit unions a special premium assessment of 15 basis points, citing some losses at a few member credit unions."

There's a lot of concern about ASI in Nevada which has several major credit unions that depend on ASI for its deposit insurance. One of these credit unions, Silver State Schools Credit Union, has been hit hard by the Nevada real estate bust. It's the largest credit union in Nevada. The Las Vegas Review-Journal has reported on several developments with Silver State Schools and ASI this month. The CEO of Silver State Schools resigned from his job in December. He then returned to his job in less than a week after his resignation was disclosed. On the issue of ASI, the chairwoman of the NCUA, Deborah Matz, said the following at a conference earlier this month:
"If ASI, if one of their large credit unions fails, and they don't have the capital to pay out, those (credit union) members will not have their funds protected," Matz said in response to a question at the Credit Union Executive Society meeting in Palm Desert, Calif., on Dec. 9. "They will lose all their funds."

As you might expect the ASI CEO is trying to downplay these concerns, and as reported by Credit Union Times, Silver State Schools CEO also spoke up on this issue, and claimed "that NCUA Chairman Deborah Matz was unduly engaging in "scare" maneuvers to get rid of private insurance."

I wonder how many Velocity Credit Union members were aware of these developments in Nevada. It's too late now. The members vote at Velocity Credit Union is over. I just called Velocity, and I was told by the CSR that the results won't be known until the end of January.

For more information on ASI and the process credit unions must go through to drop federal insurance, please refer to my ASI review in September.
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Competitive Money Market, Checking and CD Rates at Georgia Primary Bank - Local Only
Thursday, December 31, 2009 - 12:12 PM

Georgia Primary Bank is offering good deals on several of its deposit products. The most competitive is its money market account. It's a tiered account with rates that range from 1.65% to 2.50% APY for a $100K balance. The interest checking account has rates that range from 1.25% to 2.00% APY for a $50K balance. Both accounts require a minimum balance of $2,500 to avoid a $10 monthly fee. The savings account has a 1.65% APY for all balances, and it only requires a $200 minimum to avoid a monthly fee. These rates are listed at the bank's rates page as of 12/31/09.

If you don't think the bank will be able to stay competitive with the rates of the above liquid accounts, some of their CD and IRA CD rates are also good deals. The two most competitive ones are the 2.00% APY 12-month CD and the 2.25% APY 18-month CD. Minimum deposit is $1,000. These rates are listed at the bank's rates page as of 12/31/09.

It appears that a branch visit is required to open an account. The bank is located in Atlanta, Georgia.

One reason for the high rates may be the fact that it's a fairly new bank that was established in late 2007. New banks often have deals to attract deposits. The bank seems to be healthy. Bankrate.com gives the bank 4 stars (sound) based on 6/30/09 financial data. BauerFinancial still labels the bank as a start-up. The bank has been a FDIC member since 2007 (FDIC Certificate # 58523).

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

Other Competitive Deposit Rates
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4.08% Reward Checking Account at Partners Financial FCU in Virginia - Local Only
Thursday, December 31, 2009 - 12:09 PM

Partners Financial FCU is offering a high-yield reward checking account called Imagine Checking. The account has the following rates and features if certain monthly requirements are met:
  • 4.08% APY on balances up to $25,000
  • 0.75% APY on portion of balance over $25,000
  • 0.10% base rate if qualifications are not met
  • Refunds natinowide ATM fees up to $25 per cycle
The monthly requirements include:
  • 10 signature-based debit card purchases (non-PIN)
  • One automatic withdrawal or direct deposit
  • Log into online banking
Additional features of the account regardless of the monthly requirements include:
  • No minimum balance requirement
  • No monthly service charge
  • Online Bill Pay is free with direct deposit and e-statements
Membership is open to those who live, work, worship, attend school, or regularly conduct business in the City of Richmond and in the counties of Chesterfield, Hanover, and Henrico. Please refer to the credit union's membership page for the full details.

Branches are located in the Virginia cities of Glen Allen, Richmond and Midlothian.

The credit union's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The credit union is federally insured by the NCUA (Charter # 12456).

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.
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Beware of Wrong Reports of FDIC Guarantee Changes
Thursday, December 31, 2009 - 6:14 AM

While watching NBC this morning, I heard the news anchor report that the FDIC will lower the deposit guarantee to $100,000 at the start of the new year. This was repeated twice on NBC's Early Today show. I then heard this repeated on my local NBC affiliate KXAN.

Don't worry. The $250,000 FDIC guarantee is not going away tomorrow. On May 20th, legislation was signed by the President which extended the temporary $250,000 coverage limit expiration from December 31, 2009 to December 31, 2013.

Here are the official details of the $250,000 guarantee from the FDIC:
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 (including IRAs) which will remain at $250,000 per depositor. (This supersedes the October 3, 2008 changes.)

This same $250,000 coverage limit also applies to federally insured credit unions. Refer to the NCUA website for details.

Confusion with FDIC's Transaction Account Guarantee Program?

Perhaps someone at NBC was reading an old report before May 20th. They may have also confused this $250K guarantee with the Full Guarantee Program for non-interest accounts. As this SFGate article describes, many banks are ending their participation at the start of the new year in the FDIC's Transaction Account Guarantee Program which provides depositors with unlimited coverage for noninterest-bearing transaction accounts. This program was designed mostly for businesses which require large balances in bank accounts to meet payroll and for other business needs. I hope individuals are not keeping this much money in non-interest accounts.

Here are the official details of the Transaction Account Guarantee Program from the FDIC:
The FDIC extended its temporary Transaction Account Guarantee Program through June 30, 2010. This program provides depositors with unlimited coverage for noninterest-bearing transaction accounts at participating FDIC-insured institutions. The unlimited coverage applies to all personal and business checking deposit accounts that do not earn interest (including Demand Deposit (DDA) accounts), low-interest NOW accounts (NOW accounts that cannot earn more than 0.5% interest), Official Items, and IOLTA accounts.
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UmbrellaBank and Imperial Capital CD Holders Take a Beating
Wednesday, December 30, 2009 - 9:13 AM

As I reported on December 18th, two banks that offered internet CDs failed: New South Federal Savings Bank (parent of UmbrellaBank) and Imperial Capital Bank. Beal Bank assumed the deposits of New South Federal and City National Bank assumed Imperial Capital deposits. Unfortunately, neither Beal nor City National agreed to honor existing CD rates to maturity. Depositors are free to make a penalty-free early withdrawal. Several readers who had CDs with these failed banks have reported on the new rates. They're not pretty.

Beal Bank is reseting UmbrellaBank 1-year CDs to 0.70% APY. As one reader pointed out, Beal Bank is offering 1.26% APY for new 1-year CDs, so the 0.70% seems especially unfair. Another upsetting issue reported is the time it's taking Beal Bank to close the CD and mail the check. A reader reported to have faxed in his request on December 21st. On December 29th he called Beal Bank and they said they have not yet started to process his request.

City National Bank reset Imperial Capital Bank CDs to the following rates effective December 19th:
  • 0.85% 1 year
  • 1.15% 2 year
  • 1.50% 3 year
  • 2.00% 4 year
  • 2.15% 5 year
The above examples show the main risk of having CDs at a troubled bank. Your high rate lock may be lost which can be painful in a low-rate environment. Also, as we're seeing at Beal Bank, the time it takes to make the early withdrawal may not be quick.

One the plus side, both Beal and City National agreed to assume all deposits, even those above the FDIC limit. Banks assuming all deposits of failed banks has been very common this year. I wonder if the FDIC has pressured buyers into assuming all deposits, and I wonder if this may have reduced the chances that the assuming banks would honor existing CD rates to maturity. I think it would be fairer for the assuming bank not to assume deposits over the FDIC limit in exchange for honoring existing CD rates to maturity.

Thanks to the readers who commented on the new reset rates. Please leave a comment if you learn of any additional info on these or other failed banks.

References:
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High-Yield Reward Checking Account at Peoples Bank & Trust in MO - Local Only
Wednesday, December 30, 2009 - 9:11 AM

Peoples Bank & Trust is offering a high-yield reward checking account called Peoples Reward Checking. It has the following rates and features if certain monthly requirements are met:

  • 3.00% APY on balances up to $25,000
  • 1.00% on portion of balance over $25,000
  • 0.50% base rate if requirements are not met
  • ATM fee refunds nationwide

The monthly requirements include:

  • 12 debit card purchases
  • 1 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 Maintenance Fee

It appears that a branch visit is required to open an account. Branches are located in the Missouri cities of Troy, O'Fallon, Winfield, Hawk Point, Elsberry and Bowling Green.

The bank's ratings for safety and soundness are a little weak: 2 stars (problematic) at BauerFinancial (based on 9/30/09 data) and 1 star (lowest) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 8903).

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

Rate History:

  • 12/29/10: 3.00% APY up to $25K (per reader, rates no longer listed on website)
  • 12/30/09: 4.00% APY up to $25K
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Update on Chase Checking Account Bonuses
Wednesday, December 30, 2009 - 9:06 AM

Chase often has a $100 checking account bonus, but sometimes they offer $125. Here's a link to a new $125 bonus that's scheduled to last until 1/15/10:

$125 Chase promotion page - Must be logged into your Chase account to see it.

Note that in the past these $125 promotion pages have expired before the scheduled date. Credit for this find goes to this SlickDeals thread. Several coupon codes are listed in the wiki part of this thread if you can't log in.

Below are the required steps listed in the promo page to qualify for the bonus:
1. Print this page and take it to your local Chase Branch or apply online by January 15, 2010.
2. Open a Chase Checking account and set up direct deposit.
3. We'll deposit $125 into your new Chase Checking account within 10 days of your initial direct deposit posting.

Note, this requires direct deposit. However, there have been reports that ACH transfers from banks may qualify.

If you have problems with the above promo, you can give this $100 bonus a try. This is also good online or at a branch. The expiration date is 12/31/09, but I'm sure a new one will pop up soon. One plus with this $100 bonus is that you can substitute 5 debit card purcases for direct deposit.

You may also be able to find hard copies of the $125 promotion in address change packets at your post office. The $100 promo ads seem to be very common.

$200 Chase Business Account Promotion

The $200 bonus for the business checking account is also common. Here's one that's scheduled to last until 1/30/2010:

$200 Business Checking bonus - Must be logged into your Chase account to see it.

Credit for this find goes to this SlickDeals thread. Several coupon codes are listed in the wiki part of this thread if you can't log in.

Open a qualifying Chase business checking account with a minimum opening deposit of $500, and you'll receive a $200 bonus. Deposit must be made within 30 days of account opening. $200 bonus will be deposited to your account within 10 business days of meeting the deposit requirement.

Beware of Fees

Readers in my May Chase post mentioned some fees to watch out for. One is a $3 fee for initiating an ACH transfer from Chase to an external account. Transfers initiated from outside Chase are not subject to a Chase fee. This is how I transfer out of my Chase account. This $3 fee and other fees are described in Chase's account disclosures which are available at this page. According to the disclosure, this $3 fee may be waived with certain account types.

Other potential Chase Checking fees include a $6 monthly service fee. To have this waived, you must have direct deposit or if you have 5 or more debit card purchases. There's also a $2 fee for using non-Chase ATMs ($3 for outside the U.S.) This Chase Checking page has more details on these fees.

Chase Branches

It appears Chase has finished the conversion of all WaMu branches. According to this Wikipedia article, the last branches that were converted were the ones in AZ, CA, CO and NV in October.

States with Chase branches include Arizona, California, Colorado, Connecticut, Florida, Idaho, Illinois, Indiana, Kentucky, Louisiana, Michigan, New Jersey, Nevada, New York, Ohio, Oklahoma, Oregon, Texas, Utah, Washington, West Virginia and Wisconsin.

For those with WaMu or Chase CDs, refer to my October post to learn what to watch out for.

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

Other Bank 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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Top 14-Month CD Rate at Blueharbor Bank in North Carolina - Local Only
Wednesday, December 30, 2009 - 7:02 AM

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

Blueharbor Bank is offering a special 14-month CD with a 2.20% APY. The bank also has a some competitive standard CD rates. The most competitive one is the 2.50% APY 25-month CD. These rates are listed in the bank's rates page as of 12/30/09.

The bank continues to offer a high-yield reward checking account that pays 4.00% APY on balances up to $30K (see account review). Its basic savings account is also a good deal with a 1.50% APY for all balances as of 12/30/09. Minimum balance to avoid monthly fees is $200.

It appears a branch visit may be required to open an account. The bank is located in Mooresville and Huntersville, North Carolina which are just north of Charlotte.

It's a new bank that was just established in January 2008. Thus, it's labeled as a start-up at BauerFinancial. Its rating for safety and soundness is 3 stars (performing) at Bankrate.com based on 6/30/09 data. It's a member FDIC (FDIC Certificate # 58691).

Other Competitive Certificate of Deposit Rates

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2.26% 12-Month CD at 1st Financial FCU in Missouri - Local Only
Wednesday, December 30, 2009 - 7:00 AM

Update 1/09/2010: The 12-month CD rate has fallen to 2.11% APY.

1st Financial FCU is offering a 2.26% APY 12-month and 18-month certificate. Minimum deposit is $1,000. These are also available as IRA certificates. This rate is listed in the credit union's rates page as of 12/30/09.

The credit union also offers a high-yield rewards checking account that currently pays 4.01% APY on balances up to $25K (see account review).

Membership is open to anyone who lives, works, worships or attends school in the City of St. Louis, St. Louis County or St. Charles County. Please refer to the credit union's membership page for the full details. Membership requires a minimum deposit of $5 into your share savings account.

Branches are located in St. Louis, Hazelwood and St. Charles.

The credit union's ratings for safety and soundness are mixed: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 2 stars (below peer group) at Bankrate.com (based on 6/30/09 data). The credit union is federally insured by the NCUA (Charter # 24774).

Other Competitive Certificate of Deposit Rates
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2.15% 7-Month CD at One Georgia Bank - Atlanta Area Only
Tuesday, December 29, 2009 - 3:04 PM

One Georgia Bank continues to offer several competitive deposit rates. One is a special 7-month CD with a 2.15% APY. Minimum deposit is $5,000 with new funds. The special requires a checking account with direct deposit. Maximum deposit is $100,000. The bank's standard CDs and IRAs also have competitive rates. These include a 2.15% APY 18-month CD and a 2.30% APY 24-month CD. Minimum deposit is $1,000. These rates are listed in the bank's rate table as of 12/29/09.

My last report on this bank was in March 2009 when this 7-month CD had a yield of 3.00% APY. This is a good example of how much rates have gone down this year.

The bank continues to offer a high yield savings account with a top yield of 2.50% APY (was 3.00% last March) on balances up to $10,000 (1.25% for above). This also has the same checking account requirement as the special CD.

At the bottom of the rate table it states that they do not accept deposits outside of their market area. The bank is located in Atlanta, Georgia.

The bank's ratings for safety and soundness are a little weak: 2 stars (problematic) at BauerFinancial (based on 9/30/09 data) and 1 star (lowest) at Bankrate.com (based on 6/30/09 data). It has been a FDIC member since 2006 (FDIC Certificate # 58238).

Thanks to the reader Atlanta Wolf who mentioned these new rates in the comments.

Other Competitive Certificate of Deposit Rates
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2.48% 24-Month CD & 2.02% 12-Month CD at Atlas Savings and Loan Association in New York - Local Only
Tuesday, December 29, 2009 - 3:02 PM

Atlas Savings and Loan Association continues to offer competitive CD and IRA CD rates. Some of the rates have fallen a little since my November post, but they remain attractive compared to what other banks are offering. The most competitive CDs as listed in the bank's rate table as of 12/29/2009 include:
  • 1.82% APY 9 months
  • 2.02% APY 12 months
  • 2.17% APY 18 months
  • 2.48% APY 24 months
  • 2.79% APY 30 months
Similar rates are available for IRA and ESA CDs except for the 3-year term which has the very competitive rate of 3.25% APY. Minimum deposit is $2,500 for both the regular and IRA CDs.

It's a small bank with one office in located in Brooklyn, New York. It appears that a branch visit is required to open accounts.

The bank continues to have strong ratings for safety and soundness: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1955 (FDIC Certificate # 30783).

Other Competitive Certificate of Deposit Rates
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2.25% 12-Month CD at North Alabama Bank - Local Only
Tuesday, December 29, 2009 - 2:43 PM

North Alabama Bank is offering a 2.25% APY 12-month CD. Minimum deposit is $10,000. Early withdrawal penalty is 3 months interest. This CD isn't listed at the bank's website. A reader emailed me news of this, and I contacted the bank today (12/29/09) for more details. According to the CSR, the rate hasn't changed since April 2009, and she hasn't been told of any future changes.

A branch visit is required to open an account. This CD rate is available at all of the bank's branches which are located in Hazel Green and Huntsville, Alabama.

The bank's ratings for safety and soundness are fair: 3 stars (adequate) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1989 (FDIC Certificate # 27560).

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

Other Competitive Certificate of Deposit Rates
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2.00% 6-Month CD & 2.00% Money Market at United Financial Bank of Florida - Local Only
Tuesday, December 29, 2009 - 2:41 PM

United Financial Bank of Florida is offering very competitive CD, money market and checking account rates. There's a 2.00% APY 6-month CD. This requies that you also have the bank's money market account which isn't a difficult requirement since it also has a 2.00% APY for a minimum balance of $500. Other CD rates don't require another account. These include a 2.50% APY 24-month CD, a 2.25% APY 18-month CD and a 2.00% APY 12-month CD. These rates are listed at the bank's rate table as of 12/29/2009.

The 2.00% APY 6-month CD rate and the money market rate aren't listed at the bank's website. I just called and confirmed these with a bank rep. According to the bank rep, they had been guaranteeing a 2.25% APY on the money market account, but this guarantee is ending 12/31/09. The rate will then fall to 2% APY without any more guarantee. So the 2% may not last much longer.

The bank is also offering an interest checking account that's paying 1.95% APY for a minimum balance of $500.

I was told by the bank rep that one could open an account by mail. However, it's a small bank so I'm considering this a local deal. The bank is located in Lake Mary which is just north of Orlando.

This bank is a division of United Midwest Savings Bank in Ohio. The parent bank is offering similar CD rates for those in Ohio. However, the 12-month and 24-month CD rates are lower. Refer to United Midwest's rate table for more details.

The bank's ratings for safety and soundness have gone down quite a bit since my January 2009 post on this bank. The ratings are now a little weak: 2 stars (problematic) at BauerFinancial (based on 9/30/09 data) and 1 star (lowest) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1986 (FDIC Certificate # 32441).

Other Competitive Certificate of Deposit Rates
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How the Proposed Fed CDs Will Affect Savers?
Tuesday, December 29, 2009 - 7:42 AM

Yesterday the Federal Reserve proposed selling CDs to banks as a new tool to help it remove excess cash from the financial system when they finally implement their exit strategy. Here's how the Fed describes it:
Under the proposal, the Federal Reserve Banks would offer interest-bearing term deposits to eligible institutions through an auction mechanism. Term deposits would be one of several tools that the Federal Reserve could employ to drain reserves to support the effective implementation of monetary policy.

This proposal is one component of a process of prudent planning on the part of the Federal Reserve and has no implications for monetary policy decisions in the near term.

A reader asked me how this may affect us savers. As this Motley Fools blog post describes, the Fed already has many tools to fight liquidity and inflation. "[P]roblem is that all of these will raise the interest rates on mortgages, hurting the residential real estate recovery." Perhaps the Fed is thinking these term deposits would have less effect on mortgage rates? That could also mean lower deposit rates. One of the comments in that Motley Fools post had a good question of why banks would choose these term deposits over T-bills.

Other discussions of this Fed proposal are at the Financial Times and in this AP article. It should be noted that at its last meeting, the Fed continued its pledge to hold rates at record lows for an "extended period".
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2.15% 12-Month Online CD at Franklin Synergy Bank - Available Nationwide
Monday, December 28, 2009 - 12:02 PM

Update 3/23/2010: The eCD rate is now 1.95% APY, but the term increased to 15 months. Please refer to the bank's website for the latest rates.

Franklin Synergy Bank increased the rate of its 12-month eCD last week from 2.05% to 2.25% APY. Minimum deposit is $1,000, and the maximum is $500,000. The 2.25% eCD is listed in the bank's eProducts page as of 12/28/09.

When I contacted the bank last summer, 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. Some details I received from the bank in July include:

  • CD can be funded either by wire transfer or check by mail
  • Rate is locked at the time of application

Update 1/14/10: Reader just commented that opening this CD was very fast without any problems. He also reported that the early withdrawal penalty is 30 days of interest.

The bank also has an E-Savings Account that's listed on the same eProducts page. The rate is also competitive: 1.75% APY for balances of $25K and up, 1.35% APY for smaller balances. One issue with this account is that it requires a checking account. Also, according to the account description, "Maximum of $500 accepted from external account." I'm trying to find out if this is through their ACH bank-to-bank transfer service.

The bank is a fairly new bank that was established in 2007 with headquarters in Franklin, Tennessee. It's a small bank with $237 million in assets and $197 million in deposits based on 9/30/09 FDIC data. Since it's new, BauerFinancial doesn't have a rating for it. Bankrate.com gives the bank 2 stars (below peer group) based on 6/30/09 financial data (down from 3 stars based on 12/31/08 data). The bank is a member FDIC (FDIC Certificate # 58714).

Other High Certificate of Deposit Rates

If you want a hassle-free competitive 1-year CD, ING Direct would be a good choice. They're still offering 2% APY (see my ING Direct review). For other good CD deals, please refer to:

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5.01% Reward Checking Account at St. Paul FCU in MN - Local Only
Monday, December 28, 2009 - 8:19 AM

St. Paul Federal Credit Union is offering a high-yield reward checking account with the following rates if certain monthly requirements are met:
  • 5.01% APY on balances up to $10,000
  • For portion of balance over $10,000, the rate is the default current rate of the respective checking account
  • If requirements are not met, account will earn the default current rate of the respective checking account
The monthly requirements include:
  • 15 debit card purchases
  • 1 direct deposit
  • Receive e-statements
Membership is open to those who live, work, worship, or attend school in the cities of Saint Paul or Minneapolis and their relatives. Please refer to the credit union's membership page for the full details.

The credit union's ratings for safety and soundness are fair: 3 stars (adequate) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The credit union is federally insured by the NCUA (Charter # 24358).

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

Other Reward Checking Accounts

The 5.01% yield is rare these days for reward checking, but the $10K cap is a downside. On the plus side, the low cap should make it easier for the credit union to maintain the high rate.

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.
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4.00% Reward Checking Account at Guaranty Bank and Trust in MS - Local Only
Monday, December 28, 2009 - 8:18 AM

Guaranty Bank and Trust is offering a high-yield reward checking account called High Interest (HIP) Checking. It has the following rates and features if certain monthly requirements are met:
  • 4.00% APY on balances up to $25,000
  • 1.00% on portion of balance over $25,000
  • 0.10% base rate if requirements are not met
  • ATM fee refunds up to $15 per month
The monthly requirements include:
  • 12 debit card purchases
  • 1 direct deposit, draft or internet bill 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 Maintenance Fee
  • Free Bill Pay
It appears that a branch visit is required to open an account. Branches are located in the Mississippi cities of Belzoni, Cleveland, Hernando, Batesville, Indianola, Senatobia, Vicksburg, Hollandale and Greenville.

The bank's ratings for safety and soundness are fair: 3½ stars (good) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1943 (FDIC Certificate # 15953).

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.
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$200 Checking Account Bonus at Union Bank in CA, WA and OR
Monday, December 28, 2009 - 8:15 AM

Union Bank is offering up to $200 for opening its Signature Banking Checking account and for establishing qualifying services. The Signature Banking Checking has a high minimum balance requirement so this isn't a great deal, but it may be worthwhile to a few. The promo is listed on the bank's front page, and the details are described in bank's promo page. Here are the requirements:
  • Open a Signature Banking Checking account by 1/31/10
  • Establish two qualifying services for $200
  • Establish one qualifying services for $100
  • Qualifying services include 1) monthly direct deposit, 2) three online bill payments to three different payees, beginning the month after account opening 3) five debit card purchases or payments per month
Some important small print includes:
  • Valid for new customers with funds not presently on deposit with Union Bank
  • Bonus will be deposited by 4/30/10 into the Signature Checking account which must be active and in good standing
  • Limit one offer per household
  • Bonus reported as interest paid for tax purposes
The requirement that the checking account must be a Signature Banking Account is the big downside to this offer since it requires a $10,000 minimum combined average monthly balance to avoid a monthly service charge. Account must remain open for 90 days to avoid an early closure fee. Refer to the right column of the bank's checking comparison table for Signature Banking Checking details.

I noticed the bank's Preferred Savings account has a competitive rate of 1.50% APY for balances of at least $10,000. This is listed in the bank's savings account rates page as of 12/28/09. This could help ease the checking's $10,000 combined minimum balance requirement.

There's a toll-free number listed on the promo page. I haven't called this number to see if it's available nationwide. I would guess a branch visit is required. According to the bank's company profile page, the bank has 337 banking offices in California, Oregon, Washington and Texas. However, the vast majority of the branches are located in California.

Union Bank has been a FDIC member since 1979 (FDIC Certificate # 22826).

Thanks to the reader Marc who mentioned this promotion in the comments of the bank deals hub.

Update: A reader noted that there are also two $50 bonuses available for opening a free checking account. Both require either direct deposit or three online bill payments:

Other Bank Bonuses

To find other bonus deals, please refer to my bank bonus page which has all of my recent bank bonus posts.
Comments (3)
The Differences between Credit Unions and Banks
Monday, December 28, 2009 - 12:00 AM

It may seem that credit unions and banks offer the same products and services upon first glance. Both types of financial institutions give people a variety of options for saving money, writing checks, using debit cards, and getting loans. The same opportunities for financial solutions may exist at both credit unions and banks – but it doesn't mean those solutions are created equal. Here are some of the major differences between credit unions and banks:

Basic Terminology Differences

When you have a financial account with a traditional bank, you're considered an “account holder”, or a customer. When you have an account through a credit union, you become a “member” which essentially makes you a partial owner of the organization. All members of a credit union are equal owners with equal voting privileges.

A “savings account” at a bank is called a “share account” at a credit union, while a bank “checking account” is called a “share draft.” “Certificates of deposit” are called “share term certificates” at a credit union.

For Profit vs Not-For-Profit

The primary difference between a credit union and a bank is their tax status. A bank is a for profit organization, while a credit union is not-for-profit.

Bank profits are returned as earnings to their stockholders. Stockholders receive their income through the bank customers. In order to serve the stockholders’ interest, banks are incented to charge higher interest and fees in order to drive higher profits. The benefit of the bank’s for-profit nature is that it also incented to drive innovation in order to attract and better serve its customers. As such, banks often offer valuable features and services that credit unions are slower to adopt. Large banks are also more widely available across the United States (and internationally), giving account holders more access to in-network ATMs and branch offices for conducting banking away from home.

Since the credit union isn't out to turn a profit, it can return its earnings to the members in the form of higher interest rates on savings products and lower interest rates on loans and credit cards. If a credit union should bring in more money than it requires to operate the organization, it will distribute the overage in the form of dividends to its members (everyone who has an account).

Board of Directors

Account holders of banks do not have a vote in the decisions made by a bank. The board of directors of a bank is required by law to make decisions in the best interest of the stockholders – not the customers of that bank. A stockholder of a banking institution does not need to use that bank for his or her financial needs.

The board of directors for credit unions is elected by the members. This gives members more of an influence on the credit union, as each member has an equal vote no matter how much money they have on deposit or the number of accounts they have through the union.

NCUA vs FDIC

Credit unions and banks are regulated by different organizations and use different insurance funds, but the coverage is similar. Most credit unions are federally regulated through the National Credit Union Administration (NCUA), while the deposits are insured by the National Credit Union Share Insurance Fund. It's important to note that not all credit unions offer government-backed insurance, so be sure to verify that your credit union is a member of the NCUA before selecting the financial institution.

