Bank Deals Blog - January 2013

Bank of Internet USA has just added a balance cap to its Rewards Checking account. For new accounts, balances greater than $150,000 will not earn interest. For existing accounts, this balance cap will take effect on March 1, 2013. Before this change, all balances qualified for the top rate, which is currently 1.25% APY. Thanks to DA member ekat who posted on this news in the forum.

I'm sorry to see the balance cap, but at least it's still large in comparison to other reward checking accounts. Most reward checking accounts have caps of $25K, and many now have caps of only $10K.

I'm also happy to see the top yield remains at 1.25% APY. This yield has held since BofI launched this account in July 2011.

There are several aspects of this Rewards Checking account that make it unique. First, it's the only high-yield reward checking account that's offered by an internet bank. The vast majority are powered by BancVue and are offered from community banks and credit unions.

Another unique aspect is that you can still earn interest without completing all of the monthly requirements. It's not all or nothing. There are four sets of requirements per month. For each requirement that is met, an additional 0.3125% is added to the APY for the month. If all four of the requirements are met, the APY will max out at 1.25% (as of 1/31/2013). The four sets of requirements are listed in the rates tab of the BofI Rewards Checking page. These four sets of requirements include:

• Receive direct deposits each month totaling $1,000 or more (0.3125%)
• Pay 2 bills each month through our free online banking (0.3125%)
• Use your Rewards Checking Visa Debit Card at least 1 time per month for normal everyday purchases (0.3125%)
• Use your Rewards Checking Visa Debit Card at least 6 or more times per month for normal everyday purchases (0.3125%)

As you can see, you can earn the full rate by making just 6 debit card purchases per month. That's an advantage over most other reward checking accounts that require at least 10.

In addition to being competitive from a rate and balance cap point of view, the Rewards Checking account has some nice features such as no monthly maintenance fees, unlimited ATM reimbursements, free initial 50-pack of checks and online deposits of paper checks.

The downside with this Rewards Checking account is a relatively low yield of 1.25%. It's low as compared with other reward checking accounts. However, the vast majority of the other reward checking accounts have balance caps of $25K or lower. This new $150K balance cap is still 6x the size of the typical $25K cap.

Another downside is a weak ACH bank-to-bank transfer system. This is true with all BofI accounts. The standard inbound and outbound transfers are limited to $2,000 per day and $5,000 per month. After 90 days with use of the standard inbound and with no NSF incidents, you can fall in the standard high limit: $15,000 daily and $25,000 monthly. Even this is low. Also, ACH transfers take 3 business days in our out. They do allow you to pull/push funds using an external account.

Finally, in addition to the balance cap, BofI and UFB Direct notified customers of other account changes taking effect in March. There will be a $1 fee for each overdraft transfer that a linked account automatically covers.

Bank Overview

Bank of Internet USA was officially established on July 4, 2000. The bank is now called BofI Federal Bank. They have kept the name Bank of Internet USA, but deposit accounts held at Bank of Internet USA are FDIC insured through BofI Federal Bank.

BofI Federal Bank's financials have remained strong. Currently, it has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 9.76% (above average) based on September 2012 data. Please refer to our financial overview of BofI Federal Bank for more details. The bank has been a FDIC member since 2000 (FDIC Certificate # 35546).

How This Reward Checking Account Compares

As I mentioned above, you can get much higher reward checking rates, but most of these have balance caps of $25K or lower. Two institutions are offering reward checking accounts that are nationally available with a 3% APY on balances up to $15K. These include Lake Michigan Credit Union and First Financial Bank. The highest nationally available rate for a $25K balance cap is 2.12% APY at ABCO Federal Credit Union.

If you don't want to worry about monthly requirements, you can get a promo 1.25% APY at two internet banks: EverBank and Salem Five Direct. For non-promo rates without balance caps, there are still two internet banks offering a 1.05% APY money market accounts. These are Union Federal Savings Bank and My Banking Direct.

The above rates are accurate as of 1/31/2013.

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: Corrected debit card usage requirement from 7 to 6.

Health Savings Accounts (HSA) often have rates higher than regular savings account rates. Yearly contributions into HSAs are limited by law so banks and credit unions don't have to worry about paying out too much interest. Also, HSA customers tend to be better long-term customers for the banks. Thus, banks are often willing to offer higher rates. As you can see in our HSA table, the best rates are actually from credit unions. If you select "nationally available" in the "Filter Accounts" button, you can see the all-access credit unions that offer HSAs. Thanks to a reader's email and this FW thread, I learned of another one with a good HSA deal. It's Pacific Community Credit Union, and its HSA has a 3.25% APY. This is listed in the credit union's rate sheet as of 1/31/2013.

One downside with this HSA is that there's a $3 monthly fee (see fee disclosure). The credit union has an HSA page, but most of the information is general.

Membership

We have been listing Pacific Community Credit Union HSA in our rate table since 2011, and it has maintained a 3.25% APY. One thing that's new is membership eligibility. They now make it easy for anyone to join with an online application provided by Andera. To access this application, click on the "Open an Account" link on right sidebar of any page at the credit union's website. In the second page of the application, select "Employer or Association Member" and select the last option "I would like to become a member of the Friends of the Fullerton Arboretum". When this is selected, it shows the following:

The Friends of the Fullerton Arboretum is a nonprofit corporation organized for the sole purpose of supporting the Fullerton Arboretum through membership dues, fund-raising events, and volunteers. We have made a contribution on your behalf which supports the Friends and invests in the future of our environment and the education of our children. Nothing is required of you as a result of your membership.

You can also be eligible to join if you live or work in Orange County, Riverside County or in some other parts of California.

The HSA isn't an option in the online application. FW members have reported that the HSA application has to be done by mail or at a branch.

Credit Union Overview

Pacific Community Credit Union branches are located in the Southern California cities of West Covina, La Habra and Irvine. The credit union is part of the CU Service Centers so members can visit any of the 5,000 Credit Union Service Centers in the shared branch network.

The credit union has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas ratio of 0.73% (excellent) based on September 2012 data. Please refer to our financial overview of Pacific Community Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 60847).

Searching for the Best HSA Rates

If you're new to HSAs, please refer to our HSA overview.

You can search for the best rates in your state and the best rates that are nationally available by using our HSA rate comparison table.

As expected no policy changes were announced in the first FOMC meeting of the year. Today's FOMC policy statement looks very similar to the December statement. The same language was used regarding expectations of the federal funds rate:

the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee’s 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored.

The new policy statement did note the recent weakness in the economy, but this was attributed to "transitory factors":

growth in economic activity paused in recent months, in large part because of weather-related disruptions and other transitory factors

This looks similar to what economists have been saying about today's GDP report. The negative GDP number for the last quarter was unexpected, but economists don't seem concerned. In this CNNMoney article, an economist was quoted as saying "The drag from defense spending and inventories is a one-off. The rest of the report is all encouraging."

With sluggish economic growth and the unemployment rate remaining high, we shouldn't expect any changes from the Fed. As we saw from the Fed last month, the unemployment rate isn't expected to fall below 6.5% until sometime in 2015. That means no Fed rate hikes until maybe 2015.

There are four new voting members at the FOMC for 2013. At the start of each new year, four regional presidents rotate into voting roles. One of those new members, Esther L. George (the president of the Federal Reserve Bank of Kansas City), voted against the policy action. She was the lone dissenter. According to the FOMC statement:

[George] was concerned that the continued high level of monetary accommodation increased the risks of future economic and financial imbalances and, over time, could cause an increase in long-term inflation expectations.

This CNNMoney article has an interesting graphic showing how the voting FOMC members rank in terms of dovish or hawkish attitudes. Only George and James Bullard (president of the Federal Reserve Bank of St. Louis ) are considered hawks. The other ten on the FOMC are considered doves.

Janet Yellen is one of the most dovish members. There is some expectation that Yellen will be nominated by President Obama to replace Bernanke as Fed Chairman in January 2014 (Bernanke isn't expected to want a third term). So I wouldn't hold my breath for the Fed becoming any more hawkish in the coming years.

The next two FOMC meetings are scheduled for March 19-20 and April 30/May 1. The March meeting will include the summary of economic projections and a press conference by Bernanke.

It's common for banks to offer bonuses for opening a new checking account, but it's less common for reward checking accounts. The high rate of the reward checking account is often enough of an incentive. That's why I was surprised to see this $100 bonus that Home Federal Bank in Louisiana is offering.

The $100 bonus is available for the bank's personal checking accounts which include the Smart Rewards Checking. I first reviewed this account in 2011 when it was paying 4.00% APY for balances up to $25K. Surprisingly, it still pays 4.00% APY. The balance cap has fallen, but not by much. It's now $20K.

The $100 bonus checking offer is scheduled to expire on 2/28/2013. At the time the account is opened, the customer will receive a $50 bonus and a coupon to receive $50 additional bonus after 90 days. Direct deposit is required for the second $50 bonus. The customer has to present the coupon in person with a bank statement showing the payroll direct deposit. Please refer to the bottom of the bank's easy switch page for the full details.

The bank is also offering some CD specials. The best one is a 42-month Flex CD which has a 1.50% APY. Minimum deposit is $10,000, and the maximum is $95,000. The flex feature provides a one-time option to bump up the rate before maturity. This rate is listed at the bank's CD specials page as of 1/30/2013.

You must be a Louisiana resident to open accounts. Home Federal Bank branches are located in Shreveport and Bossier City.

The bank has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 0.00% (excellent) based on September 2012 data. Please refer to our financial overview of Home Federal Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 27654).

Other Bank Bonuses

We have a bank promotions page with a table of all of the active bank and credit union promotions. You can filter the table based on the type of promotion and based on your state. I have more details about how to use this page in this blog post.

You can view my latest bank bonus blog posts in this bank bonus page. I and DepositAccounts.com readers often post on bonuses in the checking account deals forum.

The National Republic Bank of Chicago has recently increased the rate of its 1-year CD to 1.00% APY. Minimum deposit is $1,000. This rate is listed on the bank's rates page as of 1/30/2013.

The CDs can be opened online, but these may appeal more to those in the Chicago area who prefer to bank locally. Last year I reviewed this bank's online application and the CD details.

The bank has two branches in Chicago, but it's not a small bank with $1.08 billion in deposits as of September 2012.

The bank has an overall health score at DepositAccounts.com of 3 stars (out of 5) with a Texas ratio of 40.37% (below average) based on September 2012 data. Please refer to our financial overview of The National Republic Bank of Chicago for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 916).

How This 1-Year CD Rate Compares

The best nationally available 1-year CD rate is 1.25% APY at PenFed. For internet banks, the highest rate is 1.05% APY. Several internet banks are offering 1.05%. They include CIT Bank, Sallie Mae Bank and Colorado Federal Savings Bank. These rates are accurate as of 1/30/2013.

Those in Chicagoland who prefer to bank locally may still prefer the 1-year CD at The National Republic Bank of Chicago. In that case, a 1-year CD can make more sense than a local money market account with rates far below 1%. If you don't mind banking online, it's hard to justify a 1% CD when there are many internet savings and money market accounts that pay around 1%.

Searching for the Best CD Rates

To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.

CapitalSource Bank is again offering some competitive short-term CDs. The best deal is a 1-year CD with a 1.01% APY. The 18-month CD also has this same yield. The 9-month CD has a 0.85% APY. Minimum deposit to qualify for these rates is $10,000. These rates are listed in the bank's rates page as of 1/30/2013.

Above the bank's rate table, it states that "to open a new account, call 888.433.4CSB (888.433.4272)." I don't know if the bank will accept customers outside their market area. CapitalSource Bank branches are located throughout Central and Southern California. Some of the cities include Los Angeles, Fresno, Bakersfield, Hanford, Santa Barbara and Redlands.

The bank has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 6.04% (excellent) based on September 2012 data. Please refer to our financial overview of CapitalSource Bank for more details. The bank has been a FDIC member since 2008 (FDIC Certificate # 58878).

How This 1-Year CD Rate Compares

The best nationally available 1-year CD rate is 1.25% APY at PenFed. For internet banks, the highest rate is 1.05% APY. Several internet banks are offering 1.05%. They include CIT Bank, Sallie Mae Bank and Colorado Federal Savings Bank. These rates are accurate as of 1/30/2013.

Those in California who prefer to bank locally may still prefer the 1-year CD at CapitalSource Bank. In that case, a 1-year CD can make more sense than a local money market account with rates far below 1%. If you don't mind banking online, it's hard to justify a 1% CD when there are many internet savings and money market accounts that pay around 1%.

Searching for the Best CD Rates

To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.

As I mentioned last Friday Barclays raised its 5-year CD APY from 1.70% to 1.85%. It's now on top for internet banks, tied with CIT Bank's 5-year CD (but this CIT Bank rate requires a $100K minimum deposit). You can get a little higher 5-year CD rate at a few credit unions and small banks, but the Barclays CD has the nice feature of a small early withdrawal penalty of 90 days of interest. This is just a little larger than Ally Bank's 60-day EWP. Since Barclays 5-year is now 26 bps higher than Ally Bank's 5-year CD, Barclays' CD is a better deal even if it's closed early starting from year one to until maturity (unless you can get Ally's loyalty renewal bonus). I compared these two CDs for early closures in this post. As I explained in the post, there are always some risks when you rely on early withdrawals of CDs.

Update 5/10/13: Barclays now allows CD customers to receive interest disbursements. According to Barclays' FAQs, "you can receive an interest disbursement from your CD account on a monthly basis. You have the option to keep interest in your CD account or transfer it to your Barclays Online Savings account or a verified external account."

Update 5/10/13: Barclays has increased its early withdrawal penalty for terms over 24 months. It's now equal to 180 days of interest on the amount that's withdrawn.

One downside with Barclays CDs is that you cannot receive interest disbursements. No withdrawals of interest or partial withdrawals are allowed. A withdrawal will close the CD and you'll be charged 90 days of simple interest.

Another downside is that IRA CDs are not available.

On the plus side, Barclays allows Payable on Death (POD) accounts. In the application you can specify beneficiaries. Once beneficiaries are named, your account is a POD account. All beneficiaries are assigned equal beneficial interest. Only the names of the beneficiaries are required in the application.

More account details are listed in Barclays FAQ section and in the online terms and conditions document.

I wasn't able to find certain details online, so I tried calling Barclays yesterday at 6:00pm ET. According to the website, customer service is available M-F from 8am to 8pm ET. After 30 minutes of waiting for a CSR, I gave up. I tried again this morning soon after 8am, and I was able to get through in less than a minute. I was told they received many 1099-related questions yesterday which overloaded them.

According to the CSR, the CDs can be funded by ACH transfer or by mailing a check. If funded by ACH, they use a trial deposit system to verify the external account. Two small deposits will be made to the external account. No withdrawals are done. External account can be a checking or savings account.

At maturity and for 14 days during the grace period, you can call and request that the funds be transferred back to your funding account via ACH. You can also request to have the funds transferred to your Barclays savings account.

Barclays Online Savings Account

It has been almost one year since Barclays launched its online savings account. During this time, the yield has remained at 1.00%. I first reviewed the Barclays savings account in March 2012. The account has several nice features such as no minimum balance requirement and no monthly fees. Barclays also has a nice ACH transfer system. I asked the CSR a few questions about it today. Here are a few details I was told:

• The funding account link is maintained for future transfers so you don't need to re-verify the account after the account is opened
• They allow up to 3 external account links per owner
• After the account is opened, ACH transfers are limited to $250,000 per transaction. There are no limits for the initial account funding.

The Barclays internet bank is part of Barclays Bank Delaware which is a FDIC member (FDIC Certificate # 57203). The bank is best known in the U.S. for partnering with companies in offering co-branded credit cards. It's part of the U.S. division of Barclays, a British multinational megabank.

Barclays Bank Delaware has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas ratio of 5.28% (excellent) based on September 2012 data. Please refer to our financial overview of Barclays Bank Delaware for more details. The bank has been a FDIC member since 2001.

How This CD Rate Compares

The best nationally available 5-year CD rate is 2.05% APY at Citizens State Bank in Florida. The highest at an all-access credit union is 2.00% APY at Mountain America Credit Union (This is also available as an IRA). These rates are accurate as of 1/29/2013.

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.

Edit 7:45pm: Added additional beneficiary details.

Many banks and credit unions in Texas are friendly to savers. I found another one today at Security First Credit Union. It has some very competitive long-term CD and IRA CD rates. The best deal is its 5-year IRA CD with a 2.53% APY. This requires a $50,000 minimum deposit. The regular 5-year CD has a 2.43% APY. Rates are a little lower for smaller deposits, but they don't go down that much. For a $1,000 minimum deposit, the 5-year IRA CD has a 2.39% APY and the 4-year regular CD has a 2.33% APY. These rates are listed in the credit union's share rates page as of 1/29/2013.

Membership is open to those who live, work, worship, or go to school in the Rio Grande Valley of Texas. This is shown when you enter "membership" in the ask box at the top right of credit union's web page.

Security First branches are located in several South Texas cities including Brownsville, Harlingen and McAllen.

The credit union has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas ratio of 7.69% (excellent) based on September 2012 data. Please refer to our financial overview of Security First Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 5547).

How These CD Rates Compare

The best nationally available 5-year CD rate is 2.05% APY at Citizens State Bank in Florida. The highest at an all-access credit union is 2.00% APY at Mountain America Credit Union (This is also available as an IRA). These rates are accurate as of 1/29/2013.

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.

Melrose Cooperative Bank is listing two deposit specials. The best deal is the 1-year CD special with a 1.50% APY. Minimum deposit is $1,000, and the maximum initial deposit is $100,000. The CD also has a special feature. You have a one-time option to add or withdraw 50% of your initial deposit without incurring a penalty or extending the term of the CD. The bank also has good deals on its long-term standard CDs. Both the 4-year and 5-year CD have a 2.00% APY. Minimum deposit is $500. The special CD rate is listed in this bank promo page and this 4/5-year CD rate is listed in the bank's deposit rates page as of 1/29/2013.

The checking account special offers a $100 bonus for opening a free checking account. To earn $50 requires signing up for direct deposit. Another $50 can be earned by paying 10 bills online through bill pay. Checking account must be opened by February 28, 2013. Full details are available at the bank promo page.

Availability

Unfortunately, not many are eligible for these deals. In the small print of the bank promo page, it states:

Tax Identification Number owner must reside in Melrose or its abutting communities: Saugus, Wakefield, Malden and Stoneham.

The small print in the deposit rates page is similar:

Melrose Cooperative Bank accepts deposits only from its primary business area, and currently is opening new accounts from customers residing or working in Melrose and its abutting communities.

It's a small bank with one branch located in Melrose, MA.

The bank has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas ratio of 1.02% (excellent) based on September 2012 data. Please refer to our financial overview of Melrose Cooperative Bank for more details. The bank has been a FDIC member since 1986 (FDIC Certificate # 26511).

How These CD Rates Compare

The best nationally available 1-year and 4-year CD rates are 1.25% APY and 1.85% APY from Pentagon Federal Credit Union. The best 5-year CD rate is 2.05% APY at Citizens State Bank in Florida. These rates are accurate as of 1/29/2013.

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.

Other Bank Bonuses

We have a bank promotions page with a table of all of the active bank and credit union promotions. You can filter the table based on the type of promotion and based on your state. I have more details about how to use this page in this blog post.