The United States government created an independent agency to protect individuals against the loss of their deposits and interest earnings if an insured bank should fail. The Federal Deposit Insurance Corporation was created in 1933 after thousands of banks failed during the Great Depression and many people who had money saved in banks lost some or all of their funds. As a result, President Franklin D. Roosevelt and Congress created the FDIC to federally guarantee that deposits up to certain limits would be safe. Since the creation of the FDIC, no depositor has lost a “penny of FDIC-insured funds” (https://www.fdic.gov/edie/fdic_info.html).

Account holders are currently insured by the FDIC up to $250,000 – but if you own deposit accounts as different ownership categories you can qualify for more than $250,000 in coverage. For example, if you own individual, joint, revocable trust accounts and certain types of retirement accounts at the same bank, it is possible for the total insured amount from these accounts to be greater than $250,000 based on ownership percentages. (https://www.fdic.gov/edie/fdic_info.html#06)

The National Credit Union Share Insurance Fund (NCUSIF) is similar to the FDIC, except that it insures member accounts of federal and state-chartered credit unions rather than account holders at banks. It was created by Congress in 1970 and is also backed by the United States government.

Members’ deposits are federally insured up to $250,000 per individual depositor. It is also possible to qualify for more than $250,000 in coverage if you spread your money across different ownership categories, including, for example: individual accounts, joint accounts, revocable trust accounts and certain types of retirement accounts. (http://www.ncua.gov).

Eligibility Requirements

It was President Franklin D. Roosevelt who signed the Federal Credit Union Act into law in 1934, making it possible for credit unions to operate. The credit unions’ field of membership (FOM) requirements are based on the Federal Credit Union Act of 1934 and more recent government acts. Banks have been fighting against credit unions since they began. Banks claim credit unions have an unfair advantage because they are exempted from most federal and state taxes due to their not-for-profit cooperative structure, and have spent a fortune trying to get legislation to either stop credit unions completely or limit who is able to join them.

Both credit unions and banks are required by federal law to verify the identity of the applicant using information from your application. Banks are then given the decision-making power as to who is eligible to become a customer, while credit unions must comply with the field of membership that is defined within their charter.

Eligibility requirements for opening accounts with a credit union are a little more complicated, but have been made easier in recent years. Most people can qualify for certain credit union memberships based on where they live, work, go to school, or worship – or based on what associations they belong to. Most credit unions will qualify an individual based on a family member's eligibility – so if you yourself don't qualify but your mother or brother does for example, you can become a member. Some qualifying associations are extremely easy to join; accordingly, many people will consider joining an eligible association simply to gain access to a credit union membership.

The Credit Union National Association indicates there are more than 90 million members currently belonging to credit unions around the United States.

Comments (2)
Bank Deals Weekly Summary for December 27, 2009
Sunday, December 27, 2009 - 11:18 AM

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

Happy Holidays! This is a reduced version of my weekly rate recap. This was a slow banking news week, but unfortunately, there continued to be a few rate cuts. As I reported yesterday, the effect on savers of this ultra-low-interest rate environment is being noticed in the media.

Savings Account Rates

The biggest savings account rate cut this week was at Heartland Bank Direct which cut its savings account rate from 1.51% to 1.31% APY. On Tuesday I reviewed a short list of four top online savings accounts. I first came out with this list in August when all four were at 2% APY or above. The only one that is still at 2% is Alliant Credit Union. Each month Alliant reviews rates, and reports are that they'll be keeping the 2% APY through January (see review).

Rate Hikes:
  1. None
Rate Drops:
  1. Clear Sky Savings - 1.60% (was 1.65%)
  2. Heartland Bank Direct Savings - 1.31% (was 1.51%)
  3. State Farm Bank Checking - 1.25% (was 1.35%)
  4. Intervest MMA - 1.25% $2.5K (was 1.30%)
  5. Zions MMA - 1.25% (was 1.30%)
  6. OneWest E-Money - 1.15% (was 1.25%)
Certificate of Deposit Rates

ING Direct continues to offer 2% APY on its 12-month CD. I came across an even better deal while I was updating my list of rates. Franklin Synergy Bank increased its 12-month internet eCD from 2.05% to 2.25% APY. My last report on this bank was in July when the eCD APY was 2.78%. Dollar Savings Direct continues to offer 2.25% APY on its 16-month CD.

PenFed's January CD rates will take effect next week, and according to my PenFed contact we should see some attractive long-term rates (compared with the competition). These include a 3.75% APY 5-year CD, 3.50% APY 4-year CD and a 3.25% APY 3-year CD. For those with PenFed CDs that mature in January, you'll be able to get an additional 0.25% as a renewal bonus.

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

Best Nationwide CD Deals as of 12/27/09: Also listed are savings account promos with rate guarantee periods. The full list of nationwide CD rates is farther down.
  1. 2.51% 3-mo money market/checking promo at EverBank (account review)
  2. 1.50% money market with rate guaranteed to Apr 2010 at Bank of America (account review)
  3. 1.77% 10-mo CD at EBSB Direct (account review)
  4. 2.42% 12-mo CD at Wings Financial CU, Limited Membership (account review)
  5. 2.25% 12-mo CD at Franklin Synergy Bank (account review)
  6. 2.10% 12-mo CD at Alliant CU (account review)
  7. 2.00% 12-mo CD at ING Direct (account review)
  8. 2.25% 16-mo CD at Dollar Savings Direct (account review)
  9. 2.32% 24-mo Add-On CD at Northwest FCU (account review)
  10. 3.00% 30-mo CD at Indus American Bank (account review)
  11. 3.00% 45-mo CD at Reliabank Dokota (account review)
  12. 3.15% 48-mo CD at Hudson City Savings Bank (account review)
  13. 3.65% 60-mo CD at Melrose CU (account review)
  14. 3.60% 60-mo CD at Apple FCU (account review)
  15. 3.53% 60-mo CD ($100K min) at Northwest FCU (account review)
  16. 3.40% 60-mo CD at Hudson City Savings Bank (account review)
  17. 4.16% 84-mo CD (min $175K) at USAA Bank (account review)
  18. 4.00% 84-mo CD at Pentagon FCU (account review)
Best Local CD Deals as of 12/27/09: 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. 1.90% Savings Account (5% for 1st $1K) at OMNIBANK in TX (account review)
  2. 2.12% 6-mo CD & 2.42% 12-mo CD at Wings Financial CU in MN (account review)
  3. 2.00% 6-mo CD at Mutual Federal Bank in Chicago (account review)
  4. 2.00% 6-mo CD at Vision Bank in Dallas (account review)
  5. 3.00% 7-mo CD at NIH FCU in MD & DC - Limited Membership (account review)
  6. 2.00% 9-mo CD & 2.18% 18-mo CD at United Orient Bank in NYC (account review)
  7. 2.25% 12-mo & under CD at Cecil Bank in MD (account review)
  8. 2.30% 16-mo Jumbo CD at Teachers FCU in NY (account review)
  9. 2.75% 18-mo CD & 4% 60-mo CD at Greylock FCU in MA (account review)
  10. 2.50% 18-mo No-Penalty CD at Darby Direct in GA (account review)
  11. 2.50% 23-mo CD at Regions Bank in Many States (account review)
  12. 3.00% 36-mo CD at State Bank of India (California) (account review)
  13. 4.06% 48-mo CD & 2.50% 24-mo CD at Founders FCU in SC/NC (account review)
  14. 3.50% 48-mo CD at Rollstone Bank & Trust in MA (account review)
  15. 4.07% 60-mo CD at IH Mississippi Valley CU in IL & IA (account review)
  16. 4.00% 60-mo CD at PFFCU in Philadelphia (account review)
  17. 3.80% 60-mo & 3.29% 48-mo CD at PrimeWay FCU in Houston (account review)
  18. 3.60% 60-mo Jumbo CD at CEFCU in CA & IL (account review)
  19. 3.50% 60-mo CD at First Priority CU in MA (account review)
Reward Checking Accounts

I only reported on two new reward checking accounts this week. Both have rates around 3% which are a little low compared to the average reward checking account. There continues to be hundreds of reward checking accounts with rates over 3%. Many banks have cut their reward checking rates, but most rates continue to be significantly higher than online savings account rates. If you decide to open a reward checking account, you do have to be careful to meet the monthly requirements as I described in this Wednesday post.

To see all of the high yield reward checking accounts available throughout the nation, please refer to the reward checking section of DepositAccounts.com.
Recap for the Week - Links to This Week's Posts

Banking News

Savings/Checking Accounts - National
CD Deals - National
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 under $100,000. 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 December 27, 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 (35)
NYTimes Article: At Tiny Rates, Saving Money Costs Investors
Saturday, December 26, 2009 - 8:16 AM

I feel a little bit uneasy about pointing out this recent NYTimes article, At Tiny Rates, Saving Money Costs Investors, during the holidays. Since these types of articles are not too common in the mainstream media, I decided it was worthwhile of a post. I hope this doesn't hurt your holiday cheer.

Here's a noteworthy quote by Bill Gross who was interviewed in the article:
"What the average citizen doesn’t explicitly understand is that a significant part of the government’s plan to repair the financial system and the economy is to pay savers nothing and allow damaged financial institutions to earn a nice, guaranteed spread," said William H. Gross, co-chief investment officer of the Pacific Investment Management Company

And here's what Bill Gross has to say about future interest rates:
"What the futures market is telling me," Mr. Gross said, "is that in April 2011, these savers that are currently earning nothing will be earning 1.25 percent."

I'm afraid it may take a while before we see some decent deposit rates.

Thanks to the reader who mentioned this article in the Bank Deals Hub. Also, thanks to Sam at BestCashCow who has some well-written commentary on this article. He makes a good point that we savers need to shop for the best rates and make sure we "Reward the banks that are willing to pay a bit more for your hard-earned cash." And don't forget credit unions.

For recent deals that I've reviewed, please refer to my last weekly summary.
Comments (26)
Merry Christmas and Happy Holidays!
Thursday, December 24, 2009 - 6:58 AM

I would like to thank all of you for your support this year, and I wish you all a safe and happy holiday season. I'll be taking a break on the postings for next few days as I visit with family.

If you're looking for recent bank deals, refer to my bank deals hub where readers can post on the deals they find. For recent deals that I've reviewed, please refer to my last weekly summary. Many of these deals are still available including ING Direct's 2% 12-month CD (see review).
Comments (16)
Useful Reward Checking Account Tips
Wednesday, December 23, 2009 - 7:50 AM

Several readers provided useful tips in the comments of my Friday reward checking post. I thought it would be useful to compile these into a short list. Thanks to reward checking, we are still able to get interest rates above 4% in liquid accounts. However, if you're not careful, it's easy to fail to meet the requirements. After a few months of mistakes, your effective interest rate for the year is not much better than a top savings account. Here are some tips that readers have mentioned in the comments to ensure you always receive the top reward interest rates:
  • Beware of posting delays. It can be up to 2 business days, but generally occurs 1 day after the point of sale takes place.
  • Some require only signature-based debit card purchase. Make sure you understand what transactions count (internet, PIN, or signature only).
  • PayPal tries to process debit cards as an ATM transaction if possible which won't qualify as a debit card purchase. When paying with PayPal, go to Funding Options and specify the Visa/Mastercard network.
  • Beware of your bank's statement cycle for qualification. Some have really odd cycle dates (e.g., 3rd Wednesday of the month).
  • ACH transfers from an institution like Ally Bank will often meet the bank's direct deposit and ACH requirement.
  • Many banks expect the reward checking accounts to be used as primary banking accounts. Making too many small purchases may not disqualify you from receiving the high interest rate, but the bank may close your account.
Thanks to the readers who provided their experiences and insights. If you have any additional tips, please leave a comment.

For more information about reward checking accounts, please refer to this overview of reward checking. To find reward checking accounts in your area or available nationwide, please refer to the reward checking section of DepositAccounts.com.
Comments (1)
3.04% Reward Checking Account at Old Florida National Bank in Florida - Local Only
Wednesday, December 23, 2009 - 7:47 AM

Old Florida National Bank is offering a high-yield reward checking account called Optimum Checking. It has the following rates and features if certain monthly requirements are met:
  • 3.04% APY on balances up to $25,000
  • 0.50% on entire balance if the balance is over $25,000
  • 0.50% base rate if requirements are not met
  • ATM fee refunds nationwide up to 6 per month
The monthly requirements include:
  • 10 MasterCard debit card purchases
  • 1 ACH direct deposit
  • Access Online Banking with a minimum of 1 Bill Pay
  • Receive e-statements
Additional features of the account regardless of the monthly requirements include:
  • No more than 10 paper checks paid per cycle
  • No Minimum Balance Requirement
  • No Monthly Maintenance Fee
  • Free Bill Pay
It appears that a branch visit is required to open an account. Branches are located in the Central Florida cities of Orlando, Longwood, Altamonte Springs, Winter Park, Apopka and Inverness.

The bank's ratings for safety and soundness are fair: 3 stars (adequate) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1982 (FDIC Certificate # 24244).

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

Edit: Noted APY if balance is over $25K.
Leave a comment
3.00% 36-Month CD at State Bank of India (California) - Local Only
Wednesday, December 23, 2009 - 7:43 AM

Update 1/02/09: The CD rates have fallen. Refer to the front page of the bank's website for the latest rates.

State Bank of India (California) is offering some competitive long-term CD rates. The most competitive one is a 3.00% APY 3-year CD. The other ones include a 2.30% APY 2-year CD and a 3.40% APY 5-year CD. Minimum deposit is $1,000. These rates are listed in the bank's rate sheet as of 12/23/09. Note, interest must be paid out at least annually so the interest rate is the same as the APY.

On the front page of the bank's website it states:
State Bank of India (California) is fully owned by State Bank of India, one of the strongest banks in the World, with controlling ownership by Government of India.

This is a sister bank of State Bank of India in New York which offers CDs and money market accounts by mail. However, it appears the California bank requires a branch visit to open accounts. If you have more info on this, please leave a comment. The California bank currently has higher rates on the long-term CDs.

State Bank of India (California) has branches in several cities of California including Los Angeles, Artesia, Canoga Park, San Jose, Fresno, San Diego and Bakerfield. It also has a branch in Washington, DC.

The bank's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1982 (FDIC Certificate # 23998).

Other Competitive Certificate of Deposit Rates
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3.50% 60-Month CD at City National Bank in NJ, NY & PA - Local Only
Wednesday, December 23, 2009 - 7:41 AM

City National Bank is offering competitive long-term CD rates. The following rates are listed at the bank's rates page as of 12/23/09:

  • 3.50% APY 5 years and over
  • 3.00% APY 4 years to under 5 years
  • 2.50% APY 3 years to under 4 years
  • 2.25% APY 2 years to under 3 years

Minimum deposit is $500. It appears these rates also apply to IRA CDs.

A branch visit appears to be required to open an account. Branches are located in the New Jersey cities of Newark, Hackensack and Paterson; in the New York cities of New York City, Hempstead and Roosevelt; and in Philadelphia, Pennsylvania.

The bank's ratings for safety and soundness are fair: 3 stars (adequate) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1973 (FDIC Certificate # 21111).

Other Competitive Certificate of Deposit Rates

Comments (4)
Update on My Short List of Top Savings Accounts
Tuesday, December 22, 2009 - 9:56 AM

Last year I started compiling a short list of the top savings accounts. The intent was to identify the savings accounts that you'll want to keep for the long term. In addition to top rates, I considered financial health and account features like ACH bank-to-bank transfer service. My last list was in August. Here's a quick summary of where these accounts stand today:

Bank/Credit Union       8/02/09   12/22/09   12/22/09
                          APY        APY    Bankrate Rating
1st Constitution Direct  2.25%      1.50%    4 stars
Alliant Credit Union     2.00%      2.00%    3 stars
CNB BankDirect           2.00%      1.70%    4 stars
Discover Bank Savings    2.00%      1.75%    4 stars

1st Constitution Direct's rate has dropped the most since August. On the plus side, they still have a 3-month promo which guarantees 1.50% APY for the first three months (see review).

Alliant Credit Union is the only one that is still maintaining a 2% APY. The reader ichaelm mentioned in the comments that he received an email from Alliant that said the savings account rate will remain at 2% in January. Alliant's board of directors typically meets around the middle of the month to approve next month's rates (see review).

CNB BankDirect has been on my short list since last year. They have fallen from the top spot, but they have kept their rates very competitive, and the bank continues to be financially strong. It's a small bank with $578 million in assets as of 9/30/09. This shows that small banks can maintain competitive rates on a nationwide savings account (see review).

Discover Bank's Online Savings Account is fairly new. I first reported on it in July. The rate has held up fairly well. They have long offered a money market account, but the rates are lower (see review).

Full List of Nationwide Online Savings Accounts

Refer to the money market account and savings account sections of DepositAccounts.com for other competitive options that are available locally and nationwide. I also have top accounts listed in my hot deals and nationwide savings account sections of my weekly summary.

If you want rates higher than 2% from a liquid account, your only option is a reward checking account. Unlike savings accounts, it'll require some work. To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.
Comments (15)
Update on the 4.07% 18-Month CD ($25K Max) at Citibank via its Secured MasterCard Program
Tuesday, December 22, 2009 - 9:45 AM

Update 2/22/2010: Citi's website now states the maximum CD deposit is $5,000.

Citibank continues to offer a 4.07% APY 18-month CD as part of its Citi Secured MasterCard program. I first posted on this deal in early August. The 4.07% APY is still listed as of 12/22/09 in the Additional Disclosures. The link to this disclosure is located at the bottom of the Citi Secured MasterCard page. It's surprising to see the rate still this high. As I mentioned before, it's possible that the credit card division didn't give much thought about CD rates. It may be an example of an oversight by the bureaucracy of a large company.

I described the CD details in this September post. A few important details include:

  • $25,000 maximum deposit
  • Must also apply for secured credit card which has an annual fee of $29 (Will likely require two $29 charges during life of CD)

A reader mentioned this Bankrate article on secured credit cards if you want to learn more about these. They're intended for those with poor credit history, and there have been reports that Citi will reject your application if your credit is too good. However, several readers who have very good credit have reported success in opening this CD. Not all have been successful. A few have reported that they were denied because of TeleCheck. As one reader commented, their online application is new, and apparently quite clunky. You might have better luck applying by mail. Another thing to note is that most everyone who has contacted Citibank about this promo has been disappointed by their customer service.

One bit of uncertainity is how timely will the funds be received at maturity. One reader reported the following:

Be aware folks that receiving your funds timely will be challenging. I talked to the "presidential office" to find out the details which are not published. It appears there is a half dozen scenarios when the CD matures. The worst could be in excess of six weeks or longer. The best scenario is the following. Citi sends out notice 30 days prior to maturity. At least 60 days prior to maturity stop charging. When you receive maturity notice notify Citi you do not want to renew. This gives 4-6 weeks without charge card activity. The check will be mailed 7-14 days later. You need to start the clock prior to maturity date. Also it was recommended to use the card at least once every 6 months otherwise Citi may cancel the card.


If you have given this CD a try, please comment about your experience. Refer to the comments of my August and September posts to read all the reviews.

Leave a comment
2.10% 15-Month CD at Bank of Fayetteville in AR
Tuesday, December 22, 2009 - 9:42 AM

Update 4/17/10: I recently checked with the bank, and according to the CSR, this CD is now only available to local residents.

Bank of Fayetteville is offering a special 15-month CD with a 2.10% APY. Minimum deposit is $500. This rate is listed at the bank's rates page as of 12/22/09. The CD also has a step-up option.

According to the bank's service rep, you can open a CD online. The "Open an Account" link is on the left sidebar of the rates page under the "Quick Links" tab. I was told once you submit the application, a new-account rep will contact you.

The bank also offers a nationwide reward checking account that currently pays 3.20% APY for balances of up to $50K. It had recently been 3.50% APY, and when I first reported on this account in February 2008, it had a 5.01% APY (see my account review).

The bank has 9 offices in Fayetteville, Farmington, Prairie Grove and West Fork, Arkansas.

The bank's ratings for safety and soundness are a little weak: 2 stars (below peer group) at Bankrate.com (based on 6/30/09 data) and 3 stars (adequate) at BauerFinancial (based on 9/30/09 data). It has been a FDIC member since (FDIC Certificate # 26975).

Other Competitive Certificate of Deposit Rates

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2.15% Money Market Promo with Rate Guaranteed to 3/31/10 at One World Bank in Dallas - Local Only
Tuesday, December 22, 2009 - 9:39 AM

One World Bank is advertising a money market account promotion with a 2.15% APY guaranteed to 3/31/2010. Minimum opening deposit is $10,000, and the maximum is $250,000. Account must be opened with new money by 12/31/09. This promo doesn't seem to be listed at the bank's website. It was advertised in today's edition of the Dallas Morning News (12/22/09). The ad is available online here.

I can't find any details on the bank's website about the money market account. It's likely that the rates won't be competitive when the promo period ends. Also, I can't find info on the potential monthly fees or the fee for closing the account. Those details are important to know if the rates are no longer competitive when the promo period ends.

It appears that a branch visit is required. One World Bank is a small bank with one office located in Dallas, Texas.

Its ratings for safety and soundness are fair: 3 stars (adequate) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 2005 (FDIC Certificate # 57901).

Other Competitive Money Market Accounts

Refer to the money market account and savings account sections of DepositAccounts.com for other competitive options that are available locally and nationwide. I have other promotionals listed in my hot deals and nationwide savings account sections of my weekly summary.
Comments (1)
2.50% 24-Month CD at First American International Bank in New York City - Local Only
Tuesday, December 22, 2009 - 9:37 AM

Update 12/27/09: The 24-month and 36-month CD rates have fallen 25 basis points.

First American International Bank has some competitive mid-term CD rates. These include a 2.10% APY 18-month CD, a 2.50% APY 24-month CD and a 2.75% APY 36-month CD. Minimum deposit is $500. These rates are listed at the bank's rates page as of 12/22/09. The 2-year and 3-year rates are also listed for IRAs.

It appears higher rates are available for larger balances. There's a promo ad on the home page that lists special rates for the 3-year CD of 2.85% APY for $50K to under $250K and 2.95% APY for a minimum balance of $250,000.

The bank also has a competitive rate for its High Yield Passbook Savings Account. The rate is 1.50% APY for balances of at least $10K. This is listed at the top of the bank's rates page as of 12/22/09.

It appears that a branch visit is required to open an account. Branches are located in New York City, Brooklyn, Elmhust, Flushing and Forest Hills.

The bank's ratings for safety and soundness are above average: 3½ stars (good) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1999 (FDIC Certificate # ).

Thanks to the reader who mentioned these rates in the comments of the bank deals hub.

Other Competitive Certificate of Deposit Rates
Comments (25)
Why Choose CDs Instead of Reward Checking Accounts?
Monday, December 21, 2009 - 9:05 AM

With some reward checking accounts paying 5%, it may seem like there's no reason to put any money into CDs which have rates much lower than 5%. There are still many nationwide reward checking accounts that pay around 4% APY. If you want a similar rate on a CD, you'll have to search hard and you'll have to settle for terms of at least 5 years.

For those with large balances, reward checking is problematic since most accounts cap the balance that qualifies for the top rate. However, even if you don't have a large balance, there is one issue to consider. There's no guarantee that reward checking rates will hold up. I hope they do, but as we've seen this year, rates have fallen.

Back in the second half of 2007 State Bank of Toledo was offering a nationwide reward checking account with a 6% APY with no balance cap. During that time, Pentagon Federal Credit Union came out with 6% long-term CDs. Some asked why lock your money into a CD when you could get the same rate in a liquid account. Two and a half years later, State Bank of Toledo's reward checking rate is down to 2.51% APY for balances up to $70K.

No one knows how rates will change in the future. Using CD ladders is a way to hedge your bets for both future high and low rates. So I'm not giving up on long-term CDs even in this current interest rate environment.

One other interesting note about 2007 is that this was the year that FNBO Direct came out with their 6% savings account special that lasted from May through September of 2007. After that promo, the rate fell to 5.05% APY. Like other savings accounts, the rates have fallen, and it's now at 1.40% APY which is about average for today's online savings accounts. So State Bank of Toledo's reward checking account has done well as a liquid account alternative to online savings accounts.

To learn more about reward checking, please refer to this reward checking overview.
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3.00% Reward Checking Account at Foothill FCU in California - Local Only
Monday, December 21, 2009 - 9:02 AM

Foothill Federal Credit Union is offering a reward checking account called MyChoice Checking. The account has the following rates and features if certain monthly requirements are met:
  • 3.00% APY on balances up to $25,000
  • 0.00% base rate if qualifications are not met
  • Refunds ATM fees nationwide up to $20 per cycle
I can't find any mention of the rate for the portion of the balance above $25K. I emailed the credit union and will update the post when they reply. The monthly requirements include:
  • 10 MasterCard Debit Card purchases
  • One electronic withdrawal or deposit
  • Receive electronic statements
Additional features of the account regardless of the monthly requirements include:
  • No minimum balance requirement
  • No monthly service charge
  • Daily ATM withdrawal limit of $300
Membership appears to be primarily based on Select Employer Groups in the San Gabriel Valley. Please refer to the credit union's membership information page for more details. Membership requires a $50 minimum deposit and a one-time membership fee of $5.

Branches are located in the California cities of Arcadia, Covina, El Monte and Glendora.

The credit union's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The credit union is federally insured by the NCUA (Charter # 12425).

Other Reward Checking Accounts

Foothill's reward checking rate is a little low. There are still many reward checking accounts with rates of at least 4%. On the plus side, this is another reward checking option for those in parts of California. Compared to other states, California doesn't have many banks and credit unions offering reward checking accounts.

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.
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3.00% 3-Year CD & Other Competitive CD Rates Continue at Pinnacle Bank in Florida - Local Only
Monday, December 21, 2009 - 8:59 AM

Pinnacle Bank continues to offer competitive rates on its mid-term and long-term bump-up CDs. The rates are the same as they were in September. These include:
  • 2.50% APY 2-year
  • 3.00% APY 3-year
  • 3.25% APY 4-year
  • 3.50% APY 5-year
The above rates are no longer listed at the bank's website. They were advertised yesterday (12/20/09) in the Orlando Sentinel. Minimum deposit is $5,000, and the maximum deposit is $99,000. Early withdrawal penalty is 6 months of interest.

The small print has the following details about the bump-up feature:
For 3, 4 and 5 year term- two times during the term of your account, at your election and upon our actual receipt of written notice from you, we will change the interest rate on your account to the interest rate we offer then on accounts of a similar term as the then remaining term of your account. 2 year term has the option to bump the interest rate once during the term of the account. The rate cannot increase more than two percentage points over the initial rate. No more than 1 bump permitted per 12 month time period beginning one year after the opening deposit date.

I consider the bump-up feature one of the least useful liquid CD features. If interest rates go up, the bank can offer higher rates on special terms. The new rates for the standard CDs can then be kept at low rates. So you may be disappointed in the bump-up opportunities. Nevertheless, the above rates are very competitive regardless of the bump-up feature.

It appears that a branch visit is required to open accounts. Branches are located in the Central Florida cities of Longwood and Orange City.

The bank's ratings for safety and soundness have gone down a bit since my last post. They're now a little weak: 2 stars (below peer group) at Bankrate.com (based on 6/30/09 data) and 3 stars (adequate) at BauerFinancial (based on 9/30/09 data). I can't find any public enforcement actions from regulators. The bank has been a FDIC member since 1999 (FDIC Certificate # 34908).

Other Competitive Certificate of Deposit Rates
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3.75% Jumbo 60-Month CD at Coastline FCU in North Florida - Local Only
Monday, December 21, 2009 - 8:57 AM

Coastline Federal Credit Union is offering a 3.75% APY on its Jumbo 60-month CD with a $75,000 minimum deposit. This is also available in an IRA, but with only a $1,000 minimum. For the regular CD, the rate goes way down for small balances (2.50% APY for a $1K minimum). These rates are listed in the credit union's rates page as of 12/21/09.

Once nice feature of the credit union's certificates is a mild early withdrawal penalty. According to page 25 of the disclosure document:
If your account has an original maturity of more than one year: The penalty we may impose will equal three month’s dividends on the amount withdrawn subject to penalty.

Most long-term CDs have an early withdrawal penalty of at least 6 months. A small penalty is a nice feature these days when there's a chance that rates may shoot up in the next few years.

Membership is open to anyone who lives, works, worships or attends school in Baker, Clay, Duval, Nassau or St. John's County. Please refer to their About Us page for more details. Membership requires a minimum deposit of $5 in the share savings account.

Branches are located in Jacksonville, Florida.

The credit union's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The credit union is federally insured by the NCUA (Charter # 1115).

Other Competitive Certificate of Deposit Rates
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3.50% 48-Month CD at Rollstone Bank & Trust in MA - Local Only
Sunday, December 20, 2009 - 2:53 PM

Update 1/09/2010: The 48-month CD special is no longer listed at the bank's website.

Rollstone Bank & Trust is offering two CD specials. The most competitive is the 48-month CD special which has a 3.50% APY. The short-term special has a 1.50% APY for a 9-month term. Minimum deposit is $1,000 for the 48-month CD and $100 for the 9-month CD. Both specials are also available in an IRA. These rates are listed at the bank's deposit rates page as of 12/20/09.

Update 12/22/09: The bank just increased the yield on the 7-month CD special from 1.50% to 1.92% APY. That makes the 7-month special much more competitive.

The bank has long offered a reward checking account. In 2007 it started out with a 6.01% APY for balances up to $100K. The rate has fallen considerably, and it's now 2.75% APY for balances up to $50K (see post).

Readers have reported being told by the bank that you must live within 50 miles of a branch, and the accounts must be opened in the branch. This might be a challenge for the next few days after this weekend's winter storm. Branches are located in Fitchburg, Leominster, Harvard and Townsend, Massachusetts.

The bank's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The bank was established in 1846 and has been a FDIC member since 1957 (Certificate # 17797).

Other Competitive Certificate of Deposit Rates

Not many banks or credit unions are offering rates above 3% for 4-year terms. The highest yield on my nationwide list is 3.15% APY at Hudson City Savings Bank. For other CD rates please refer to the following:
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Competitive 2- and 5-Year CDs at Northwest FCU - Available Nationwide
Sunday, December 20, 2009 - 10:36 AM

Northwest Federal Credit Union continues to offer some competitive CD rates. Rates have actually went up since my November post. The most competitive is currently the 5-year CD with a 3.65% APY for a minimum balance of $25,000. Lower rates are available for smaller balances, and a 3.75% APY is available for a $100,000 minimum. In addition, higher rates (up 0.25%) are available to Premier Checking members and Heritage Club members. These rates are based on the credit union's rate sheet (pdf) as of 12/20/2009. Note, rates typically are changed on Tuesdays.

Another noteworthy CD is the credit union's 2-year Add-On CD which has a 2.39% APY as of 12/20/2009. According to the Add-on Certificate page, you have the "ability to add on deposits over the term with no minimum amounts or limits to the number of deposits." There's also a 1-year Add-On CD, but the rate is not quite as competitive, only 1.53% APY as of 12/20/2009. These Add-On CDs have a $500 minimum deposit, and the bonus rates don't apply.

These Add-On CDs can be very useful to hedge against the risk that this low-interest rate environment will drag on. When future CDs mature, you can fall back on the Add-On CD if rates are not higher.

Additional Credit Union and CD Details

Last month I described a useful IRA CD feature at Northwest for those 59½ and over. I have more details about Northwest FCU and its CDs in my September Northwest FCU review.

Membership

In addition to select employer groups, credit union membership is open to members of the American Consumer Council (ACC). According to the credit union's Who We Serve page:
If you find you are not eligible to join NWFCU via the relationships defined above, we can approve your membership with automatic enrollment in the American Consumer Council, an organization dedicated to consumer education, awareness, and economic growth. This nonprofit advocacy group was established in 1987 to ensure and protect consumers. There is no cost for you to join, nor additional paperwork. Simply select "I work for a member company or an organization" then choose "ACC" from the list of eligibility options on our membership form.

Membership requires a minimum deposit of $5 into your share savings account.

Locations

NWFCU's branches are located in the Virginia cities of Manassas, Chantilly, Herndon and Vienna. You can also use shared branches for making deposits, withdrawals and for other services.

Financial/NCUA Info

The credit union's rating for safety and soundness are strong: 4 stars (sound) at Bankrate.com (based on 6/30/09 data) and 5 stars (superior) at BauerFinancial (based on 9/30/09 data). NWFCU is federally insured by the NCUA (Charter # 5500). It's a large credit union with $1.7 billion in assets and 99,300 members.

Thanks to the reader who noted these latest rates in the comments.

Other Competitive Certificate of Deposit Rates
Comments (12)
Bank Deals Weekly Summary for December 19, 2009
Saturday, December 19, 2009 - 3:59 PM

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

The last scheduled FOMC meeting for 2009 was held this week, and as expected there were no Christmas presents for savers. The Fed continues its line on interest rates: "anticipate that economic conditions [...] are likely to warrant exceptionally low levels of the federal funds rate for an extended period."

We probably saw the last bank failures for 2009 yesterday. The FDIC was especially busy with 7 closures. The total number of failures for 2009 is 140. Three of yesterday's closures involved banks that I've listed in my weekly summaries for the last several years. These include UmbrellaBank's parent, New South Federal Savings Bank, Imperial Capital Bank and First Federal Bank of California. The good news is that the FDIC was able to find buyers for all three, and the buyers agreed to assume all deposits even those that exceed the FDIC limit. However, for those who have CDs with these banks, your CD rate may be reduced. Please leave a comment in my bank failure review post when you find out how your CDs were affected.

Savings Account Rates

Flagstar Bank slashed its rates again this week. It appears they now have a strategy to reduce deposits. Their new money market rate of 0.50% should help with this strategy. Flagstar now shares the bottom of the list with ETrade Bank. It's sad to see these two banks which used to be rate leaders fall to the bottom.

If you're looking for a savings account with a history of top rates from strong institution, refer to my short list of top savings accounts that I posted in August. Four savings accounts that made my short list have remained very competitive. Rates have fallen for three of these four accounts, but they still remain near the top.

Rate Hikes:
  1. None
Rate Drops:
  1. American Express Savings - 1.50% (was 1.70%)
  2. WTDirect Savings - 1.41% (was 1.51%)
  3. iGObanking Savings - 1.31% (was 1.41%)
  4. Intervest MMA - 1.30% $2.5K (was 1.32%)
  5. Union Federal Savings - 1.25% (was 1.40%)
  6. Citibank Ultimate Savings - 1.01% (was 1.15%)
  7. Flagstar MMA - 0.50% (was 1.09%)
Certificate of Deposit Rates

I'm happy to see ING Direct continuing to offer 2% APY on its 12-month CD. For longer terms, two New York banks continue to offer good nationwide deals. Emigrant Bank is still offering 2.25% APY for 16 months at Dollar Savings Direct. It's not listed on their website, but I called today and confirmed the rate. The other New York bank is Hudson City Savings which has good deals on terms from 2 to 5-years.

CD rates continue to fall, but there was one bright spot. Northwest FCU raised its CD rates last week. Its 60-month CD is especially competitive with a rate up to 3.75% APY for a $100K minimum. An additional 0.25% is added for certain relations. The credit union also has a 2-year add-on CD with a 2.39% APY. Add-on CDs can be especially helpful to hedge against the risk of rates staying low (see post).

I checked with my PenFed contact again this week, and new higher long-term CD rates are still planned for January. These include a 3.75% APY 5-year CD, 3.50% APY 4-year CD and a 3.25% APY 3-year CD. For those with PenFed CDs that mature in January, you'll be able to get an additional 0.25% as a renewal bonus.

Both PenFed and Northwest FCU have a reasonable early withdrawal penalty of 6-months of interest for their long-term CDs (excluding the 7-year term). Two banks with similar early withdrawal penalties include OneWest Bank and Discover Bank.

Be careful with some banks that offer top long-term CD rates. They can have a much more severe penalty. One example is Capital One Bank which has a convoluted long-term penalty that involves what they call an Economic Replacement Value. Intervest Bank's penalty is clear, but it's severe: half of the interest of the term of the CD. For a 5-year CD, that's 30 months of interest.

As I described in my recent OneWest CD review, a long-term CD with a mild early withdrawal penalty can be better than sticking with short-term CDs. Rates can be higher even if you break the long-term CD early. If the interest rate environment doesn't improve, you benefit from the higher long-term rate.

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

Best Nationwide CD Deals as of 12/19/09: Also listed are savings account promos with rate guarantee periods. The full list of nationwide CD rates is farther down.
  1. 2.51% 3-mo money market/checking promo at EverBank (account review)
  2. 1.50% money market with rate guaranteed to Apr 2010 at Bank of America (account review)
  3. 1.77% 10-mo CD at EBSB Direct (account review)
  4. 2.42% 12-mo CD at Wings Financial CU, Limited Membership (account review)
  5. 2.10% 12-mo CD at Alliant CU (account review)
  6. 2.00% 12-mo CD at ING Direct (account review)
  7. 2.25% 16-mo CD at Dollar Savings Direct (account review)
  8. 2.39% 24-mo Add-On CD at Northwest FCU (account review)
  9. 3.00% 30-mo CD at Indus American Bank (account review)
  10. 3.03% 36-mo CD at Goldwater Bank (account review)
  11. 3.00% 45-mo CD at Reliabank Dokota (account review)
  12. 3.15% 48-mo CD at Hudson City Savings Bank (account review)
  13. 3.75% 60-mo CD ($100K min) at Northwest FCU (account review)
  14. 3.65% 60-mo CD at Melrose CU (account review)
  15. 3.60% 60-mo CD at Apple FCU (account review)
  16. 3.40% 60-mo CD at Hudson City Savings Bank (account review)
  17. 4.16% 84-mo CD (min $175K) at USAA Bank (account review)
  18. 4.00% 84-mo CD at Pentagon FCU (account review)
Best Local CD Deals as of 12/19/09: 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. 1.90% Savings Account (5% for 1st $1K) at OMNIBANK in TX (account review)
  2. 2.12% 6-mo CD & 2.42% 12-mo CD at Wings Financial CU in MN (account review)
  3. 2.00% 6-mo CD at Mutual Federal Bank in Chicago (account review)
  4. 2.00% 6-mo CD at Vision Bank in Dallas (account review)
  5. 3.00% 7-mo CD at NIH FCU in MD & DC - Limited Membership (account review)
  6. 2.00% 9-mo CD & 2.18% 18-mo CD at United Orient Bank in NYC (account review)
  7. 2.00% 11-mo CD at Colonial Bank Branches of BB&T in TX, FL & NV (account review)
  8. 2.45% 12-mo CD at Bank of Granite in NC (account review)
  9. 2.25% 12-mo & under CD at Cecil Bank in MD (account review)
  10. 2.10% 12-mo CD at First Choice Bank in LA Metro Area (account review)
  11. 2.50% 15-mo CD & 2.26% 9-mo CD at The Farmers Bank in TN (account review)
  12. 2.30% 16-mo Jumbo CD at Teachers FCU in NY (account review)
  13. 2.75% 18-mo CD & 4% 60-mo CD at Greylock FCU in MA (account review)
  14. 2.50% 18-mo No-Penalty CD at Darby Direct in GA (account review)
  15. 2.07% 18-mo CD at Signature Bank in NY (account review)
  16. 2.50% 23-mo CD at Regions Bank in Many States (account review)
  17. 4.06% 48-mo CD & 2.50% 24-mo CD at Founders FCU in SC/NC (account review)
  18. 3.50% 48-mo CD at Terrabank in Miami (account review)
  19. 4.07% 60-mo CD at IH Mississippi Valley CU in IL & IA (account review)
  20. 4.00% 60-mo CD at PFFCU in Philadelphia (account review)
  21. 3.80% 60-mo & 3.29% 48-mo CD at PrimeWay FCU in Houston (account review)
  22. 3.60% 60-mo Jumbo CD at CEFCU in CA & IL (account review)
  23. 3.50% 60-mo CD at First Priority CU in MA (account review)
Reward Checking Accounts

I reported on six new reward checking accounts this week with yields ranging from 2.75% to 4.00%. The 2.75% yield is being offered by Pacific Mercantile Bank which has several branches in Southern California. The 2.75% is low for reward checking, but the rate applies to balances up to $100K which is much better better than most reward checking accounts which cap the top rate at $25K.

Reward checking is one of the few options these days where you can still earn a decent rate. However, it's easy to miss the monthly requirements if you're not careful. I described one reader's problem with his debit card purchases that were made near the end of the cycle.

To see all of the high yield reward checking accounts available throughout the nation, please refer to the reward checking section of DepositAccounts.com.
Recap for the Week - Links to This Week's Posts

Banking News

Savings/Checking 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 under $100,000. 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 December 19, 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 (7)
7 Banks Fail Including UmbrellaBank's Parent and Imperial Capital
Friday, December 18, 2009 - 8:46 PM

It looks like the total number of bank failures for 2009 will be 140. Since today is the last non-holiday Friday for 2009, the FDIC will probably take a break for the rest of 2009. Seven banks failed today, and several were sizable banks. The FDIC wasn't able to find buyers for 3 of these banks. Consequently, only the insured deposits are being covered. The $250K basic coverage limit does seem to be keeping the uninsured deposits down. The FDIC estimates only $3.2 million out of about $960 million in total deposits of those 3 banks were uninsured.

Three of the closed banks were sizable and offered accounts nationwide on the internet. These include:
  • New South Federal Savings Bank, Irondale, AL (parent of UmbrellaBank)
  • Imperial Capital Bank, La Jolla, CA
  • First Federal Bank of California, Santa Monica, CA (operated FirstFedDirect.com)
The FDIC was able to find buyers for all of these three banks. It's interesting to see the buyer of First Federal Bank is OneWest Bank which was formerly IndyMac. For these three banks, all regular deposits are being transferred to the acquiring banks. There are no uninsured deposits that will be lost. The main concern will be what will happen to rates on existing CDs. OneWest Bank and the buyer of New South Federal have not reported their decision. The buyer of Imperial Capital, City National Bank, has already made its decision. It's lowering rates to its existing CD rates. Depositors will be allowed to make a penalty-free early withdrawal if the rates change.

Below is a summary of today's bank failures:

134th Bank Failure of 2009 (25th in GA)
  • FDIC Press Release
  • Closed Bank: RockBridge Commercial Bank, Atlanta, GA
  • Size: 1 branch, $294.0 million in assets, $291.7 million in deposits
  • Possible Uninsured Deposits: $2.1 million
  • Acquiring Bank: None
  • Rate Changes: All accounts being closed. Checks will be mailed.
  • Estimated Cost to Deposit Insurance Fund: $124.2 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
135th Bank Failure of 2009 (14th in FL)
  • FDIC Press Release
  • Closed Bank: Peoples First Community Bank, Panama City, FL
  • Size: 29 branches, $1.8 billion in assets, $1.7 billion in deposits
  • Possible Uninsured Deposits: All deposits transferred except some brokered deposits
  • Acquiring Bank: Hancock Bank, Gulfport, MS
  • Rate Changes: Hancock Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $556.7 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
136th Bank Failure of 2009 (4th in MI)
  • FDIC Press Release
  • Closed Bank: Citizens State Bank, New Baltimore, MI
  • Size: 7 branches, $168.6 million in assets, $157.1 million in deposits
  • Possible Uninsured Deposits: $803,000
  • Acquiring Bank: None (temporary bank formed to transition customers)
  • Rate Changes: CDs being closed. Checks will be mailed.
  • Estimated Cost to Deposit Insurance Fund: $76.6 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
137th Bank Failure of 2009 (3rd in AL)
  • FDIC Press Release
  • Closed Bank: New South Federal Savings Bank, Irondale, AL (parent of UmbrellaBank)
  • Size: 1 branch, $1.5 billion in assets, $1.2 billion in deposits
  • Possible Uninsured Deposits: All deposits transferred
  • Acquiring Bank: Beal Bank, Plano, TX
  • Rate Changes: Beal Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $212.3 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
138th Bank Failure of 2009 (21st in IL)
  • FDIC Press Release
  • Closed Bank: Independent Bankers' Bank, Springfield, IL
  • Size: 1 branch, $585.5 million in assets, $511.5 million in deposits
  • Possible Uninsured Deposits: $269,000
  • Acquiring Bank: bridge bank created by FDIC
  • Rate Changes: Independent Bankers' Bank did not take deposits directly from the general public
  • Estimated Cost to Deposit Insurance Fund: $68.4 million
  • Financial Ratings: 2 star (below peer group) at Bankrate.com, 0 star (lowest) at BauerFinancial
139th Bank Failure of 2009 (16th in CA)
  • FDIC Press Release
  • Closed Bank: Imperial Capital Bank, La Jolla, CA
  • Size: 9 branches, $4.0 billion in assets, $2.8 billion in deposits
  • Possible Uninsured Deposits: All deposits transferred, except some brokered deposits
  • Acquiring Bank: City National Bank, Los Angeles, CA
  • Rate Changes: CD rates changed to the rates that are paid on like term CDs for City National clients (CNB's FAQ)
  • Estimated Cost to Deposit Insurance Fund: $619.2 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
140th Bank Failure of 2009 (17th in CA)
  • FDIC Press Release
  • Closed Bank: First Federal Bank of California, Santa Monica, CA
  • Size: 39 branches, $6.1 billion in assets, $4.5 billion in deposits
  • Possible Uninsured Deposits: All deposits transferred
  • Acquiring Bank: OneWest Bank, FSB, Pasadena, CA
  • Rate Changes: OneWest Bank, FSB will review rates
  • Estimated Cost to Deposit Insurance Fund: $146.3 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
The above BauerFinancial ratings are based on 9/30/09 data and those from Bankrate are based on 6/30/09 data.

References:
Comments (65)
Important Gotcha for Those with Reward Checking Accounts
Friday, December 18, 2009 - 9:57 AM

The most troublesome reward checking requirement is meeting the number of required debit card purchases for each monthly cycle. If you're late in making those last required debit card purchases, you may not meet the deadline. A reader emailed me about his experience, and it shows the risks of waiting too close to the end of the cycle. Here are excerpts of his email:

I'm currently having a problem with a 'rewards checking account' that relates to the record date of transactions -- i.e., whether these posted during the 'qualification' cycle. Although it seems to me the evidence based on transaction dates shows that I'm clearly 'in the right' so far I am not making any headway with the Bank.
...
even though the 'debit' usage immediately debits the account for the funds in question, it appears that some banks do not always use that date as the posting date. It seems to me that should not be the case, and that in general 'posting dates' should not be left to the arbitrary discretion of banks.

If you're near the end of the cycle, a good tip is to make PIN-based purchases instead of signature-based purchases. This assumes that your bank accepts PIN-based purchases for meeting the requirements. Some banks only allow signature-based purchases since banks make more money on these transactions.

As the reader described, even a PIN-based purchase may not post immediately even if it's made during a business day. The funds may be debited from the checking account, but the posting date could be delayed. So you may find that you will be late in meeting your reward checking requirements.

I've found some information that explains how debit card purchases are processed at this website of the Federal Financial Institutions Examination Council's (FFIEC). Here's an excerpt that summarizes how debit card purchases are processed and when the settlement occurs. Perhaps the settlement time explains the delay.

Both credit and signature-based debit card transactions are processed in batch mode at the POS [Point of Sale], and settlement is delayed until the batches are processed at the end of the day. PIN-based debit card transactions, although processed in real time at the POS, typically settle at the end of the day using the ACH.

If you have more information about the time it takes for the different debit card purchases to post in your account, please leave a comment.

The reader reported that the bank finally relented and gave him the reward interest rate. So this also shows that if you think your bank was wrong for not paying your reward interest rate, make sure you contact your bank and don't give up too early.

For more information about reward checking accounts, please refer to this overview of reward checking.
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2.29% 18-Month CD at BankFirst Financial Services in MS - Local Only
Friday, December 18, 2009 - 9:55 AM

BankFirst Financial Services is offering two competitive CD rates: 2.29% APY for 18 months and 2.00% APY for 15 months. Minimum deposit for the 18-month CD is $1,000, and $2,500 for the 15-month CD. There's also an online special 6-month CD with a 1.50% APY. Unfortunately, 1.50% is now competitive for 6-month terms. These rates are listed in the bank's CD rates table as of 12/18/09.

The bank also offers a reward checking account with a 3% APY for balances up to $50K as of 12/18/09 (see my review).

A branch visit is required to open an account. Branches are located in the Mississippi cities of Columbus, Macon, Shuqualak, Starkville, West Point and in the Jackson suburbs of Flowood, Madison and Ridgeland.

The bank's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 8870).

Other Competitive Certificate of Deposit Rates
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2.25% 15-Month CD & 2.10% 9-Month CD at Commercial Bank in TN & KY - Local Only
Friday, December 18, 2009 - 9:53 AM

Update 1/21/2010: The special CD rates have fallen, but they remain competitive: 1.75% APY 9-month and 2.00% APY 13-month.

Commercial Bank is offering two very competitive CD rates: 2.10% APY for 9 months and 2.25% APY for 15 months. The 9-month CD is a special. Both have a $500 minimum deposit. These rates are listed in the bank's rates page as of 12/18/09. Note, on the front page they're listing the 15-month CD with a 2.15% APY. I've emailed the bank to find out which rate is correct.

The bank also offers a high-yield reward checking account with a 3.01% APY for balances up to $25K (see my review).

It appears that a branch visit is required to open an account. Branches are located in several cities in Tennessee and Kentucky. Some of the cities include Harrogate, Knoxville, Kingsport, Luttrell, Pineville, Cumberland and Barbourville.

The bank's ratings for safety and soundness are fair: 3½ stars (good) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1976 (FDIC Certificate 22354).

Other Competitive Certificate of Deposit Rates

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3.01% Reward Checking Account at Commercial Bank in TN & KY - Local Only
Friday, December 18, 2009 - 9:50 AM

Commercial Bank is offering a high-yield reward checking account called Hometown Rewards Checking. It has the following rates and features if certain monthly requirements are met:
  • 3.01% APY on balances up to $25,000
  • 0.51% APY for portion of balance over $25,000
  • 0.05% base rate if requirements are not met
  • Reimburses ATM fees nationwide per cycle
The monthly requirements include:
  • 10 debit card purchases
  • 1 Automatic Payment or Direct Deposit
Additional features of the account regardless of the monthly requirements include:
  • $100 minimum initial deposit
  • No minimum balance requirement
  • No monthly service charge
  • Free Bill Pay
It appears that a branch visit is required to open an account. Branches are located in several cities in Tennessee and Kentucky. Some of the cities include Harrogate, Knoxville, Kingsport, Luttrell, Pineville, Cumberland and Barbourville.

The bank's ratings for safety and soundness are fair: 3½ stars (good) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1976 (FDIC Certificate 22354).

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.
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2.07% 18-Month CD at Signature Bank in New York City - Local Only
Friday, December 18, 2009 - 9:45 AM

Signature Bank made substantial cuts to their CD rates, but some of the rates remain fairly competitive. One in particular is the 18-month CD which has a 2.07% APY. They don't list the rates on their website, so I called this morning. Below are the rates as of 12/18/09:
  • 1.51% APY 6 months
  • 1.76% APY 12 months
  • 2.07% APY 18 months
  • 1.98% APY 24 months
  • 2.79% APY 36 months

Minimum deposit is $5,000. These aren't specials, so you don't have to worry about other requirements like a checking account.

My last post was in November when the above rates were much higher. I had been calling each week, and the rates were holding through last week.

A branch visit is required to open an account. Branches are located throughout New York City.

The bank's ratings for safety and soundness continue to be strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data) The bank has been a FDIC member since 2001 (FDIC Certificate # 57053).

Other Competitive Certificate of Deposit Rates
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3.56% 60-Month CD & 3.30% 48-Month CD Continue at Qualtrust Credit Union in Texas - Local Only
Friday, December 18, 2009 - 9:42 AM

Qualtrust Credit Union continues to offer competitive long-term certificate rates. The following rates are listed at the credit union's rates page as of 12/18/09:
  • 3.56% APY 5 year
  • 3.30% APY 4 year
  • 2.78% APY 3 year
  • 2.52% APY 2.5 year
  • 2.27% APY 2 year
Above the rate table, it states that rates are subject to change every Tuesday. Minimum deposit is $1,000. According to the small print, the early withdrawal penalty is 180 days of dividends. The rates also apply to CDs in Traditional, Roth and SEP IRAs and in an Educational Savings Account.

The above rates are the same as when I last posted on this credit union in early November. At that time I didn't mention the CDs with terms from 2 to 4 years. With interest rates continuing to fall, these CDs are now very competitive.

Membership is open anyone who lives, works, plays or worships within a 10 mile radius of the credit union's Irving and Grapevine locations or in Tom Green County (location of their San Angelo office). Please refer to the credit union's About Us Page for more details. Membership requires a minimum balance of $5 in the share savings account.

The credit union's ratings for safety and soundness continues to be strong: 4 stars (sound) at Bankrate.com (based on 6/30/09 data) and 5 stars (superior) at BauerFinancial (based on 9/30/09 data). The credit union is federally insured by the NCUA (Charter # 68569).

Thanks to the reader who mentioned these CD rates in the Bank Deals hub page.

Other Competitive Certificate of Deposit Rates
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Flagstar Internet Money Market Rate Plummets and Is No Longer Competitive
Thursday, December 17, 2009 - 7:29 AM

Flagstar Bank slashed the rate on its Express Money Market Account yesterday from 1.09% to 0.50%. This is the second major rate cut this month. Last week it slashed the rate from 1.60% to 1.09%. Before December Flagstar had maintained very competitive rates on this account since 2007. This latest change takes Flagstar out of the field of competitive internet savings accounts.

Even Flagstar's own webpage shows how bad this rate is. In the money market page they compare their money market rate with the national average which is listed at 1.03% APY. This used to show how much higher they were compared to the average. Now they're less than half the national average they list in this table.

In addition to the money market rate, Flagstar CD rates have plummeted. All of their current CD rates are under 2% and that even includes the 60-month term.

I had thought that last week's rate cut may have been due the new FDIC rate caps. Last week's rate of 1.09% was just under the FDIC rate cap for money market accounts of 1.10%. The FDIC rate caps will be taking effect in January and are intended for less than well capitalized banks. However, a reader noted the following in the comments:
Flagstar Bancorp said in its 10-Q, filed in 11/2009 for quarter ended 9/30/09: "At September 30, 2009, the Bank exceeded all applicable bank regulatory minimum capital requirements and was considered 'well capitalized.' We are not subject to regulatory capital requirements.

I just noticed this December 14th press release from Flagstar which stated:
additional regulatory restrictions have recently been imposed on the Company and the Bank, including limitations on: asset growth; accepting, renewing or rolling over of any brokered deposits; making capital distributions; ...

This last rate cut is so large that it goes beyond the FDIC rate cap. Flagstar may have decided that it needed to reduce its deposits. ETrade Bank did this earlier this year. Before 2009, ETrade Bank's Complete Savings Account had been very competitive. The rate started plummeting in April and it bottomed at 0.50% in October. I noticed ETrade mentioned its intention to reduce deposits in its quarterly filings. Here are some excerpts:
To accommodate this planned long-term reduction in assets, the Company is also similarly reducing its liabilities.
...
the Company continued to execute its ongoing strategy to reduce bank-related deposits.