You can view my latest bank bonus blog posts in this bank bonus page. I and DepositAccounts.com readers often post on bonuses in the checking account deals forum.

You have probably heard in the news about the new credit card checkout fees that retailers are now allowed to charge in 40 states. This potential new fee is the result of a legal settlement that I first first reported on in July 2012. In summary, retailers are now allowed to add a surcharge when customers use their credit cards. You shouldn't see these new fees if you live in one of the ten states (including CA, TX, FL and NY) that have surcharge restrictions.

Many news reports have reported that this new checkout fee does not apply to purchases made using debit cards. However, not all have said this. A report on Fox News stated that consumers who use their debit card with the credit option (non-PIN) can also be hit with this surcharge. This seemed understandable since debit cards purchases go through the Visa or MasterCard network when you use the credit option. When you enter your PIN, they typically go through an ATM-type network. The interchange fees that stores pay for each debit card purchase are higher when they go through the Visa/MasterCard network and are more inline with credit card interchange fees. So it makes sense that stores may be allowed to add the surcharge fee when their customers use their debit cards without a PIN.

After a lot of searching, I found the answer to this question. Visa issued this Merchant Surcharging guide which provides all the requirements for merchants who want to add surcharge fees. In the Q&As for Merchants, a Q&A answers the question:

Q. Can I assess a surcharge on debit card transactions for which the cardholder using a debit card chooses “credit” on the point of sale terminal?

No. The ability to surcharge only applies to purchases made with a credit card, and only under certain conditions.

There you have it. Debit card users don't have to worry about using their PINs when they pay. I haven't found a similar Q&A from MasterCard, but it seems unlikely it would be different.

This is good news for all of us who participate in debit card reward programs. Reward checking is one big example. To qualify for high interest rates, you have to make a certain amount of debit card purchases per month. Some reward checking programs allow for both PIN and non-PIN debit card purchases to qualify, but there are a few that require non-PIN. And even if PIN debit card purchases qualify, many people prefer to make non-PIN purchases. In addition to not having to remember your PIN, non-PIN purchases can have extra protections. Another debit card reward program is the PerkStreet Financial checking account which provides cash back for non-PIN debit card purchases. Only non-PIN debit card purchases qualify for PerkStreet Financial cash back.

If you only use credit cards in the 40 states that don't have surcharge restrictions, you may not have to worry. As mentioned in this Plain Dealer article, "few if any merchants are expected to actually impose the charge, which likely would be 2 to 3 percent of a purchase." Just remember to keep an eye out for the surcharges. According to Visa's Merchant Surcharge Q&A, your store is suppose to "clearly alert consumers to the practice at the point of sale – both in store and online – and on every receipt." So this is suppose to prevent consumers from being surprised by the fees. However, I'm sure many consumers will miss these alerts. If you see a store that has started charging this fee, please leave a comment.

First Financial Bank has started offering a reward checking account called Kasasa Cash. There's also a linked savings account called Kasasa Saver. Both offer very competitive interest rates, and the accounts can be opened online. Thanks to DA member 51hh who first posted on this in the forum. There is some worry that this deal may not last long, but as I show below, it's not really a hot deal compared to other reward checking accounts. So hopefully, it will last for some time.

First Financial Bank has the rates and details listed in its Kasasa Cash page and in its Kasasa Saver page as of 1/28/2013:

Kasasa Cash rates and features if monthly requirements are met:

• 3.00% APY on balances up to $15,000
• 3.00% – 0.61 % APY on balances over $15,000 depending on balance in account
• 0.05% APY if qualifications aren't met
• Unlimited nationwide ATM fee refunds

Kasasa Saver rates if Kasasa Cash requirements are met:

• 1.00% APY on balances up to $50,000
• 1.00 – 0.50% APY on balances over $15,000 depending on balance in account
• 0.05% APY if qualifications are not met on Kasasa Cash

Monthly requirements for the Kasasa Cash account:

• 12 debit card purchases post and clear
• Access online banking
• Receive free eStatements

The accounts are free with no monthly service fees and no minimum balance requirement. There's a limit of one account per social security number. Also, ATM receipt must be presented for reimbursement of ATM fees of $5.00 or higher.

Availability

Update 4/3/2013: The bank changed their policy in the last week of March. They are now only accepting applications from their market area (see where they have branches below).

There's an online application link at the bank's Kasasa Cash page. I and other readers have been told by bank representatives that people in any state are eligible to open these accounts. As we have seen many times before, banks often change the eligibility rules. If you see a change, please leave a comment. First Financial isn't a small bank, so hopefully, it will be able to handle customers from all states.

Bank Overview

First Financial Bank branches are located in Arkansas and Mississippi. Its headquarters is located in El Dorado, Arkansas. The bank has $812 million in assets and $615 million in deposits. It has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas ratio of 10.39% (above average) based on September 2012 data. Please refer to our financial overview of First Financial Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 28905).

How This Reward Checking Compares

As I mentioned above, I don't consider this as a hot deal. This is due to the $15K balance cap of the 3% Kasasa Cash account. We already have a nationally available reward checking account that pays 3% APY on balances up to $15K. That's the Max Checking Account from Lake Michigan Credit Union. This is an all-access credit union in which anyone can join via an association membership. The Max Checking has been paying 3% APY since 2009, so there's some hope that First Financial Bank can keep these rates and balance caps for awhile.

First Financial Bank does have one advantage over Lake Michigan CU. It also offers a Kasasa Saver account that pays 1% APY on balances up to $50K. This is a nice account if you have more than $15K that you want to keep liquid. You can get a little higher interest rate at some internet money market accounts, but this Kasasa Saver rate is close enough to make it a good alternative to the internet 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.

When planning for retirement, sooner or later “downsizing” comes up in the conversation.

You downsize your home, your car, your lifestyle – be it eating out less, shopping less, traveling less. Less becomes best.

For many people, downsizing is a prudent strategy if they do not have enough money set aside to meet their current standard of living or the economy forces them to take retirement earlier than they had planned because of job loss. The strategy to downsize usually comes from a need, not a want, says Marlene Dattilo, a certified financial planner with Financial Architects. In a 2011, MassMutual Retirement Services study, 54 percent of those polled said they would have to reduce their standard of living and 64 percent said they expected to work at least part-time in retirement.

Downsizing has plenty of advantages. It enables retirees to access wealth which is stored in their home. As a general rule, wealth stored as home equity is not otherwise accessible for use in retirement income planning. The exception to this is home equity loans or reverse mortgages, but both involve the need to pay interest charges to the lender which can become quite costly over time, says John Hauserman, author of RetirementQuest: Make Better Decisions.

Quite simply, “Downsizing can help ensure that you don't run out of money. It is a means to a goal,” says Steven Levine, a senior member of Levine, Jacobs & Company, certified public accountants.

There are also advantages that have nothing to do with money. “People sometimes overlook that when they downsize they wind up in a community of like-minded retirees, more than willing to watch your home or apartment while you travel or perhaps become traveling companions for a world of adventure waiting for you out there,” says Kym Anderson, a CPA with Jones & Company, certified public accountants.

Anticipate the reality of less

But for all the upside of downsizing, there is a downside.

“Change is as much a disadvantage as an advantage. Moving is always stressful, but even more so in retirement. It seems to be an end to an era, giving up familiar surroundings, neighborhoods and friends,” says Anderson. Deciding what can and should be moved can be very painful. Downsizing means less room for all the treasures you've collected over a lifetime.

For sure, downsizing is an emotional issue. “You want to visit your grandchildren. You want to be able to give them some of things you couldn't give your own children when they were growing up. Having to spend less is often a challenge in the face of these things,” says Dattilo.

New retirees are often already experiencing dramatic life changes just from leaving work. Adding additional stresses like moving, especially if away from family and friends, may not be a good idea and can lead to depression, points out Hauserman.

Make your decision carefully

The decision to downsize should not be made lightly. Sure, if you sell your home it can translate into immediate savings in monthly mortgage payment, upkeep and utilities. If your home is paid off, you will be able to invest the difference between the sales price and the cost of your new home. Generally, too, any gain from the sale is tax free, says Anderson. But, explore all options. Maybe you can work longer, or work part-time in retirement to avoid making drastic changes.

Have a good idea of your income and expenses. Know what's coming in for sure – like social security, pension, and annuity payments, for example, and what's going out, mortgage or rent, utilities, food, and what can be changed or cut, explains JP McDermott, a financial advisor with MassMutual.

If you are considering selling your home, be sure you know how much time it could take to sell and what the out-of-pocket costs to prepare the home for sale will likely be. Where will you move to? Will you rent or buy? What is your price range?

“Start planning on what you'd like to end up with and then work backwards from that dream to make it happen,” says McDermott.

Don't go it alone. Talk to an advisor to get help planning your exit from the workplace and to help design your distribution strategies to maximize your income in retirement, so that you don't outlive your savings, and maybe even avoid downsizing.

Will we see a big rise in interest rates this year? Based on what the Fed has said and the continued sluggish economic growth, it seems unlikely. However, there are some signs of changes. In a CNBC interview, George Soros told CNBC that he "expects interest rates to jump this year as soon as there are clear signs the economy is on the mend." Of course "experts" have been wrong before in predicting Treasury yield spikes. The most famous example was in 2011 from Bill Gross, the fund manager of the world's largest bond fund.

George Soro's interview wasn't the only sign that we may see changes this year. There were signs this week that both the U.S. and Global economy are improving. According to Bloomberg:

Treasury 10-year note yields rose the most since the first week of the year as the European Central Bank said banks will repay more of its loans than forecast and a strengthening housing market reduced the haven appeal of U.S. government debt.

We may see more signs next week. The employment report for January is scheduled for release on Friday. Also, the Fed is having its first FOMC meeting of 2013 on Tuesday and Wednesday. Although no significant Fed announcement is expected, any changes in the FOMC statement that suggest better-than-expected conditions could pull in expectations of future rate hikes.

I don't want to sound pessimistic, but let's not forget many of the false alarms over the last three years that raised our hopes that rate hikes were within a year away. As I mentioned last week, there are many risks this year to economic growth, with many coming from Washington. Even with the House vote to suspend the debt limit last week, there are still risks of a government shutdown and a large fiscal contraction that will come later this year.

As mentioned above, there were big gains this week in Treasury yields. The changes over the last week and the expectation of future Fed funds rates are shown below. Numbers are based on Yahoo bond rate data and the CME Group FedWatch.

Treasury Yields:

• 6-month: 0.09% up from 0.08% last week
• 2--year: 0.27% up from 0.25% last week
• 5--year: 0.85% up from 0.76% last week
• 10-year: 1.95% up from 1.84% last week
• 30-year: 3.13% up from 3.03% last week

Fed funds futures' probability of rate hike by:

• Jan 2015: 59% same as last week
• Apr 2015: 73% up from 71% last week

This was a quiet week for both the FDIC and the NCUA. No banks or credit unions failed this week. So far this year there have been two bank closures and one credit union liquidation.

Savings & Checking Account Rates

This was a busy week for savings and money market rate cuts. Ally, Sallie Mae and Incredible Bank reduced the rates on their savings and money market accounts. None of these, however, had the largest cut. That came from Acacia Federal Savings Bank which slashed the yield of its Metro Checking and money market account from 1.00% to 0.80%. This 1.00% yield had lasted for over eight months. As I mentioned when I first reported on this 1.00% yield, Acacia Federal doesn't have a history of being a long-term rate leader. Also, it was announced last year that Customers Bancorp was going to acquire Acacia Federal. Acquisitions have rarely been good news for savers. Let's hope Capital One's acquisition of ING DIRECT will be the exception.

With this week's rate cuts, we now have only two banks on top of the list with non-promo yields of 1.05% without small balance caps. Those two are MyBankingDirect and Union Federal Savings Bank. Only Connexus Credit Union's money market account has a higher yield (1.15%), but this requires a $100K minimum balance and an active checking account.

Two internet banks are offering 1.25% APY, but these are promo rates. You can also get 1.10% APY at AmericaNet Bank and its two sister banks, but all three have a $35K balance cap.

Reward Checking Accounts

This was the third straight week with no rate changes on my list of nationally available reward checking accounts. However, there was one positive change to the list. I added First Financial Bank's Kasasa Cash account. The bank has an online application that the bank says can be used by people in any state. Thanks to DA member 51hh for reporting on this in the forum. This Kasasa Cash account currently pays 3.00% APY for balances up to $15K. It matches Lake Michigan Credit Union's Max Checking account with the same top rate and balance cap.

If you want larger balance caps, you'll probably have to settle for lower rates. I did an updated review of one reward checking account that still has a $50K balance cap. It's Harborstone Credit Union, and its reward checking account, called BreakFree Checking, offers 2.02% APY for balances up to $50K. It's not nationally available, but everyone in Washington State, in the military and in the civil service are eligible to join. I have more info about this credit union in my blog post. Readers also commented in that post about their experiences with this credit union.

To find the highest reward checking rates and balance caps in your state or nationwide, please refer to our reward checking rate table. If you're new to these tables, my rate table guide should be useful. If you're new to reward checking, please refer to my blog post, 10 Common Traits of High-Yield Reward Checking.

Additions:

1. First Financial Bank Reward Checking (Kasasa Cash) - 3.00% (up to $15K) 0.25% (over $15K)

Rate Hikes:

1. None

Rate/Balance Cap Cuts:

1. Incredible Bank MMA - 1.01% [was 1.05%]
2. Sallie Mae Bank MMA - 0.95% [was 1.05%]
3. Ally Bank MMA/Savings - 0.90% [was 0.95%]
4. Acacia Federal Metro Checking - 0.80% [was 1.00%]
5. Acacia Federal MMA - 0.80% [was 1.00%]

Certificate of Deposit Rates

My recap of CD rate changes and the list of CD deals will now be in my survey of the best CD rates. This recap will now focus on banking news of the week and liquid accounts.

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

• Forum Highlights: Online Banking Outages, Sneaky Reward Checking Changes and Debit Card Fraud
• Why Bankers Will Increasingly Say,'May I Take Your Order?'

• Discover Bank's Cashback Checking Account To Be Launched Soon
• CDs or Savings Accounts in Today's Low-Rate Environment?

• Survey of the Best CD Rates for January 25, 2013
• Comparison of Long-Term CD Rates After Early Withdrawal Penalties - January 2013

• BB&T $125 Checking Account Bonus
• Checking Account Bonus & CD Special at Trustco Bank in Some States

• Updated Review of Harborstone's Reward Checking Account

• Special IRA CD Rates at Dime Savings Bank in New York
• Top 7-Year CD Rate at Amplify Credit Union in Austin

• Archive of 2013 Posts

Rates as of January 26, 2013

Checking/Savings/Money Market Accounts:

• Best Savings Account Rates (Nationwide & by State)
• Best Money Market Rates (Nationwide & by State)
• Best Checking Account Rates (Nationwide & by State)

• How to View Rates for Your State

• Noteworthy Accounts Available Nationwide:

• Salem Five Direct - 1.25% savings, for new customers only (~0.75% for existing customers)
• EverBank - 1.25% MMA/Checking (6mo intro rate) 0.76% ongoing rate, account review
• Connexus Credit Union - 1.15% ($100K) 1.00% ($50K) 0.75% ($20K) active chk required
• Redneck Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• AmericaNet Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• Evantage Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• Union Federal Savings Bank - 1.05% MMA (min $2.5K) account review
• MyBankingDirect - 1.05% (min $5K)
• Incredible Bank - 1.01% MMA ($2.5K min) account review
• CIT Bank - 1.00% ($25K) 0.90% ($0) Savings, account review
• Barclays - 1.00% Savings account review
• SmartyPig - 1.00% ($50K max), account review
• TIAA Direct - 1.00% MMA/Savings (not accepting new customers) account review
• ableBanking - 0.96% MMA (min $1K)
• Sallie Mae Bank - 0.95% MMA account review
• SFGI Direct - 0.94% account review
• AloStar Bank of Commerce - 0.91% ($50K) 0.50% ($0) MMA Advantage
• American Express Bank - 0.90%, account review
• Silvergate Bank - 0.90% (min $1K) Savings
• Ally Bank - 0.90% MMA/savings
• Incredible Bank - 0.88% Checking ($1K min) account review
• Colorado Federal Savings Bank - 0.85% ($2.5K min) account review
• ING Direct - 0.85% ($100K) 0.80% ($50K) Electric Orange Checking
• FNBO Direct - 0.85% Savings
• GE Capital Retail Bank (formerly MetLife) - 0.85% (min $10K) Savings
• Sallie Mae Bank - 0.85% Savings account review
• Clear Sky Accounts - 0.80% (max $250K) account review
• Discover Bank - 0.80% Savings (min $500) account review
• Alliant Credit Union - 0.80% (min $100) Savings account review
• UFB Direct (BofI Federal) - 0.80% MMA/savings account review
• Acacia Federal - 0.80% MMA (min $25K), account review
• Acacia Federal - 0.80% Metro Checking, account review
• Nationwide Bank - 0.76% MMA (min $1K)
• Alliant Credit Union - 0.75% Checking (req's elec. dep & e-stmts) account review
• ING Direct - 0.75% Orange Savings

Reward Checking Accounts:

• Best Reward Checking Account Rates for a $10,000 Balance - Nationally Available
• Best Reward Checking Account Rates for a $25,000 Balance - Nationally Available

• How to View Rates for Your State

• Noteworthy Accounts Available Nationwide:

• Consumers Credit Union - 3.09% (up to $5K) 0.20% ($5K-$25K) 0.10% ($25K+)
• Money One Federal Credit Union - 3.01% (up to $10K) 0.51% (over $10K)
• Lake Michigan Credit Union - 3.00% (up to $15K) 0.00% ($15K+)
• First Financial Bank - 3.00% (up to $15K) 0.25% ($15K+) Kasasa Cash
• Capital Educators Federal Credit Union - 2.50% (up to $10K) 0.20% ($10K+)
• ABCO Federal Credit Union - 2.12% (up to $25K) 0.30% ($25K+)
• Redneck Bank - 2.00% (up to $10K) 0.50% (over $10K)
• AmericaNet Bank - 2.00% (up to $10K) 0.50% (over $10K)
• Evantage Bank - 2.00% (up to $10K) 0.50% (over $10K)
• INOVA Federal Credit Union - 2.00% (up to $20K) 0.15% ($20K+)
• First Tech Federal Credit Union - 1.78% (up to $10K) 0.21% ($10K+)
• Provident Credit Union - 1.76% (up to $25K) 0.11% ($25K+)
• Connexus Credit Union - 1.75% (up to $25K) 0.50% ($25K+) Xtraordinary Checking
• Community Bank of Raymore - 1.75% (up to $10K) 0.50% ($10K+)
• Community Bank of Pleasant Hill - 1.75% (up to $10K) 0.50% ($10K+)
• Pacific Resource Credit Union - 1.75% (up to $15K) 0.50% ($15K+)
• First New England Federal Credit Union - 1.52% (up to $15K) 0.10% ($15K+) (extra 1% w/relationship)
• Heritage Bank - 1.51% (up to $25K) 0.10% ($25K+)
• Legence Bank - 1.50% (up to $25K) 0.25% ($25K+)
• BankFirst Financial Services - 1.50% (up to $50K) 0.25% ($50K+)
• Avidia Bank - 1.36% (up to $25K) 0.05% ($25K+)
• West Texas National Bank - 1.26% (up to $25K) 0.25% ($25K+)
• Bank of Blue Valley - 1.25% (up to $15K) 0.10% ($15K+), $1K/month debit card req (account review)
• Bank of Internet USA - 1.25% (all balances)
• North Country Savings Bank - 1.05% (up to $25K) 0.75% ($25K+)
• State Bank of Toledo - 1.00% (up to $25K) 0.15% ($25K+)

Certificates of Deposit:

• Best CD Rates (Nationwide & by State)
• Best IRA CD Rates (Nationwide & by State)

• How to View Rates for Your State

• Survey of the Best CD Rates for January 25, 2013 (Nationwide & Local)

Various Deposit Account Deals

• Bank Promotions
• Best IRA CD rates, local and nationwide deals
• Latest CD and Savings Account Deals with No Major Deposit Limitiations

Bank Account Alternatives - NOT FDIC Insured

• Ally Financial Demand Notes - 1.75%, Ally Demand Notes review
• Duke Energy PremierNotes - 1.50% rate for $50K+, Duke Energy PremierNotes review
• Ford Interest Advantage - 1.10% rate for $50k+, Ford Interest Advantage review
• GE Interest Plus - 1.10% rate for $50k+
• Vanguard Prime Money Market Fund - 0.01% 7-day yield
• Vanguard Tax-Exempt Money Market Fund - 0.01% 7-day yield
• Fidelity Money Market Fund - 0.01% 7-day yield (reviews on Fatwallet)
• Fidelity Municipal Money Market Fund - 0.01% 7-day yield
• TIAA-CREF Money Market Fund - 0.00% 7-day yield
• PayPal Money Market Fund has ended effective 7/29/11
• FW Thread on Treasury Bills
• Series I Savings Bond Purchases from Nov 2012 thru Apr 2013, I Bond Article, I Bonds as CD Alternatives

There weren't too many CD rate changes this week. This wasn't the case for savings and money market rates. I'll be reporting on those tomorrow. We may see more changes next week as February starts. Credit unions like PenFed often make CD rate changes at the start of the month. So PenFed's current CD rates may not last much longer.