Flagstar may have decided to take these same steps. Like ETrade, Flagstar is having financial troubles with high nonperforming loans. This MSNBC article reviews banks with troubled asset ratios. Ratios above 100 indicate that banks had more troubled loans than money to cover them. Here's what the article has on Flagstar:
The 77th largest, Flagstar Bank, Troy, Mich., has had its ups and downs. Its ratio has risen from 32 in December 2007 to a high of 106 in September. The bank's parent company has also received TARP funding.
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OneWest Bank's Competitive 5-Year CD - Benefits and Issues of Long-Term CDs
Thursday, December 17, 2009 - 7:26 AM

Most of OneWest Bank CD rates are no longer that competitive, but it still has one of the best rates for a 5-year CD of 3.30% APY. This is listed in the bank's CD rates page as of 12/17/09.

One nice feature about OneWest Bank's CDs is that its early withdrawal penalty is only 6 months of interest. Many of the banks that offer top rates on 5-year CDs have penalties of one year interest or more. In addition, I can't find any small print in the terms and conditions that gives the bank the right to refuse an early withdrawal. Let me know in the comments if I missed this. As I described last year there have been rare cases when banks have refused early withdrawals based on this small print.

The early withdrawal allowance and low penalty are very important in today's environment when there's a risk that rates could shoot up in the next few years. If rates do shoot up, you can break the CD. The penalty will cost you, but you may come out ahead compared to what you would have earned if you kept the money in a money market account or shorter term CDs. Here are examples of the effective APY if you break this 3.30% 60-month CD early:

Year CD is    Estimate APY
broken        for those years
----------    ---------------
1 year        1.65%
2 year        2.48%
3 year        2.75%
4 year        2.89%

As you can see above, these rates are competitive to CD rates of terms from 1 to 4 years. The benefit of a long-term CD is that if rates don't rise, and the US experiences a condition like Japan experienced during the 90's, you are locked into a yield that's much better than shorter-term CD yields.

For more details about OneWest regular CDs, liquid CDs and IRAs, please see my July OneWest Bank review.

With OneWest Bank being a new bank it doesn't have the bad loan baggage of IndyMac. OneWest Bank now has an entry in the FDIC database. The established date is listed as 3/19/2009.

Other Competitive Certificate of Deposit Rates

I've recently posted on some long-term CDs from banks and credit unions with small early withdrawal penalties. These are local deals. One is in Massachusetts and the other is in South Florida.

I've also received another confirmation this week that PenFed will be coming out with a 3.75% APY 5-year CD in January (see post). Like OneWest, PenFed's early withdrawal penalty is only 6 months of interest for the 5-year CD.

For other CD rates, please refer to the following:
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$50 Checking Account Bonus at Thrivent Financial Bank - Available Nationwide
Thursday, December 17, 2009 - 7:23 AM

Thrivent Financial Bank is offering a $50 bonus for opening its rewards checking account. They call it a reward checking, but it's not a high-yield reward checking account. There are no debit card usage requirement, but it does require direct deposit.

According to the promotions page, you have to open the account by 12/31/09 and set up recurring direct deposit of at least $100 within 90 days of opening your account. The instructions state:
Call 800-688-6031 today and have promo code: Checking1109 handy to take advantage of this offer.

The bonus is reported to IRS as interest, and it'll be credited to your account within 3 business days after qualifying for the bonus.

Notable features of the checking account that are listed in the checking account comparison page and from my conversation with the CSR include:
  • $50 minimum opening deposit
  • No monthly fees (CSR)
  • 0.51% APY on all balances as of 12/16/09 (see rate table)
  • Requires payroll direct deposit. Without direct deposit, it'll be converted to Simply Free Checking (CSR)
  • Online ACH transfer service
  • Unlimited ATM fee reimbursements
  • Free first order of checks
  • No hard credit pull in the application. Just ChexSystem (CSR)
The CSR said they have a ACH transfer limit of $2K/day, but you can initiate the transfer by phone without this limitation.

This isn't an account for rate chasers, but for someone looking for a regular checking account this is comparable to other online checking accounts like those at ING Direct, Charles Schwab and Salem Five Direct.

Thrivent Financial Bank opens accounts for customers in any state. The bank is headquartered in Wisconsin with branches in both Wisconsin and Minnesota.

The bank's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1998 (FDIC Certificate # 34799).

Other Bank Bonus Deals:
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3.00% Reward Checking Account at First State Bank in New York - Local Only
Thursday, December 17, 2009 - 7:21 AM

First State Bank is offering a high-yield reward checking account called e-z Money Checking. It has the following rates if certain monthly requirements are met:

  • 3.00% APY on balances up to $30,000
  • 1.00% on portion of balance over $30,000
  • 0.20% base rate if requirements are not met

The monthly requirements include:

  • 10 debit card purchases
  • 1 ACH credit or debit
  • Receive e-statements and maintain a valid email address

There's no mention of ATM fee refunds on the bank's website. However, its sister bank which has this same account refunds ATM fees up to $20 per month if the requirements are met (see post).

It appears that a branch visit is required. Branches are located in Canisteo and Hornell, New York.

The bank's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 591). The bank is part of the holding company Citizens and North Corporation. Citizens & Northern Bank in Pennsylvania is also a subsidiary of this holding company.

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

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3.00% Reward Checking Account at Citizens & Northern Bank in PA - Local Only
Thursday, December 17, 2009 - 7:20 AM

Citizens & Northern Bank is offering a high-yield reward checking account called e-z Money Checking. It has the following rates if certain monthly requirements are met:
  • 3.00% APY on balances up to $30,000
  • 1.00% on portion of balance over $30,000
  • 0.20% base rate if requirements are not met
  • ATM fee refunds nationwide of up to $20 per month
The monthly requirements include:
  • 10 Visa check card purchases
  • 1 ACH credit or debit
  • Receive e-statements and maintain a valid email address
Other features of this account include:
  • No minimum balance requirements
  • No monthly service fees
  • Free Bill Payment
There's an online application link at the bank's checking page. However, I was told by the CSR that they require you to come into a branch to open the account. They need two forms of ID with one being a picture ID.

Branches are located in several cities in Central Pennsylvania. Some of the cities include Athens, Emporium, Williamsport, Port Allegany, Coudersport, Laporte and Knoxville.

The bank's ratings for safety and soundness are a little weak: 3 stars (adequate) at BauerFinancial (based on 9/30/09 data) and 2 stars (below peer group) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 7799). The bank is part of the holding company Citizens and North Corporation. First State Bank of New York is also a subsidiary of this holding company.

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.
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2.45% 12-Month CD at Bank of Granite in North Carolina - Local Only
Thursday, December 17, 2009 - 7:18 AM

Update 12/27/09: The 12-month special CD rate has fallen to 2.25% APY.

Bank of Granite continues to offer one very competitive CD. It's a 12-month CD with a 2.45% APY. Last month this special had a 12-month term. There's also 1.75% APY 6-month CD. Minimum deposit is $5,000. These specials are listed on the bank's front page as of 12/16/2009.

Bank of Granite continues to offer a reward checking account that pays 4% APY on balances of $25K as of 12/16/09. I have more details on this account in this post.

It appears a branch visit is required to open an account. Branches are located in several North Carolina cities including Winston Salem, Hickory, Granite Falls, Charlotte, and Wilkesboro.

Bank of Granite's ratings for safety and soundness continue to be a little weak: 2 stars (problematic) at BauerFinancial (based on 9/30/09 data) and 1 star (lowest) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 5950).

Other Competitive Certificate of Deposit Rates
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Fed Still Saying Exceptionally Low Rates for Extended Period - Update
Wednesday, December 16, 2009 - 2:28 PM

The last scheduled FOMC meeting of 2009 finished today, and there continues to be no hint of when the Fed will start hiking rates. The Fed continues to say the same thing about keeping the federal funds rate exceptionally low for an extended period:
The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

The FOMC statement did cite a number of areas of the economy that are getting stronger, but that wasn't enough to change the language about keeping the exceptionally low rate for an extended period.

In October when editorials from Barron's and the Washington Post called for the Fed to start executing an "exit strategy", I thought we might soon see a change in the Fed policy. The editorials basically said that with the financial crisis clearly past, rates shouldn't stay at the crisis-level lows. It appears that the editorials didn't have an effect.

Many are fearing that the Fed won't raise rates fast enough to prevent run-away inflation. This Forbes article reviews this concern along with the news of today's release of November's CPI numbers. Here's what the article concludes:
Although pricey energy is reminiscent of the stagflation of the 1970s, the rest of the CPI remains weak with seemingly little prospects for a fresh surge. With the labor market so badly damaged -- unemployment is at 10% and jobs still in negative territory [...] -- workers are in little position to ask for wage increases, one of the key drivers of inflation and unions are not nearly as strong as they were 35 years ago. The CPI is up, but inflation is not yet back.

This is a busy news week for the Fed and Ben Bernanke. Time announced today that Bernanke is Time's Person of the Year. And tomorrow the Senate Banking Committee votes on his nomination for another 4-year term. According to this Bloomberg article a couple of Senators on the committee have announced that they'll be voting against the nomination. However, it's expected that there are enough votes to send the nomination to the full Senate. That vote isn't expected until January.

The next FOMC meeting is scheduled for January 26-27, 2010.
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2.00% 15-Month CD & 2.50% 23-Month CD at Regions Bank in Several States - Local Only
Wednesday, December 16, 2009 - 8:53 AM

Regions Bank has adjusted its special CDs, but they remain competitive in many states. All areas appear to have the same long-term CD special rates: 2.50% APY for 23 months and 3.00% APY for 42 months. The 7-month CD special also appears common for all areas, but it's not nearly as competitive with a 1.25% APY. They used to have a 12-month special, but the term is now 15 to 17 months. The APY is 2.00% for many states (I've confirmed this for AL, GA, IL and TX). In some states it's only 1.75% APY (I've confirmed this for FL and IN). The rates vary by area, so you'll have to enter your zip code at Regions CD page to see the rates available for your area. The above rates were checked on 12/16/09.

Minimum deposit for the above specials is $10,000 with a $1 million maximium, and new money is required. Also, the CD page states that you must have or open a Regions checking account. A reader in my last Regions post mentioned that his Texas branch hasn't required him to open a checking account. So you may be able to get out of the checking requirement if you have some nice reps at your local branch.

When I had last checked with Regions on its special CDs, a branch visit was required to open an account. Branches are located in Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee and Texas.

Regions lost $473 million in the third quarter, and it's in the process of cost-cutting which includes closing some branches. According to this Herald Tribune article, it's closing 22 offices in Florida and 121 in its 16-state footprint. Regions was one of the major banks that were required to raise capital based on the government's stress test last spring (see post).

Regions Bank's rating for safety and soundness at Bankrate.com is 1 star (lowest) based on 6/30/09 data. At BauerFinancial it was 3 stars (adequate) when it was based on 6/30/09 data. It remains 3 stars based on 9/30/09 data. Regions Bank has been a FDIC member since 1934 (Regions' FDIC Certificate # 1368).

Other Competitive Certificate of Deposit Rates
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3.50% 48-Month CD & 2.00% 12-Month CD at Terrabank in Miami - Local Only
Wednesday, December 16, 2009 - 8:50 AM

Terrabank is offering some competitive CD rates. The rates are not listed at the bank's website. A reader emailed me news about them, and I just called for additional details. Below is the list of CD and IRA CD rates that I was told as of 12/16/09:

  • 2.00% APY 12 months (2.17% IRA)
  • 2.30% APY 24 months (2.53% IRA)
  • 3.00% APY 36 months
  • 3.50% APY 48 months

Minimum deposit is $2,500. CD details are listed in the CD disclosure. One thing I noticed was that it allows add-on deposits. However, according to the CSR, the rate earned on add-on deposits is not the original rate but the current rate at the time of the add-on deposit. So that is not too useful.

One notable CD feature is a mild early withdrawal penalty: 90 days of interest for terms of one year or more. Based on this, the 4-year CD becomes very attractive. If you close the CD at 1-year, you would lose about 3 out of 12 months of interest. The result would be an effective rate of about 2.62%. At two years, the effective 2-year rate would be about 3.06% for the 2 years.

A branch visit is required to open an account. Branches are located in Miami and Hialeah, Florida.

The bank's ratings for safety and soundness are a little weak: 2 stars (below peer group) at Bankrate.com (based on 6/30/09 data) and 3 stars (adequate) at BauerFinancial (based on 9/30/09 data). The bank has been a FDIC member since 1985 (FDIC Certificate # 26442).

Other Competitive Certificate of Deposit Rates

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2.25% 12-Month CD at Insight Bank in Ohio - Local Only
Wednesday, December 16, 2009 - 8:49 AM

Insight Bank is offering competitive short-term CD rates. The most competitive one is the 12-month term with a 2.25% APY. Two other good short-term CD deals include a 1.50% APY 6-month CD and a 1.75% APY 9-month CD. These rates are listed in the bank's rates sheet as of 12/16/09.

It appears a branch visit is requird. It's a small bank with one branch located in Columbus, Ohio.

The bank's ratings for safety and soundness are fair: 3 stars (performing) at Bankrate.com (based on 6/30/09 data) and 3½ stars (good) at BauerFinancial (based on 9/30/09 data). The bank has been a FDIC member since 2006 (FDIC Certificate # 58215).

Other Competitive Certificate of Deposit Rates
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2.20% CDs with Terms from 6 to 18 Months at Communitywide FCU in Indiana - Local Only
Wednesday, December 16, 2009 - 8:45 AM

Communitywide Federal Credit Union has a certificate special with a 2.20% APY for terms of 6 to 18 months. It also has competitive rates on its regular CDs including a 3.20% APY 48-month CD and a 3.50% APY 60-month CD. These rates are listed at the credit union's dividends page as of 12/16/09.

Eligibility for membership is primarily based on employee groups. However, donor members of two organizations also appear to allow a person to be eligible. Please refer to the credit union's membership page for the full details.

Branches are located in the Indiana cities of South Bend, Mishawaka, Granger, Elkhart and Plymouth.

The credit union's ratings for safety and soundness are fair: 3 stars (adequate) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The credit union is federally insured by the NCUA (Charter # 18336).

Other Competitive Certificate of Deposit Rates
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2.00% 9-Month CD at United Orient Bank in New York City - Local Only
Wednesday, December 16, 2009 - 8:43 AM

United Orient Bank has two competitive CD rates: a 2.00% APY 9-month CD and a 2.18% APY 18-month CD. Minimum deposit is $5,000. Lower rates are available for a $500 minimum. These rates are listed at the bank's CD rates page as of 12/16/09.

It appears that a branch visit is required to open an account. The bank has two branches in New York City.

The bank's ratings for safety and soundness are mixed: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 2 stars (below peer group) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1981 (FDIC Certificate # 23373).

Other Competitive Certificate of Deposit Rates
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1.76% 9-Month CD at Miami Postal Service Credit Union - Local Only
Wednesday, December 16, 2009 - 8:41 AM

Miami Postal Service Credit Union has a competitive 9-month certificate APY of 1.76%. Minimum deposit is $5,000. This rate is listed at the credit union's deposit rates page as of 12/16/09. It's interesting that the credit union labels this $5,000-minimum CD as a Jumbo CD.

In addition to postal employees and retirees, membership is open to everyone who lives, works or worships within a 15 mile radius of the three credit union branches. Membership is also open to Federal Government employees and their families. Please refer to the credit union's eligibility page for the full details. Membership requires a minimum $5 balance in the share savings account.

Branches are located in Miami, Hialeah and Pinecrest.

The credit union's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The credit union is federally insured by the NCUA (Charter # 67330">Charter # 67330.

Other Competitive Certificate of Deposit Rates
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2.55% 24-Month CD & 2.10% 12-Month CD at Navy Army FCU in Texas - Local Only
Wednesday, December 16, 2009 - 8:37 AM

Navy Army Federal Credit Union continues to list competitive certificate rates for terms of 2 years and under. The top rate is a 2.70% APY for a 2-year term. Below is the full list of CD rates as shown on the credit union's rates page as of 12/16/09:

Term      APY $1K Min   APY $100K Min
3 month      1.60%         1.70%
6 month      1.90%         1.95%
9 month      1.95%         2.00%
12 month     2.10%         2.20%
24 month     2.55%         2.70%

The credit union also offers a competitive reward checking account with a 4.51% APY for balances up to $25,000 as of 12/16/09 (see post).

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.

Navy Army FCU's ratings for safety and soundness are strong: 4 stars (sound) at Bankrate.com (based on 6/30/09 data) and 4 stars (excellent) at BauerFinancial (based on 9/30/09 data). The credit union is federally insured by the NCUA (Charter # 9998).

Other Competitive Certificate of Deposit Rates
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3.00% 36-Month CD & 3.50% 60-Month CD at First Priority Credit Union in MA - Local Only
Tuesday, December 15, 2009 - 7:48 AM

First Priority Credit Union continues to offer competitive long-term CD rates. These include a 3.00% APY 3-year CD and a 3.50% APY 5-year CD. Minimum deposit is $1,000. These are also available as IRA certificates. These rates are listed in the credit union's rates page as of 12/15/09.

A reader mentioned one nice feature of First Priority's certificates. They have a mild early withdrawal penalty. It's only 90 days of interest for terms of more than one year. If you enter "early withdrawal penalty" into the "just ask" box, you can see the full details:
If member's account has an original maturity of more than one year: the penalty we may impose will equal 3 months dividends on the amount withdrawn subject to penalty.

Let's say you need to redeem the CD early at only one year into the term (perhaps because interest rates have shot up). You would lose 3 of the 12 months of interest. For that year, you would have still earned 2.25% for the 3-year CD and a 2.62% for the 5-year CD. These are excellent 1-year rates. If interest rates stay low, you just keep the CDs.

First Priority has a history of offering top rates on its regular and special certificates.

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

Branches are located in Boston, East Boston, Lowell and Waltham, MA.

The credit union has some strong ratings for soundness: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 5 stars (superior) at Bankrate (based on 3/31/09 data). The credit union is federally insured by the NCUA (Charter # 66593).

Thanks to the reader Scott who mentioned these CD rates and mild early withdrawal penalty in the comments.

Other Competitive Certificate of Deposit Rates
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3.09% Reward Checking Account at Bank of Agriculture & Commerce in California - Local Only
Tuesday, December 15, 2009 - 7:44 AM

Bank of Agriculture & Commerce is offering a high-yield reward checking account called Ultimate Checking. It has the following rates and features if certain monthly requirements are met:
  • 3.09% APY on balances up to $25,000
  • Regular interest checking rate for portion of balance over $25,000
  • Regular interest checking rate on entire balance if requirements are not met
  • ATM fee refunds of up to $2 per transaction
The monthly requirements include:
  • 10 debit card purchases
  • 1 direct deposit
  • 1 online bill pay
  • Sign on to internet 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
  • First order of 60 checks is free
The bank has an online application. However, the first page of the application states that they only accept online applications from residents of San Joaquin County, Stanislaus County and Contra Costa County.

Branches are located in the California cities of Stockton, Antioch, Brentwood, Concord, Oakley, Discovery Bay, Lodi and Modesto.

The bank's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1965 (FDIC Certificate # 19434).

Other Reward Checking Accounts

On the downside, BAC's reward checking rate is a little low and it has the additional requirement of online bill pay in addition to debit card usage and direct deposit. On the plus side, this is another reward checking option for those in parts of California. Compared to other states, California doesn't have many banks and credit unions offering reward checking accounts.

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.
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2.00% 6-Month Jumbo CD at Mutual Federal Bank in Chicago - Local Only
Tuesday, December 15, 2009 - 7:38 AM

Update 1/09/2010: The Jumbo 6-month CD rate has fallen to 1.75% APY.

Mutual Federal Bank is offering very competitive 6-month CD rates. Its Jumbo 6-month CD has a 2.00% APY. This requires a $100,000 minimum deposit. Its 6-month CD rate for a $1,000 minimum is also competitive with a 1.75% APY. Other notable non-Jumbo rates include a 2.00% APY for 12 months, 1.85% APY for 9 months and 1.50% APY for 3 months. These rates are listed at the bank's CD rate tables as of 12/15/09. Since there was an old date at the bottom of the rate table, I emailed the bank to make sure the rates were up-to-date. I just received a reply, and according to the CSR, these are up-to-date.

It appears that a branch visit is required to open an account. It's a small bank with one office located at 2212 West Cermak Road, Chicago, IL.

The bank's ratings for safety and soundness are fair: 3 stars (performing) at Bankrate.com (based on 6/30/09 data) and 3½ stars (good) at BauerFinancial (based on 9/30/09 data). The bank has been a FDIC member since 1935 (FDIC Certificate # 28302).

Other Competitive Certificate of Deposit Rates
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2.70% 24-Month CD at Communication FCU in OK - Local Only
Tuesday, December 15, 2009 - 7:36 AM

Communication Federal Credit Union is offering some competitive share certificate and IRA rates. The most competitive ones include a 1.70% APY 6-month CD, a 2.05% APY 12-month CD and a 2.70% APY 24-month CD. Minimum deposit is $1,000. These rates are listed at the credit union's rates page as of 12/15/09.

The credit union also offers a reward checking account that currently pays 4.25% APY on balances up to $50K (see post).

Membership is open to those who live or work in the city of Broken Arrow or in the counties of Carter and Pottawatamie. You can also be eligible via a long list of select employee groups or via family (which can include cousins). Please see their Membership page for more details. Membership requires a minimum balance of $5 in a share account.

Branches are located in the Oklahoma cities of Tulsa, Oklahoma City, Norman, Broken Arrow, Lawton, Enid, Muskogee, Ardmore, Shawnee, and in Topeka, Kansas.

The credit union's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The credit union is federally insured by the NCUA (Charter # 3454). It has $562 million in assets and 46,408 members.

Other Competitive Certificate of Deposit Rates
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2.25% CD for Terms of 3 to 11 Months at MidCoast Community Bank - Local Only
Tuesday, December 15, 2009 - 7:28 AM

MidCoast Community Bank is offering a very competitive rate on its short-term CDs. For terms from 3 months to 11 months the CD yield is 2.25% APY. Minimum deposit is $500. CDs are available as both personal and business accounts. These CDs are listed at the bank's rates page as of 12/15/09.

It appears that a branch visit is required to open an account. Remember to call before driving a long distance to make sure they accept non-local deposits. Branches are located in Wilmington and Dover, Delaware.

The bank has a history of competitive deposit rates. My last post on this bank was in July when they were offering a 2.05% 7-month CD. One interesting thing to note is that MidCoast is located in the same city where ING Direct has its headquarters. One would think that the giant internet bank could offer more competitive CD rates than a small brick-and-mortar bank (ING Direct does have a decent 1-year CD rate).

The bank's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 2007 (FDIC Certificate # 58498).

Other Competitive Certificate of Deposit Rates
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Competitive Short-Term Internet CD at EBSB Direct - Available Nationwide
Monday, December 14, 2009 - 9:39 AM

Update 3/05/2010: The bank has restricted the online CDs and money market account to residents of New England and New York State. I just called their toll-free number and received this info.

EBSB Direct has started offering online CDs, and it's offering a competitive 10-month CD with a 1.77% APY. Minimum deposit is $1,000. This is listed at the bank's website as of 12/14/09. The site also lists a 36-month CD, but the rate is much less competitive at 2.35% APY.

I first reported on EBSB Direct in May when it launched its internet savings account. The savings account rate has remained fairly competitive, but it requires a $50,000 balance to qualify for the top rate, which is currently 1.67% APY.

The website doesn't include many of the CD details so I called the bank this morning at its toll-free number (800-657-3272). Here are some of the details I received from the CSR:

  • Available nationwide
  • Funded via ACH transfer from an external account
  • CD rate locks when you submit your application
  • Rates are typically changed on Wednesdays
  • Beneficiaries can be added in the application
  • At maturity, there's a 10-day grace period
  • Receiving the CD funds via ACH is an option

EBSB Direct is part of East Boston Savings Bank which operates 13 branch offices in the greater Boston area. The bank has $1.15 billion in assets and $931 million in deposits based on 9/30/09 FDIC data.

The bank's ratings for safety and soundness are a little above average: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1991 (FDIC Certificate # 33510).

Other Competitive Certificate of Deposit Rates

If you don't mind a little longer term, you can still get 2% APY at a few banks. One bank is ING Direct which started offering a 2% APY 12-month CD on Friday (see post).

For other CDs, please refer to the following:

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4.00% Reward Checking Account at Adams Bank & Trust in NE & CO - Local Only
Monday, December 14, 2009 - 9:36 AM

Update 4/27/2010: The bank extended the rate guarantee to 8/31/2010.

Adams Bank & Trust is offering a high-yield reward checking account called SuperSmart e-Checking. It has the following rates and features if you meet certain monthly requirements:

  • 4.00% APY on balances up to $35,000 (guaranteed until 5/31/2010)
  • 2.00% on portion of balance over $35,000
  • 0.20% base rate if requirements are not met
  • ATM fee refunds up to $10 per month

The monthly requirements include:

  • 25 debit card purchases (PIN or signature based)
  • 1 direct deposit or direct payment (ACH)
  • Receive e-statements

Additional account features include:

  • $100 minimum initial deposit
  • $7 monthly membership fee if requirements are not met

For those who don't want to do 25 monthly debit card purchases, the bank offers the Smart e-Checking which has easier requirements but the rates are lower:

  • 2.00% APY on balances up to $25,000
  • 1.00% on portion of balance over $25,000
  • 0.15% base rate if requirements are not met
  • ATM fee refunds up to $10 per month

The monthly requirements include:

  • 15 debit card purchases (PIN or signature based)
  • 1 direct deposit or direct payment (ACH)
  • Receive e-statements

Another reason to choose this account over the SuperSmart e-Checking is that it lacks the monthly fee if you fail to meet the monthly requirements.

It appears that a branch visit is required to open an account. Branches are located in Nebraska and Colorado.

The bank's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1962 (FDIC Certificate # 18489).

Other Reward Checking Accounts

The high debit card usage requirement and the monthly fee when requirements are not met are rare for reward checking accounts. Most only require 10 purchases a month and have no monthly fees regardless of meeting the requirements. The only good thing about these requirements is that it should encourage people to use the account as their primary checking account which should make it easier for the bank to maintain the high rates.

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

Rate History:
4.00% APY up to $35K; 2.00% over (guaranteed to 8/31/10)
4.00% APY up to $35K; 2.00% over (guaranteed to 5/31/10)
4.00% APY up to $35K; 2.00% over (guaranteed to 2/27/10)

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Update on National City's $300 Bonus and PNC's $100 Bonus - Limited to Certain States
Monday, December 14, 2009 - 9:34 AM

National City continues to offer its $300 checking account promotion. I first reported on this promo in November. They're advertising it again, and it's now scheduled to end on 12/19/09. Refer to my November post for the details. The latest ad for this promo was in the Sunday edition of the St. Louis Post-Dispatch. The ad is available online here.

A branch visit is required, and this promo appears to only be available in areas where National City has branches that have not yet been converted to PNC branches. So this would exclude Florida. Other states with National City branches include IL, IN, KY, MI, MO, OH, PA and WI. All markets are scheduled to be converted by the end of June. More details about the conversions are provided at the PNC transition website.

For those with nearby PNC branches, PNC is offering another $100 checking account bonus. This was advertised in the Sunday edition of the Treasure Coast Newspaper. The ad is available online here. This is in Southeast Florida, so the promo may not be available in all markets. According to the ad:
Open a select new PNC Personal Checking Account with qualifying direct deposit and get more than you expected, like $100 deposited in your account

The offer is scheduled to end on 12/19/09.

PNC continues to offer a $100 bonus for opening its Virtual Wallet account. Refer to my September post for more details. One thing that has changed is that the small print now states that the offer is limited to residents of: DC, DE, IN, KY, MD, NJ, OH, PA, VA.

Other Bank Bonus Deals:
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IndyMac Depositors Are Still Out of Luck - Review of Deposit Insurance Changes Since IndyMac's Closure
Sunday, December 13, 2009 - 6:33 PM

The last major bank failure in which many depositors lost their uninsured deposits was when IndyMac was closed in July 2008. Not all uninsured deposits were lost. The FDIC immediately paid out 50 cents on the dollar of uninsured deposits. Even with this payout, uninsured depositors lost a substantial amount. Many found out the hard way that they had uninsured deposits. They thought their accounts were structured to qualify for the higher coverage. As I described, using POD and joint accounts to increase your coverage has complications.

Uninsured IndyMac depositors organized and created the IndyMac Depositors website. There was some recent hope that they would get back that 50% of their uninsured money. A California Congresswoman introduced legislation that would retroactively increase the FDIC insurance limit to $250,000 beginning July 11, 2008, the date that IndyMac failed. But this didn't pass. According to the San Bernardino County Sun,
The House of Representatives Rules Committee voted 8 to 4, with one abstention, to reject the amendment that would have been part of a massive financial reform bill.

So IndyMac depositors won't be getting any help from Congress. Would you have voted for the amendment?

In addition to the increase of the basic deposit insurance limit to $250,000 (that's scheduled to go back to $100K at the end of 2013), there has been one other change that makes it easier to increase your coverage. This is related to POD accounts. You can increase the basic coverage with revocable trust accounts. An example of these accounts is a Payable-on-Death (POD) Account. According to the FDIC, the owner of a POD account is insured up to $250,000 for each beneficiary if certain requirements are met. One of the requirements used to be that the beneficiary had to be an immediate family member. Now a beneficiary must be a person, charity or another non-profit organization. There is no more family requirement. However, it's important to note that if the beneficiary dies, you immediately lose the additional coverage. Also, the bank must properly document the POD designation (in the account title) and the beneficiaries must be in the bank's deposit account records.

As you can see, there remains many potential gotchas of relying on PODs to increase your deposit insurance. Fortunately, the vast majority of bank failures since IndyMac have been all-deposit transfers in which the buyers of the failed banks agree to assume all deposits, even those above the FDIC limit. There have been a few cases in which the FDIC wasn't able to find a buyer, so the coverage limits came into play.

Most credit union accounts are insured by the NCUA with coverage very similar to what the FDIC provides. The same complications of joint and POD accounts exist, and as this article shows, don't rely on the word of the institution's representative:
At least one credit union member who lost money beyond the $100,000 insurance limit at the time of the institution's failure filed an appeal looking for restitution of more money. The NCUA denied the claim.

The female credit union member had four joint accounts with her husband and two children, and had requested $54,458.47 in extra insurance payouts. The claimant, who was unidentified, argued credit union personnel had assured her that the joint-account arrangement would fully protect her assets, but the NCUA said "statements made by credit union personnel are not binding."

Thanks to the reader who noted this article in the comments.

For more info on deposit insurance coverage, refer to:
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2.75% Reward Checking Account with a $100K Balance Cap at Pacific Mercantile Bank in CA - Local Only
Sunday, December 13, 2009 - 6:29 PM

Pacific Mercantile Bank is offering a high-yield reward checking account called Premium Interest Checking. It has the following rates and features if certain monthly requirements are met:
  • 2.75% for balances of $1,500 to $100,000
  • 0.40% for under $1,500 and balance over $100,000
  • Up to 8 ATM fees of up to $25 are waived per month
One thing to note is that it's a blended APY which ranges from 0.40% for a $1,500 balance to 2.75% APY for a $100,000 balance.

If certain transaction requirements are not met, the CSR said the account would be converted to their regular interest checking account which has a 0.10% interest rate. The monthly requirements include:
  • 5 debits of any type or amount except one has to be done through online bill pay of least $25 to a third party
  • 1 deposit of any type
Additional features of this account include:
  • $100 minimum opening deposit
  • $10 monthly fee if balance drops below $1,500 (according to CSR)
The above rates and some of the above features are described at the bank's home page. However, the transaction requirements are not listed. I had to call the bank for these. According to the CSR, the rate has been 2.75% APY since the end of the third quarter of 2008. Before that it was 2.85% APY. The next time the rate may change is the start of 2010.

A branch visit is required to open this account. 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 (based on 6/30/09 data) and 2 stars (problematic) at BauerFinancial (based on 9/30/09 data). The bank is a FDIC member (Certificate # 34940).

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.
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$150 Checking Account Bonus Continues at NuVision Credit Union in CA - Local Only
Sunday, December 13, 2009 - 6:26 PM

NuVision FCU has again extended the $150 checking account promotion. The offer is now scheduled to last until 3/30/2010. 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.

According to the small print of the promo page, "Promotion offer available at select locations only." In the past, some readers have been able to receive this bonus by opening the account by mail. However, readers informed me when I last posted on this promo that the credit union now requires a branch visit.

Another reader mentioned in my January 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 mentioned this new promotion in the comments.

Other Bank 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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2.50% 2-Year CD & 3.00% 3-Year CD at Washington Federal Savings in Several States - Local Only
Sunday, December 13, 2009 - 12:41 PM

Washington Federal Savings is offering some competitive mid-term CD rates. These include a 24-month CD with a 2.50% APY and a 36-month CD with a 3.00% APY. Minimum deposit is $1,000. Jumbo CDs with a $90K minimum receive an extra 5 basis points. These rates are not listed at the bank's website. A reader mentioned these rates, and I called two of the bank's branches in Redmond, Washington and in Las Vegas on Friday. The CSR at Redmond said rates are usually updated on Fridays so she expected these CD rates to last through next week.

A branch visit is required to open an account. Branches are located in Texas, New Mexico, Arizona, Utah, Nevada, Idaho, Oregon and Washington State. Rates may vary by area, so make sure you confirm the CD rates with your local branch.

The bank's ratings for safety and soundness are a little above average: 3½ stars (good) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1935 (FDIC Certificate # 28088). It's a sizable bank with $12.6 billion in assets and $7.9 billion in deposits.

Other Competitive Certificate of Deposit Rates
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2.50% 25-Month CD at First Financial Bank in OH, IN & Other States - Local Only
Sunday, December 13, 2009 - 12:38 PM

First Financial Bank has a few competitive CD specials. The best ones include a 2.50% APY 25-month CD and a 3.00% APY 42-month Flex CD. The 25-month special requires a $10,000 minimum deposit. The Flex CD has a $500 minimum deposit. It has the option during the term to convert the CD to a 12-month CD with the 12-month CD rate. Other CD specials include a 2.00% APY 19-month CD and a 1.50% APY 13-month CD. Both have a $10,000 minimum deposit. These specials are not listed at the bank's website. A reader mentioned these to me, and I called the bank on Friday. According to the CSR, these specials are available at all branches. The CSR didn't know how much longer these would last, but they usually update rates on Tuesdays.

A branch visit is required to open an account. Most of the branches are located in Ohio and Indiana. The FDIC also shows branches in several other states including California and Arizona. These may be the branches that First Financial acquired when Irwin Union Bank failed in September.

First Financial Bank's ratings for safety and soundness are a little above average: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 6600).

Other Competitive Certificate of Deposit Rates
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2.00% 6-to-13 Month CD & 2% Savings Account with Rate Guarantees at CrossFirst Bank in Kansas City Metro - Local Only
Sunday, December 13, 2009 - 12:36 PM

Update 2/21/10: The savings account rate guarantee has fallen from 1.75% to 1.50%.

CrossFirst Bank is offering two very competitive deposit specials. The first is a 2.00% APY CD that allows you to choose a term from 6 to 13 months. Minimum deposit is $1,000. The second special is a savings account with a 2.00% APY. It's guaranteed not to drop below 1.50% through 12/31/2010. Minimum balance is $25,000. Balances under $25,000 only earn 0.50%. Another downside is that you're limited to only two withdrawals per month ($50 fee for each additional withdrawal). These specials are listed at the bank's promotional page as of 12/13/09.

It appears that a branch visit is required to open an account. It's a small one-office bank located in Overland Park, Kansas which is a suburb of Kansas City.

The bank was established in October 2007, so BauerFinancial labels the bank as a start-up without a rating for safety and soundness. Bankrate gives the bank 2 stars (below peer group) based on 6/30/09 financial data. The bank is a FDIC member (FDIC Certificate # 58648).

Other Competitive Certificate of Deposit Rates

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1.97% 12-Month CD with Some Liquid Features at FirsTier Bank in CO - Local Only
Sunday, December 13, 2009 - 12:32 PM

FirsTier Bank is advertising a competitive 12-month CD special with a 1.97% APY. It has some liquid features that make it a little better deal. It allows unlimited add-on deposits and penalty-free withdrawals of up to $2,500 per 30 days. Minimum initial deposit is $25,000 which offsets some of the usefulness of the unlimited add-on deposits. Add-on CDs can be useful to hedge against future low rates, and they're most useful when they have low minimum initial deposit requirements.

This CD special doesn't seem to be listed on the bank's website. It was advertised in today's (12/13/09) edition of the Boulder Daily Camera. The ad is available online here.

It appears that a branch visit is required to open an account. Branches are located in the Colorado cities of Denver, Parker, Loveland, Louisville, Englewood and Westminster.

The bank's ratings for safety and soundness are weak: 1 star (troubled) at BauerFinancial (based on 9/30/09 data) and 1 star (lowest) at Bankrate.com (based on 6/30/09 data). According to the Boulder County Business Report, FirsTier experienced third-quarter losses as it was "forced to increase loan/loss reserves to protect against the possible default of those bad loans." The bank has been a FDIC member since 2003 (FDIC Certificate # 57646).

Other Competitive Certificate of Deposit Rates
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Bank Deals Weekly Summary for December 12, 2009
Saturday, December 12, 2009 - 6:45 PM

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

The Fed will be holding its last scheduled meeting for 2009 next Tuesday and Wednesday (Dec 15 & 16). I'm afraid savers shouldn't expect any Christmas present. The expectations are for the FOMC to maintain its current interest-rate policy of "exceptionally low levels of the federal funds rate for an extended period." There have been signs that the economy is starting to improve, and if this continues in 2010, we may finally see higher rates. However, with very high unemployment, the Fed may resist tightening its monetary policy for quite some time.

Three more banks failed yesterday which brings the total number of 2009 bank failures to 133. With only one more non-holiday Friday remaining in 2009, we probably won't top 140 for the year. All three banks that failed yesterday were small, and the FDIC arranged for other banks to assume all deposits. The main concern for depositors of these failed banks will be if the assuming banks honor existing CD rates to maturity. Arvest Bank which took over SolutionsBank in Kansas has already announced that CD rates were changed on the day of the closure (see post).

Savings Account Rates

One surprising rate cut this week occurred at Flagstar Bank which slashed its online Express Money Market rate from 1.60% to 1.09% APY. For the last two years this account had been very competitive. One thing interesting to note is that the current FDIC rate cap for money market accounts is 1.10%. The FDIC rate caps will be taking effect in January and are intended for less than well capitalized banks. I don't know if Flagstar has this designation, but it's well known that Flagstar has been losing money. Bloomberg reported in August that it was the largest bank in the US to have nonperforming loans of over 10%.

Rate Hikes:
  1. None
Rate Drops:
  1. Farmers & Merchants Bank Reward Checking - 3.51% eff 12/17 (was 4.01%)
  2. EBSB Direct MMA - 1.67% $50K+ (was 1.77%)
  3. 1st Constitution Direct Super Savings - 1.50% (was 1.75%)
  4. First Trade Union Bank Savings - 1.50% (was 1.65%)
  5. Ally Bank Savings & MMA - 1.50% (was 1.59% & 1.55%)
  6. Union Federal Savings Bank MMA - 1.40% (was 1.50%)
  7. E-LOAN Savings Plus - 1.35% (was 1.45%)
  8. Zions MMA - 1.30% (was 1.35%)
  9. Intervest MMA - 1.32% $2.5K (was 1.35%)
  10. UmbrellaBank MMA - 1.25% $50K+ (was 1.35%)
  11. Flagstar MMA - 1.09% (was 1.60%)
  12. Citibank Ultimate Savings - 1.01% (was 1.15%)
  13. Seacoast Commerce MMA - 0.50% (was 1.00%)
Certificate of Deposit Rates

One pleasant surprise that popped up on Friday was the 12-month CD rate increase at ING Direct. Its regular 12-month CD is now 2.00% APY which is the same rate as its Black Friday CD special, but unlike that Black Friday CD, this current one doesn't have a new money requirement. This means you can fund the CD with money from your ING Direct savings account or Electric Orange account. A 2% APY for a 12-month CD may not sound good, but unfortunately, it's very competitive in today's low-rate environment.

For longer term CDs Hudson City Savings Bank continues to offer competitive rates including a 3.15% APY 48-month CD and a 3.40% APY 60-month CD. Unlike many banks offering top rates, Hudson is financially strong. The CDs are available nationwide on the internet or from their branches in NY, NJ and CT (see post).

For those in Texas, Florida, Alabama, Georgia and Nevada, the BB&T branches of the former Colonial Bank continue to offer a special 11-month CD with a 2.25% APY. Colonial Bank failed in August, and now the accounts are held by BB&T, one of the largest banks in the US. These rates are not listed at the bank's website. I called branches in Florida, Texas and Alabama yesterday to confirm they're still available. The special may not be available at all branches so be sure to call your local branch to confirm availability. BB&T recently sold its former Colonial branches in Nevada to US Bank. According to this Lahontan Valley News article the transaction should be completed in early 2010. Note, I didn't check with Nevada branches yesterday to see if they still had this CD special.

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

Best Nationwide CD Deals as of 12/12/09: Also listed are savings account promos with rate guarantee periods. The full list of nationwide CD rates is farther down.
  1. 2.51% 3-mo money market/checking promo at EverBank (account review)
  2. 1.50% money market with rate guaranteed to Apr 2010 at Bank of America (account review)
  3. 1.77% 10-mo CD at EBSB Direct (account review)
  4. 2.42% 12-mo CD at Wings Financial CU, Limited Membership (account review)
  5. 2.10% 12-mo CD at Alliant CU (account review)
  6. 2.00% 12-mo CD at ING Direct (account review)
  7. 2.25% 16-mo CD at Dollar Savings Direct (account review)
  8. 2.45% 23-mo CD at Security Savings Bank (account review)
  9. 3.00% 30-mo CD at Indus American Bank (account review)
  10. 3.03% 36-mo CD at Goldwater Bank (account review)
  11. 3.00% 45-mo CD at Reliabank Dokota (account review)
  12. 3.15% 48-mo CD at Hudson City Savings Bank (account review)
  13. 3.65% 60-mo CD at Melrose CU (account review)
  14. 3.60% 60-mo CD at Apple FCU (account review)
  15. 3.40% 60-mo CD at Hudson City Savings Bank (account review)
  16. 4.16% 84-mo CD (min $175K) at USAA Bank (account review)
  17. 4.00% 84-mo CD at Pentagon FCU (account review)
Best Local CD Deals as of 12/12/09: 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. 1.90% Savings Account (5% for 1st $1K) at OMNIBANK in TX (account review)
  2. 2.12% 6-mo CD & 2.42% 12-mo CD at Wings Financial CU in MN (account review)
  3. 2.00% 6-mo CD at Vision Bank in Dallas (account review)
  4. 3.00% 7-mo CD at NIH FCU in MD & DC - Limited Membership (account review)
  5. 2.25% 11-mo CD at Colonial Bank Branches of BB&T in TX, FL & NV (account review)
  6. 2.25% 12-mo & under CD at Cecil Bank in MD (account review)
  7. 2.10% 12-mo CD at First Choice Bank in LA Metro Area (account review)
  8. 2.50% 15-mo CD & 2.26% 9-mo CD at The Farmers Bank in TN (account review)
  9. 2.30% 16-mo Jumbo CD at Teachers FCU in NY (account review)
  10. 2.40% 17-mo CD at Royal Asian Bank in PA, NJ & NY (account review)
  11. 2.75% 18-mo CD & 4% 60-mo CD at Greylock FCU in MA (account review)
  12. 2.50% 18-mo No-Penalty CD at Darby Direct in GA (account review)
  13. 2.50% 23-mo CD at Regions Bank in Many States (account review)
  14. 2.78% 24-mo & 2.18% 12-mo CD at First National Bank in TX (account review)
  15. 3.00% 27-mo CD & 2.25% 15-mo CD at Enterprise Bank of SC (account review)
  16. 3.00% 36-mo, 2.65% 24-mo & 2.20% 12-mo CD at Signature Bank in NYC (account review)
  17. 4.06% 48-mo CD & 2.50% 24-mo CD at Founders FCU in SC/NC (account review)
  18. 4.07% 60-mo CD at IH Mississippi Valley CU in IL & IA (account review)
  19. 4.00% 60-mo CD at PFFCU in Philadelphia (account review)
  20. 3.80% 60-mo & 3.29% 48-mo CD at PrimeWay FCU in Houston (account review)
  21. 3.60% 60-mo Jumbo CD at CEFCU in CA & IL (account review)
Reward Checking Accounts

I reported on nine new reward checking accounts this week with yields ranging from 2.60% to 5.55%. Out of those nine, one is available nationwide. It's at Cross Key Bank in Louisiana. Its reward checking is paying 4.05% APY for balances up to $25K (see post).

One disappointment this week was the soon-to-be loss of a nationwide 4% $50K-cap reward checking account. Farmers & Merchants Bank notified its customers that it will be cutting the top yield on its reward checking account from 4.01% to 3.51% APY effective December 17th (see post). At least it's retaining the $50K cap. Compared to the best nationwide online savings account which has a 2% APY, you'll make about $750 more in this reward checking account over a year with a $50K balance. Of course this assumes the rates won't change. Update: There's another disappointment about this account. Readers have reported that Farmers & Merchants Bank has stopped offering this account to out-of-state customers.

To see all of the high yield reward checking accounts available throughout the nation, please refer to the reward checking section of DepositAccounts.com.

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

Banking News

Savings/Checking Accounts - National

CD Deals - National

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 under $100,000. 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 December 12, 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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Three Banks Closed by Regulators in FL, AZ and KS
Friday, December 11, 2009 - 10:23 PM

The number of bank failures has reached 133 for 2009. It looks like we may not reach 140 since next Friday would be the last non-holiday Friday of 2009. All three of today's failed banks were small with the largest one having assets of $511 million. The FDIC was able to find buyers for all three of these banks, and all deposits were assumed by the buyers including deposits above the FDIC limit.

The main concern for depositors is how this will change their CD rates. The assuming banks will be allowed to change the CD rates. Depositors will have the option for a penalty-free early withdrawal, but that's not much comfort in today's low-rate environment.

One of the banks has already announced their decision on CD rates. Arvest Bank which took over SolutionsBank in Kansas stated in their FAQ for SolutionsBank customers that "Your rates on your Certificates of Deposit have changed to the current competitive rates for Arvest Bank as of Friday, December 11, 2009."

I reported on SolutionsBank a couple times in the last year. Last March they were offering a 3% 18-month CD. Arvest Bank's CD rates are much lower so anyone with this 18-month CD will likely be disappointed.

SolutionsBank had been offering a reward checking account. It started out with a 5.03% APY for balances up to $50K. At first the rate dropped gradually until May 2009 when the rate plummeted from 4.13% to 1.71%. It's interesting that this was a couple of months after the bank received a public enforcement action.

Another interesting note regarding SolutionsBank is that it had decent ratings for safety and soundness when I posted on the bank in March 2009 with 3 stars at both BauerFinancial and Bankrate. At the time of the bank's closure, the bank had the lowest ratings at both BauerFinacial and Bankrate.

Below is a summary of today's bank failures:

131st Bank Failure of 2009 (13th in FL)
  • FDIC Press Release
  • Closed Bank: Republic Federal Bank, N.A.
  • Size: 4 branches, $433.0 million in assets, $352.7 million in deposits
  • Possible Uninsured Deposits: All deposits transferred, except some brokered deposits
  • Acquiring Bank: 1st United Bank, Boca Raton, FL
  • Rate Changes: 1st United Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $122.6 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
132nd Bank Failure of 2009 (4th in AZ)
  • FDIC Press Release
  • Closed Bank: Valley Capital Bank, N.A., Mesa, AZ
  • Size: 1 branch, $40.3 million in assets, $41.3 million in deposits
  • Possible Uninsured Deposits: All deposits transferred
  • Acquiring Bank: Enterprise Bank & Trust, Clayton, MO
  • Rate Changes: Enterprise Bank & Trust will review rates
  • Estimated Cost to Deposit Insurance Fund: $7.4 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
133rd Bank Failure of 2009 (3rd in KS)
  • FDIC Press Release
  • Closed Bank: SolutionsBank, Overland Park, KS
  • Size: 6 branches, $511.1 million in assets, $421.3 million in deposits
  • Possible Uninsured Deposits: All deposits transferred, excluding some brokered deposits
  • Acquiring Bank: Arvest Bank, Fayetteville, AR
  • Rate Changes: CD rates have changed to the current rates for Arvest Bank as of December 11, 2009 (Arvest's FAQ)
  • Estimated Cost to Deposit Insurance Fund: $122.1 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
The above BauerFinancial ratings are based on 9/30/09 data and those from Bankrate are based on 6/30/09 data.

References:
Comments (9)
ING Direct Raises Yield on its 1-Year CD to 2.00% - Available Nationwide
Friday, December 11, 2009 - 9:51 AM

ING Direct just raised its 12-month CD rate from 1.75% To 2.00% APY. This is listed in ING Direct's regular CD rates table as of 12/11/09. It's not an Added Value CD which requires new money. I doubt this will last long, so if you're looking for a competitive rate on a 1-year CD, don't wait.

I've been an ING Direct customer for several years. I haven't found another online bank that makes it easier to open and manage CDs. I described my experience opening an ING Direct CD in October. The only issue is that they don't allow you to include POD beneficiaries.

ING Direct has been a FDIC member since 2000 (FDIC Certificate # 35489). For more info on ING Direct's financial condition and ING's future divestiture of ING Direct, refer to my last ING Direct post.

Thanks to the reader who mentioned this rate increase in the comments. I would like to also point out that this 12-month CD rate is already listed at the CD rates table at DepositAccounts.com. My technical partner has done a great job coding this new site so it'll fetch rates automatically from the banks' websites. So be sure to check these tables daily. Refer to my latest update on DepositAccounts.com for more info.
Comments (2)
The Last Remaining 6% Reward Checking Account
Friday, December 11, 2009 - 9:31 AM

Those who were able to join United FCU were fortunate to have a 6% reward checking account that lasted from 2008 through 2009. Unfortunately, the credit union reported that this rate is scheduled to fall to 3.65% APY starting in January. It's interesting to note what the bank mentioned regarding future rates:

Will the rate change again?

We will continually monitor the Interest Plus checking for the ability to change the rate. The more members use their Debit Card, bring loans they have elsewhere, and give United the opportunity for new loans, mortgages, home equity loans, etc. the higher the rate that we will be able to pay back to our members.

As I described in my post on the math behind reward checking, banks make money from debit card usage. However, banks and credit unions also need new loans. This marketing brochure from BancVue shows that interest income from loans is more important than debit card revenue.

Now that United FCU's reward checking rate will be dropping, this leaves Golden Plains Credit Union with the only institution with a 6% reward checking account. This assumes that they'll keep this rate into January. Golden Plains has maintained a 6.01% APY since I first posted on this asccount in April 2008. Since you have to live in Kansas to qualify for this account, the credit union shouldn't be overwhelmed with too many deposits. So hopefully, the six percent yield can last.

There are still quite a few reward checking accounts offering yields over 5%. Unfortunately, none of these are nationwide deals. The best nationwide rates remain in the low 4% range.

To find reward checking accounts in your state or to find ones that are available nationwide, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.
Comments (10)
2.60% Reward Checking Account with $100K Balance Cap at Savoy Bank in NYC - Local Only
Friday, December 11, 2009 - 9:29 AM

Savoy Bank is offering a reward checking account called Super NOW. It has the following rates and features if certain monthly requirements are met:
  • 2.60% APY on balances up to $100,000 guaranteed to 4/15/2010
  • 1.30% APY on portion of balance above $100,000 (tiered money market rates)
  • If requirements are not met, it reverts to tiered money market rates
  • Refunds ATM fees worldwide
The monthly requirements include:
  • At least one debit card purchase
  • One Direct Deposit or other ACH deposit
  • Receive electronic statements
Additional features regardless of the monthly requirements include:
  • $1 minimum to open
  • No monthly service fees
  • Free bank style checks
  • Free bill pay services
Note, I had to call the bank for some of the above details. A branch visit is required to open the account for first time customers.

It's a small bank with one office located in New York City.

The bank was established in January 2008 so it's labeled as a start-up at BauerFinancial. It has a 3-star rating for safety and soundness (performing) at Bankrate.com based on 6/30/09 financial data. The bank is a FDIC member (FDIC Certificate # 58641).

Update 12/12/09: Savoy Bank received a NY State Cease-and-Desist Order (pdf) and a FDIC Cease-and-Desist Order (pdf) on 6/08/2009.

Other Reward Checking Accounts

Reward checking has been rare in New York so I'm happy to find a new one. A rate under 3% is low for reward checking, but the $100K cap is much better than the typical $25K cap.

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.
Comments (2)
3.00% 45-Month Online CD at Reliabank Dokota - Available Nationwide
Friday, December 11, 2009 - 9:26 AM

Reliabank Dakota is offering a competitive long-term CD with a 3.00% APY for a 45-month term. Minimum deposit is $5,000. The special is listed in the bank's savings rates page as of 12/11/09.

This special can be opened using the bank's online application (link on the left sidebar), and according to the CSR, it's available nationwide. This is the same application to open the bank's reward checking account that I reported on in January.

Update: I received some additional CD details from the CSR:
You can fund the CD by either wiring the money or mailing a check. As far as the 3% rate, if you let me know that you are sending a check we will honor that rate when the check gets here. That's not a problem.

The early withdrawal penalty would be 3 months interest. We do not charge a penalty if it has to be taken out early if it's for nursing home, medical or funeral expenses.

At maturity we can wire you the funds, mail a check or you could transfer into an ultimate checking.

The bank is also listing other competitive CD specials including a 2.00% APY 13-month CD and a 2.20% APY 29-month CD. However, these can't be opened online and require a branch visit.

One reader who commented about opening the bank's reward checking account in October mentioned that the account couldn't be funded with an ACH transfer even though the application makes it appear it's possible. He had to mail in a check with the signature card.

Another reader who opened the reward checking account commented a few days ago about receiving a hard credit pull via Equifax. He was told by the bank that they pull credit reports for customer identification.

Branches are located in the South Dakota cities of Estelline, Hayti, Hazel, Watertown and Hartford.

The bank's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1945 (FDIC Certificate # 16221). It's a small bank with only $158 million in assets

Other Competitive Certificate of Deposit Rates
Comments (1)
High-Yield Reward Checking Account & Savings Account at Mid America Bank & Trust Co. in MO - Local Only
Friday, December 11, 2009 - 9:24 AM

Update 5/27/10: The top checking and savings account rates have fallen. Refer to the rate history at the bottom of the post.

Mid America Bank & Trust Co. is offering a high-yield reward checking account called Maximum Free Checking. It has the following rates and features if certain monthly requirements are met:

  • 4.50% APY on balances up to $25,000
  • 1.00% on portion of balance over $25,000
  • 0.10% base rate if requirements are not met
  • ATM fee refunds nationwide up to $15 per month

The monthly requirements include:

  • 10 debit card purchases
  • 1 direct deposit or ACH auto debit
  • Access internet banking
  • Receive e-statements

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

  • $20 minimum initial deposit
  • No minimum balance requirement
  • No monthly service charge
  • Free checks
  • Free internet bill pay

The bank also has a very competitive savings account called Eagles Nest Savings. It has a 2.02% APY for balances of at least $10,000. No interest is earned on balances below $10,000, and there's a $10 monthly fee for balances under $1,000.

It appears a branch visit is required to open an account. Branches are located in the Missouri cities of Dixon, St. Robert and Rolla.

The bank's ratings for safety and soundness are a little weak: 2 stars (problematic) at BauerFinancial (based on 9/30/09 data) and 1 star (lowest) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 1624).