One pleasant surprise this week was at Barclays internet bank which raised its long-term CD rates. Its 5-year CD APY went up from 1.70% to 1.85%. I was already listing this 5-year CD in the list due to its mild early withdrawal penalty of 90 days of interest. With this latest rate hike, it's now a better deal than Ally's 1.59% APY 5-year CD for early closures starting at one year.

On Wednesday I compared five long-term CDs after early withdrawal penalties. This was before Barclays' rate hike so I've updated the table with this new rate. As you can see in the table, Barclays' 5-year CD is the best deal unless you hold the CDs for at least 5 years. In that case, Citizens State Bank's 2.05% APY 5-year CD without an early closure becomes the best deal. Don't forget the risks of depending on an early closure. I have a review of those risks above the table.

Not all was good news this week. Alliant Credit Union cut its CD rates by 10 bps on Thursday. I had only been listing its 48-month CD on my list since this term was the only one near the rate leaders. The new yield of 1.55% is still competitive, so I've kept it on the list.

The best short-term CD deal isn't actually a CD, but a money market/checking account. EverBank continues to offer an intro rate of 1.25% that's guaranteed for the first 6 months for new customers. This applies to balances up to $100K for the checking account and up to $50K for the money market account. A new customer can open both accounts at the same time to get 1.25% for a total balance of $150K. Due to the 6-month rate guarantee, I've been listing it on the "under 1-year CD" list.

The highest CD rate that's nationally available continues to be at Citizens State Bank which is offering a 5-year CD with a 2.05% APY. This is a small Florida bank, but they are accepting deposits nationwide and the CDs can be opened online. Before January the bank required a $100K minimum deposit to qualify for a 2.00% APY. The minimum for this 2.05% APY is now just $1,000.

Local CD Deals

Like the nationwide CDs, there were many rate changes for the local CDs. One credit union had a rate increase. It's Texar Federal Credit Union which is located in Northeast Texas. Its online 2-year CD yield increased from 1.85% to 2.12%. This is now the clear rate leader for 2-year terms.

The other institution with rate changes was San Antonio Federal Credit Union (SACU), and unfortunately, the changes were rate cuts. We've seen quite a few rate cuts at SACU in the last couple of months. Its Jumbo 5-year CD yield has now dropped below 2.00%. There were also cuts in its 7-year and 10-year CD rates. Its Jumbo 10-year CD yield is now 2.70%. Security Service Federal Credit Union (which is also based on San Antonio) continues to have the highest CD yield of 2.85% (7-year term).

I just added one new institution to the list this week. Quabbin Online Credit Union is offering very competitive 12-, 18- and 24-month CDs. The best deal is the 24-month CD which has a 1.75% APY. The CDs can be opened online, but the credit union's field of membership is narrow. You have to live or work within certain areas of Massachusetts (see my review).

Long-Term CD Break Strategy

For the short-term CDs in my lists, you might notice CDs with the note "5-year CD closed after X years". These take into account the yield after the early withdrawal penalty is applied. Since Ally Bank's 5-year CD only has a 60-day interest penalty, it's still a good deal when closed early even with the recent rate cuts.

The risks of planning for early withdrawals of long-term CDs were recently highlighted by the deposit agreement change at Ally. The risks have also been seen at credit unions which have raised the early withdrawal penalties on existing CDs. I have more details in this blog post.

Note About the CD Survey

As I described in my rate table overview, you can use our CD rate tables to find the best rates for both nationally available CDs and local CDs. This CD survey blog posts are intended to highlight nationwide CD deals that may not be apparent in the tables. For example, I'll include the post-penalty yields of a few long-term CDs.

The CD survey blog posts are also intended to highlight the local CD deals that are available in large metro areas. There are many high CD rates, but most of these are at small banks in rural areas or at small credit unions with very narrow fields of membership. In these local CD surveys, my focus is on local CD deals that are in big cities or that are available in large areas of a state.

Yields Accurate as of January 25, 2013

Under 1-Year CD Rates

• EverBank - 1.25% checking/MMA intro 6-month rate ($100K/$50K max) account review
• Ally Bank - 1.06% (1.59% 5-year CD closed after 6 months, see review & risks)
• Connexus Credit Union - 1.00% 6-month CD w/active chk
• Xceed Financial Credit Union - 1.00% 9-month CD
• Doral Bank Direct - 0.94% 9-month CD, account review
• Barclays - 0.92% (1.85% 5-year CD closed after 6 months, see review & risks)
• Ally Bank - 0.91% 11-month No-Penalty CD, see account review
• Doral Bank Direct - 0.90% 6-month CD, account review
• Colorado Federal Savings Bank - 0.80% 6-month CD

• Noteworthy Local Deals

• HomeBanc N.A. - 1.50% ($75K max) 3-month CD (Central Florida)
• Gulf Coast Federal Credit Union - 1.10% 6-month CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 1.05% ($250K) 0.95% ($100K) 0.85% ($1K) 7-month CD (several parts of Iowa)
• Veridian Credit Union - 1.00% ($100K) 0.80% ($1K) 7-month CD (several parts of Iowa)

1-Year CD Rates

• Barclays - 1.38% (1.85% 5-year CD closed after 1 year, see review & risks)
• Ally Bank - 1.32% (1.59% 5-year CD closed after 1 year, see review & risks)
• Pentagon Federal Credit Union - 1.25% 1-year CD
• State Bank of India - Chicago - 1.16% ($95K) 1.05% ($2.5K) 1-year CD
• Connexus Credit Union - 1.10% 1-year CD w/active chk
• CIT Bank - 1.05% ($25K min) add-on & bump-up 1-year CD
• Colorado Federal Savings Bank - 1.05% 1-year CD
• NexBank - 1.05% 1-year CD, account review

• Noteworthy Local Deals

• City County Credit Union - 1.51% 1-year IRA-only CD (many FL counties)
• Gulf Coast Federal Credit Union - 1.50% 12-month CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 1.35% ($250K) 1.25% ($100K) 1.15% ($1K) 13-month CD (several parts of Iowa)
• General Electric Credit Union - 1.27% ($100K) 1-year CD (Cincinnati OH metro)
• Quabbin Online Credit Union - 1.25% 1-year CD (parts of MA)
• LOMTO Federal Credit Union - 1.20% 1-year CD (parts of New York City)
• Mansfield Bank - 1.20% 14-month CD (Massachusetts)
• Doral Bank NY - 1.15% 1-year CD (NYC)
• Beal Bank - 1.11% 1-year CD (Southeast FL)

18-month CD Rates

• Barclays - 1.54% (1.85% 5-year CD closed after 18 months, see review & risks)
• Ally Bank - 1.41% (1.59% 5-year CD closed after 18 months, see review & risks)
• USAlliance Federal Credit Union - 1.30% ($50K max) 15-month CD
• Northern Bank & Trust Company - 1.25% 17-month CD
• Salem Five Direct - 1.15% 18-month CD
• NexBank - 1.15% 18-month CD, account review
• GE Capital Retail Bank (formerly MetLife) - 1.12% 18-month CD
• Doral Bank Direct - 1.06% 18-month CD, account review

• Noteworthy Local Deals

• Gulf Coast Federal Credit Union - 1.65% 18-month CD (Corpus Christi, TX metro)
• Quabbin Online Credit Union - 1.50% 18-month CD (parts of MA)
• TEXAR Federal Credit Union - 1.35% 18-month CD (Northeast TX)
• Veridian Credit Union - 1.30% ($100K) 1.11% ($1K) 15-month CD (several parts of Iowa)
• Libertad Bank - 1.25% 18-month CD (Texas)
• El Paso Area Teachers FCU - 1.21% ($50K) 1.11% ($500) 18-month CD (El Paso, TX)
• Meetinghouse Bank - 1.20% 18-month CD (Boston, MA)
• Valley Green Bank - 1.20% 18-month CD (Philadelphia, PA)
• Doral Bank NY - 1.20% 18-month CD (NYC)

2-Year CD Rates

• Barclays - 1.62% (1.85% 5-year CD closed after 2 years, see review & risks)
• Pentagon Federal Credit Union - 1.60% 2-year CD, account review
• Ally Bank - 1.46% (1.59% 5-year CD closed after 2 years, see review & risks)
• Citizens State Bank - 1.36% ($100K) 1.21% ($1K) 2-year CD, account review
• NexBank - 1.30% 2-year CD, account review
• Connexus Credit Union - 1.30% 2-year CD w/active chk
• Northwest Federal Credit Union - 1.26% ($100K) 1.15% ($25K) 2-year CD (+0.25% w/relationship)
• CIT Bank - 1.20% ($25K min) add-on & bump-up 2-year CD

• Noteworthy Local Deals

• TEXAR Federal Credit Union - 2.12% 2-year CD (Northeast TX)
• Gulf Coast Federal Credit Union - 1.85% 2-year CD (Corpus Christi, TX metro)
• Quabbin Online Credit Union - 1.75% 2-year CD (parts of MA)
• University of Iowa Community Credit Union - 1.55% ($250K) 1.45% ($100K) 1.35% ($1K) 21-month CD (several parts of Iowa)
• Veridian Credit Union - 1.45% ($100K) 1.25% ($1K) 25-month CD (several parts of Iowa)
• Doral Bank NY - 1.40% 2-year CD (NYC)
• LOMTO Federal Credit Union - 1.40% 2-year CD (parts of New York City)
• BBVA Compass - 1.35% 2-year CD w/chk, 1.25% w/o chk (parts of AZ, CA, CO, NM, AL, FL, TX)
• BrightStar Credit Union - 1.25% 23-month CD (+0.25% w/chk relationship) (parts of Southeast FL)

3-Year CD Rates

• Wilshire State Bank - 2.28% 3-year installment savings account w/auto xfers, $100K max (account review)
• Pentagon Federal Credit Union - 1.85% 3-year CD, account review
• Connexus Credit Union - 1.75% 3-year CD w/active chk
• Barclays - 1.69% (1.85% 5-year CD closed after 3 years, see review & risks)
• Dime Savings Bank - 1.50% 30-month IRA-only CD
• Ally Bank - 1.50% (1.59% 5-year CD closed after 3 years, see review & risks)
• State Bank of India - Chicago - 1.51% ($95K) 1.41% ($2.5K) 3-year CD
• Citizens State Bank - 1.46% ($100K) 1.31% ($1K) 3-year CD, account review
• Melrose Credit Union - 1.46% 3-year CD
• Salem Five Direct - 1.40% 30-month CD
• NexBank - 1.40% 3-year CD, account review
• Northwest Federal Credit Union - 1.40% ($100K) 1.30% ($25K) 3-year CD (+0.25% w/relationship)
• Barclays - 1.35% 3-year CD
• CIT Bank - 1.35% ($100K) 1.30% ($1K) 3-year CD
• Pentagon Federal Credit Union - 1.33% (2.00% 7-year CD closed after 3 years, see review & risks)

• Noteworthy Local Deals

• NavyArmy Community Credit Union - 2.50% 30-month CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 2.20% ($250K) 2.10% ($100K) 2.00% ($1K) 37-month CD (several parts of Iowa)
• Encompass Credit Union - 2.02% 3-year CD (Central Indiana)
• Gulf Coast Federal Credit Union - 2.02% 3-year CD (Corpus Christi, TX metro)
• Workers Credit Union - 1.50% 30-month CD w/chk+dd (MA & Southern NH)
• One Source Federal Credit Union - 1.86% ($50K) 1.76% ($1K) 3-year CD (El Paso, TX)
• Veridian Credit Union - 1.80% ($100K) 1.60% ($1K) 39-month CD (several parts of Iowa)
• Doral Bank NY - 1.55% 3-year CD (NYC)
• LOMTO Federal Credit Union - 1.55% 3-year CD (parts of New York City)
• Sea Comm Federal Credit Union - 1.52% 3-year CD (Northern NY)
• Valley Green Bank - 1.50% 3-year CD (Philadelphia, PA)
• Wings Financial Credit Union - 1.46% 3-year CD (Seattle & Minneapolis Metro areas)

4-Year CD Rates

• Pentagon Federal Credit Union - 1.85% 4-year CD, account review
• Citizens State Bank - 1.77% ($100K) 1.61% ($1K) 4-year CD, account review
• Barclays - 1.73% (1.85% 5-year CD closed after 4 years, see review & risks)
• Andrews Federal Credit Union - 1.71% 4-year CD
• Melrose Credit Union - 1.71% 4-year CD
• Green Bank, N.A. - 1.70% 4-year CD
• Communitywide Federal Credit Union - 1.70% 49-month special CD
• Nationwide Bank - 1.61% ($100K) 1.56% ($500) 4-year CD
• Barclays - 1.55% 4-year CD
• Alliant Credit Union - 1.55% 4-year CD
• Ally Bank - 1.52% (1.59% 5-year CD closed after 4 years, see review & risks)
• Discover Bank - 1.50% 4-year CD
• Pentagon Federal Credit Union - 1.50% (2.00% 7-year CD closed after 4 years, see review & risks)
• Ally Bank - 1.35% Raise-Your-Rate 4-year CD

• Noteworthy Local Deals

• University of Iowa Community Credit Union - 2.35% ($250K) 2.25% ($100K) 2.15% ($1K) 49-month CD (several parts of Iowa)
• Jefferson Financial Credit Union - 2.00% 4-year CD (parts of Louisiana)
• One Source Federal Credit Union - 1.97% ($50K) 1.87% ($1K) 4-year CD (El Paso, TX)
• HAPO Community Credit Union - 1.85% 4-year CD (all of Washington State)
• LOMTO Federal Credit Union - 1.75% 4-year CD (parts of New York City)
• Empower Federal Credit Union - 1.75% ($100K) 1.60% ($10K) 4-year CD, extra 0.25% for seniors w/dd (western NY)
• Sea Comm Federal Credit Union - 1.70% 4-year CD (Northern NY)
• Doral Bank NY - 1.65% 4-year CD (NYC)
• Wings Financial Credit Union - 1.61% 4-year CD (Seattle & Minneapolis Metro areas)
• Shell Federal Credit Union - 1.60% ($50K) 1.55% ($500) 4-year CD (Houston, TX)

5-Year CD Rates

• Citizens State Bank - 2.05% ($1K) 5-year CD, account review
• State Department Federal Credit Union - 2.02% 5-year IRA CD, 1.91% 5-year CD
• Stanford Federal Credit Union - 2.02% ($100K) 5-year CD, requires chk w/dd, account review
• Mountain America Credit Union - 2.00% 5-year CD, account review
• Connexus Credit Union - 2.00% 5-year CD w/active chk
• Communitywide Federal Credit Union - 2.00% 59-month special CD
• Dime Savings Bank - 2.00% 5-year IRA-only CD
• Melrose Credit Union - 1.96% 5-year CD
• Green Bank, N.A. - 1.95% 5-year CD
• Pen Air Federal Credit Union - 1.95% ($100K) 1.85% ($500) 5-year CD
• Pentagon Federal Credit Union - 1.90% 5-year CD
• Barclays - 1.85% 5-year CD
• CIT Bank - 1.85% ($100K) 1.80% ($1K) 5-year CD
• Nationwide Bank - 1.75% ($100K) 1.70% ($500) 5-year CD
• Pentagon Federal Credit Union - 1.60% (2.00% 7-year CD closed after 5 years, see review & risks)
• Ally Bank - 1.59% 5-year CD

• Noteworthy Local Deals

• Encompass Credit Union - 2.53% 5-year CD (Central Indiana)
• American Airlines Credit Union - 2.47% 5-yr/1.46% 2.5-yr CD ladder (limited membership)
• One Source Federal Credit Union - 2.37% ($50K) 2.27% ($1K) 5-year CD (El Paso, TX)
• General Electric Credit Union - 2.33% 5-year CD (Cincinnati OH metro)
• Security Service Federal Credit Union - 2.30% ($100K) 2.15% ($500) 5-year CD (parts of Texas, lower rates in CO and UT)
• Jefferson Financial Credit Union - 2.25% 5-year CD (parts of Louisiana)
• Ukrainian Selfreliance FCU - 2.20% ($75K) 2.15% ($500) 5-year CD (Philadelphia, PA)
• American United Family of Credit Unions - 2.15% ($75K) 2.10% ($500) 5-year CD (parts of Utah)
• Idaho Central Credit Union - 2.15% 5-year bump-up CD (Idaho)
• Denver Community Credit Union - 2.10% ($50K) 1.85% ($100) 5-year CD (Denver County)
• Superior Choice Credit Union - 2.08% 58-month CD special (parts of WI and MN)
• Texell Credit Union - 2.05% 5-year CD (Central Texas)
• Empower Federal Credit Union - 2.05% ($100K) 1.90% ($10K) 5-year CD, extra 0.25% for seniors w/dd (Northwest NY)
• Visions Federal Credit Union - 2.02% 5-year CD (2.28% w/relationship) (NY, PA & NJ)
• HEW Federal Credit Union - 2.02% 5-year CD (DC metro area)
• Keesler Federal Credit Union - 2.00% ($100K) 1.90% ($1K) 5-year CD (MS)
• LOMTO Federal Credit Union - 2.00% 5-year CD (parts of New York City)
• American Eagle Bank of Chicago - 2.00% (relationship checking required) 5-year CD (Chicago, IL)
• Police and Fire Federal Credit Union - 2.00% 5-year CD (Pennsylvania)
• SACU - 1.95% ($90K) 1.90% ($10K) 5-year CD (San Antonio, TX)
• Shell Federal Credit Union - 1.95% ($50K) 1.90% ($500) 5-year CD (Houston, TX)
• HAPO Community Credit Union - 1.95% 5-year CD (all of Washington State)
• Miami Postal Service Credit Union - 1.91% 5-year CD (Southeast FL)
• Freedom Credit Union - 1.90% add-on 5-year CD (Philadelphia)
• Wings Financial Credit Union - 1.86% 5-year CD (Seattle & Minneapolis Metro areas)
• BBVA Compass - 1.85% 5-year CD w/chk, 1.75% w/o chk (parts of AZ, CA & FL) 0.25% lower for CO, NM, AL, TX

Over 5-Year CD Rates

• Navy Federal Credit Union - 2.00% ($100K) 1.90% ($20K) 7-year CD (membership restrictions)
• Discover Bank - 2.00% 10-year CD
• Pentagon Federal Credit Union - 2.00% 7-year CD
• Air Force FCU - 2.00% ($100K) 1.85% ($2.5K) 7-year CD
• Apple Federal Credit Union - 2.00% 10-year CD
• Northrop Grumman FCU - 1.91% ($40K) 1.75% ($2.5K) 7-year CD
• Discover Bank - 1.90% 7-year CD
• Navy Federal Credit Union - 1.90% ($100K) 1.80% ($20K) 6-year CD (membership restrictions)
• E-LOAN - 1.70% 6-year CD
• Dime Savings Bank - 1.70% 7-year CD

• Noteworthy Local Deals

• Security Service Federal Credit Union - 2.85% ($100K) 2.70% ($500) 7-year CD (parts of Texas, lower rates in CO and UT)
• SACU - 2.70% ($90K) 2.65% ($10K) 10-year CD (San Antonio, TX)
• Workers Credit Union - 2.50% 6-year CD w/chk+dd (MA & Southern NH)
• SACU - 2.34% ($100K) 2.30% ($10K) 7-year (San Antonio, TX)
• Columbia Bank - 2.10% 7-year CD (New Jersey)
• Gesa Credit Union - 2.06% 7-year CD
• Empower Federal Credit Union - 2.05% ($100K) 1.90% ($10K) 7-year CD, extra 0.25% for seniors w/dd (Northwest NY)
• Gateway Metro Federal Credit Union - 2.05% 6-year CD (St. Louis metro)
• HeritageWest Credit Union - 2.02% 6-year CD (parts of Utah)
• Amplify Credit Union - 2.01% ($100K) 1.75% ($50K) 7-year CD (Austin, TX)
• Mansfield Bank - 2.00% 8-year CD (Massachusetts)
• Columbia Bank - 2.00% 6-year IRA CD 1.85% 6-year CD (New Jersey)
• Randolph-Brooks Federal Credit Union - 1.92% ($75K) 1.92% ($1K) 7-year CD (San Antonio & Austin, TX)
• Randolph-Brooks Federal Credit Union - 1.76% ($75K) 1.76% ($1K) 6-year CD (San Antonio & Austin, TX)

Note: All rates listed above are Annual Percentage Yields (APY) which factor in compounding.

Update 4/4/2013: Harborstone Credit Union has informed members of changes that will be made to its BreakFree Checking Account effective May 1, 2013. Refer to this reader's comment for details.

As I was looking for good deals on reward checking accounts, I came across one that I first reviewed three years ago. It's the BreakFree Checking account at Harborstone Credit Union. There are two reasons why I thought an updated review would be useful. First, the BreakFree Checking is one of the few reward checking accounts that still have a $50K balance cap. Second, the credit union's field of membership is broad. Not everyone in the nation can qualify, but hopefully, many DA readers can.

The BreakFree Checking yield has fallen over the last three years, but it remains competitive in today's environment. It offers the following rates and features if certain monthly requirements are met (as of 1/25/2013):

• 2.02% APY on balances up to $50,000
• 0.05% on portion of balance over $50,000
• 0.05% base rate if requirements are not met
• Reimbursement of all ATM fees nationwide

The monthly requirements include:

• 12 Visa debit card purchases
• 2 online Bill Pay transactions

Minimum opening deposit is $25. It has no minimum balance requirement or monthly service fee.

Membership

According the credit union's eligibility page:

If you live, work, or worship in the state of Washington, you are eligible for membership at Harborstone Credit Union.

If you don't live, work, or worship in the State of Washington, you can also join if you are:

• A family member of a current Harborstone member
• Active, Reserve, or Retired Military
• Active or Retired Civil Service

As you can see, many people outside of Washington State are eligible to join. The credit union also has an online application. However, there are additional steps that are required after submitting the application.

Credit Union Overview

Harborstone Credit Union branches are located in the Washington cities of Tacoma, Bonney Lake, Fife, Gig Harbor, Lacey, Lakewood, Spanaway, Puyallup and in McChord Air Force Base.

Harborstone Credit Union was originally established in 1955 to serve the McChord Air Force Base. Its size and field of membership have expanded quite a bit since then. It now has over $781 million in assets. It has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas ratio of 4.16% (excellent) based on September 2012 data. Please refer to our financial overview of Harborstone Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 66399).

How This Reward Checking Compares

You can get reward checking rates over 2%, but it's hard to find balance caps over $25K. It's actually not easy to find rates of at least 2% for balances up to $25K. There's only one that's nationally available. It's from the all-access credit union ABCO FCU which offers 2.12% APY for balances up to $25K as of 1/25/2013.

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.

I plan to regularly highlight a few of the forum posts. This is intended to help readers who may not regularly read the discussion forum. It will also give me a chance to recognize and give thanks to the DA members for their contributions to the website. I've listed a few recent forum posts on topics that I think may interest DA readers. If you don't see your username mentioned this time, keep posting and you will likely see your forum thread mentioned in my future highlight posts.

1. Planned Outages at Ally and Alliant - Both Ally Bank and Alliant Credit Union are planning system maintenance this Saturday (1/26/13) which will make online banking unavailable for part of the day. Hat tip to DA members Shorebreak and cumulus for posting this news.
2. Another problem with the Fed's policies - Savers know the problems, but this commentary at Business Insider has a good review of why it's problematic from an economic point-of-view, a "macro malpractice". Thanks to Shorebreak for posting on this.
3. Coppermark Reward Checking To End? - Thanks to DA member akapla01 who reported that Prosperity Bank of Texas is in the process of acquiring Coppermark Bank which may affect Coppermark's reward checking account. This is one of only two reward checking accounts in the nation that still offers 4.00% APY on balances up to $25K. As we have seen before, mergers are rarely good news for reward checking accounts.
4. Sneaky Reward Checking Changes at Independent Bank - Some banks will only notify customers of account changes by small notes in the account statements. That's what Independent Bank did with its reward checking account. One of the changes was an increase in the debit card usage requirement. Thanks to DA member elarh for posting on this.
5. Retirement Planning - Thanks to DA member 51hh for pointing out this useful common-sense article for retirement planning.
6. CD Ladder vs. Stock Market Fund - It always seems like the news media over-hypes stock market gains and ignores slow and steady investments like CD ladders. DA member Bozo provides some interesting insights on this.
7. $150 Checking Bonus In Los Angeles - I will occasionally post bank deals in the Banking Deals subforum. The last one I posted is a $150 bonus at a few LA branches of Bank of the West which is scheduled to end on Friday.
8. Way to Make Big Cash Withdrawals from Internet Banks - I noted an interesting Finance Buff post about how you can do a debit card cash advance to withdraw cash from an internet bank.
9. Why It Takes So Long To Process Debit Card Fraud Claims And Disputes - Thanks to DA reader pearlbrown for posting on a Consumerist article which provides an inside look at how banks handle debit card fraud claims and why it's important to distinguish between a fraud claim and a payment dispute.
10. Opening A CD With CIT Bank Requires A Lot Of Patience - If you had difficulty when you opened an account, please consider describing the problems in our bank reviews subforum. DA member jameslmorrison did a good job describing the problems he had with the CIT Bank CD application. Please consider also using the reviews subforum when an application goes smoothly.

Discussion Forum Tutorial

If you like a simple blog format, you can view the forum using this link. This page shows the latest featured threads in an expanded format that shows the first post of each featured thread. Click on the title of the post to view any comments for that post or to leave a comment. Unlike the blog, the forum requires you to log in before you can comment.

You can get to this Featured Threads page by using the forum menu and clicking on the "Featured Threads" link. Then click on the "Posts" link below the menu. I actually prefer the "Threads" view which shows just the title of the posts along with the number of comments or posts for each thread.

I'm the one who gives a thread "featured" status. I try to select those that I think are most interesting. The "Latest Threads" link in the forum menu will show you all of the threads including ones that haven't been marked as featured. The "Latest Posts" link will show you the latest forum comments.

Posting to the Forum

If you find a noteworthy bank deal or some interesting financial news, please consider posting this information in the forum. This can be done in 3 steps:

1. You have to be logged in to post in the forum. If you have never registered, just click the "Register" link on the top right of a DepositAccounts.com page. Note, you don't have to be logged in before you write your post, but it's required before the post can be submitted.
2. Find the appropriate subforum. Start at the top of the forum and click on the appropriate topic.
3. Click the "New Threads" button at the top of the subforum page, and follow the instructions. For the subforums that are specific to a particular bank, you first have to identify the bank. When you get to the message box, you can start typing your information. Note the icons at the top of the message box. These can be used to format your message. The one I use most is the link icon. This isn't active until you highlight the text that you want to convert into a link. Once the link icon is active, you can click on the icon which will open up a box where you can enter the web address.

Viewing and posting are more complicated in the forum than in the blog, but as I mentioned, this helps keep things organized. For more details on using the forum, please refer to my forum announcement post.

It has been about four months since my last comparison of the top nationally available long-term CD rates after early withdrawal penalties. So I thought it would be useful for an updated comparison. In addition to comparing the yields if the CDs are held to maturity, this post compares the yields if the CDs are redeemed early. This takes into account the early withdrawal penalties.

Long-term CD rates are just a little bit lower than they were four months ago. The highest yield is 2.05% for a 5-year CD at Citizens State Bank. Longer terms of 7 years and 10 years don't help with yields. Even Discover Bank's 10-year CD has only a 2.00% APY.

With these yields so low, you may want to consider shorter-term CDs. However, many of these don't have yields higher than internet savings accounts. One exception is Pentagon Federal Credit Union (PenFed) which currently has the best mid-term CD rates (1.25% APY 1-year, 1.60% APY 2-year and 1.85% APY 3-year).

If you do think it's likely that rates will be higher 2 or 3 years from now, these PenFed CDs will be better choices than any of the long-term CDs that I list below. The risk with these PenFed CDs is that rates continue to fall, and you will have even more dismal CD choices 2 or 3 years from now.

How The CD Rates Compare

Citizens State Bank may have the CD with the highest rate, but it has the largest early withdrawal penalty of 24 months of interest. As you can see in the table below, the effective rate goes way down if you close this CD early even after 4 years. So this CD isn't a good choice if you think it's likely that you'll close the CD early to take advantage of higher rates elsewhere.

Update 1/25/13: Barclays increased its 5-year CD APY from 1.70% to 1.85%. The table has been updated with this change.

Ally Bank's 5-year CD only has the lead under one year. Note, this assumes you don't get the 25bps renewal bonus. Starting at the first year, Barclays' 5-year CD has the rate advantage thanks to the recent rate hike. Discover Bank's 10-year CD is close to Ally at year 3, and it takes the lead at year 4.

Risks of Planning for an Early Withdrawal

Comparing the yields if the CDs are redeemed early assumes that the customer will be able to close the CD early with the early withdrawal penalty specified at the time the CD is opened. As I've explained many times, there are two risks if you plan to make use of an early withdrawal:

1. The bank refuses to allow an early withdrawal
2. The bank increases the early withdrawal penalty on your existing CD

The risk of Ally Bank refusing an early closure went up last year when it updated its CD disclosure. Due to this disclosure change, Ally joined other banks that have language in their disclosures which gives the bank the right to refuse an early closure. I reviewed these banks and credit unions in this 2011 post.

About the risk of banks increasing the early withdrawal penalties on existing CDs, there have been two cases of this at credit unions. The last one was in January 2012. Even though the NCUA did allow one of these credit unions to increase the early withdrawal penalty on existing CDs, it did require that the credit union notify members at least 30 days before the change took effect. That will at least allow members to redeem their CDs before the new penalty takes effect.

Also, it should be noted that PenFed has increased the early withdrawal penalty on its 5-year CD, but it did the honorable thing by only making this change effective on new CDs. The change did not apply to existing CDs.

Early Withdrawal Penalty Details

Below I list the early withdrawal penalty details for each of these institutions. I include links showing where the EWPs are described by the institutions. Please note that institutions can change these EWPs. Make sure to check with the institution for the latest EWP details before opening the CD.

According to fees section of the Discover Bank's FAQs, the penalty for terms over 5 years is "9 months simple interest on the amount withdrawn".

PenFed's CDs with terms from 1 to 4 years have an early withdrawal penalty of up to 180 days of dividends. CDs with terms of 5 or 7 years have a EWP of up to 365 days of dividends. Note, the penalty doesn't eat into the principal so if you redeem the 7-year CD before 365 days from the issue date, you'll just lose all of the accrued interest. Please refer to PenFed's disclosure for more details (bottom of PenFed's Money Market Certificate page).

To view Citizens State Bank's EWPs, refer to the fee tab in this Citizens State Bank CD page. At the bottom of the page it states "For accounts with original maturity of five years we may impose a fee equal to 24 months' interest on the amount withdrawn subject to penalty."

Ally Bank continues to have the smallest early withdrawal penalty for 5-year CDs. The penalty is equal to just 60 days of interest. Details are listed in the deposit agreement which is available at Ally's legal information page.

Barclays early withdrawal penalty is 90 days of interest. Details are listed in Barclays terms and conditions.

Effective Returns on CDs after Paying Early Withdrawal Penalties

Below is a comparison of the 5 CDs. The table shows the yields for each year after the CD is opened. These yields take into account the loss from the early withdrawal penalty.

The early-withdrawal yields listed below are based on the spreadsheet developed by Bogleheads forum members. It's available from the Bogleheads Wiki: Comparing CDs. It should be noted that the following simple formula comes very close to this spreadsheet:

Post Penalty APY = (Full APY) x (D - P) / D

D = days into term when the CD was closed.
P = days of the early withdrawal penalty

If you want an easy way to calculate the effective interest rates on your own, a reader developed this useful online calculator. It can calculate the effective interest rate for any month that a CD is closed before maturity.

These CD APYs are based on the yields listed at the institutions' websites as of 1/23/2013: (Barclays' CD updated on 1/25/13)

In addition to the rates, banks and credit unions can change the early withdrawal penalties for new CDs. Make sure to review the latest disclosures from the bank or credit union before opening a new CD or renewing a CD.

Searching for Top CD Rates

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.

Dime Savings Bank is again offering IRA CD specials. However, one thing has changed. They are now only accepting new IRA accounts from New York State residents. I was just told this by a Dime CSR. In previous years, people from any state could apply by mail. If you do live in New York, you may want to consider these special IRA CDs. They include a 2.00% APY 5-year IRA CD and a 1.50% APY 30-month IRA CD. Minimum deposit is $500, and the maximum is $250,000. New money is required. The 5-year IRA CD special is listed at this Dime page and the 30-month IRA CD special is listed at this Dime page as of 1/23/2013.

According to the CSR, New York residents can open these IRAs by mail if you don't live near a branch. They require you to mail or fax copies of your driver's license and utility bill for identification. Additional forms may be required depending on if the IRA will be opened as a trustee-to-trustee transfer or a rollover.

Dime Savings Bank branches are located throughout the Greater New York City metro area.

The bank has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 3.02% (excellent) based on September 2012 data. Please refer to our financial overview of Dime Savings Bank for more details. The bank has been a FDIC member since 1943 (FDIC Certificate # 16012).

How These IRA CD Rates Compare

PenFed's IRA CD rates are close to these two special IRA CD rates from Dime. PenFed's 5-year IRA CD has a 1.90% APY. It doesn't have a 30-month term, but its 24-month IRA CD has a 1.60% APY and its 36-month IRA CD has a 1.85% APY. These rates are accurate as of 1/23/2013.

Searching for the Best IRA CD Rates

To search for nationwide IRA CD rates and IRA CD rates in your state, please refer to our IRA CD rate table.

Update 2/12/13: The 11-month CD special has ended. Also, the early withdrawal penalty has been increased.

Amplify Credit Union has been advertising its 11-month CD special, but the best deal is currently its Jumbo 7-year CD which has a 2.01% APY. Minimum deposit is $100,000. Rates go down substantially for smaller deposits (1.75% APY for $50K, 1.50% APY for $25K and 1.25% APY for $10K). Rates are also much lower for shorter terms. The special 11-month CD rate is 0.70%. These rates are listed in the Amplify Credit Union's deposit rates page as of 1/23/2013. Rates are subject to change at any time.

The early withdrawal penalty used to be 180 days of dividends earned for CDs with terms longer than 12 months. This has recently changed. Now CDs with maturities from 60 months or longer have an early withdrawal penalty of 365 days of interest. According to a credit union official, the new penalty only applies to new certificates opened on or after 2/1/2013. Refer to Amplify Credit Union's Truth-in-Savings disclosure for more details. This is similar to PenFed which has an EWP of 1-year of interest for CD terms of 5 years and over.

Amplify Credit Union used to allow unlimited additional deposits on all of its CD terms. Now only CDs with terms up to one year are eligible for this feature (excluding special CDs). I think they learned this was too good of a deal when rates are falling.

Membership

Membership is open to anyone who lives, works, or goes to school in Bastrop, Caldwell, Hays, Travis and Williamson counties. Please refer to Amplify Credit Union's About page for more details.

You can apply for membership and open accounts using Amplify's online application. It's powered by Andera, and it allows funding with an ACH transfer from your existing bank accounts.

Credit Union Overview

Amplify was first established in 1967 as the IBM Texas Employees Federal Credit Union. The name changed to Amplify in 2006, and membership was expanded to include several Austin metro counties.

The credit union has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas ratio of 7.70% (excellent) based on September 2012 data. Please refer to our financial overview of Amplify Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 18304).

How This CD Rate Compares

This 7-year CD rate for a $100K minimum deposit just tops the highest 7-year CD rate that's nationally available. That's 2.00% APY at PenFed and at Air Force FCU. The highest 7-year CD rate from an internet bank is 1.90% APY at Discover Bank.

Searching for Top CD Rates

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.

For the last two years Discover Bank has been hinting about a checking account. It looks like the checking account will finally be launched this year. Some Discover Card customers received a preview of the checking account when they logged into their accounts. It turned out that Discover jumped the gun. The announcement was premature. The checking account is not currently available and will not be available for another few months. However, the announcement did provide details on many features of this new checking account. Thanks to DA member RJM who posted on this news in the forum, and thanks to RJM and DA reader pearlbrown who called Discover for additional details.