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

Rate History:

05/27/10: checking: 4.50% APY up to $25K / savings: 2.02% APY over $10K

12/09/09: checking: 5.55% APY up to $25K / savings: 2.25% APY over $10K

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3.00% 42-Month CD at First Financial Bank in IN & IL - Local Only
Friday, December 11, 2009 - 9:22 AM

First Financial Bank, N.A. has a a competitive special CD with a 3.00% APY for a 42-month term. There's also a 13-month special, but it's much less competitive with a 1.35% APY. Minimum deposit is $2,500. These rates are listed in the bank's CD rates page as of 12/11/09.

It appears that a branch visit is required to open an account. Branches are located in several cities in Indiana and Illinois including Terre Haute, Clinton, Farmersburg, Rockville, Robinson and Danville.

The bank's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 4382).

Other Competitive Certificate of Deposit Rates
Comments (11)
Ally Bank News - Fee Changes and CD Renewal Bonus
Thursday, December 10, 2009 - 11:21 AM

I just received a letter from Ally Bank which informs customers of changes that will go into effect on January 16, 2010. Most of the changes involve fee reductions. One change involves ATM fees. Ally Bank will refund all ATM fees instead of just $6 per month. Also, checks for your money market account will be free. Currently, only the first order of 50 checks is free.

On the downside, it added three clarifications to your Deposit Agreement which are a little worrisome. One states that "We reserve the right to suspend or close accounts for any reason, without prior notification."

I'm actually a little more worried about the fee reductions than the new deposit agreement changes. I prefer banks offer higher rates rather than perks like unlimited ATM fee refunds and free checks. I wonder if Ally Bank hopes these changes will allow them to compete with other banks that offer higher rates. It was reported in November that the FDIC is asking Ally Bank to keep its deposit rates under the nation's top 5 as measured by Bankrate. This is due to the capital assistance that GMAC is receiving from the government.

I've typed out the full list of account changes below.

CD Bonus for Renewals

If you have a CD maturing at Ally Bank, you may want to contact them and ask if they can offer a higher rate. You may be able to receive a loyalty bonus that could be 0.50% over their currently posted rates.

A reader emailed me that when he called to instruct Ally Bank to not renew his 12-month CD, they offered him this loyalty bonus with an additional 0.50% on the rate.

I haven't seen other banks offer this much of a renewal bonus. Since these are not posted rates, I bet the FDIC won't notice.

Rate Changes

Another nice CD feature that Ally Bank has recently added is the Ten Day Best Rate Guarantee. Here's how Ally describes this guarantee:
When you fund your CD within ten days of opening or renewing your Ally account, you automatically get the best rate we offer during that time period.

This feature is especially important now that Ally Bank is no longer limiting their rate changes for Fridays. Ally Bank used to only change rates on Friday. When they changed rates on the Wednesday before Thanksgiving, I thought this was just due to the holiday. However, they cut rates last Tuesday on their money market and savings account. So it looks like the rates may now be changed on any day.

No-Penalty CD Issue

The no-penalty CD used to be a great deal, but the rate has fallen. One issue that readers have reported about this no-penalty CD is that it's not easy to close. One reader commented on November 2nd:

Warning: Their process for closing a CD is slow and error-prone.

The highly-touted 24x365 phone center can't do the closure themselves - the agent requests the closure from another department (only open 9-5 on business days) that takes a couple of business days to actually initiate the outbound ACH transfer. (ACH transfers usually take two days to complete after they have been initiated - that is not the issue here.)

I did confirm with an Ally CSR that a special department takes care of the closures. However, the CSR claimed to be able to send requests to that department. Here's what the CSR stated in a chat session:
Only our Bank Operations Department actually carries out the request, however any advocate can submit the request to them for you.

And here's what the CSR said about the time it'll take to receive the funds:
The standard turn around time for an ACH transfer is 3-5 business days. The account will close and the funds will be sent out to your external bank immediately, but it could take 3-5 business days for the money to be fully available in your external bank.

So it appears things may have improved since the reader left his comments. Ally Bank has made improvements to closing the no-penalty CD. Previously, the ACH transfer to receive the funds was not an option. If you have recently closed this no-penalty CD, please leave a comment about how it went.

Excerpts of Ally Bank's Letter

The changes which are summarized below will be effective January 16, 2010:

1. We have reduced or eliminated the following charges:

a. You will no longer have to pay any ATM fees on your Ally account. Currently, we refund up to $6 in ATM charges per statement, but after January 16, we will refund all ATM fees.

b. When we advance money to you to cover your checks, debits and other transactions when your balance is not sufficient, the cost will be $9 maximum per day regardless of the number of times you overdraw your account each day. Plus, if your account is overdrawn by less than $15, you will not be charged.

c. If you use Ally standard personal checks, the order will be free. However, we do ask that you only order 200 checks at a time.

d. Official Check issuance fees are decreasing from $10 to $0.

e. Statement copies are now free and are available online.

f. The charge for outgoing international wires is decreasing from $45 to $20.

2. We have also added some clarifications to your Deposit Agreement:

a. For your protection and security, when making ACH transfers between your Ally account and accounts held at other financial institutions, you must be an owner of both accounts.

b. We reserve the right to suspend or close accounts for any reason, without prior notification.

c. Unfortunately, we cannot accept cash or foreign currency deposits, including foreign currency checks or wires.
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2.45% 15-Month CD at Lumbee Guaranty Bank in North Carolina - Local Only
Thursday, December 10, 2009 - 11:19 AM

Lumbee Guaranty Bank is offering a very competitive 15-month CD special. It has a 2.45% APY with a checking account or 2.02% APY without checking. Minimum deposit is $5,000. The 9-month CD special is also fairly competitive with a 1.92% APY with checking or 1.66% without. These rates are listed in the bank's CD rates page as of 12/10/09.

The checking requirement is not too bad if the reward checking qualifies. They offer a nice reward checking account which currently pays 4.50% APY on balances up to $25K (see post).

It appears a branch visit is required to open an account. Branches are located in Fayetteville, North Carolina and in several nearby cities including Pembroke, Fairmont, Lumberton and Saint Pauls.

The bank's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1971 (FDIC Certificate # 20568).

Other Competitive Certificate of Deposit Rates
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4.50% Reward Checking Account at Lumbee Guaranty Bank in North Carolina - Local Only
Thursday, December 10, 2009 - 11:17 AM

Lumbee Guaranty Bank is offering a high-yield reward checking account called LGB Rewards Checking. It has the following rates and features if certain monthly requirements are met:
  • 4.50% APY on balances up to $25,000
  • 1.00% on portion of balance over $25,000
  • 0.10% base rate if requirements are not met
  • ATM fee refunds nationwide up to 4 per month ($1.50 refunded per item after 4)
The monthly requirements include:
  • 10 Visa World Check Card purchases
  • 1 direct deposit or ACH auto debit
  • 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
The bank's microwebsite has an online application, but it appears they require a branch visit to complete the application process.

Branches are located in Fayetteville, North Carolina and in several nearby cities including Pembroke, Fairmont, Lumberton and Saint Pauls.

The bank's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1971 (FDIC Certificate # 20568).

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.
Comments (5)
Competitive Long-Term CD Rates at Hudson City Savings Bank - Available Nationwide
Wednesday, December 9, 2009 - 11:43 AM

Hudson City Savings Bank continues to offer competitive rates on its long-term internet CDs. The rates are down a bit since October but they remain competitive. The following are the rates as listed on its internet accounts page as of 12/09/09:
  • 2.30% APY 24 month
  • 2.80% APY 36 month
  • 3.15% APY 48 month
  • 3.40% APY 60 month
To see all of the rates, you have to go into the online application, and click on the rates link in the product selection page. Minimum deposit is $5,000.

I have many of the CD details in my October post. I called the bank again this morning, and there haven't been any changes to what I posted in October. Note, rates are typically changed on Fridays. Also, the CD rate locks at the time you apply online.

I asked about one feature that a reader mentioned in a comment. It's when you close an account. Interest on CDs is posted at the end of the month. If you close the account early, not only will you lose 6 months of interest (for terms over 1 year) but you will also lose the interest accrued during the month. The CSR advised that you close accounts near the start of the month.

To reach a CSR responsible for these internet accounts, I used the number 201-967-1900, Ext. 1887. After I called I noticed a toll-free number in the disclosure (866-881-4272).

Another issue that a commenter noted is the early withdrawal penalty. Like the disclosures of many banks, it gives them the right to refuse an early withdrawal request: "withdrawal prior to maturity may be permitted only with the consent of the Bank." In addition, "the bank reserves the right to impose a penalty greater than the minimum." If they comply with the stated early withdrawal penalties listed in the disclosure, it's not too bad compared to other banks: 3 months of interest for terms one year and under, 6 months of interest for terms over one year.

To see the early withdrawal penalties and other CD details, refer to the Truth in Savings document which is available in the online application.

In addition to CDs, they also offer an internet money market savings account with a 1.40% APY as of 12/09/09 on balances of at least $2,500. The rate for balances of $10 to $2,500 is 0.75% APY. A $2 monthly fee applies to balances below $100.

Hudson City Savings Bank is a large bank with over $58 billion in assets and with 121 offices in New Jersey, New York and Connecticut.

The bank's ratings for safety and soundness continue to be strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 13074).

Other Competitive Certificate of Deposit Rates
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2.25% 11-Month CD & 3.70% 59-Month CD at CharterBank in GA & AL - Local Only
Wednesday, December 9, 2009 - 11:41 AM

CharterBank is offering two competitive rates on its CD specials: 2.25% APY for 11 months and 3.70% APY for 59 months. Minimum deposit is $1,500. The 59-month CD also has a bump-up feature. These rates are listed in the bank's rates page as of 12/09/09.

Last month I posted on CharterBank's reward checking account. It's still paying 5.01% APY on balances up to $25,000 if the typical reward checking requirements are met.

A branch visit is required to open an account. Branches are located in the Georgia cities of West Point, Newnan and Lagrange, and in the Alabama cities of Valley, Auburn and Opelika.

The bank's ratings for safety and soundness are mixed: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 2 stars (below peer group) at Bankrate.com (based on 6/30/09 data) The bank has been a FDIC member since 1954 (FDIC Certificate # 30720).

Other Competitive Certificate of Deposit Rates
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2.15% 13-Month CD & 3.50% 60-Month CD at Fort Knox Federal Credit Union in Kentucky - Local Only
Wednesday, December 9, 2009 - 11:39 AM

Fort Knox Federal Credit Union is offering one competitive special CD rate of 2.15% APY for a 13-month term. The other special isn't quite as competitive: 1.60% APY for 7 months. There are also some competitive long-term regular CD rates. The best is the 5-year CD with a 3.50% APY. An extra 0.25% is added for a Jumbo CD with a $100,000 minimum. These rates are listed in the credit union's CD rates page as of the morning of 12/09/09.

The credit union has a history of competitive CD specials. My last report was on August when the 7-month CD rate was 2.50%. Last year the 7-month CD rate was 5% (the good old days).

Membership is open to those who live, work or worship in any of the following Kentucky counties: Boyle, Breckinridge, Grayson, Hart, Larue, Meade, Nelson and Taylor. There's also a large list of select employer groups. Relatives of any person who can be a member may also join. There's a $10 membership fee, and a minimum $5 deposit into a share savings account is required. Please refer to the credit union's membership eligibility page for the full details.

Branches are located in several cities in Kentucky including Fort Knox, Radcliff, Elizabethtown and Campbellsville.

The credit union continues to have strong ratings for safety and soundness: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). Fort Knox FCU is federally insured by the NCUA (Charter # 7000).

Other Competitive Certificate of Deposit Rates
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Free High-Yield Reward Checking Accont at R Bank in Texas - Local Only
Wednesday, December 9, 2009 - 11:37 AM

Update 6/27/11: The rates have fallen. Please refer to the account history at the bottom for a summary of the changes.

R Bank is offering a high-yield reward checking account called R Best Checking. The account has the following rates and features if certain monthly requirements are met:

  • 3.25% APY on balances up to $25,000
  • 1.25% APY on portion of balance over $25,000
  • 0.10% base rate if requirements are not met
  • Refunds ATM fees up to $20 per cycle

The monthly requirements include:

  • 12 check card purchases
  • 1 direct deposit or ACH 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

Note, the rates are not listed on the bank's website. I contacted the bank, and the CSR told me the rates on 6/27/2011.

The CSR informed me that they can open the account by mail. However, since it's such a small bank, they would likely have to limit the account to their market area if they get too many requests. Thus, I'm considering this a local deal. Update 6/27/2011: I was told they now require a branch visit, but anyone in the Austin metro area can open the account.

The bank is located in Round Rock, Texas which is just north of Austin.

It's a new bank that was just established in June 2009. Based on 9/30/09 FDIC data, the bank just has 12 employees and $14.7 million in deposits. Since it's so new, it doesn't have ratings for safety and soundness. The bank is a FDIC member (FDIC Certificate # 58935).

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

Account History:

  • 12/01/10: 3.25% APY up to $25K; 1.25% over; 0.10% base (per CSR)
  • 12/09/09: 4.13% APY up to $35K; 1.52% over; 0.10% base (per CSR)
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More Information on the Transition to DepositAccounts.com
Tuesday, December 8, 2009 - 6:03 PM

I just wanted to give everyone an update on the upcoming transition of this blog to DepositAccounts.com. Thanks for everyone's comments in last week's post in which I first introduced DepositAccounts.com as the future platform for BankDeals. The comments and suggestions are much appreciated.

One important thing I forgot to mention about DepositAccounts.com in last week’s post was that it's an existing website that includes some existing articles as well as its own rate tables. The previous owner of the site will now be my technical partner, who will help me carry out the transition of BankDeals onto the new platform and will continue to help me with various technical aspects of site development over the coming months. Based on my conversations with him, there are a lot of exciting things that we’ll be able to do with this new platform that I believe will make BankDeals an even better resource. From a content standpoint, it's important to note that the BankDeals blog will essentially "take over" the DepositAccounts.com blog after the transition and that the existing bank deals blog format will not be going away. Some other important points to note:

  • Once we move, the DepositAccounts.com blog will be entirely from me, and I plan to continue the same postings that I’ve always done.
  • We'll make sure that the new site will have all of the features of the current blog and that it will maintain all of its personal touch and the community feel (minus some of the canned blogger design/color elements!). In fact, we plan to enhance the community capabilities and involvement by adding features that are not possible on the current platform.
  • All past blog posts and comments will be maintained on the new site. And now, with the website under our control, we won't have to worry about losing the old posts and comments like what almost happened last month.
DepositAccounts.com is still very much in a transformation stage from its previous form, and after the transition, we plan to make the blog content the center point of the site. The rate tables will complement the site nicely, and I'll continue to work with my technical partner and all of you to ensure that they are built out in a manner that captures everything covered in the blog on a near real-time basis. I'm very excited about what we can do technically on this front to leverage the reach of this community and capture all of the more hard-to-find deals out there. In my opinion, this is something that none of the generic rate comparison sites provide.

I'll continue to follow up in the coming weeks with updates on the transition. In the meantime, please continue with suggestions or comments about features that you would like to see built into the new platform. While we probably won't be able to incorporate all of these immediately, I'm excited that the site will finally have the platform and the technical capabilities to allow us to create these additional features. I'm sure there might be some growing pains during the transition, but I'm confident that with your help, we'll end up with a far better site for helping people find the best available deals.
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3.01% Reward Checking Account at Indiana Bank & Trust Company - Indiana State Only
Tuesday, December 8, 2009 - 12:04 PM

Update 12/23/09: The top rate has fallen to 3.01% APY.

Indiana Bank & Trust Company is offering a high-yield reward checking account called Maximum Yield (MY) Checking. It has the following rates and features if certain monthly requirements are met:
  • 3.01% APY on balances up to $25,000
  • 0.10% on portion of balance over $25,000
  • 0.10% base rate if requirements are not met
  • free ATMs nationwide
The monthly requirements include:
  • 10 debit card purchases
  • 1 direct deposit or automatic ACH payment or Online Bill Payment
  • Log on to Online Banking
  • Receive e-statements
Additional features of the account regardless of the monthly requirements include:
  • $500 minimum initial deposit (listed in application)
  • No minimum balance requirement
  • No monthly service charge
  • Free bill payment
Accounts can be opened at a branch or online. I called the bank to see if they have any restrictions. According to the CSR, they only accept Indiana residents. A branch visit is not required. They can mail you the signature cards and other documentation after you complete the online application.

There may be a hard credit inquiry in the application process. The following must be selected at the start of the application: "By applying for an account, I also agree that my credit and account history may be reviewed with consumer reporting agencies."

Branches are located in the Indiana cities of Indianapolis, Austin, Batesville, Brownstown, Columbus, Greensburg, Hope, Madison, North Vernon, Osgood, Salem and Seymour.

The bank's ratings for safety and soundness are a little above average: 3½ stars (good) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1943 (FDIC Certificate # 28285).

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

Rate History:
12/23/09: 3.01% APY up to $25K
12/08/09: 4.01% APY up to $25K; 0.10% over; 0.10% base
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4.06% 48-Month CD & 3.29% 36-Month CD at Founders FCU in SC/NC - Local Only
Tuesday, December 8, 2009 - 12:01 PM

Founders Federal Credit Union is offering some very competitive long-term CD rates. These include:
  • 4.06% APY 48 months
  • 3.29% APY 36-47 months
  • 2.50% APY 24-35 months
Minimum deposit is $500. Rates are 10 basis points higher for IRA CDs. These rates are listed at the credit union's rates page as of 12/08/09.

Membership is limited to those who live, work, worship, volunteer or attend school in certain designated areas. The credit union's eligibility page doesn't provide details. Two years ago it used to list Chester and Chesterfield counties of South Carolina and the cities of Wellford and Duncan. I called the credit union today, and I wasn't able to get more details. If you live near one of their offices, call and see if you can be eligible. They also have a long list of eligible companies and organizations in which you can qualify to join the credit union. Membership requires a minimum $5 deposit into the regular savings account.

Branches are located in the South Carolina counties of Chester, Chesterfield, Lancaster, Spartanburg and York, and in Mecklenburg County, North Carolina.

Founders' ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The credit is federally insured by the NCUA (Charter # 24063). It's a large credit union with over $1.5 billion in assets.

Other Competitive Certificate of Deposit Rates
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2.50% 24-Month CD & Other Competitive CD Rates at Montauk Credit Union in New York - Local Only
Tuesday, December 8, 2009 - 11:57 AM

Montauk Credit Union continues to offer very competitive rates on its share certificates. The rates have fallen some since my August post, but they're still better than what you can find at many other banks and credit unions. Below is the full list of CD and IRA rates as listed at the credit union's rate table as of 12/08/2009:
  • 2.00% 12-month
  • 2.25% 18-month
  • 2.50% 24-month
  • 2.75% 36-month
  • 3.25% 48-month
  • 3.75% 60-month
  • 4.25% 84-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.

The reader recently inquired about the early withdrawal penalty. Unfortunately, it's harsh. For those familiar with Melrose Credit Union, it's very similar. For terms over one year, it's 180 days of interest PLUS the interest rate drops for your entire CD term to whatever the interest rate is in the savings account for that day. The current savings account rates are 0.75% for $5K to $50K and 1.00% for $50K and above.

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 ratings for safety and soundness remain strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The credit union is federally insured by the NCUA (Certificate # 63231).

Thanks to the reader who emailed me this Montauk info.

Other Competitive Certificate of Deposit Rates
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2.75% 18-Month CD & 4.00% 60-Month CD at Greylock FCU in MA - Local Only
Tuesday, December 8, 2009 - 11:55 AM

Greylock Federal Credit Union has a CD promotion called One Way CD with some very competitive rates. These include:
  • 4.00% APY 60 months
  • 3.25% APY 36 months
  • 2.75% APY 18 months
These are listed in the credit union's promotions page as of 12/08/09. The small print states that rates are based on Prime rate and subject to change. However, the promo states that they "only go up, they never come down." Minimum deposit is $1,000.

The credit union also has some very competitive regular CD rates including a 2% APY 6-month CD and a 2.50% APY 24-month CD. Minimum deposit is $1,000. These rates are listed in the certificate rate page as of 12/08/09. IRA CDs have rates 10 basis points higher.

Membership is open to anyone who lives, works, worships or attends school in Berkshire County, Massachusetts. Please see their Who Can Join page for more details. Membership requires a minimum balance of $5 in the share savings account.

Branches are located in the cities of Pittsfield, Adams, North Adams, Lee, Great Barrington and Williamstown.

The credit union's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The credit union is federally insured by the NCUA (Charter # 24560). It's a large credit union with over $1 billion in assets.

Other Competitive Certificate of Deposit Rates
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High-Yield Reward Checking Account and Savings Account at Sonoran Bank in Arizona - Local Only
Monday, December 7, 2009 - 10:27 AM

Update 10/21/10: The bank is no longer opening new reward checking accounts. Here is what I received from a reader:

Per a CSR, as of 10/6, Sonoran no longer offers their RCA and linked high-interest savings accounts. Current account holders are still getting 3.26% APY on the RCA, but Sonoran can naturally change that at any time.

Sonoran Bank, N.A. is offering a high-yield reward checking account with the following rates and features if certain monthly requirements are met:

  • 3.26% APY on balances up to $30,000
  • 1.25% APY on portion of balance over $30,000
  • 0.01% base rate if requirements are not met
  • Refunds ATM fees nationwide

The monthly requirements include:

  • 12 debit card purchases
  • 1 direct deposit or automatic ACH 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

The bank also has a companion high-yield savings account that has a 1.75% APY for up to $30K (1.25% over) if the above checking requirements are met. Like the checking account, the savings account has a $100 minimum initial deposit, but no minimum balance requirements or monthly fees.

The bank's micro-website has a link to an online application. However, the application makes it appear that a branch visit is required to complete the application process.

It's a small bank with one office located in Phoenix, Arizona.

The bank's ratings for safety and soundness are fair: 3 stars (adequate) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 2006 (FDIC Certificate # 58252).

Other Reward Checking Accounts

With this reward checking account, residents of the Phoenix area now have four 5% reward checking accounts to choose from. The other three include Goldwater Bank, Bank 1440 and First National Bank of Scottsdale which I just reported on yesterday. Hopefully this competition will help keep the rates high.

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

Rate History:

  • 08/18/10: Checking - 3.26% APY up to $30K; 1.25% over | Savings - 1.75% up to $30K; 1.25% over; 0.01% base rate for both
  • 04/23/10: Checking - 4.26% APY up to $30K; 1.25% over | Savings - 2.51% on all balances
  • 12/07/09: Checking - 5.03% APY up to $30K; 1.25% over | Savings - 3.01% on all balances
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3.85% 6-Year CD at Kemba Credit Union in Ohio - Local Only
Monday, December 7, 2009 - 9:55 AM

Kemba Credit Union has a special 72-month CD with a 3.85% APY. This is listed at the credit union's home page and in its savings rates page as of 12/07/09.

A 6-year term is long when rates are so low, but if you need a long-term CD for a CD ladder, this is one of the best long-term rates available.

Kemba also has a reward checking account that pays 3.50% APY on balances up to $25K as of 12/07/09 (see post). It may seem like this checking account would be a much better deal than the CD. However, as we learned this year, there's no guarantee that the reward checking rates will hold.

Membership is open to those who live, work, worship or attend school in one of the following Ohio counties: Brown, Butler, Clark, Clermont, Clinton, Greene, Hamilton, Highland, Miami, Montgomery, Preble and Warren. Refer to the credit union's eligibility page for the full details. Membership requires a minimum balance of $5 in the savings account.

Branches are located in Ohio cities of Cincinnati, Amelia, Harrison, West Chester and the Indiana city of Bluffton.

The credit union's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The credit union is federally insured by the NCUA (Charter # 61810).

Other Competitive Certificate of Deposit Rates
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3.50% Reward Checking Account at Kemba Credit Union in Ohio - Local Only
Monday, December 7, 2009 - 9:53 AM

Kemba Credit Union is offering a high-yield reward checking account called Get Green Checking. It has the following rates and features if certain monthly requirements are met:
  • 3.50% APY on balances up to $25,000
  • 0.25% APY on portion of balance over $25,000
  • 0.15% base rate if requirements are not met
  • ATM fee refunds up to $20 per month
The monthly requirements include:
  • 12 debit card 'credit' purchases
  • 1 direct deposit or automatic payment
  • Access online banking
  • Receive E-statements
Additional features of the account regardless of the monthly requirements include:
  • No minimum opening balance
  • No minimum balance requirement
  • No monthly service charge
  • One Get Green Checking account per Tax ID
Membership is open to those who live, work, worship or attend school in one of the following Ohio counties: Brown, Butler, Clark, Clermont, Clinton, Greene, Hamilton, Highland, Miami, Montgomery, Preble and Warren. Refer to the credit union's eligibility page for the full details. Membership requires a minimum balance of $5 in the savings account.

Branches are located in Ohio cities of Cincinnati, Amelia, Harrison, West Chester and the Indiana city of Bluffton.

The credit union's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The credit union is federally insured by the NCUA (Charter # 61810).

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

Edit 12/15/11: Multiple accounts can no longer be opened.
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2.15% 18-Month CD at Valliance Bank in Texas - Local Only
Monday, December 7, 2009 - 9:51 AM

Valliance Bank is offering a special 18-month CD with a 2.15% APY. There's also a special 36-month CD which is not quite as competitive with a 2.65% APY. Minimum deposit is $1,000, and the maximum is $99,000. These rates don't appear to be listed at the bank's website. They were advertised in the 12/06/09 edition of the Dallas Morning News. The ad is available online here.

It appears that a branch visit is required to open an account. It's a small bank with one office located in McKinney, Texas which is in the northern suburbs of Dallas.

The bank's ratings for safety and soundness are a little weak: 3 stars (adequate) at BauerFinancial (based on 9/30/09 data) and 2 stars (below peer group) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 2007 (FDIC Certificate # 58572).

Other Competitive Certificate of Deposit Rates
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2.10% 14-Month CD & 2.30% 19-Month CD at First Commercial Bank of Florida - Local Only
Monday, December 7, 2009 - 9:49 AM

First Commercial Bank of Florida has a CD promotion with a some competitive rates for this week. The special CDs include a 1.60% APY 6-month CD, a 2.10% APY 14-month CD and a 2.30% APY 19-month CD. Minimum deposit is $1,000, and the maximum is $100K. As is typical with this bank, the rates are not listed at the bank's website. I had to call the bank today. These special CD rates typically only last through Friday (12/11/09).

A branch visit is required to open the CD if you don't already have accounts at the bank. The bank has several branches in the Central Florida including the cities of Orlando, Edgewood, Kissimmee, Winter Park, Deltona and Lake Mary.

The bank is still offering a reward checking account that I first reported on in March 2007. The rate has held since my last post on this bank in July. According to the CSR, the current rate as of 12/07/09 is 2.00% APY. Even though the rate is low for reward checking accounts, balances up to $250K qualify for this rate.

First Commercial's ratings for safety and soundness continue to be a little weak: 2 stars (problematic) at BauerFinancial (based on 9/30/09 data) and a 1 star rating (lowest) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1999 (FDIC Certificate # 34965).

Other Competitive Certificate of Deposit Rates
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2.52% 25-Month CD & 2.02% 14-Month CD at First Bank in Kansas - Local Only
Monday, December 7, 2009 - 9:47 AM

Update 12/07/09: It looks like the rates fell a few hours after I first published this post. However, these special CD rates remain fairly competitive: 1.66% APY 7-month, 2.02% APY 14-month and 2.52% APY 25-month. The title has been updated with the new rates.

First Bank is offering three competitive CD specials: 1.86% APY 7-month CD, 2.22% APY 14-month CD and a 2.73% APY 25-month CD. The 7-month CD has a $500 minimum and the longer term ones have a $2,500 minimum. These rates are listed at the bank's featured products page as of 12/07/09.

It appears that a branch visit is required to open an account. Branches are located in the Kansas cities of Sterling, Lyons and Chase.