The new checking account will be called Discover Cashback Checking. It's a free checking account with no monthly service fees or minimum balance requirements. Instead of paying interest, it will offer cashback rewards. Below is an excerpt of the major features as listed in Discover's announcement:

You’re already enjoying Cashback Bonus with your Discover card–now you can earn even more.

It’s easy – with Discover Cashback Checking you’ll earn:

• 10¢ debit card purchase
• 10¢ online bill pay
• 10¢ check written

Cashback Bonus

• Cashback Checking is an exclusive online offer available to Discover cardmembers
• Cashback Bonus is added monthly to your Discover Cashback Bonus Balance
• Same great redemption options–gift cards, merchandise, cash and more

Free Features

• Free cash withdrawals at over 23,000 ATMs nationwide
• Free standard checks
• Deposit checks from a mobile device
• Pay bills anytime on the go

RJM reported being told that the cashback will be separate from those earned with the credit card so you'll need to earn $25 cashback from your checking account to redeem the amount. This will require 250 of those transactions to accumulate $25.

My Take

Even though it won't pay interest, this will be a nice addition to Discover Bank's deposit products. If you have Discover Bank's savings account or CDs, you may want to consider this free checking account when it becomes available. Check writing can be useful for moving money, and unlike the money market account, you don't have to worry about being limited to six withdrawals per month. Another downside with the money market account is that it requires a minimum average daily balance of $2,500 to avoid a monthly service fee.

The checking's cashback feature isn't that great of a deal in my opinion. For debit card rewards, I prefer a high-yield reward checking account (Bank of Internet USA's Rewards Checking account is one example from an internet bank).

Other Discover News

In credit cards, Discover recently made news with the launch of the Discover "it" card. I did a quick review of the credit card in this forum thread.

Discover Bank's Savings, Money Market and CD Accounts

Discover Bank does offer a free savings account and competitive CD rates. The savings account rate (0.80% as of 1/22/2013) is a little low, but its online banking features are strong. You can easily set up and initiate online ACH transfers. Transfer amounts are limited to $100,000 per 30 day rolling period ($100K for incoming and $100K for outgoing).

Discover Bank Overview

Discover Bank is one of the largest internet banks. It has over $73 billion in assets and over $42 billion in deposits. Its overall health score at DepositAccounts.com is 5 stars (out of 5) with a Texas ratio of 6.66% (excellent) based on September 2012 data. Please refer to our financial overview of Discover Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 5649).

Other Internet Checking Accounts

If you're looking for an internet checking account that's available now, refer to our checking account table to find the ones with the highest rates. We have a different table for reward checking accounts.

Last year I did a comparison between the checking accounts at Ally and ING DIRECT.

Just two weeks ago I posted on a BB&T $100 checking account bonus. Now it's offering a $125 bonus with the same requirements. The nice aspect of this bonus is that you can qualify for it without direct deposit. The downside is that BB&T's checking accounts have potential monthly service fees. So if you open the checking account for the bonus, you have to make sure to avoid the fees.

To qualify for the $125 bonus, customers must open a BB&T checking account and set-up and receive 2 direct deposits of at least $100 OR make 3 online bill payments of at least $25. The offer is scheduled to end on 5/31/2013. Here's the link to the BB&T promotion page.

Below is the offer's small print. I've highlighted some of the important details:

Eligibility: This special limited time offer is available for personal checking accounts only that are opened between 1/01/2013 and 5/31/2013. Offer is subject to change or be withdrawn at any time without notice and cannot be combined with any other offer. Offer is limited to one incentive per household, and does not apply to second or multiple personal accounts. In order to receive the $125 incentive, clients must open a checking account and do at least one of the following. 1) Use BB&T online bill payment service to initiate 3 online bill payments (minimum payment of $25) from your new checking account within 90 days of account opening; OR 2) Enroll in and receive 2 direct deposits (minimum of $100 each) to the new personal checking account within 90 days of account opening. Any account not in good standing, closed, and/or with a balance less than or equal to zero at the time we review account eligibility (between 90-120 days of account opening) will not receive the $125 incentive. Normal minimum balance requirements apply. Some BB&T checking account options accrue interest. For example, an Elite Gold account earns 0.01% Annual Percentage Yield (APY) for balances $0 - $2,499, 0.01% APY on balances of $2500 - $24,999 and 0.01% APY on all balances $25,000 - $99,999,999,999 in North Carolina; rates good as of 11/5/2012 and are subject to change. The $125 incentive will be deposited directly to your account within 120 days of account opening if qualifiers above are met; and will be reported to the IRS as required by law.

Credit to FW member Zaos who posted this bonus in this FW thread.

As I mentioned above, BB&T has ended its free checking account in 2011. BB&T Bright Banking has a $10 monthly maintenance fee ($12 for IN/KY) unless you meet at least one of the following requirements:

• Direct Deposit (One monthly ACH Direct Deposit of $100 or greater per statement cycle)
• $1,500 ($2,000 in KY/IN) average checking balance per statement cycle
• $6,000 ($7,500 in KY/IN) combined in deposit and retail outstanding loan balances
• Any BB&T personal mortgage

Those 55 and over can qualify for BB&T Senior Checking which has a lower monthly fee and lower balance requirements to avoid the monthly fee.

Regarding a hard credit inquiry (that can temporarily ding your credit score), I was told that when you apply for an account, BB&T "may require a credit check and/or a ChexSystems report be pulled for account approval." I assume that credit check may be a hard pull.

Availability

I was told by the bank's CSR that a new customer must have an address in BB&T's footprint to open an account. BB&T branches are located in Florida, Georgia, Alabama, North Carolina, South Carolina, Tennessee, Texas, Kentucky, Indiana, Virginia, West Virginia, Maryland and Washington DC.

Closing a BB&T account

In my post from 2010, several readers reported that BB&T makes it difficult to close accounts. If you can't make it into a branch, you may be required to mail in a notarized letter requesting that the account to be closed. One reader commented that he wasn't required to mail a notarized letter, but instead he was required to mail a copy of his ID with the letter.

BB&T Bank Overview

BB&T is one of the nation's largest banks. It has $176 billion in assets and around 1,800 branches throughout the Mid-Atlantic, Southeast and Texas. BB&T added 346 branches and expanded into Texas in 2009 when BB&T acquired the failed Colonial Bank.

Other Bank Bonuses

We have a bank promotions page with a table of all of the active bank and credit union promotions. You can filter the table based on the type of promotion and based on your state. I have more details about how to use this page in this blog post.

You can view my latest bank bonus blog posts in this bank bonus page. I and DepositAccounts.com readers often post on bonuses in the checking account deals forum.

With CD rates so low these days, is it better to keep more of your money in savings accounts? I'm sure many savers have long-term CDs that are maturing. Those long-term CDs probably had rates over 4 percent. Now it's difficult to find CDs with 2 percent rates. Instead of opening a new long-term CD, another alternative is to just move that money into a savings or money market account. With some effort, you can get rates that aren't much lower than the long-term CD rates.

Savings and Money Market Accounts

One strategy is to stick with internet savings and money market accounts. To get the best rates you will probably have to move your money at least twice a year. By taking advantage of intro rates, new internet banks and promos from old banks, you can maximize your return. Last year I reviewed this strategy and its returns for the previous three years.

If you're going to try this strategy today, you might want to consider the 1.25% intro rates at EverBank and at Salem Five Direct. If you're no longer eligible for those intro rates, you can get 1.05% APY in money market accounts at four internet banks. You can also get 1.10% APY at AmericaNet Bank and its two sister banks, but this is limited to a $35K balance.

Savings Accounts Plus Short-Term CD Deals

One advantage of keeping your money in savings and money market accounts is that it makes it easy to take advantage of CD deals that pop up. Those CD deals can boost your returns without giving up too much liquidity. A good example of this was the 1.50% 8-month CD special that DCU offered last year (no longer available). The best CD deal today is at PenFed which is offering a 1.25% APY 1-year CD, a 1.60% APY 2-year CD and a 1.85% APY 3-year CD (as of 1/21/2013)

Reward Checking Accounts

Over the last five years, reward checking accounts have allowed savers to earn more than they could earn with internet savings accounts. It has required more work. The toughest has been the required monthly debit card purchases. Also, the balance caps have made it difficult for those with large savings. Last year I reviewed how much extra interest you could earn with reward checking accounts over the last three years. Like internet savings accounts, maximizing returns requires moving to new rate leaders at least once a year.

If you're lucky, you'll have some good local reward checking deals. You can find reward checking accounts available in your state by using our reward checking table. You can also use the table to find reward checking accounts available nationwide. Refer to this post to learn how to use the table. If you're new to reward checking accounts, please refer to my post 10 Common Traits of High-Yield Reward Checking Accounts.

Other Strategies

For money that you want to keep in banks and credit unions, another strategy is choosing long-term CDs with mild early withdrawal penalties. Some institutions to consider for this strategy include Ally Bank, Barclays, Discover Bank and PenFed. As we have discussed many times, there are risks with using this strategy. There's a possibility that a bank will refuse an early withdrawal request, and it's possible that a bank will raise the penalty for an early withdrawal. My last review of these risks was in my report of Ally Bank's disclosure change.

Finally, don't forget traditional CD ladders. Last year I reviewed CD ladders and asked if CD ladders still make sense. Several readers who have been investing in CDs for decades have said they have rarely if ever regretted going long on their CDs.

What strategies are using for your bank accounts to maximize your returns?

Trustco Bank is offering a $100 bonus for opening a new Trustco Free Interest Checking Account with direct deposit. This appears to be available at all of their branches in the states of Florida, New York, New Jersey, Massachusetts and Vermont. Trustco Bank also has a 13-month CD special with a 1.00% APY, but this isn't available at all of their branches. It's not available in Northern New York or Florida. Thanks to DA member stormdog123 who mentioned this in the forum. These promotions are listed at Trustco Bank's website as of 1/21/2013. You'll have to enter your zip code at Trustco's rates page to see the CD rates available in your area.

The full details of the $100 checking account bonus are listed at this Trustco Bank checking page as of 1/21/2013. The bonus requires direct deposit. Here are some of the direct deposit requirements listed in the bank's small print:

Direct Deposit of the entire amount from a Payroll, Social Security, and/or Pension [...] Direct deposit must be completed within 90 days of account opening. Minimum amount for the direct deposit is $100.

The Free Interest Checking Account has no minimum balance requirement and no monthly service fees. The minimum to open the account is $50. Minimum to earn interest is $500. However, the current interest rate is only 0.05%. The account offers free checks for life, but it's only after the first purchase of initial order of checks at half-price plus tax and S&H. There are no ATM fee refunds, but Trustco Bank is a member of the Allpoint and Publix Super Market ATM networks.

Trustco Branch Locations

It appears that a branch visit is required to open an account. Branches are located in New York, Florida, Massachusetts, New Jersey, and Vermont. Most of its branches are located in Upstate New York and in Central Florida.

Trustco Bank's overall health score at DepositAccounts.com is 4 stars (out of 5) with a Texas Ratio of 14.85% (above average) based on September 2012 data. Please refer to our financial overview of Trustco Bank for more details. The bank has been a FDIC member since 1978 (FDIC Certificate # 31945).

Other Bank Bonuses

We have a bank promotions page with a table of all of the active bank and credit union promotions. You can filter the table based on the type of promotion and based on your state. I have more details about how to use this page in this blog post.

You can view my latest bank bonus blog posts in this bank bonus page. I and DepositAccounts.com readers often post on bonuses in the checking account deals forum.

You can get just about anything made to order. Sooner rather than later, you may be able to design your own bank account. A la carte banking is catching on. You get a bare bones checking account and add bells and whistles if you so desire.

What's fueling the trend? “Banks are facing substantial challenges with fee regulations and low interest rates, they are trying to recover revenue,” says Sherief Meleis, a partner with Novantas, a consulting and research company, specializing in financial services.

Furthermore, the emergence of lower-cost prepaid cards with improved price transparency pushed many financial institutions to reconsider their reliance on punitive pricing models, says Tom Feltner, director of financial services at the Consumer Federation of America. “Empowering consumers to choose the features they want and pricing them in a way that allows them to understand what their typical monthly cost will be, based on their financial behavior is a dramatic improvement,” says Feltner. “Dinging consumers with repeated overdraft charges for relatively small negative balances and offering no clear way to estimate total monthly transaction costs has pushed some consumers out of checking accounts altogether. A la carte banking represents a strategy to bring them back to the bank,” says Feltner.

Some financial institutions are unbundling overdraft, bill pay, out-of-network ATMs and billing statements, says Feltner. Take for example, Union Bank's, Banking by Design that was launched last October. New and existing Union Bank customers can get a checking account with a base cost of $3 per month, which can be waived if they make one direct deposit of $250 or more each statement period. For $1 each per month you can get incoming wire transfers, cashier's and traveler's checks, express phone customer service, paper statements, among other options. You can also build your own checking account at Frost Bank. You pay a $5 base fee that includes online and mobile banking, email alerts, online statement delivery, and more. For $2 more a month you can get unlimited online and mobile bill pay, paper statements and fees waived for gift cards, money orders and traveler's and cashier's checks. There are discounts and waivers. For example if you've been with Frost from 6-14 years, you qualify for a reduced monthly base, $3, and you get add-on features for $1 a month.

A la carte banking is primarily for checking accounts, but Meleis reports that he has seen a credit card issuer offer a customized credit card where people can design a product that best suits them. A checking account is the main connection people have with their bank along with carrying the bulk of bank fees, it makes sense that banks would restructure these accounts first, says Alex Matjanec, co-founder of MyBankTracker.com, “But in our opinion, a la carte could be for any type of product.” He adds that large banks like Chase and Regions are dipping their toes into these types of products through their recently launched prepaid products. “A la carte checking is the evolution of prepaid cards, which are build on a pay per use model.”

So is a la carte a plus for consumers? “You get exactly what's the best fit for you at the right price,” says Meleis.

But there are disadvantages too. “While there are some people who will want to manufacture their own product, the bigger segment of consumers may find a la carte banking confusing, particularly if they are doing it online,” says Meleis.

A la carte banking means that consumers will have to be more vigilant than ever about monitoring their financial transactions and make sure they are choosing features they want and use, says Feltner. Then too, many people who have long had free accounts may be alarmed by rising fees or fees for what historically had been free. He says research shows that many people have problems meeting the direct deposit or minimum monthly balance/deposit requirements in order to get checking account fees reduced or waived.

“The main downside is that banks could become greedy and charge for everything to the point it is better to carry a large balance to avoid all fess. At that point we are back to where we are now,” says Matjanec.

Perhaps a better option than a la carte banking, says Meleis, would be a hybrid product, where the bank constructs different combinations of packages, you get asked a set of question and the bank configures a product for you based on your priorities. For sure, says Meleis, “You will see more and more banking products that are tailored.”

There were a few positive economic reports this week. New housing starts had a strong jump and weekly unemployment claims fell sharply. However, the debt ceiling fears continue to be a headwind for the economy even with the latest plans to temporarily extend the debt limit. As explained in this WaPo article, "We have three chances within three months of somehow shutting down the government, having a default or having a fiscal contraction." Even if compromises are made in Washington this year, the best we can hope for is another year of sluggish growth and nothing to convince the Fed to change its zero-interest-rate policy (ZIRP).

Government inflation numbers are also making it easy for the Fed to maintain ZIRP. December inflation data was released on Wednesday, and the inflation numbers were below the Fed's target.

There is a chance that a U.S. default on its debt could cause interest rates to spike. However, as we learned in 2011, a debt ceiling showdown and a credit rating downgrade can cause rates to fall. As this Barrons article warns, "even if the U.S. credit rating is downgraded, don't expect a big jump in interest rates."

For another week the concerns over the debt ceiling contributed to slightly lower Treasury yields. The changes over the last week and the expectation of future Fed funds rates are shown below. Numbers are based on Yahoo bond rate data and the CME Group FedWatch.

Treasury Yields:

• 6-month: 0.08% down from 0.09% last week
• 2--year: 0.25% same as last week
• 5--year: 0.76% down from 0.78% last week
• 10-year: 1.84% down from 1.87% last week
• 30-year: 3.03% down from 3.04% last week

Fed funds futures' probability of rate hike by:

• Jan 2015: 59% down from 62% last week
• Apr 2015: 71% up from 65% last week

The second bank failure of the year occurred on Friday. 1st Regents Bank in Minnesota was closed by state regulators, and the FDIC arranged for First Minnesota Bank to assume all deposits.

Savings & Checking Account Rates

This was a slow week in savings account rate changes with no rate changes. I added two new banks to the list. The first is Silvergate Bank which recently started a nationwide online savings account with a competitive yield of 0.90%. As is typical when banks launch internet accounts, the ACH bank-to-bank transfer service is weak.

The other new bank added to the list is GE Capital Retail Bank. This bank completed its acquisition of MetLife Bank's online deposits business. The online savings account remains the same. I noticed that the savings account rate is now somewhat competitive with a 0.85% APY for balances of at leat $10K. So I decided to add it to the list.

With two additions, I thought it was a good time to do some pruning. I decided to remove One United Bank's E-Money Market account. Its top rate is now only 0.75%, and that requires a minimum balance of $100K. Balances under $25K only earn 0.65%.

For those with large balances, the best non-promo deal continues to be at Connexus Credit Union which has a money market account that pays 1.15% APY for balances of at least $100K. The next best are the four internet banks with money market accounts that continue to pay 1.05% APY.

Two internet banks are offering 1.25% APY, but these are promo rates. You can also get 1.10% APY at AmericaNet Bank and its two sister banks, but all three have a $35K balance cap.

Reward Checking Accounts

This was the second week with no rate changes on my list of nationally available reward checking accounts. However, there continues to be several reward checking accounts that are only local deals that had cuts in their rates and/or balance caps. Thanks to the readers who have reported on these in the reward checking forum.

As I mentioned last week, I'm now highlighting the reward checking accounts that have balance caps of at least $25K. There are only 11 of these on the list. Nine have a $25K balance cap, one has a $50K cap and one has no balance cap. The one without a balance cap is the Rewards Checking account at Bank of Internet USA. Its 1.25% APY isn't much higher than the internet savings account APYs. On the positive side, this yield has held since July 2011.

To find the highest reward checking rates and balance caps in your state or nationwide, please refer to our reward checking rate table. If you're new to these tables, my rate table guide should be useful. If you're new to reward checking, please refer to my blog post, 10 Common Traits of High-Yield Reward Checking.

Additions:

1. Silvergate Bank Savings - 0.90% [min $1K]
2. GE Capital Retail Bank (formerly MetLife) Savings - 0.85% [min $10K]

Removals:

1. One United Bank E-Money Market - 0.75% [min $100K], 0.70% [min $25K], 0.65% [min $1K]

Rate Hikes:

1. None

Rate/Balance Cap Cuts:

1. None

Certificate of Deposit Rates

My recap of CD rate changes and the list of CD deals will now be in my survey of the best CD rates. This recap will now focus on banking news of the week and liquid accounts.

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

• Second Bank Failure of the Year: 1st Regents Bank in Minnesota
• Forum Highlights: FICO Score, CapOne Bonus and CD Alternatives
• Growth of Credit Union ATM and Shared Branch Networks
• MetLife Bank is Now GE Capital Retail Bank
• Is a Retirement Coach Right For You?

• What Truly Matters to ING DIRECT Customers? Many Say Interest Rates
• Online Savings Account and CDs at Silvergate Bank

• Survey of the Best CD Rates for January 18, 2013

• Free Kindle Fire HD Checking Account Bonus at BBVA Compass
• Checking Account $100 Bonus Continues at Sound Credit Union - WA Only

• Top CD & IRA CD Rates at Visions FCU in Parts of NY, NJ & PA
• Checking Rate and Cash Promotions at Oritani Bank in New Jersey - Local Only

• Archive of 2013 Posts

Rates as of January 19, 2013

Checking/Savings/Money Market Accounts:

• Best Savings Account Rates (Nationwide & by State)
• Best Money Market Rates (Nationwide & by State)
• Best Checking Account Rates (Nationwide & by State)

• How to View Rates for Your State

• Noteworthy Accounts Available Nationwide:

• EverBank - 1.25% MMA/Checking (6mo intro rate) 0.76% ongoing rate, account review
• Salem Five Direct - 1.25% savings, for new customers only (~0.75% for existing customers)
• Connexus Credit Union - 1.15% ($100K) 1.00% ($50K) 0.75% ($20K) active chk required
• Evantage Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• AmericaNet Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• Redneck Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• Incredible Bank - 1.05% MMA ($2.5K min) account review
• MyBankingDirect - 1.05% (min $5K)
• Union Federal Savings Bank - 1.05% MMA (min $2.5K) account review
• Sallie Mae Bank - 1.05% MMA account review
• TIAA Direct - 1.00% MMA/Savings (not accepting new customers) account review
• SmartyPig - 1.00% ($50K max), account review
• Barclays - 1.00% Savings account review
• Acacia Federal - 1.00% Metro Checking, account review
• Acacia Federal - 1.00% MMA (min $25K), account review
• CIT Bank - 1.00% ($25K) 0.90% ($0) Savings, account review
• ableBanking - 0.96% MMA (min $1K)
• Ally Bank - 0.95% MMA/savings
• SFGI Direct - 0.94% account review
• AloStar Bank of Commerce - 0.91% ($50K) 0.50% ($0) MMA Advantage
• Silvergate Bank - 0.90% (min $1K) Savings
• American Express Bank - 0.90%, account review
• Sallie Mae Bank - 0.90% Savings account review
• Incredible Bank - 0.88% Checking ($1K min) account review
• GE Capital Retail Bank (formerly MetLife) - 0.85% (min $10K) Savings
• FNBO Direct - 0.85% Savings
• ING Direct - 0.85% ($100K) 0.80% ($50K) Electric Orange Checking
• Colorado Federal Savings Bank - 0.85% ($2.5K min) account review
• UFB Direct (BofI Federal) - 0.80% MMA/savings account review
• Alliant Credit Union - 0.80% (min $100) Savings account review
• Discover Bank - 0.80% Savings (min $500) account review
• Clear Sky Accounts - 0.80% (max $250K) account review
• Nationwide Bank - 0.76% MMA (min $1K)
• ING Direct - 0.75% Orange Savings
• Alliant Credit Union - 0.75% Checking (req's elec. dep & e-stmts) account review

Reward Checking Accounts:

• Best Reward Checking Account Rates for a $10,000 Balance - Nationally Available
• Best Reward Checking Account Rates for a $25,000 Balance - Nationally Available

• How to View Rates for Your State

• Noteworthy Accounts Available Nationwide:

• Consumers Credit Union - 3.09% (up to $5K) 0.20% ($5K-$25K) 0.10% ($25K+)
• Money One Federal Credit Union - 3.01% (up to $10K) 0.51% (over $10K)
• Lake Michigan Credit Union - 3.00% (up to $15K) 0.00% ($15K+)
• Capital Educators Federal Credit Union - 2.50% (up to $10K) 0.20% ($10K+)
• ABCO Federal Credit Union - 2.12% (up to $25K) 0.30% ($25K+)
• INOVA Federal Credit Union - 2.00% (up to $20K) 0.15% ($20K+)
• Evantage Bank - 2.00% (up to $10K) 0.50% (over $10K)
• AmericaNet Bank - 2.00% (up to $10K) 0.50% (over $10K)
• Redneck Bank - 2.00% (up to $10K) 0.50% (over $10K)
• First Tech Federal Credit Union - 1.78% (up to $10K) 0.21% ($10K+)
• Provident Credit Union - 1.76% (up to $25K) 0.11% ($25K+)
• Pacific Resource Credit Union - 1.75% (up to $15K) 0.50% ($15K+)
• Community Bank of Pleasant Hill - 1.75% (up to $10K) 0.50% ($10K+)
• Community Bank of Raymore - 1.75% (up to $10K) 0.50% ($10K+)
• Connexus Credit Union - 1.75% (up to $25K) 0.50% ($25K+) Xtraordinary Checking
• First New England Federal Credit Union - 1.52% (up to $15K) 0.10% ($15K+) (extra 1% w/relationship)
• Heritage Bank - 1.51% (up to $25K) 0.10% ($25K+)
• BankFirst Financial Services - 1.50% (up to $50K) 0.25% ($50K+)
• Legence Bank - 1.50% (up to $25K) 0.25% ($25K+)
• Avidia Bank - 1.36% (up to $25K) 0.05% ($25K+)
• West Texas National Bank - 1.26% (up to $25K) 0.25% ($25K+)
• Bank of Internet USA - 1.25% (all balances)
• Bank of Blue Valley - 1.25% (up to $15K) 0.10% ($15K+), $1K/month debit card req (account review)
• North Country Savings Bank - 1.05% (up to $25K) 0.75% ($25K+)
• State Bank of Toledo - 1.00% (up to $25K) 0.15% ($25K+)

Certificates of Deposit:

• Best CD Rates (Nationwide & by State)
• Best IRA CD Rates (Nationwide & by State)

• How to View Rates for Your State

• Survey of the Best CD Rates for January 11, 2013 (Nationwide & Local)

Various Deposit Account Deals

• Bank Promotions
• Best IRA CD rates, local and nationwide deals
• Latest CD and Savings Account Deals with No Major Deposit Limitations

Bank Account Alternatives - NOT FDIC Insured

• Ally Financial Demand Notes - 1.75%, Ally Demand Notes review
• Duke Energy PremierNotes - 1.50% rate for $50K+, Duke Energy PremierNotes review
• Ford Interest Advantage - 1.10% rate for $50k+, Ford Interest Advantage review
• GE Interest Plus - 1.10% rate for $50k+
• Vanguard Prime Money Market Fund - 0.01% 7-day yield
• Vanguard Tax-Exempt Money Market Fund - 0.01% 7-day yield
• Fidelity Money Market Fund - 0.01% 7-day yield (reviews on Fatwallet)
• Fidelity Municipal Money Market Fund - 0.01% 7-day yield
• TIAA-CREF Money Market Fund - 0.00% 7-day yield
• PayPal Money Market Fund has ended effective 7/29/11
• FW Thread on Treasury Bills
• Series I Savings Bond Purchases from Nov 2012 thru Apr 2013, I Bond Article, I Bonds as CD Alternatives

This was another Friday with just one bank failure. 1st Regents Bank was closed by Minnesota regulators, and the FDIC entered into a purchase and assumption agreement with First Minnesota Bank to assume all of the failed bank's deposits. This was the second bank failure in the nation this year and the first in Minnesota.

The closure of 1st Regents Bank was typical with the FDIC arranging for another bank to assume all deposits. The FDIC had the following message in its Q&As:

No one lost any money on deposit as a result of the closure of this bank. All deposits, regardless of dollar amount, were transferred to First Minnesota Bank.

CD customers at 1st Regents Bank will have to wait to see what happens with the rates. The FDIC has its typical message about interest rates in its Q&As:

Interest on deposits accrued through close of business on January 18, 2013, will be paid at your same rate. 1st Regents Bank's rates will be reviewed by First Minnesota Bank and may be lowered; however, you will be notified in writing of any changes. You may withdraw funds from any transferred account, regardless of whether your interest rate changes, without early withdrawal penalty until you enter into a new deposit agreement with First Minnesota Bank.

The Minneapolis / St. Paul Business Journal has some additional details describing the problems 1st Regents Bank had that led to the failure:

The bank has lost nearly $11.15 million on bad loans since it was last profitable in 2007, according to data from the Federal Deposit Insurance Corp. The bank’s assets declined from $90.88 million at the end of 2009 to $50.21 million at the beginning of the fourth quarter.

No credit unions failed this week. So far this year there has been only one credit union failure.

Below is the summary of the today's bank failure:

2nd Bank Failure of 2013 (1st in Minnesota)

• Closed Bank: 1st Regents Bank, Andover, MN
• FDIC Press Release
• Size: 1 branch, $50.2 million in assets and $49.1 million in deposits
• Acquiring Bank: First Minnesota Bank, Minnetonka, MN
• Possible Uninsured Deposits: all deposit accounts, including brokered deposits, have been assumed by First Minnesota Bank (FDIC Q&A)
• Rate Changes: 1st Regents Bank's rates will be reviewed by First Minnesota Bank and may be lowered (FDIC Q&A)
• Estimated Cost to Deposit Insurance Fund: $10.5 million
• Enforcement Action: FDIC 3/24/10 Consent Order
• Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 326.75% at DepositAccounts.com (see financial rating note)

Financial Ratings Notes: 0 star is lowest at BauerFinancial, 1 star is lowest at DepositAccounts.com & Bankrate.com, Texas Ratios over 100% is considered at risk. Ratings at DepositAccounts.com and BauerFinancial are based on September 30, 2012. Ratings at Bankrate.com are based on June 30, 2012 data.

References:

• FDIC list of failed banks
• Texas Ratios for banks and credit unions
• Latest FDIC info on deposit insurance
• My bank failure review posts
• Review of the 2012 bank and credit union failures
• Review of the 2011 bank and credit union failures
• Review of the 2010 bank and credit union failures
• 10 Lessons from the 2008 bank failures

This was quiet week for CD rate changes. For CDs available nationwide, we had another rate cut on a 5-year CD. Nationwide Bank reduced its 5-year CD rates by 10 basis points. Its top 5-year CD APY is now 1.75%.

There's a new name on the list, but it's not due to new CDs. MetLife Bank officially became GE Capital Retail Bank. It continues to offer the same CDs as before, and currently its most competitive CD is its 18-month term which has a 1.12% APY.

The best short-term CD deal isn't actually a CD, but a money market/checking account. EverBank continues to offer an intro rate of 1.25% that's guaranteed for the first 6 months for new customers. This applies to balances up to $100K for the checking account and up to $50K for the money market account. A new customer can open both accounts at the same time to get 1.25% for a total balance of $150K. Due to the 6-month rate guarantee, I've been listing it on the "under 1-year CD" list.

The highest CD rate that's nationally available continues to be at Citizens State Bank which is offering a 5-year CD with a 2.05% APY. This is a small Florida bank, but they are accepting deposits nationwide and the CDs can be opened online. Before January the bank required a $100K minimum deposit to qualify for a 2.00% APY. The minimum for this 2.05% APY is now just $1,000.

Local CD Deals

This was also a quiet week for CDs that are only available locally. There weren't any rate cuts, but one special CD expired. Generations FCU in San Antonio ended its 18-month CD promotion that had a 1.50% APY.

There was rare rate hike this week at Columbia Bank in New Jersey. I had reported on its 7-year CD on January 4th when its yield was 1.95%. That went up last Monday to 2.10% APY. Its 6-year IRA CD still has a 2.00% APY.

There was only one addition to the list. It's Vision FCU which is offering a 2.02% APY 5-year CD. Members at this credit union can get 2.28% APY by having a checking account with a credit card or loan. Membership is open to those who live or work in parts of New York, Pennsylvania or New Jersey.

Long-Term CD Break Strategy

For the short-term CDs in my lists, you might notice CDs with the note "5-year CD closed after X years". These take into account the yield after the early withdrawal penalty is applied. Since Ally Bank's 5-year CD only has a 60-day interest penalty, it's still a good deal when closed early even with the recent rate cuts.

The risks of planning for early withdrawals of long-term CDs were recently highlighted by the deposit agreement change at Ally. The risks have also been seen at credit unions which have raised the early withdrawal penalties on existing CDs. I have more details in this blog post.

Note About the CD Survey

As I described in my rate table overview, you can use our CD rate tables to find the best rates for both nationally available CDs and local CDs. This CD survey blog posts are intended to highlight nationwide CD deals that may not be apparent in the tables. For example, I'll include the post-penalty yields of a few long-term CDs.

The CD survey blog posts are also intended to highlight the local CD deals that are available in large metro areas. There are many high CD rates, but most of these are at small banks in rural areas or at small credit unions with very narrow fields of membership. In these local CD surveys, my focus is on local CD deals that are in big cities or that are available in large areas of a state.

Yields Accurate as of January 18, 2013

Under 1-Year CD Rates

• EverBank - 1.25% checking/MMA intro 6-month rate ($100K/$50K max) account review
• Ally Bank - 1.06% (1.59% 5-year CD closed after 6 months, see review & risks)
• Connexus Credit Union - 1.00% 6-month CD w/active chk
• Xceed Financial Credit Union - 1.00% 9-month CD
• Doral Bank Direct - 0.94% 9-month CD, account review
• Ally Bank - 0.91% 11-month No-Penalty CD, see account review
• Doral Bank Direct - 0.90% 6-month CD, account review
• Barclays - 0.85% (1.70% 5-year CD closed after 6 months, see review & risks)
• Colorado Federal Savings Bank - 0.80% 6-month CD

• Noteworthy Local Deals

• HomeBanc N.A. - 1.50% ($75K max) 3-month CD (Central Florida)
• Gulf Coast Federal Credit Union - 1.10% 6-month CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 1.05% ($250K) 0.95% ($100K) 0.85% ($1K) 7-month CD (several parts of Iowa)
• Veridian Credit Union - 1.00% ($100K) 0.80% ($1K) 7-month CD (several parts of Iowa)
• First Choice Bank - 0.90% ($50K) 0.85% ($2.5K) 288-day CD (Los Angeles & Orange County, CA)
• LOMTO Federal Credit Union - 0.85% 6-month CD (parts of New York City)

1-Year CD Rates

• Ally Bank - 1.32% (1.59% 5-year CD closed after 1 year, see review & risks)
• Barclays - 1.27% (1.70% 5-year CD closed after 1 year, see review & risks)
• Pentagon Federal Credit Union - 1.25% 1-year CD
• State Bank of India - Chicago - 1.16% ($95K) 1.05% ($2.5K) 1-year CD
• Connexus Credit Union - 1.10% 1-year CD w/active chk
• CIT Bank - 1.05% ($25K min) add-on & bump-up 1-year CD
• NexBank - 1.05% 1-year CD, account review

• Noteworthy Local Deals

• City County Credit Union - 1.51% 1-year IRA-only CD (many FL counties)
• Gulf Coast Federal Credit Union - 1.50% 12-month CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 1.35% ($250K) 1.25% ($100K) 1.15% ($1K) 13-month CD (several parts of Iowa)
• General Electric Credit Union - 1.27% ($100K) 1-year CD (Cincinnati OH metro)
• LOMTO Federal Credit Union - 1.20% 1-year CD (parts of New York City)
• Mansfield Bank - 1.20% 14-month CD (Massachusetts)
• Doral Bank NY - 1.15% 1-year CD (NYC)
• Beal Bank - 1.11% 1-year CD (Southeast FL)
• East River Bank - 1.00% 14-month CD (Philly, PA)
• First Choice Bank - 0.95% ($50K) 0.90% ($2.5K) 366-day CD (Los Angeles & Orange County, CA)

18-month CD Rates

• Ally Bank - 1.41% (1.59% 5-year CD closed after 18 months, see review & risks)
• Barclays - 1.41% (1.70% 5-year CD closed after 18 months, see review & risks)
• USAlliance Federal Credit Union - 1.30% ($50K max) 15-month CD
• Northern Bank & Trust Company - 1.25% 17-month CD
• Salem Five Direct - 1.15% 18-month CD
• NexBank - 1.15% 18-month CD, account review
• GE Capital Retail Bank (formerly MetLife) - 1.12% 18-month CD
• Doral Bank Direct - 1.06% 18-month CD, account review

• Noteworthy Local Deals

• Gulf Coast Federal Credit Union - 1.65% 18-month CD (Corpus Christi, TX metro)
• TEXAR Federal Credit Union - 1.35% 18-month CD (Northeast TX)
• Veridian Credit Union - 1.30% ($100K) 1.11% ($1K) 15-month CD (several parts of Iowa)
• Libertad Bank - 1.25% 18-month CD (Texas)
• El Paso Area Teachers FCU - 1.21% ($50K) 1.11% ($500) 18-month CD (El Paso, TX)
• Meetinghouse Bank - 1.20% 18-month CD (Boston, MA)
• Valley Green Bank - 1.20% 18-month CD (Philadelphia, PA)
• Doral Bank NY - 1.20% 18-month CD (NYC)
• First Choice Bank - 1.00% ($50K) 0.95% ($2.5K) 541-day CD (Los Angeles & Orange County, CA)

2-Year CD Rates

• Pentagon Federal Credit Union - 1.60% 2-year CD, account review
• Barclays - 1.49% (1.70% 5-year CD closed after 2 years, see review & risks)
• Ally Bank - 1.46% (1.59% 5-year CD closed after 2 years, see review & risks)
• Citizens State Bank - 1.36% ($100K) 1.21% ($1K) 2-year CD, account review
• Sandia Laboratory FCU - 1.36% ($200K) 1.26% ($100K) 1.16% ($50K) 1.06% ($1K) 2-year CD
• NexBank - 1.30% 2-year CD, account review
• Connexus Credit Union - 1.30% 2-year CD w/active chk
• Northwest Federal Credit Union - 1.26% ($100K) 1.15% ($25K) 2-year CD (+0.25% w/relationship)
• CIT Bank - 1.20% ($25K min) add-on & bump-up 2-year CD

• Noteworthy Local Deals

• TEXAR Federal Credit Union - 1.85% 2-year CD (Northeast TX)
• Gulf Coast Federal Credit Union - 1.85% 2-year CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 1.55% ($250K) 1.45% ($100K) 1.35% ($1K) 21-month CD (several parts of Iowa)
• Veridian Credit Union - 1.45% ($100K) 1.25% ($1K) 25-month CD (several parts of Iowa)
• Doral Bank NY - 1.40% 2-year CD (NYC)
• LOMTO Federal Credit Union - 1.40% 2-year CD (parts of New York City)
• BBVA Compass - 1.35% 2-year CD w/chk, 1.25% w/o chk (parts of AZ, CA, CO, NM, AL, FL, TX)
• BrightStar Credit Union - 1.25% 23-month CD (+0.25% w/chk relationship) (parts of Southeast FL)