First Bank's ratings for safety and soundness are very strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 5 stars (superior) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1946 (FDIC Certificate # 16473).

Other Competitive Certificate of Deposit Rates
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4.05% Reward Checking Account at Cross Key Bank in Louisiana - Available Nationwide
Sunday, December 6, 2009 - 3:38 PM

Cross Key Bank is offering a high-yield reward checking account called Gold Key Rewards Checking. The account has the following rates and features if certain monthly requirements are met:
  • 4.05% APY on balances up to $25,000
  • 1.00% APY on portion of balance over $25,000
  • 0.10% base rate if requirements are not met
  • Refunds ATM fees nationwide up to $25 per cycle
The monthly requirements include:
  • 12 Visa check card purchases
  • 1 direct deposit or ACH auto debit
  • Receive e-statements and be enrolled in internet banking
Additional features of the account regardless of the monthly requirements include:
  • $100 minimum initial deposit
  • No minimum balance requirement
  • No monthly service charge
  • Limited to one account per primary account holder
In addition to the online application at the bank's reward checking page, there's an online application at CheckingFinder.com. This bank shows up for all US zip codes at CheckingFinder.com, and you can apply online at this CheckingFinder page. Note, banks often change the availability of these accounts. If the bank starts limiting the account to its market area, the start of the application will reject your zip code. Please leave a comment if this happens.

Branches are located in the Louisiana cities of West Monroe, Monroe, Rayville, Sterlington, St. Joseph, Tallulah and Waterproof.

Cross Key Bank's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 9322).

Other Reward Checking Accounts

Nationwide reward checking accounts with rates over 4% are becoming rare. Bank of the Sierra's nationwide reward checking account had been 4.51% APY, but this fell to 4.09% APY last week. If you want a reward checking with a rate of 5% or higher, you'll have to see if one is available near where you live.

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.
Comments (9)
5.01% Reward Checking Account at First National Bank of Scottsdale in AZ - Local Only
Sunday, December 6, 2009 - 3:36 PM

Update 12/31/09: The bank has stopped offering the MoneyMaker Checking Account.

First National Bank of Scottsdale is offering a high-yield reward checking account called MoneyMaker Checking. The account has the following rates and features if certain monthly requirements are met:
  • 5.01% APY on balances up to $35,000
  • 1.01% APY on portion of balance over $35,000
  • 0.05% base rate if requirements are not met
The monthly requirements include:
  • 10 Visa check card purchases
  • 1 direct deposit or ACH 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
  • Free Bill Pay
One of the features mentioned is "Free ATM/Visa check card transactions nationwide." It's unclear if this is only at in-network ATM locations or if they refund ATM fees at out-of-network ATMs.

There's an online application at the MoneyMaker Checking page. However, the bottom of the page states that they only accept deposits on this account from Maricopa County, Arizona. Also, a branch visit is required. This is stated in the application:
You may transmit this application via the internet, but you MUST sign the signature card and account agreement at the bank location you specified above.

The bank is located in Scottsdale, Arizona.

It's a fairly new bank that was established in December 2007. Thus, it's still labeled as a start-up at BauerFinancial. Its rating for safety and soundness at Bankrate.com is 3 stars (performing) based on 6/30/09 financial data. The bank is a FDIC member (FDIC Certificate # 58744).

Other Reward Checking Accounts

Reward checking accounts with rates around 5% and with balance caps over $25K are rare. You'll have to check locally since nationwide reward checking rates max out in the low 4% range.

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

Edit 12/08/09: Added county restriction.
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Competitive CD Rates at Self-Help Credit Union in NC & CA - Available Nationwide
Sunday, December 6, 2009 - 12:52 PM

Self-Help Credit Union (SHCU) continues to offer some competitive CD rates. The deposit rates haven't been that great since my 2008 SHCU post, but its 12-month and 24-month CD rates have held for the last several months while other institutions have been cutting their rates. So these rates are now quite competitive. The current 12-month CD rate is 2.07% APY and the 24-month CD rate is 2.33% APY. These are listed at the credit union's rates page as of 12/06/09. The rates change every business day, but these 12-month and 24-month rates have been stable for the last few months. The CDs are also available in an IRA.

SHCU's CDs used to allow unlimited additional deposits, but SHCU ended this feature in 2008. One downside to these CDs is that the early withdrawal penalty is equal to half the term in interest. It's not too bad for the 1-year CD, but it's severe for the longer-term CDs. This would come out to 6 months of interest for a 1-year CD and 1 year of interest for the 2-year CD. Refer to SHCU's Truth-in-Savings disclosure for more CD details.

There have been some changes at SHCU since I first reported on this credit union in 2005. They now have two credit union charters: Self-Help Credit Union (SHCU) and Self-Help Federal Credit Union (SHFCU). To learn more about these credit unions and their missions, refer to these credit union FAQs.

Membership

One can open accounts at both SHCU and SHFCU by mail. Application forms are located at this page.

In the membership application forms, the following is stated:
Membership in the Credit Union is open to anyone who is, or becomes, a member of the Center for Community Self-Help. All new members of the Credit Union must pay $5 to purchase a membership share in the Credit Union. In addition, persons or organizations who join the Center for Community Self-Help must pay a $20 a membership fee to the Center for Community Self-Help.

People in any state can join. This is described in this Membership FAQ:
Can people or organizations from outside Self-Help locations in North Carolina, California, and Washington DC become members of Self-Help?

Yes. We currently have members from almost every state in the union. Members have access to any of our deposit products.

North Carolina and California Branches

For those who prefer to open accounts at a branch, SHCU and SHFCU now have full service branches in several cities in North Carolina and California. These branches do business under different credit union names, but they are all divisions of SHCU or SHFCU. This SHCU page has links to these credit union websites. Refer to these for branch locations. Most have their own rate tables which list the same rates as SHCU's website.

Financial/NCUA Info

SHCU's ratings for safety and soundness are little mixed: 3 stars (adequate) at BauerFinancial (based on 9/30/09 data) and 1 star (lowest) at Bankrate.com (based on 6/30/09 data). SHFCU was just established in 2008, so it doesn't yet have ratings. Both SHCU and SHFCU are federally insured by the NCUA (SHCU Charter # 66258 and SHFCU Charter # 24802).

Other Competitive Certificate of Deposit Rates
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2.25% 24-Month Add-On CD at NexBank in Texas - Local Only
Sunday, December 6, 2009 - 12:48 PM

NexBank continues to offer a competitive 24-month add-on CD. It has a yield of 2.25% APY. Minimum deposit is $10,000. The rate is listed at the bank's promotion page as of 12/06/09. 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.

In addition to this add-on CD, the bank has some competitive rates on its standard CDs including a 2.05% APY 18-month CD and a 1.80% APY 12-month CD. Minimum deposit is $10,000. These rates are listed at the bank's rates page as of 8/30/09.

There's an online application (link on the left side of CD page). However, the application form only allows the state of Texas to be specified. At the top of the application it states that "if you work in Texas and reside outside of Texas please contact us." So it appears to be limited to those who live or work in Texas.

My last post on this bank was in August when this special 24-month CD had a yield of 2.45%.

Branches are located in Dallas and Plano, Texas.

NexBank's ratings for safety and soundness are a little weak: 2 stars (problematic) at BauerFinancial (based on 9/30/09 data) and 2 stars (below peer group) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 29209).

Update 1/05/2010: The bank is operating under a FDIC Cease and Desist Order.

Other Competitive Certificate of Deposit Rates
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2.00% 11-Month CD Continues at Stillwater National Bank in OK - Local Only
Sunday, December 6, 2009 - 12:47 PM

Stillwater National Bank continues to advertise a competitive CD rate of 2.00% APY for an 11-month term. Minimum deposit is $5,000. This special doesn't seem to be listed at the bank's website. It was advertised in today's (12/06/09) Oklahoma City newspaper. The ad is available online here.

It appears a branch visit is required. The ad lists branches in Oklahoma City and Edmond. The bank has many other branches in Kansas and Texas, but these special CDs may be specific to the Oklahoma branches.

My last post on this bank was on November 1st when it was offering this same special. The interest rate environment has become worse since then, so this is even a better deal today.

The bank's ratings for safety and soundness continue to be fair: 3 stars (performing) at Bankrate.com (based on 6/30/09 data) and 3½ stars (good) at BauerFinancial (based on 9/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 4201).

Other Competitive Certificate of Deposit Rates
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Bank Deals Weekly Summary for December 5, 2009
Saturday, December 5, 2009 - 3:11 PM

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

Friday's job report which showed a surprising drop in the unemployment rate is an important sign to the Fed that they need to start thinking about policy changes. This WSJ article sums it up well:
Investors took Friday's jobs report as a sure sign that the Fed has gotten closer to raising its target for the federal-funds rates, at which banks lend to each other overnight, from its current level of between zero and 0.25%. Futures markets Friday put a 68% probability that the target will be raised to 0.5% by June and more than 90% odds that it will hit 1% by next December.

We have to remember that if the rate does reach 1% next December, that's still very low. After the tech bubble burst, the rate only bottomed at 1% in 2003. So I'm still afraid we may not see much improvements in deposit rates next year even if the economy continues to recover.

The FDIC is back to its busy Fridays. Six banks were closed yesterday including AmTrust Bank. For all of the closures, the FDIC was able to find other banks to assume all of the failed banks' deposits. So no depositors should lose any money (see post).

AmTrust has operated an internet bank since 2006 which has offered high-yield CDs. The question now will be whether the new bank will honor those CD rates to maturity. The bank that took over AmTrust is New York Community Bank. A reader pointed out that they have their own internet division, MyBankingDirect, so New York Community Bank may want to keep AmTrustDirect depositors and will hopefully choose to honor their CD rates to maturity. If you're an AmTrust CD holder, please let us know what New York Community Bank decides.

Savings Account Rates

The banks didn't waste any time after Thanksgiving to cut rates. Emigrant Bank cut the savings account rate at both Dollar Savings Direct and at EmigrantDirect. One week after Flagstar cut its Express Money Market rate, it made another cut this week. It's down by 10 basis points to 1.60% APY.

As expected, Alliant Credit Union kept its savings account rate at 2% APY for December. Another institution that's holding its savings account rate at 2% is SmartyPig. Unlike some of the newcomers on the list below, SmartyPig has been a rate leader now for about 20 months. I gave another update on SmartyPig yesterday.

For those in Georgia, Michigan and Indiana, Flagstar Bank has a hot checking account deal: 2% APY on balances up to $100K guaranteed for 12 months (see review).

Rate Hikes:
  1. None
Rate Drops:
  1. Bank of the Sierra Reward Checking - 4.09% (was 4.51%)
  2. Wings Financial CU MMA - 1.71% $10K (was 1.81%)
  3. Clear Sky Savings - 1.65% (was 1.75%)
  4. Flagstar Direct MMA - 1.60% (was 1.70%)
  5. Dollar Savings Direct Savings - 1.50% (was 1.60%)
  6. Union Federal Savings MM - 1.50% (was 1.60%)
  7. AIG Bank MMA - 1.41% $10K (was 1.46%)
  8. Hudson City MM Savings - 1.40% (was 1.50%)
  9. Intervest MMA - 1.35% $2.5K (was 1.40%)
  10. Emigrant Direct Savings - 1.20% (was 1.30%)
  11. Virtual Bank eMM - 0.75% under $10K (was 0.80%)
Certificate of Deposit Rates

This was a bad week for CD rates. Many of the rate leaders lowered their CD rates this week including Alliant Credit Union, Discover Bank, Hudson City Bank, Goldwater Bank and Jacksonville Bank.

On the positive side, I received some good news from my PenFed contact this week. They have a new rollover certificate promotion for January, and the yields will be the same as their original promotion that was canceled early. These include 3.50% 3-year, 3.75% 4-year, 4.00% 5-year and 4.25% 7-year. I also received confirmation on these rates from two PenFed CSRs on Wednesday and Friday. A reader emailed me about being told different rates from a CSR, but then he wrote back saying that the CSR had called him back and told him the above rates are in fact correct. So if you're not told the above rates, you may want to try to reach another PenFed CSR.

Those who don't have PenFed CDs that are maturing in January may be asking how this will benefit them. My contact said these rollover rates include a 0.25% bonus on top of the regular rates. That means PenFed CDs in January should have some very competitive yields: 3.25% 3-year, 3.50% 4-year, 3.75% 5-year and 4.00% 7-year (see post).

Even though Emigrant Bank cut the savings account rates at Dollar Savings Direct and Emigrant Direct, it's still offering 2.25% APY on a 16-month CD at Dollar Savings Direct. It's not listed at the website. I called today, and I was told it's still 2.25% APY. The only problem with this CD is that you first have to open the online savings account. I have a feeling this 2.25% CD won't last much longer.

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

Best Nationwide CD Deals as of 12/05/09: Also listed are savings account promos with rate guarantee periods. The full list of nationwide CD rates is farther down.
  1. 2.51% 3-mo money market/checking promo at EverBank (account review)
  2. 1.50% money market with rate guaranteed to Apr 2010 at Bank of America (account review)
  3. 2.42% 12-mo CD at Wings Financial CU, Limited Membership (account review)
  4. 2.10% 12-mo CD at Alliant CU (account review)
  5. 2.19% 15-mo CD at Golf Bank (account review)
  6. 2.25% 16-mo CD at Dollar Savings Direct (account review)
  7. 2.50% 23-mo CD at Security Savings Bank (account review)
  8. 3.00% 30-mo CD at Indus American Bank (account review)
  9. 3.03% 36-mo CD at Goldwater Bank (account review)
  10. 3.65% 60-mo CD at Melrose CU (account review)
  11. 3.60% 60-mo CD at Apple FCU (account review)
  12. 4.16% 84-mo CD (min $175K) at USAA Bank (account review)
  13. 4.00% 84-mo CD at Pentagon FCU (account review)
Best Local CD Deals as of 12/05/09: 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. 2.00% Checking with Rate Guaranteed for 12-mo at Flagstar in MI, IN & GA (account review)
  2. 1.90% Savings Account (5% for 1st $1K) at OMNIBANK in TX (account review)
  3. 2.12% 6-mo CD & 2.42% 12-mo CD at Wings Financial CU in MN (account review)
  4. 2.00% 6-mo CD at Vision Bank in Dallas (account review)
  5. 3.00% 7-mo CD at NIH FCU in MD & DC - Limited Membership (account review)
  6. 2.25% 11-mo CD at Colonial Bank Branches of BB&T in TX, FL & NV (account review)
  7. 2.25% 12-mo & under CD at Cecil Bank in MD (account review)
  8. 2.10% 12-mo CD at First Choice Bank in LA Metro Area (account review)
  9. 2.50% 15-mo CD & 2.26% 9-mo CD at The Farmers Bank in TN (account review)
  10. 2.30% 16-mo Jumbo CD at Teachers FCU in NY (account review)
  11. 2.40% 17-mo CD at Royal Asian Bank in PA, NJ & NY (account review)
  12. 2.50% 18-mo No-Penalty CD at Darby Direct in GA (account review)
  13. 2.50% 23-mo CD at Regions Bank in Many States (account review)
  14. 2.78% 24-mo & 2.18% 12-mo CD at First National Bank in TX (account review)
  15. 3.00% 27-mo CD & 2.25% 15-mo CD at Enterprise Bank of SC (account review)
  16. 3.15% 36-mo CD at First State Bank in NJ (account review)
  17. 3.00% 36-mo, 2.65% 24-mo & 2.20% 12-mo CD at Signature Bank in NYC (account review)
  18. 4.07% 60-mo CD at IH Mississippi Valley CU in IL & IA (account review)
  19. 4.00% 60-mo CD at PFFCU in Philadelphia (account review)
  20. 3.80% 60-mo & 3.29% 48-mo CD at PrimeWay FCU in Houston (account review)
  21. 3.60% 60-mo Jumbo CD at CEFCU in CA & IL (account review)
Reward Checking Accounts

I reported on four new reward checking accounts this week with yields ranging from 4.00% to 5.00%. All four are local deals.

Finding rates above 4% is getting harder. The best rate from a nationwide reward checking account had been from Bank of the Sierra which was offering 4.51% APY for balances up to $25K. It lasted about a year, but this week it fell to 4.09% APY. If you can find a local reward checking account that's limited to your area, you may be better off. These should attract fewer rate chasers and more average people who maintain smaller balances and spend more on their debit cards. With more average people, banks should be able to keep their reward checking rates higher.

To see all of the high yield reward checking accounts available throughout the nation, please refer to the reward checking section of DepositAccounts.com. As I mentioned in this post, DepositAccounts.com has replaced HighYieldCheckingDeals.com. One nice thing about this change is that it'll save me several hours of work each week in updating rates. This new site updates most rates automatically. There may be a few banks that have not been transitioned over yet. If you find any that are missing, please leave a comment or send me an email.

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

Banking News

Savings/Checking 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 under $100,000. 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 December 5, 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)

Edit 7:48pm 12/05/09: Corrected Peoples Bank minimum balance.
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AmTrust Bank and Five Other Banks Are Shut Down by Regulators
Friday, December 4, 2009 - 10:51 PM

This was a busy Friday for the FDIC with six bank closures including AmTrust Bank which was the fourth largest bank to fail this year. There were signs the failure was near for AmTrust Bank. The bank's parent filed for bankruptcy earlier this week, and the WSJ reported that the FDIC had been conducting an auction for AmTrust Bank. All deposits were assumed by New York Community Bank so no one should have lost any money. The only concern for depositors is whether New York Community Bank will honor AmTrust CD rates to maturity. There may be quite a few depositors with AmTrust CDs that are still earning over 5%. Back in 2006 AmTrust's internet bank had been offering 5-year CDs with a 5.46% APY. If New York Community Bank chooses to reduce these CD rates at least depositors are allowed a penalty-free early withdrawal.

Update 12/08/09: According to cleveland.com, Ilene Angarola, executive vice president at NYCB, stated that "CD rates will not be changed until such time as they mature or roll over."

In addition to AmTrust Bank's closure, three Georgia banks failed. There was also one closure in Illinois and one in Virginia. All of these closures were similar in that the FDIC was able to find buyers which assumed all deposits. With 23 failures, Georgia continues to lead the nation with the most bank failures in 2009.

Below is a summary of today's bank failures:

125th Bank Failure of 2009 (22nd in GA)
  • FDIC Press Release
  • Closed Bank: The Buckhead Community Bank, Atlanta, GA
  • Size: 6 branches, $874 million in assets, $838 million in deposits
  • Possible Uninsured Deposits: All deposits transferred, except some brokered deposits
  • Acquiring Bank: State Bank and Trust Company, Macon, GA
  • Rate Changes: State Bank and Trust Company will review rates
  • Estimated Cost to Deposit Insurance Fund: $241.4 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
  • Update 12/14/09: AJC article reviews conditions at Buckhead before the closure: "Buckhead Community, a once high-flying banker to the city’s wealthy elite, spent its final months of life in a desperate attempt to save itself."
126th Bank Failure of 2009 (23rd in GA)
  • FDIC Press Release
  • Closed Bank: First Security National Bank, Norcross, GA
  • Size: 4 branches, $128 million in assets, $123 million in deposits
  • Possible Uninsured Deposits: All deposits transferred, except some brokered deposits
  • Acquiring Bank: State Bank and Trust Company, Macon, GA
  • Rate Changes: State Bank and Trust Company will review rates
  • Estimated Cost to Deposit Insurance Fund: $30.1 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
127th Bank Failure of 2009 (24th in GA)
  • FDIC Press Release
  • Closed Bank: The Tattnall Bank, Reidsville, GA
  • Size: 2 branches, $49.6 million in assets, $47.3 million in deposits
  • Possible Uninsured Deposits: All deposits transferred, excluding some brokered deposits
  • Acquiring Bank: HeritageBank of the South, Albany, GA
  • Rate Changes: HeritageBank of the South will review rates
  • Estimated Cost to Deposit Insurance Fund: $13.9 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
128th Bank Failure of 2009 (2nd in OH)
  • FDIC Press Release
  • Closed Bank: AmTrust Bank, Cleveland, OH
  • Size: 66 branches, $12.0 billion in assets, $8.0 billion in deposits
  • Possible Uninsured Deposits: All deposits transferred
  • Acquiring Bank: New York Community Bank, Westbury, NY
  • Rate Changes: New York Community Bank will review rates Update 12/17/09: It has been reported that NYCB is honoring AmTrust CD rates to maturity (see BCC post)
  • Estimated Cost to Deposit Insurance Fund: $2.0 billion
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
129th Bank Failure of 2009 (20th in IL)
  • FDIC Press Release
  • Closed Bank: Benchmark Bank, Aurora, IL
  • Size: branches, $170.0 million in assets, $181.0 million in deposits
  • Possible Uninsured Deposits: All deposits transferred, except some brokered deposits
  • Acquiring Bank: MB Financial Bank, N.A., Chicago IL
  • Rate Changes: MB Financial Bank, N.A. will review rates
  • Estimated Cost to Deposit Insurance Fund: $64 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
130th Bank Failure of 2009 (1st in VA)
  • FDIC Press Release
  • Closed Bank: Greater Atlantic Bank, Reston, VA
  • Size: 5 branches, $203.0 million in assets, $179.0 million in deposits
  • Possible Uninsured Deposits: All deposits transferred
  • Acquiring Bank: Sonabank, McLean, VA
  • Rate Changes: Sonabank will review rates
  • Estimated Cost to Deposit Insurance Fund: $35 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
Bankrate's and BauerFinancial's ratings are based on 6/30/09 data.

References:
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Update on SmartyPig's High-Yield Savings Account
Friday, December 4, 2009 - 9:58 AM

When SmartyPig had the big rate cut last August, it fell out of the number one position as the top non-promo nationwide savings account rate. In the last few months many other banks have also cut rates, and now SmartyPig is number 2 for the top non-promo rate. SmartyPig's savings account now has about 20 months of history as a being a rate leader. It's different than many other savings accounts. This difference may be a hassle for those who just want a regular savings account, but it may also explain why they can pay higher interest rates. This NYT blog post has a good review of SmartPig's business model:
But the company is not in the business of attracting rate chasers like me, since it works with a partner bank and doesn't make money from lending out customer deposits. Instead, SmartyPig earns a small cut from its partner retailers if customers save toward a goal and then meet that goal by buying a television, say, or a vacation through those partners.

My guess is that they also make money when you use their debit card option. In a sense it's a little like reward checking accounts in which banks make money on more than just loans. For the case of reward checking, debit card usage helps pay for the higher interest. One thing to note about SmartyPig's interest rate is that, according to this FAQ, the APY is determined by SmartyPig's bank partner, West Bank, and it may be changed without notice.

Even though they're not after rate chasers, SmartyPig has made many improvements over the last 20 months to make it easier for savers. The latest changes were highlighted in November on the SmartyPig blog. The new feature #2 mentioned in the blog post shows how you can now split your savings up when you close your goal:
Before today, when you closed your goal, you could only redeem all of your funds to one redemption option. But our new redemption program offers more flexibility, allowing you to parse out your savings goal among all three options!

The three redemption options include buying retail gift cards (which offer a cash boost), transferring to the SmartyPig MasterCard debit card or transferring back to your linked checking or savings account.

SmartyPig Issues

In that SmartyPig blog post there are several comments about desired features. Similar comments have been left by readers here. I've included several of these below:

Withdrawing Funds

A few commenters at that SmartyPig blog post asked for an open-ended account option in which you can access funds without closing a goal. As one commenter mentioned, "Right now, to access partial funds in my 'Miscellaneous Savings' account, I have to close the entire goal, then transfer unused funds back later." As I mentioned in my May SmartyPig review, it's best to create multiple goals rather than one big goal. This gives you more flexibility.

POD/Joint Accounts

Another major request is the addition of joint and POD accounts. Here's the response from SmartyPig's co-founder:
The following is in response to POD/Joint Account questions. The sole owner of the SmartyPig account is the only person that has the authority/rights to the account itself. With that stated there is currently no option for a POD (Payable on Death) for a SmartyPig Account. If the account owner dies SmartyPig will refer back to the SmartyPig Account Owner's (Will) for direction of the funds in the account. However, this is something we are considering adding to SmartyPig in the future. A implementation date has not been determined at this time.

FDIC Coverage

In my May SmartyPig review, readers had some other concerns. One was the issue of FDIC insurance of the SmartyPig savings account. There was some wording at SmartyPig that was a little vague. Here is what is now stated at SmartyPig's FAQ:
SmartyPig accounts are held at West Bank and are insured by the FDIC to the full legal maximum.

You can verify the partnership between West Bank and SmartyPig at West Bank's website which has a link to SmartyPig on its home page. West Bank has been a FDIC member since 1934 (FDIC Certificate # 15614).

Quarterly Posting of Interest

Another issue mentioned in the comments was having interest posted quarterly. This shouldn't be a major issue since according to FAQ #26, "Your funds will continue to earn interest until you manually close your goal."

Transfer Speeds

Slow transfer speed is always an issue with online banking. It's important that the money show up in the destination account fast, that it's accessible quickly after the transfer and that there is no long period when the money isn't earning interest. Here's what is now stated in FAQ #29:
Upon closing your goal, you may transfer your funds back to your existing checking or savings account for free. This process typically takes 2 business days for the funds to post to your bank account.

FAQ #18 has info on when funds are transferred into your SmartyPig account:
ACH transactions take 2 business-banking days to clear. SmartyPig defines funds as having cleared once SmartyPig has collected the funds and West Bank has full use of the funds.

West Bank's Financial Condition

West Bank's rating for safety and soundness has gone down a bit at Bankrate.com. It's now 2 stars (below peer group) based on 6/30/09 data. It had been 3 stars when it was based on 12/31/08 data. It continues to be 3½ stars at BauerFinancial. This is also based on 6/30/09 data.

Other Competitive Savings Account Rates


Edit 12/05/09: Corrected 3-star rating date
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4.41% Reward Checking Account at United Bank of Kansas - Local Only
Friday, December 4, 2009 - 9:56 AM

United Bank of Kansas has a high-yield reward checking account called United Premier Checking. It has the following rates and features if certain monthly requirements are met:
  • 4.41% APY on balances up to $30,000
  • 0.91% APY on portion of balance over $30,000
  • 0.20% base rate if requirements are not met
  • ATM fee refunds up to $15 per month
The monthly requirements include:
  • 12 signature-based debit card purchases
  • 1 direct deposit or ACH auto debit
Additional features of the account regardless of the monthly requirements include:
  • $100 minimum opening balance
  • No minimum balance requirement
  • No monthly service charge
  • Free Bill Pay
It appears that a branch visit is required to open an account. Branches are located in the Kansas cities of Lenexa, Horton, Whiting, Lancaster and Atchison.

The bank's ratings for safety and soundness are above average: 3½ stars (good) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 6/30/09 financial data. The bank has been a FDIC member since 1952 (FDIC Certificate # 17104).

Other Reward Checking Accounts

A bank or credit union that only offers its reward checking account locally may have a better chance with keeping rates high. Banks with nationwide reward checking accounts are more prone to rate chasers, and many have cut their rates this year. The latest is Bank of the Sierra (see post).

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.
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2.12% 21-Month Bump & Add-on CD at Woodstone Credit Union in WA - Local Only
Friday, December 4, 2009 - 9:54 AM

Woodstone Credit Union has a pretty good deal on its special 21-month certificate. The rate is 2.12% APY, and it allows a one-time bump up in the rate and a one-time add-on deposit. Minimum deposit is $2,500. There's also a similar 13-month CD special, but the rate is only 1.80% APY. These rates are listed in the credit union's rates page as of 12/04/09.

The add-on feature is more important than the bump feature in my opinion. The add-on feature can provide a nice hedge against a persistent low interest rate environment. When your other CDs mature, you can always depend on the add-on CD. Unfortunately, this CD only allows a one-time add-on which makes it not quite as useful.

Membership is open to anyone who lives, works or worships in Washington State. Refer to the credit union's about page for more details. Membership requires a minimum $25 in the savings account.