3-Year CD Rates

• Wilshire State Bank - 2.28% 3-year installment savings account w/auto xfers, $100K max (account review)
• Pentagon Federal Credit Union - 1.85% 3-year CD, account review
• Connexus Credit Union - 1.75% 3-year CD w/active chk
• Barclays - 1.56% (1.70% 5-year CD closed after 3 years, see review & risks)
• Dime Savings Bank - 1.50% 30-month IRA-only CD
• Ally Bank - 1.50% (1.59% 5-year CD closed after 3 years, see review & risks)
• State Bank of India - Chicago - 1.51% ($95K) 1.41% ($2.5K) 3-year CD
• Citizens State Bank - 1.46% ($100K) 1.31% ($1K) 3-year CD, account review
• Melrose Credit Union - 1.46% 3-year CD
• Salem Five Direct - 1.40% 30-month CD
• NexBank - 1.40% 3-year CD, account review
• Northwest Federal Credit Union - 1.40% ($100K) 1.30% ($25K) 3-year CD (+0.25% w/relationship)
• CIT Bank - 1.35% ($100K) 1.30% ($1K) 3-year CD
• Pentagon Federal Credit Union - 1.33% (2.00% 7-year CD closed after 3 years, see review & risks)
• Discover Bank - 1.30% 3-year CD

• Noteworthy Local Deals

• NavyArmy Community Credit Union - 2.50% 30-month CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 2.20% ($250K) 2.10% ($100K) 2.00% ($1K) 37-month CD (several parts of Iowa)
• Encompass Credit Union - 2.02% 3-year CD (Central Indiana)
• Gulf Coast Federal Credit Union - 2.02% 3-year CD (Corpus Christi, TX metro)
• Workers Credit Union - 1.50% 30-month CD w/chk+dd (MA & Southern NH)
• One Source Federal Credit Union - 1.86% ($50K) 1.76% ($1K) 3-year CD (El Paso, TX)
• Veridian Credit Union - 1.80% ($100K) 1.60% ($1K) 39-month CD (several parts of Iowa)
• Doral Bank NY - 1.55% 3-year CD (NYC)
• LOMTO Federal Credit Union - 1.55% 3-year CD (parts of New York City)
• Sea Comm Federal Credit Union - 1.52% 3-year CD (Northern NY)
• Valley Green Bank - 1.50% 3-year CD (Philadelphia, PA)
• Wings Financial Credit Union - 1.46% 3-year CD (Seattle & Minneapolis Metro areas)

4-Year CD Rates

• Pentagon Federal Credit Union - 1.85% 4-year CD, account review
• Citizens State Bank - 1.77% ($100K) 1.61% ($1K) 4-year CD, account review
• Andrews Federal Credit Union - 1.71% 4-year CD
• Melrose Credit Union - 1.71% 4-year CD
• Green Bank, N.A. - 1.70% 4-year CD
• Communitywide Federal Credit Union - 1.70% 49-month special CD
• Alliant Credit Union - 1.65% 4-year CD
• Nationwide Bank - 1.61% ($100K) 1.56% ($500) 4-year CD
• Barclays - 1.59% (1.70% 5-year CD closed after 4 years, see review & risks)
• Pen Air Federal Credit Union - 1.55% ($100K) 1.45% ($500) 4-year CD
• Ally Bank - 1.52% (1.59% 5-year CD closed after 4 years, see review & risks)
• Discover Bank - 1.50% 4-year CD
• Pentagon Federal Credit Union - 1.50% (2.00% 7-year CD closed after 4 years, see review & risks)
• Barclays - 1.45% 4-year CD
• Ally Bank - 1.35% Raise-Your-Rate 4-year CD

• Noteworthy Local Deals

• University of Iowa Community Credit Union - 2.35% ($250K) 2.25% ($100K) 2.15% ($1K) 49-month CD (several parts of Iowa)
• Jefferson Financial Credit Union - 2.00% 4-year CD (parts of Louisiana)
• One Source Federal Credit Union - 1.97% ($50K) 1.87% ($1K) 4-year CD (El Paso, TX)
• HAPO Community Credit Union - 1.85% 4-year CD (all of Washington State)
• LOMTO Federal Credit Union - 1.75% 4-year CD (parts of New York City)
• Empower Federal Credit Union - 1.75% ($100K) 1.60% ($10K) 4-year CD, extra 0.25% for seniors w/dd (western NY)
• Sea Comm Federal Credit Union - 1.70% 4-year CD (Northern NY)
• Doral Bank NY - 1.65% 4-year CD (NYC)
• Wings Financial Credit Union - 1.61% 4-year CD (Seattle & Minneapolis Metro areas)
• Shell Federal Credit Union - 1.60% ($50K) 1.55% ($500) 4-year CD (Houston, TX)

5-Year CD Rates

• Citizens State Bank - 2.05% ($1K) 5-year CD, account review
• State Department Federal Credit Union - 2.02% 5-year IRA CD, 1.91% 5-year CD
• Stanford Federal Credit Union - 2.02% ($100K) 5-year CD, requires chk w/dd, account review
• Mountain America Credit Union - 2.00% 5-year CD, account review
• Connexus Credit Union - 2.00% 5-year CD w/active chk
• Communitywide Federal Credit Union - 2.00% 5-year CD
• Dime Savings Bank - 2.00% 5-year IRA-only CD
• Melrose Credit Union - 1.96% 5-year CD
• Green Bank, N.A. - 1.95% 5-year CD
• Pen Air Federal Credit Union - 1.95% ($100K) 1.85% ($500) 5-year CD
• Pentagon Federal Credit Union - 1.90% 5-year CD
• CIT Bank - 1.85% ($100K) 1.80% ($1K) 5-year CD
• Nationwide Bank - 1.75% ($100K) 1.70% ($500) 5-year CD
• Barclays - 1.70% 5-year CD
• Discover Bank - 1.65% 5-year CD
• Ally Bank - 1.59% 5-year CD
• Pentagon Federal Credit Union - 1.60% (2.00% 7-year CD closed after 5 years, see review & risks)

• Noteworthy Local Deals

• Encompass Credit Union - 2.53% 5-year CD (Central Indiana)
• American Airlines Credit Union - 2.47% 5-yr/1.46% 2.5-yr CD ladder (limited membership)
• One Source Federal Credit Union - 2.37% ($50K) 2.27% ($1K) 5-year CD (El Paso, TX)
• General Electric Credit Union - 2.33% 5-year CD (Cincinnati OH metro)
• Security Service Federal Credit Union - 2.30% ($100K) 2.15% ($500) 5-year CD (parts of Texas, lower rates in CO and UT)
• Jefferson Financial Credit Union - 2.25% 5-year CD (parts of Louisiana)
• Ukrainian Selfreliance FCU - 2.20% ($75K) 2.15% ($500) 5-year CD (Philadelphia, PA)
• American United Family of Credit Unions - 2.15% ($75K) 2.10% ($500) 5-year CD (parts of Utah)
• Idaho Central Credit Union - 2.15% 5-year bump-up CD (Idaho)
• SACU - 2.05% ($90K) 2.00% ($10K) 5-year CD (San Antonio, TX)
• Denver Community Credit Union - 2.10% ($50K) 1.85% ($100) 5-year CD (Denver County)
• Superior Choice Credit Union - 2.08% 58-month CD special (parts of WI and MN)
• Texell Credit Union - 2.05% 5-year CD (Central Texas)
• Empower Federal Credit Union - 2.05% ($100K) 1.90% ($10K) 5-year CD, extra 0.25% for seniors w/dd (Northwest NY)
• Visions Federal Credit Union - 2.02% 5-year CD (2.28% w/relationship) (NY, PA & NJ)
• HEW Federal Credit Union - 2.02% 5-year CD (DC metro area)
• Keesler Federal Credit Union - 2.00% ($100K) 1.90% ($1K) 5-year CD (MS)
• LOMTO Federal Credit Union - 2.00% 5-year CD (parts of New York City)
• American Eagle Bank of Chicago - 2.00% (relationship checking required) 5-year CD (Chicago, IL)
• Police and Fire Federal Credit Union - 2.00% 5-year CD (Pennsylvania)
• Shell Federal Credit Union - 1.95% ($50K) 1.90% ($500) 5-year CD (Houston, TX)
• HAPO Community Credit Union - 1.95% 5-year CD (all of Washington State)
• Miami Postal Service Credit Union - 1.91% 5-year CD (Southeast FL)
• Freedom Credit Union - 1.90% add-on 5-year CD (Philadelphia)
• Wings Financial Credit Union - 1.86% 5-year CD (Seattle & Minneapolis Metro areas)
• BBVA Compass - 1.85% 5-year CD w/chk, 1.75% w/o chk (parts of AZ, CA & FL) 0.25% lower for CO, NM, AL, TX

Over 5-Year CD Rates

• Navy Federal Credit Union - 2.00% ($100K) 1.90% ($20K) 7-year CD (membership restrictions)
• Discover Bank - 2.00% 10-year CD
• Pentagon Federal Credit Union - 2.00% 7-year CD
• Air Force FCU - 2.00% ($100K) 1.85% ($2.5K) 7-year CD
• Apple Federal Credit Union - 2.00% 10-year CD
• Northrop Grumman FCU - 1.94% ($40K) 1.78% ($2.5K) 7-year CD
• Discover Bank - 1.90% 7-year CD
• Navy Federal Credit Union - 1.90% ($100K) 1.80% ($20K) 6-year CD (membership restrictions)
• E-LOAN - 1.70% 6-year CD
• Dime Savings Bank - 1.70% 7-year CD

• Noteworthy Local Deals

• SACU - 2.80% ($90K) 2.75% ($10K) 10-year CD (San Antonio, TX)
• Security Service Federal Credit Union - 2.85% ($100K) 2.70% ($500) 7-year CD (parts of Texas, lower rates in CO and UT)
• Workers Credit Union - 2.50% 6-year CD w/chk+dd (MA & Southern NH)
• SACU - 2.45% ($100K) 2.40% ($10K) 7-year (San Antonio, TX)
• Columbia Bank - 2.10% 7-year CD (New Jersey)
• Gesa Credit Union - 2.06% 7-year CD
• Empower Federal Credit Union - 2.05% ($100K) 1.90% ($10K) 7-year CD, extra 0.25% for seniors w/dd (Northwest NY)
• Gateway Metro Federal Credit Union - 2.05% 6-year CD (St. Louis metro)
• HeritageWest Credit Union - 2.02% 6-year CD (parts of Utah)
• Amplify Credit Union - 2.01% ($100K) 1.75% ($50K) 7-year CD (Austin, TX)
• Mansfield Bank - 2.00% 8-year CD (Massachusetts)
• Columbia Bank - 2.00% 6-year IRA CD 1.85% 6-year CD (New Jersey)
• Randolph-Brooks Federal Credit Union - 1.92% ($75K) 1.92% ($1K) 7-year CD (San Antonio & Austin, TX)
• Randolph-Brooks Federal Credit Union - 1.76% ($75K) 1.76% ($1K) 6-year CD (San Antonio & Austin, TX)

Note: All rates listed above are Annual Percentage Yields (APY) which factor in compounding.

This February ING DIRECT will officially become Capital One 360. In an email to customers and in a blog post, Jim Kelly, the head of direct banking of Capital One 360, wished customers a happy new year and updated everyone on the transition. In addition, he listed the following 2012 highlights for ING DIRECT in terms of new features:

• Giving you access to over 40,000 fee-free ATMs: You still have access to 38,000 fee-free Allpoint® ATMs, plus now you can grab your money at 2,000 Capital One ATMs.
• Launching CheckMate: You asked for the ability to make mobile check deposits and we delivered CheckMate. And it turns out you really meant what you said – we’ve logged over 1.2 million CheckMate deposits (and counting).
• Getting rid of foreign transaction fees: Say goodbye, so long and see ya to foreign transaction fees – we won’t charge you for using your Debit Card outside the U.S.
• Unveiling My Savings Goals: Now you can set a savings goal and track it with this tool. On a side note, more than 15,000 of you shared what you’re saving for in our Savings Most Wanted promo. Every time I see your pictures and read your stories, I’m floored.

What I found more interesting were the comments in the blog post. Many customers said in the comments that the most important feature for them was the interest rate. Here's one from a commenter named "Frustrated Saver":

Jim, that's all very nice, but I joined ING a long time ago based upon the high interest rate for savings accounts. That is all that truely matters to me and probably alot of other savers. So, when is ING going to at least match Ally Bank's rate which currently is 0.95% apr?

This comment has received 166 likes as of this morning. It appears that Jim Kelly (or another ING DIRECT official named Jim) replied to several of the comments. I have to give ING DIRECT credit for reading and replying to many of these comments. Here is his reply to the interest rate complaints:

@ Kpyachtsman, @ The Man, @Pablum0734 – Rates are important, we get it. But we also know that our Savers have come to expect a terrific online experience, fee-free checking & savings, and ability to chat with real people. We’re working to bring you the best combination of value and experience out there, and we hope you’ll stick around to see us live up to that.

A commenter named "Mary" asked when they will have the ability to designate beneficiaries for the savings accounts. Her comment currently has 19 likes. Jim also had a reply for this:

@Mary, @Pymcat – While there’s no way to designate a formal beneficiary on your savings account, you do have the option of registering your accounts in a Trust at http://helpcenter.ingdirect.co.... When you register your accounts, you’ll have the ability to designate beneficiaries. If we make any changes, we’ll be sure to let our Savers know.

I can understand why ING DIRECT may not want to be a rate leader, but I don't know why it can't allow customers to designate beneficiaries. Many have requested this feature for years.

Even though ING DIRECT has rarely been a rate leader, its savings account rates have been close to the average for internet savings accounts. Over the last year, it has been a little above the average that we've calculated for internet banks. However, this average has been pulled down by several internet banks that have pretty much given up on being competitive (i.e. HSBC, CNB Bank Direct, Charles Schwab Bank).

ING DIRECT's Electric Orange checking account has consistently offered rates up to 10 basis points higher than the savings account rate for large balances. These rates are competitive for internet checking accounts.

ING DIRECT savings and checking account rates could be better, but at least they have been fairly competitive. That's not the case for ING DIRECT CD rates. They are way below the rates offered by several other internet banks. For example, many of Discover Bank's and Ally Bank's CD rates are currently 2x to 3x the CD rates at ING DIRECT.

I plan to regularly highlight a few of the forum posts. This is intended to help readers who may not regularly read the discussion forum. It will also give me a chance to recognize and give thanks to the DA members for their contributions to the website. I've listed a few recent forum posts on topics that I think may interest DA readers. If you don't see your username mentioned this time, keep posting and you will likely see your posts mentioned in future forum highlights posts.

1. Simple Reminders To Raise FICO Score - DA member 51hh posted a link to a Boston.com article and some tips to consider when you're thinking about new credit card offers or a new HELOC.
2. $300 Capital One Business Checking Bonus - I posted on Capital One's latest $300 business checking account bonus. Capital One has long offered this promotion, and it has often been targeted.
3. New Types of Internet Banks - Unfortunately, these new companies are focusing on fancy internet and mobile features rather than interest rates. I reviewed GoBank on Tuesday and Simple.com on Sunday.
4. DA mentioned on WSJ! - WSJ article includes some quotes from me. I posted a couple of excerpts from the article which provided some insights into rate cuts and account restrictions at internet banks.
5. Belvoir FCU CUXcel Checking Changes - Belvoir FCU has one of the better reward checking accounts with a 3.25% APY for balances up to $15K. Unfortunately, the requirements are getting a little tougher. Thanks to DA member BillGates for posting on the news he received from the credit union.
6. With CD Rates This Low, Take On Some Risk In 2013 - If you're thinking about taking some risks to get higher yields, DA member Shorebreak posted excerpts and a link to an article that offers some suggestions.
7. Social Security Is Already Means-Tested - DA member pearlbrown posted excerpts and a link to an interesting Scott Burns' column that shows how much social security is already means-tested.
8. Java Security Issues Increase Risks of Being Hacked - You may want to disable Java on your browser. DA member pearlbrown posted on the warning issued by the government, and DA member Shorebreak posted on an update on this security risk. There has been a fix, but security experts say the bug still remains.
9. 1-Year CD Rates Vs. 5-Year CD Rates - DA member ChrisCD posted a link to his study which compares a 1-year and 5-year CD ladder over the last 13 years.

Discussion Forum Tutorial

If you like a simple blog format, you can view the forum using this link. This page shows the latest featured threads in an expanded format that shows the first post of each featured thread. Click on the title of the post to view any comments for that post or to leave a comment. Unlike the blog, the forum requires you to log in before you can comment.

You can get to this Featured Threads page by using the forum menu and clicking on the "Featured Threads" link. Then click on the "Posts" link below the menu. I actually prefer the "Threads" view which shows just the title of the posts along with the number of comments or posts for each thread.

I'm the one who gives a thread "featured" status. I try to select those that I think are most interesting. The "Latest Threads" link in the forum menu will show you all of the threads including ones that haven't been marked as featured. The "Latest Posts" link will show you the latest forum comments.

Posting to the Forum

If you find a noteworthy bank deal or some interesting financial news, please consider posting this information in the forum. This can be done in 3 steps:

1. You have to be logged in to post in the forum. If you have never registered, just click the "Register" link on the top right of a DepositAccounts.com page. Note, you don't have to be logged in before you write your post, but it's required before the post can be submitted.
2. Find the appropriate subforum. Start at the top of the forum and click on the appropriate topic.
3. Click the "New Threads" button at the top of the subforum page, and follow the instructions. For the subforums that are specific to a particular bank, you first have to identify the bank. When you get to the message box, you can start typing your information. Note the icons at the top of the message box. These can be used to format your message. The one I use most is the link icon. This isn't active until you highlight the text that you want to convert into a link. Once the link icon is active, you can click on the icon which will open up a box where you can enter the web address.

Viewing and posting are more complicated in the forum than in the blog, but as I mentioned, this helps keep things organized. For more details on using the forum, please refer to my forum announcement post.

Visions Federal Credit Union recently increased its share and IRA certificate rates. The 5-year and 30-month CD rates had the largest increase, and they are now very competitive. The standard 5-year CD yield is 2.02% APY with a minimum balance of $500. A member can qualify for a relationship rate of 2.28% APY by having a checking account with a credit card or loan. The standard 30-month CD yield is 1.41% APY (1.66% APY relationship rate). These rates are listed in the credit union's share certificates page as of 1/17/2013. Note, the credit union requires you to enter your zip code to see the rates. These rates show for zip codes in both New York and New Jersey. The details of the relationship rate requirements are listed below the rate table. Under these details, the credit union describes the early withdrawal penalties. For this CD, it's up to 180 days of interest.

Visions FCU expanded into New Jersey last year due to the merger with Paragon FCU. Membership is now open to those who live, work, attend school, or regularly conduct business in Bergen or Passaic Counties; or portions of Essex, Hudson, or Union Counties.

In addition to the above New Jersey counties, the following New York and Pennsylvania counties/cities are included in the field of membership: Broome, Chenango, Tioga, Chemung, Schuyler, Rockland Counties, and the Cities of Rochester and Syracuse in New York; Bradford County, portions of South Westmoreland, North Fayette Counties; portions of the Cities of Allentown, Bethlehem, or Easton in Pennsylvania.

Please refer to the credit union's membership page for more details. The credit union has an online application for membership.

Credit Union Overview

Visions FCU branches are located in Rochester, Syracuse and several cities in the eastern section of New York State's Southern Tier. There are also three branches in northern Pennsylvania. Paragon FCU's old New Jersey branches which are now under Visions FCU are located in Dumont, Mahwah, Oakland, Englewood Cliffs, Montvale and Westwood.