The credit union is located in Federal Way, Washington State.

Woodstone's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 6/30/09 financial data. The credit union is federally insured by the NCUA (Charter # 60613).

Other Competitive Certificate of Deposit Rates
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2.10% 12-Month CD at First Choice Bank in California - Local Only
Thursday, December 3, 2009 - 4:13 PM

First Choice Bank continues to have competitive short-term CD rates. They're down a bit from September, but they continue to be a good deal. Their maturities are in terms of days. The CD with terms from 183 days to 287 days (~6 to 9 months) has a 1.80% APY. The CD with terms of 366 days to 540 days (~12 to 18 months) has a 2.10% APY. Minimum deposit is $5,000. An extra 5 basis points are added for a $50,000 minimum deposit. These rates are not listed at the bank's website. I was going through my old posts, and I noticed it was September since I last checked with this bank. The above rates are valid today (12/03/09), but they're subject to change at anytime. The CSR said these rates have remained the same since October 1st. Since December 1st has passed, hopefully these rates will remain through December.

A branch visit is required for new customers. Branches are located in Cerritos and Alhambra, California.

Unlike many California banks which are offering top rates, First Choice Bank's ratings for safety and soundness are decent: 3 stars (adequate) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 6/30/09 financial data. The bank has been a FDIC member since 2005 (FDIC Certificate # 57966).

Update 12/18/09: I called the bank (877-256-9809) and confirmed the above rates are still available.

Other Competitive Certificate of Deposit Rates
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2.53% 24-Month CD at Commerce National Bank in Texas - Local Only
Thursday, December 3, 2009 - 4:10 PM

Commerce National Bank is offering a competitive 24-month CD rate of 2.53% APY. Minimum deposit is $1,000, and the early withdrawal penalty is 90 days of interest. The CD rates are not listed at the bank's website. A reader mentioned these to me, and I just called the bank to confirm that this rate is still available as of 12/03/09. The CSR didn't know how much longer it would last.

The CD is also available in an IRA. The bank also has an 18-month no-penalty CD, but this rate is much lower at 1.51% APY. The Bank does a good job at listing the CD features in their CD overview page. It would be better if they also included the rates.

The 90-day early withdrawal penalty is a nice feature for a 2-year CD. The typical penalty is 6 months of interest. If you held this for one year and then did an early withdrawal, you would lose 25% of the accrued interest for the year. This would approximately equal the return of a 1.90% 1-year CD.

In addition to competitive CD rates, the bank also has an attractive reward checking account that currently pays 4% APY on balances up to $25,000. It has the typical reward checking requirements (see post).

A branch visit is required to open an account. Branches are located in the Texas cities of Austin, Bryan/College Station and Lubbock.

The bank's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 6/30/09 financial data. The bank has been a FDIC member since 1978 (FDIC Certificate # 22752). The bank's actual name is Lubbock National Bank. It looks like they're trying to appeal to those outside of Lubbock with the Commerce name and website.

Thanks to the reader who emailed me news of this 2-year CD.

Other Competitive Certificate of Deposit Rates
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Velocity Credit Union in Texas Begins Voting Process for Switch to Private Insurance
Thursday, December 3, 2009 - 9:24 AM

In September Velocity Credit Union in Texas first contacted members about its plans to convert its deposit insurance provider from the NCUA to the private American Share Insurance (ASI). They are now in the voting phase. Velocity has posted a "vote brochure" on its website informing members about the plans and asking for a supportive vote. As is stated in the brochure, federal regulations require that all members be given the opportunity to vote on the proposition to convert deposit insurance and that a minimum of 20% of the members must vote.

I described Velocity's plans and reviewed ASI private insurance in this September post. As I mentioned in that post, one reason Velocity management is pushing for this switch is the large premium the NCUA is charging insured credit unions. This is needed to help bail out the corparate credit unions. Based on this I thought we would see other credit unions going down this same road. I've searched, but I have not been able to find any others. If you know of any, please leave a comment. I do know of one other Texas credit union, United Heritage, which attempted to do this same switch in 2007, but it was rejected by the members. One thing to note is that only 9 states have laws which allow private deposit insurance for credit unions (see post for the list).

If your credit union is able to get at least 20% of its members to vote yes for such a switch, you don't have to worry about being stuck in a CD without it being federally insured. Federal regulations require credit unions to allow penalty-free early withdrawals in these cases (see post).

In this Tuesday post I reviewed a Las Vegas news article on ASI. The article brought up several worrisome aspects of ASI. There are some large ASI-only credit unions in Nevada, and many have been hit hard by the state's real estate problems.

Would you join a credit union that only has ASI deposit insurance? The latest results of a poll on this show 89.5% would not (out of 572 votes). Refer to the bottom of my September post to participate in the poll.

Update 12/04/09: The Austin American Statesman reported on this vote. One interesting note mentioned is that only one Texas credit union out of 207 has made this switch. That was MCT Credit Union in Port Neches.
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High-Yield Reward Checking Account at River City Bank in Georgia - Local Only
Thursday, December 3, 2009 - 9:22 AM

Update 5/05/2010: The top rate has fallen to 3.85% APY

River City Bank is offering a high-yield reward checking account called Smart Checking. It has the following rates and features if certain monthly requirements are met:

  • 3.85% APY on balances up to $25,000
  • 1.50% APY on portion of balance over $25,000
  • 0.05% base rate if requirements are not met

The monthly requirements include:

  • 12 debit card purchases
  • 1 direct deposit or ACH debit
  • Receive e-statements

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

  • No minimum balance requirement
  • No monthly service charge
  • Refunds all ATM surcharges Worldwide

Details about the bank's ATM refund policy are located in the locations page. It's rare to see a bank that offers such a generous ATM policy for all of its accounts.

It appears that a branch visit is required to open an account. Branches are located in Rome and Carrollton, Georgia.

The bank's ratings for safety and soundness are a little above average: 3½ stars (good) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 6/30/09 financial data. The bank has been a FDIC member since 2006 (FDIC Certificate # 58289).

Other Reward Checking Accounts

There have been a few banks and credit unions which have guaranteed a high reward checking rate for a certain period of time, but these are rare. Unfortunately, there aren't any that are nationwide deals.

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

Rate History:

05/03/10: 3.85% APY up to $25K (per reader. Rates not on website.)
12/03/09: 5.00% APY up to $25K guaranteed to 3/31/10

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2.40% 16-Month Jumbo CD at Teachers Federal Credit Union in New York - Local Only
Thursday, December 3, 2009 - 9:19 AM

Update 12/05/09: The Jumbo 16-month CD rate has fallen to 2.30% APY. The regular 16-month rate has fallen to 1.85% APY. Please check the credit union's website for the latest rates.

Teachers Federal Credit Union is still offering a special 16-month Jumbo certificate. The rate has gone down since October, but it's still very competitive with a 2.40% APY. Minimum deposit for Jumbos is $100,000. For a $1,000 minimum, the APY is 2.20% which is still very competitive. This special is also available in an IRA and Coverdell Education Savings Account. These rates are listed in the credit union's rate table as of 12/03/2009.

The credit union also continues to offer competitive rates on its Tiered Money Market Account. The rates have gone down a bit since my October post. The current rates include a 1.75% APY for a $100,000 balance and a 1.55% APY for balances between $50,000 and $100,000. These rates are listed in the credit union's rate table as of 12/03/2009.

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 continues to have strong ratings for safety and soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 6/30/09 financial data. The credit union is federally insured by the NCUA (Charter # 8116). It's a large credit union with $3.0 billion in assets and 197,251 members.

Thanks to the reader who emailed info on this Jumbo CD.

Other Competitive Savings Account and CD Rates
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2.00% 6-Month CD Continues at Vision Bank Texas - Local Only
Thursday, December 3, 2009 - 9:18 AM

Vision Bank - Texas continues to offer a 2.00% APY CD with terms of 181 days to 1 year. This rate is listed in the bank's deposit rates page as of 12/03/09. Since there's a September date at the top of the rate table, I called the bank this morning and confirmed that this 2% APY is still available. The service rep didn't know how much longer it would last.

The bank also continues to have a good deal on its reward checking account with a 5.01% APY on balances up to $25K as of 12/03/09 (see account review).

For those with large savings, the bank offers a savings account with a 2.25% APY on a minimum balance of $100,000. This is also listed in the deposit rates page as of 12/03/09. If the balance drops below $100K, there's a $10 monthly fee and the rate drops way down to 0.30%. More details are located in the Vision Personal Premier Savings overview.

The bank has an online application, however, it states that the bank only serves "areas of Collin, Dallas, Denton, Rockwall, Tarrant and other contiguous counties within the state of Texas." I've been told by the bank that they do require a branch visit to complete the application process. It's a small bank with one office located in Richardson, Texas which is in the suburbs of Dallas.

The bank's ratings for safety and soundness are average: 3 stars (adequate) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 6/30/09 financial data. The bank has been a FDIC member since 2007 (FDIC Certificate # 58447).

Other Competitive Savings Account and CD Rates
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3.00% 36-Month CD Continues at SchoolsFirst FCU in California - Local Only
Thursday, December 3, 2009 - 9:16 AM

SchoolsFirst FCU continues to offer a promotional 3-year share certificate with a 3.00% APY. Minimum deposit is $500, and the maximum deposit is $75,000. It's also available in an IRA. The promotion is listed at this credit union's promo page as of 12/03/09.

My last post on this deal was in October. In addition to this 3-year CD, they also had two add-on CD specials. They still offer these, but the rates have gone down a bit since October. The current rates are 1.50% APY for 7-month term and 2.00% APY for a 17-month term. Unfortunately, additional deposits are only allowed up to the initial opening balance.

Membership elgibility is primarily employer based. Eligible employers include most schools in Southern California. Refer to the credit union's membership page for further details. There is a $15 one-time membership fee which seems expensive since it can be done online. A minimum $5 deposit in your share savings account is required for membership.

Branches are located throughout Southern California including the cities of Anaheim, Irvine, Cerritos, Fullerton, Cypress, San Bernardino and Santa Ana.

SchoolsFirst FCU's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial and 3 stass (performing) at Bankrate.com. Both ratings are based on 6/30/09 financial data. The credit union is federally insured by the NCUA (Charter # 24212).

Thanks to the reader who mentioned this special CD in the comments.

Other Competitive Certificate of Deposit Rates
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2.50% 24-Month CD at Heritage Bank of Florida - Local Only
Thursday, December 3, 2009 - 9:15 AM

Heritage Bank of Florida continues to offer a very competitive 2.50% APY 2-year CD. Some other competitive CD rates include a 1.77% APY 9-month CD and a 2.22% APY 18-month CD. Minimum deposit is $500 for the 9-month CD and $1,000 for the longer terms. The CDs are also available in an IRA. These CD rates are listed in the bank's rate table as of 12/03/09.

The bank also offers competitive rates for its money market and checking accounts. The rates are down a bit since my June post, but they're still competitive. As of 12/03/09, the money market account has tiered rates with a 1.50% APY for a balance of $40K to $100K, and 2.00% APY for balances over $100K. The bank also offers a checking account that still pays 1.10% which is not too bad for a brick-and-mortar bank in today's rate environment.

A branch visit is required to open new accounts. Branches are located in Lutz, Wesley Chapel and Tampa, Florida.

The bank continues to have respectable ratings for safety and soundness: 3 stars (performing) at Bankrate.com and 4 stars (excellent) at BauerFinancial. Both are based on 6/30/09 data. The bank has been a FDIC member since 1999 (FDIC Certificate # 35009).

Other Competitive Certificate of Deposit Rates
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Update on PenFed CDs for January - New and Rollover CDs
Wednesday, December 2, 2009 - 6:47 PM

There was disappointment and confusion when PenFed canceled its CD Rollover Subscription Promotion last week. According to my PenFed contact, the canceling was due to an IT issue rather than high demand. Consequently, they have a new rollover certificate promotion that's just as good as before. Unfortunately, if you don't have PenFed CDs that mature in January, you won't be able to participate. However, there's good news regarding the regular January CD rates. Here are the details that I received of the new rollover promotion:
  • The current Rollover Certificate promotion is for existing PenFed Money Market and IRA certificates that are due to mature in January 2010 AND the member elects to rollover.
  • The former Certificate Reservation program only included 3, 5 and 7 year certificates. The new promotion includes 3, 4, 5 and 7 year certificates.
  • With the former Reservation program, members secured the following yields: 3 yr/3.50%, 5 yr/4:00% and 7 yr/4.25%. **The new Rollover Certificate promotion will yield the following (which includes the 0.25% bonus): 3yr yields 3.50%, 4 yr yields 3.75%, 5 yr yields 4.00% and 7 yr yields 4.25%.
  • All members who participated in the Certificate Reservation program will have their reservations honored and they will receive the advertised rate.
  • If a member has a PenFed Money Market or IRA certificates that is due to mature in January and wishes to call PenFed and confirm the rates for the Rollover promotion, they may do so as our representatives have been provided with the January's 2010 certificate rates.
  • A member with a maturing certificate in January may participate in the promotion by accessing their accounts via PenFed Online. On PenFed Online, the member can locate their certificate(s) and elect to have the certificate "rollover" at maturity. They may also contact a member service representative to assist them with the rollover election.
I also called member services (800-247-5626), and the rep was aware of the above rollover rates for January.

One thing to note is that these rollover rates include a 0.25% bonus. Thus, there should be a nice bump-up in the non-rollover rates for the 3-, 4- and 5-year CDs. The regular January CD rates should be the following:
  • 3.25% APY 3 year
  • 3.50% APY 4 year
  • 3.75% APY 5 year
  • 4.00% APY 7 year
The 7-year remains at 4%, but the 3-, 4- and 5-year CD rates are 0.75% higher than what they are now. These are very competitive compared to long-term CDs at other institutions.

For more details about PenFed's CDs and joining PenFed, please refer to this PenFed review post. Details of the CDs are available in the second page of PenFed's account application.

Membership

PenFed makes it easy for anyone to join and open accounts online. If you don't qualify based on military, employer or family, you can become eligible by joining the National Military Family Association (NMFA). Please refer to How to Join Overview Page for details. Joining NMFA and Penfed can be done at the same time all online. The yearly membership for NMFA is $20, but your membership in the association does not need to be maintained to continue as a Penfed member. You can also be eligible to become a member of PenFed if you are an employee or volunteer of the American Red Cross (refer to this PenFed page).

Branch Locations

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.

Financial/NCUA Info

PenFed's ratings for safety and soundness are no longer the best, but they remain respectable: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 6/30/09 financial data.

PenFed is one of the largest credit unions in the US with $13.4 billion in assets and 889,874 members. It's federally insured by the NCUA (Charter # 227).
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AmTrust Financial Files for Bankruptcy - Future of AmTrust Bank?
Wednesday, December 2, 2009 - 9:53 AM

The parent of AmTrust Bank, AmTrust Financial Corp, filed for bankruptcy yesterday. AmTrust Bank was not included in the bankruptcy. However, according to this WSJ article, the bank is "considered undercapitalized by regulators as a result of the housing crisis."

It was also reported in that WSJ article that the FDIC has been conducting an auction for AmTrust Bank. Banks on the verge of failure are often auctioned off in "secret" by the FDIC. When regulators close a bank, this allows the FDIC to immediately have the buyer take over the bank and assume the deposits. For the vast majority of these acquisitions this year, the buyers have assumed all deposits of the failed banks.

I first reported on AmTrust Bank when it started its internet bank AmTrustDirect back in the summer of 2006. For a couple of years it had offered very competitive savings account and CD rates. However, in the last year the rates haven't been too competitive. Last year the Office of Thrift Supervision (OTS) publicly released a Cease and Desist Order (pdf) for AmTrust Bank, and one of the restrictions included a deposit rate cap.
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2.00% Reward Checking Account at Legacy Bank of Florida - Local Only
Wednesday, December 2, 2009 - 9:49 AM

Update 12/15/09: The top rate has fallen to 2.00% APY. Refer to the bottom of the post for the rate history.

Legacy Bank of Florida is offering a high-yield rewards checking account that has the following rates and features if certain monthly requirements are met:
  • 2.00% APY on balances up to $50,000
  • 0.50% APY on portion of balance over $50,000
  • 0.10% base rate if requirements are not met
  • Refunds ATM fees nationwide up to $20 per month
The monthly requirements include:
  • 10 debit card purchases
  • 1 direct deposit or ACH auto debit
  • Log 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 Bill Pay
For those who want a high-yeild checking account without debit card usage requirements or a rate cap, the bank also has the investment checking account that currently pays 1.70% APY for a minimum balance of $5,000. This is advertised on the bank's front page. The interest rate for balances over $5,000 will be at least 50% of the current prime rate. You'll want to keep your balance over $5,000 on this account. Otherwise, the rate falls to 0.05% and there's a $15 monthly fee.

It appears that a branch visit is required to open an account. Branches are located in the South Florida cities of Boca Raton, Delray Beach, West Palm Beach, Fort Lauderdale and Pompano.

The bank'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 6/30/09 financial data. On the plus side, I can't find any public enforcement actions against the bank from regulators. The bank has been a FDIC member since 2006 (FDIC Certificate # 58247).

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

Rate History:
12/15/09: 2.00% APY up to $50K; 0.50% over; 0.10% base
12/02/09: 4.00% APY up to $50K; 1.00% over; 0.25% base
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2.11% 13-Month No-Penalty CD at First Federal Savings Bank in KY & IN - Local Only
Wednesday, December 2, 2009 - 9:48 AM

First Federal Savings Bank is offering a 13-month no-penalty CD with a 2.11% APY. Minimum deposit is $500. This special is shown in the main banner on the bank's front page and in this promo page as of 12/02/09. According to the small print, the special APY is good for accounts opened through December 31, 2009.

The bank also has some competitive regular CD and IRA rates including a 2.51% APY 25-month CD. Note, you're required to provide your zip code to see the rates page. So rates may vary by location.

It appears that a branch visit is required to open an account. Branches are located in Kentucky and Indiana.

The bank's ratings for safety and soundness are fair: 3 stars (performing) at Bankrate.com and 3½ stars at BauerFinancial. Both ratings are based on 6/30/09 financial data. The bank has been a FDIC member since 1936 (FDIC Certificate # 28610).

Other Competitive Certificate of Deposit Rates
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2.00% 15-Month CD and CD IRA at Parke Bank in NJ & PA - Local Only
Wednesday, December 2, 2009 - 9:46 AM

Parke Bank continues to have a competitive 15-month CD special. The rate is down a bit since August, but it remains competitive at 2.00% APY. It's also available in an IRA. Minimum deposit is $500. The bank also continues to offer a special rate on its Preferred Savings Account for balances of at least $2,500. The current rate is 1.75% APY which is down from 2% in August. These specials are listed at the bank's deposit rates page as of 12/02/09.

It appears that a branch visit is required to open an account. Branches are located in the New Jersey cities of Sewell and Northfield and in Philadelphia, Pennsylvania.

The bank's ratings for safety and soundness continue to be strong: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 6/30/09 financial data. The bank has been a FDIC member since 1999 (FDIC Certificate # 34888).

Other Competitive Certificate of Deposit Rates
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3.50% 60-Month CD at CEF Credit Union in IL & CA - Local Only
Wednesday, December 2, 2009 - 9:44 AM

CEF Credit Union is offering two competitive long-term CD rates: 3.50% APY for 5 years and 3.25% APY for 4 years. Minimum deposit is $1,000. An extra 0.10% is added for Jumbo certificates with a $100,000 minimum. These rates are listed at the credit union's rate table as of 12/02/09. These are also listed at Valley Credit Union's rate table. Valley Credit Union was a California credit union that was merged into CEFCU with help from the NCUA at the end of last year. It's now a division of CEFCU.

Membership into CEFCU is open to anyone who lives or works in one of many counties in Illinois. Please refer to CEFCU's membership eligibility page for the full details. Membership into Valley CU is open to anyone who lives, regularly works or regularly worships in Santa Clara County, Contra Costa County or Alameda County of California. Please refer to Valley's membership eligibility page for the full deails. Membership requires a $1 one-time fee and a $5 minimum balance in the savings account.

CEFCU's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 6/30/09 financial data. The credit union is federally insured by the NCUA (Charter # 68448). It's a large credit union with over $4 billion in assets.

Other Competitive Certificate of Deposit Rates
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Credit Union News - ASI Review and a Credit Union Liquidation
Tuesday, December 1, 2009 - 9:39 AM

The Las Vegas Review-Journal has a good review of American Share Insurance (ASI). This is especially relevant to Nevada since it has so many credit unions which depend on ASI for all of their deposit insurance. For those not familiar with ASI, please refer to my September post in which I described how a Texas credit union is trying to replace its federal NCUA insurance with private ASI insurance.

The Las Vegas article mentioned a 2003 GAO report which described some potential issues with ASI:
"First, ASI's insured risks are overly concentrated in a few large credit unions in certain states," the federal report observed. "Second, ASI may have a limited ability to absorb catastrophic losses because it does not have the backing of any governmental entity and its lines of credit are limited,"

The article does include an interview with the ASI CEO who tries to ease concerns of those worried about ASI and its ability to cover any potential credit union failures. As I mentioned in my September post Silver State Schools Credit Union in Nevada is a large credit union with only ASI insurance that is having financial difficulty. The reporter asked the ASI CEO about this, and he said "he was confident in the financial strength of Silver State Schools."

I think what troubles people about private deposit insurance is that it's very hard to really know the financial state of an institution. You often don't know the true state until it's too late. The following fact mentioned in the article is worrisome:
If American Share itself became insolvent, the seven Nevada credit unions relying on the private deposit insurance would be uninsured, said George Burns, commissioner of the Nevada Financial Institutions Division.

The ASI may be better funded than the NCUA, however, the following excerpt from the article explains why I'm not worried about my federally insured credit union deposits:
NCUA has regular borrowing authority for $6 billion plus another $30 billion in emergency authority to borrow from the Treasury Department. The federal government backs up NCUA's deposit insurance.

Credit Union Liquidation:

There was also some credit union news from the NCUA which reported yesterday of the liquidation of a tiny credit union, Fairfield County Ohio Federal Employees Federal Credit Union. It's the 14th liquidation of a federally insured credit union this year.

The credit union only had 747 members and less than $1.5 million in assets. The NCUA did not find another credit union to take over this failed credit union. Consequently, it's issuing checks to "individuals holding verified share accounts." There's no mention of how much if any of the share accounts exceeded the $250,000 insurance limit. Since the assets were only $1.5 million, I would guess no member had accounts that exceeded this limit.

Based on NCUA's history from last year, it's not uncommon for the NCUA to completely shut down tiny credit unions. Larger credit unions have tended to be placed into conservatorship and eventually merged with healthy credit unions.
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2.25% 14-Month CD & 1.85% 8-Month CD at National Bank of South Carolina - Local Only
Tuesday, December 1, 2009 - 9:38 AM

National Bank of South Carolina is advertising two competitive CD specials: a 1.85% APY 8-month CD and a 2.25% APY 14-month CD. Minimum deposit is $1,000, and new money is required. It's available for both consumer and business accounts. These specials don't appear to be listed at the bank's website. They were advertised in The Island Packet newspaper on 11/30/09. The ad is available online here.

My last post on this bank was in September when they were offering a 2.10% 10-month CD.

It appears that a branch visit is required to open an account. Branches are located throughout South Carolina including the cities of Anderson, Hilton Head Island, Charleston, Florence, Greenville, Myrtle Beach, Columbia and Sumter. Please note that the ad was in the paper that covers the Hilton Head Island area. If you live in another area of South Carolina, make sure you call the bank and verify that this special applies for the branches near you.

The bank's ratings for safety and soundness continue to be a little weak: 2 stars (problematic) at BauerFinancial and 1 star (lowest) at Bankrate.com. Both are based on 6/30/09 financial data. The bank has been a FDIC member since 1934 (FDIC Certificate # 2111).

Thanks to the reader Tuphat who mentioned this special CD in the Bank Deals Hub post.

Other Competitive Certificate of Deposit Rates
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2.05% 12-Month CD & 2.15% 18-Month CD at Premier Bank in Chicago - Local Only
Tuesday, December 1, 2009 - 9:37 AM

Update 1/3/10: The rates of the CD specials have dropped. Please check the bank's website for the latest rates.

Premier Bank is offering two competitive CD and IRA specials: 2.05% APY for 12 months and 2.15% APY for 18 months. Minimum deposit is $5,000. These specials are listed in the bank's rate sheet as of 12/01/09. The rate sheet link is located on the front page in the piggy bank image on the right.

My last post on this bank was about one year ago when they had a 4.40% 13-month CD special. You can see how much rates have declined in the last year. That old special ended around December 10th, so hopefully, this new one has some time left.

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

Premier Bank's financial ratings for soundness are fair: 3 stars (adequate) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 6/30/09 data. The bank has been a FDIC member since 2000 (FDIC Certificate # 35419).

Other Competitive Certificate of Deposit Rates
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2.30% 24-Month CD at Main Street Bank - Available Nationwide
Tuesday, December 1, 2009 - 9:33 AM

Update 12/05/09: The 24-month CD rate has fallen to 2.20% APY. Please check the bank's website for the latest rates.

Main Street Bank is offering some competitive CD rates. The most competitive, which may be hard to believe, is the 24-month CD which has a 2.30% APY. Minimum deposit is $10,000. This rate is listed on the bank's front page as of 12/01/09.

If this were a local deal, I probably would not have mentioned it. However, it's available nationwide. I confirmed this yesterday with the bank's CSR. Here are some additional CD details from the CSR and from the application:
  • The "open account" link points to a PDF application which must be either mailed or faxed
  • You can fund the CD by mailing a check with the application or by an ACH transfer
  • CD rate doesn't lock until they receive the application. CSR said you can add a note on the application to have them call you if the CD rate drops.
  • Application has fields for two POD beneficiaries
  • Option to pay monthly interest via ACH
  • Early withdrawal penalty is 6 months of interest for terms greater than 12 months
  • 10 day grace period at maturity
  • At maturity you have the option to receive the funds by ACH according to the CSR
  • CD rates listed on the website are only available for web customers
Main Street Bank is a small bank with four offices near Houston, Texas. It has $427 million in assets and $360 in deposits based on 9/30/09 FDIC data.

The bank does seem financially healthy which was another reason I reported on this lackluster deal. Its ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 6/30/09 financial data. The bank has been a FDIC member since 1984 (FDIC Certificate # 24979).

Other Competitive Certificate of Deposit Rates
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The Future Home For Bank Deals: DepositAccounts.com
Tuesday, December 1, 2009 - 12:00 AM

As I mentioned last Wednesday, Bank Deals Blog will be moving off of blogger onto a new, self-hosted website. We are not ready yet to move the Bank Deals Blog, however, we have moved HighYieldCheckingDeals.com to the new website DepositAccounts.com

The nationwide reward checking accounts are now located here. Use the Select-Your-State box on the top right to choose reward checking accounts available in your state. You can also use this box to get back to the nationwide accounts. Note, the US map to the left of the bank's name indicates that the account is available nationwide.

In addition to reward checking accounts, DepositAccounts.com includes tables of all types of deposit accounts including savings accounts, CDs and IRA CDs. The major types of accounts are listed on the top menu. For each major account type, you can select more specific types of accounts. For example, for checking accounts, you can select reward checking, business checking or classic checking.

Most of the rates are automatically updated daily so you'll no longer have to wait for my Saturday updates to see the latest rates.

We plan to continue to make improvements and updates so feel free to leave a comment if you find an issue or if you have suggestions.

Update 12/01/09: I just wanted to point out that this blog and commentary will not be going away. I'll be doing the same blog postings that I've always done. Right now the only change is that DepositAccounts.com will be replacing HighYieldCheckingDeals.com. In a few weeks the Bank Deals Blog will be moved from blogger to DepositAccounts.com. The content of the blog will remain the same. The only change is the addition of the new rate tables. We plan to keep adding to these tables so they will include all the best banks and credit union deals.
January 2010November 2009
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