Visions FCU is a sizable credit union with $3.06 billion in assets. Its overall health score at DepositAccounts.com is 4 stars (out of 5) with a Texas Ratio of 10.01% (above average) based on September 2012 data. Please refer to our financial overview of Visions Federal Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 17429).

How These CD Rates Compare

The best nationally available 5-year CD yield is 2.05% APY at Citizens State Bank. The best 30-month CD yield is 1.40% APY at Salem Five Direct. These rates are accurate as of 1/17/2013.

Searching for Top CD and IRA CD Rates

You can search our tables to find the best rates that are nationally available and the best rates that are available in your state. To learn how to do this please refer to the post Tips on using our rate tables. The links to the rate tables are provided below:

• CD rate table
• IRA CD rate table

Note, the 1-year term is the default for the CD and IRA rate tables. Use the top menu to select different terms.

BBVA Compass has changed its checking account promotion for the new year. Instead of a cash bonus, this new one offers a free Kindle Fire HD. Unlike the previous one, this new one requires direct deposit (and they specifically exclude bank-to-bank transfers). Here's the link to the new promotion. Below are the steps required for the bonus:

• Open a consumer checking account with a $25 minimum deposit by 3/31/2013
• Have a qualifying direct deposit of at least $300 from an unrelated third party post to the account within 90 days of account opening, AND
• Make 3 online bill payments of at least $50 each to unrelated third parties. Payments must post within 90 days of account opening.

Below is some of the important small print:

Transfers made from PayPal, ING Direct, or from accounts owned by the accountholder (or related parties) at other financial institutions do not qualify. Online bill payments must be processed electronically and completed by the deadline. Payments made by check or person-to-person (P2P) payments do not qualify. Payments made by a third party debiting your account do not qualify.
[...]
Offer valid only for new consumer checking accountholders who have not had an existing BBVA Compass consumer checking account within the last 90 days.
[...]
Maximum of one(1) bonus per household. Offer not valid with any other offer and subject to change without notice. BBVA Compass may report the value of the bonus to the IRS as required by law.

One important thing to note in the small print is that transfers that you initiate from another bank won't qualify as direct deposit. Also note that the value of the bonus may be reported to the IRS. Amazon lists the value of the 16GB Kindle Fire HD as $199.

BBVA Compass Checking Account Fees

Build-to-Order Checking and CompassLink Checking qualify for this promotion. Both have potential monthly fees. BBVA Compass ended its free checking in 2011. Build-to-Order Checking has smaller fees that are easier to avoid. It requires at least one of the following to avoid a $10.95 monthly fee:

• Direct Deposit transaction (ACH credit) of $300 or more from an unrelated 3rd party, OR
• Average daily collected balance of at least $1,500, OR
• Accountholder is enrolled in the BBVA Compass Preferred Client Program and maintains Preferred status, OR
• Student under 25 (must be approved for student status), OR

To avoid a $20 monthly fee on the CompassLink Checking account, even larger balances are required. To see all the account details, please refer to the Compass Checking Accounts page.

Availability

On the first page of the application it states that you must have a permanent residence of one of the following states: Alabama, Arizona, California, Colorado, Florida, New Mexico or Texas. If you're not a U.S. citizen, you must visit a branch to apply.

Competitive CD Rates

Unfortunately, BBVA Compass lowered its CD rates last week. It used to offer a 2% 5-year CD. This yield fell to 1.75% in some states and 1.50% in others. The 15-month CD rate also fell by 25bps. It's now 0.75%. On the plus side, the 2-year CD yield remains very competitive at 1.25% APY. An additional 10bps may be added if you have a CompassLink checking account (see post).

Bank Overview

BBVA Compass is the 32nd largest bank in the nation and operates 720 branches in Texas, Alabama, California, Arizona, Florida, Colorado and New Mexico. It's under the bank holding company Banco Bilbao Vizcaya Argentaria S.A., the second largest bank in Spain.

The bank has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 9.85% (above average) based on September 2012 data. Please refer to our financial overview of BBVA Compass for more details. The bank has been a FDIC member since 1964 (FDIC Certificate # 19048).

Other Bank Bonuses

We have a bank promotions page with a table of all of the active bank and credit union promotions. You can filter the table based on the type of promotion and based on your state. I have more details about how to use this page in this blog post.

You can view my latest bank bonus blog posts in this bank bonus page. I and DepositAccounts.com readers often post on bonuses in the checking account deals forum.

One way credit unions can compete with the large banks is by belonging to ATM networks and the shared branch network. ATM networks can give credit union members access to surcharge-free ATMs around the nation. A shared branch network allows credit union members to conduct many banking transactions at participating credit union locations within the network, just as if they were at their home branch.

The three main ATM networks for credit unions are the CO-OP Network (owned by CO-OP Financial Services), Credit Union 24 and Allpoint (owned by Cardtronics).

For shared branch networks, there used to be two main networks, the Financial Service Centers Cooperative (FSCC) and CO-OP Shared Branching. However, in 2012 FSCC was merged into CO-OP Shared Branching. So now CO-OP Shared Branching is really the only nationwide credit union shared branch network. It has nearly 5,000 nationwide branch locations. You might find a few other smaller ones. The Xtend CU Shared Branch has 190 locations nationwide with most in Michigan, Ohio and Indiana.

According to this Credit Union Times article, in 2013 we will "see an increased deployment of shared branching as well as a rising profile for this service." This is good news for savers since shared branches can make it easier to fund CDs and move money around. I experienced the benefits of shared branching in 2011 when I was a beneficiary of a CD from a credit union that was part of the shared branch network. When I closed the CD and received the check, I was able to immediately deposit the check into my own credit union which was also part of the shared branch network.

To find out if your credit union is part of the CO-OP Shared Branch Network, refer to the CO-OP Network search tool. This will also let you know if your credit union is part of the CO-OP ATM Network. You can also use the search tool at CUServiceCenter.com to see if your credit union participates in shared branching.

One thing that's confusing is that your credit union may show up at CUServiceCenter.com, but it may not show at the CO-OP Network site. One reason for the difference may be that some credit unions don't fully participate in shared branching. A credit union may be an issuer (offering their members the shared branching locations) without becoming an acquirer (accepting transactions from guest credit union members). CUServiceCenter.com appears to include credit unions that are just issuers while the CO-OP Network site doesn't appear to include these.

Below are a few of the popular credit unions with information on shared branch and ATM network participation. Unfortunately, some of the top credit unions for savers don't participate in the shared branch network.

• Alliant Credit Union - No Shared Branches (except in Hawaii), ATM Networks: CO-OP, Alliance One, Credit Union 24, Allpoint
• Melrose Credit Union - Shared Branches, ATM Networks: CO-OP
• Mountain America Credit Union - Shared Branches, ATM Networks: CO-OP
• Navy Federal Credit Union - No Shared Branches, ATM Networks: CO-OP, Money Pass
• Pentagon Federal Credit Union - No Shared Branches, ATM Networks: ? (PenFed ATM tool currently not working)

The transition of MetLife Bank, N.A. deposit products and accounts to GE Capital Retail Bank (GECRB) was completed on Monday. According to GE's press release:

STAMFORD, Conn. – January 14, 2013 – GE Capital Retail Bank, a Federal Savings Bank, announced today that it finalized the acquisition of MetLife's deposit base and online deposits business. The deal adds approximately $6.4 billion in deposits, 40 employees, and an established online banking platform. Financial terms of the transaction, which has been approved by the Office of the Comptroller of the Currency (OCC), were not disclosed.

MetLife Bank's website now points to the new GECRB website. However, the deposit products look the same and are still fairly competitive. Unfortunately, I don't see any hot deal to celebrate the transition. The savings account and money market account have a 0.85% APY for balances of at least $10,000. The two best CD rates are the 12-month CD which has a 1.05% APY for a $25,000 minimum deposit and the 18-month CD which has a 1.12% APY for a $2,000 minimum deposit. These rates are listed in the GECRB's CD page as of 1/15/2013.

Free Identity Theft Protection Still Offered

One perk with MetLife Bank was free identity theft resolution services. GECRB is still offering this:

GE Capital Retail Bank provides deposit account holders with complementary Identity Theft Resolution Services through Identity Theft 911® just for banking with us. If you are ever a victim of Identity Theft, you’ll have the assistance you need to help you get your life back to normal as quickly and easily as possible.

A reader had told me he maintained the MetLife savings account just for this service. If you're going to do this with GECRB, the High Yield Savings Account is the best account since it requires only a $50 minimum balance to avoid a monthly service fee.

GE Capital Retail Bank Overview

GECRB’s main office is located in Draper, Utah. GECRB has been around for awhile. It was established with FDIC insurance in 1988. However, it has not been in the retail deposit-taking business before the MetLife Bank acquisition. Its business focus has been on providing customized credit programs to retailers and consumers.

GECRB has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas ratio of 7.75% (excellent) based on September 2012 data. Please refer to our financial overview of GE Capital Retail Bank for more details.

GE Interest Plus Notes

With GECRB now offering deposit accounts online, there might be confusion over GE Capital Invest Direct which has a corporate note program with a money-market-like account. However, it's unsecured debt that is not FDIC insured. The only advantage is a higher rate. Currently, the GE Interest Plus account offers a 1.11% yield for a $50,000 minimum balance. With several FDIC-insured internet money market accounts offering 1.05% APY, this GE Interest Plus account isn't worth it in my opinion. I keep track of a few more of these corporate notes accounts at the bottom of my weekly summaries.

Sound Credit Union has long been offering a $100 bonus for opening one of its checking accounts and establishing direct deposit of at least $250 per month. One small change in the qualifications since my last report is that the member must not have had a checking account at Sound in the last 12 months. This offer is listed in the credit union's checking promo page as of 1/15/2013. No expiration date is mentioned. Here's the small print of the offer:

Requires Sound membership and savings account with minimum $25 balance. Must meet qualifying criteria to open checking account. Offers may change at any time. $100 Bonus: A new minimum $250 monthly recurring direct deposit to a new primary consumer checking account is required. Cannot have had a checking account in past 12 months. Bonus paid on first business day of the month following third direct deposit. Direct deposit must begin within 90 days of opening account. One bonus per member and may be reported on form 1099-INT.

Sound's free checking account qualifies for the promotion. It has no monthly service charge or minimum balance requirement. One nice perk is free checks. Another perk is that it allows one free overdraft every year.

$100 Visa Credit Card Promotion

Sound Credit Union also has a promotion for its Visa credit cards. Open a new Visa credit card and receive $100 instant credit. You can get this $100 bonus quicker than the checking account bonus. However, the downside with all credit card applications is a hard credit inquiry. This offer is listed in the credit union's Visa promo page as of 1/15/2013.

Membership Qualifications

Membership is open to anyone who lives or works in Washington State or has a family member who has an account with Sound or who is eligible to join. Please refer to the credit union's Join-Us Page for the full details. Membership requires a minimum $25 balance in the savings account.

Credit Union Overview

Sound Credit Union branches are located in several Washington cities from Seattle to Olympia. Sound is also part of the shared branch network, CU Service Centers, which allows members to conduct many banking transactions at branches at other credit unions around the nation.

The credit union has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 6.17% (excellent) based on September 2012 data. Please refer to our financial overview of Sound Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 66331).

Other Credit Union and Bank Bonuses

We have a bank promotions page with a table of all of the active bank and credit union promotions. You can filter the table based on the type of promotion and based on your state. I have more details about how to use this page in this blog post.

You can view my latest bank bonus blog posts in this bank bonus page. I and DepositAccounts.com readers often post on bonuses in the checking account deals forum.

Silvergate Bank has recently started offering an online savings account and online CDs on its website. They call them High Yield Online Savings and High Yield Online CDs. The rates are competitive but not great. Nevertheless, I'm always happy to see new internet accounts. The more competition, the more pressure for banks to offer higher deposit rates.

High Yield Online Savings Account

The High Yield Online Savings Account has a 0.90% APY for balances of at least $1,000 as of 1/14/2013.

There's a $10 monthly maintenance fee, but this can be waived by receiving free eStatements. One feature that's rare for savings accounts is online bill pay. They also offer Popmoney which is a personal payment service that lets pay people using just an e-mail address or cell phone number. Just like any savings account, there's a limit of 6 electronic withdrawals.

There's also a service for ACH transfers that the bank calls Account to Account Transfers. The bank's website currently has no details on this service, and when I called the bank last week, the CSR had trouble in providing the details. It appears there's a $1 fee for initiating outgoing transfers. For maximum size of the transfers, I was told this can vary on a case-by-case basis. I followed up with an email to get better answers, but I'm still waiting. I'll updated this post when I receive a reply.

Last Thursday I described the problem of new internet banks neglecting ACH transfers and the features that make for a good ACH transfer service.

High Yield Online Certificates of Deposit

Silvergate Bank currently offers only two High Yield Online CDs: a 0.98% APY 1-year CD and a 1.16% APY 2-year CD as of 1/14/2013.

Minimum deposit is $2,500, and the maximum balance to qualify for the above rates is $225,000. The CDs must be opened and funded online. I wasn't able to find additional CD details on the bank's website on things like early withdrawal penalties.

Online Application

I did confirm with the bank's CSR that people in any state can apply online.

I took a quick look at the bank's online application, and I noticed two nice features. First, it allows accounts to be titled in the name of a trust. Second, the form provides an optional field for a beneficiary. Only the name and birth date are required (some banks require the social security number of the beneficiary).

Bank Overview

Silvergate Bank is headquartered in La Jolla, California with 5 branches in Southern California.

The bank has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas ratio of 13.84% (above average) based on September 2012 data. Please refer to our financial overview of Silvergate Bank for more details. The bank has been a FDIC member since 1988 (FDIC Certificate # 27330).

How The Rates Compare

Since the internet banking features (like ACH transfers) are questionable, it's hard to see a reason to open an account at any new internet bank unless it offers deposit rates higher than any other internet bank. Unfortunately, both the online savings account and CD rates at Silvergate Bank are below the rates available from the best internet banks. However, they're close. Perhaps they will be on top in the future.

For non-promo rates without small balance caps, there are four internet banks offering money market accounts with a 1.05% APY, and there are two that offer savings accounts with a 1.00% APY.

For internet CD rates, the highest 1-year CD APY is 1.05% and the highest 2-year CD APY is 1.20%. The highest APYs at all-access credit unions are 1.25% for a 1-year CD and 1.60% APY for a 2-year CD. Both of these are available at Pentagon Federal Credit Union.

These rates are accurate as of 1/14/2013.

Searching for the best savings, money market and CD Rates

You can search our tables to find the best rates that are nationally available and the best rates that are available in your state. To learn how to do this please refer to the post Tips on using our rate tables. The links to the rate tables are provided below:

• savings account rate table
• money market rate account table
• CD rate table (1-year term is the default, use top menu to select different terms)

Oritani Bank has new checking account promotions that are similar to last year's offers. One is a bonus for a free checking account in which you can earn $125. The second is a guaranteed rate on the bank's interest checking account. Both of these promotions are listed on the bank's front page as of 1/14/2013.

$125 Checking Account Bonus

The checking account promotion is the same as what the bank was offering last year. You can earn up to $125 if you meet the following requirements:

• Open a TGIF (Thank Goodness It's Free) Checking Account
• $50 will be deposited into your TGIF account when you receive Direct Deposit within 100 days of account opening
• An additional $50 will be deposited into your TGIF account when you complete 3 Oritani Online Banking Payments within 100 days of account opening
• An additional $25 for signing up for eStatement banking

The TGIF Checking account has no monthly service charges and no minimum balance requirement. Minimum initial deposit is $100. The first 50 checks are free.

There's also a $125 bonus for the bank's free business checking account.

1.02% APY Guaranteed to 7/1/2013

The other checking account promotion guarantees a 1.02% APY until 7/1/2013. This requires that you open the bank's Optimum Gold E-Checking account. The minimum balance to qualify for the 1.02% APY is $25,000, and balances below $10,000 incur a $20 monthly fee. It also requires the following:

• Receive the monthly statement electronically (eStatement) AND
• Receive a recurring direct deposit to the account OR make 3 online Bill Payments monthly from the account within 60 days of account opening

After the promotional period, the rate will fall to the standard Optimum Gold E-Checking rates. The standard top rate is currently only 0.45% APY for balances of at least $25,000.

Hat tip to DA reader stormdog123 who posted on this promo in the forum.

There's also a money market promotion, but this only guarantees 0.70% APY until 3/4/2103 for balances over $25,000. Its standard top rate is 0.55%.

A branch visit is required to open an account. Oritani Savings branches are located in the New Jersey counties of Bergen, Passaic and Hudson.

The bank has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 6.68% (excellent) based on September 2012 data. Please refer to our financial overview of Oritani Bank for more details. The bank has been a FDIC member since 1939 (FDIC Certificate # 28866).

Other Bank Bonuses

We have a bank promotions page with a table of all of the active bank and credit union promotions. You can filter the table based on the type of promotion and based on your state. I have more details about how to use this page in this blog post.

You can view my latest bank bonus blog posts in this bank bonus page. I and DepositAccounts.com readers often post on bonuses in the checking account deals forum.

You can get somebody to coach you in just about anything – athletics, getting into college, or how to navigate your career, for example. These days, you'll even find specialists who call themselves retirement coaches. Do you need one?

“A retirement coach can get you on track to meet your goals and life's dreams,” says Zack Shepard a financial coach and managing director at Matson Money. “From a simple investment standpoint, the average investor for the last 20 years has earned 3.49% in their investments versus just owning the S&P 500 at 7.81%. That's over a 4% difference. A coach, through education and discipline can help an investor close that gap,” says Shepard.

How a coach can help

Maybe you already have an accountant and a financial advisor, what can a retirement coach do that's different? Matson Money's website makes the case for a coach.

"Coaching is different from traditional financial advice. An investment coach is a financial professional who goes beyond typical financial planning and advice to help you identify your investment philosophy, understand your investment strategy, and provide discipline throughout your investment experience. A coach will not only help you identify the right strategy for you, but help you keep your decisions and behavior regarding your investments on track for achieving the results you want."

It's promising, tempting for sure. Retirement is about more than just knowing how much money you'll need and figuring out what type of investments will likely get you there. Retirement is not just about money. It's much deeper than that. It's a time of great transition and emotion. What the heck will you do with yourself now that you're out of excuses? You have all the time in the world, how will you fill your days? Can you stand being home all day, or will you work part-time in retirement whether you need the money or not, just because you need the social interaction? It's the touchy-feeling stuff that a retirement coach can serve as an objective sounding board, in addition to keeping you track with the hard core financials.

People are looking for guidance. Ameriprise Financial's New Retirement Mindscape II study in 2010, revealed that just 45% of retirees surveyed said they were living their dream in retirement, compared with 68% in 2005. Even more telling, 57% said retirement had worked out the way they planned, compared to 77% in 2005.

Then too, there's nothing like someone keeping you accountable. “A financial advisor can tell you that you're spending too much and that you need to save more toward your future retired. If you're already retired, they can let you know whether you're spending too much in retirement and talk to you about cutting back. A financial advisor can help you take action toward retirement planning instead of procrastinating and help you overcome the urge to panic and make bad choices during times of market volatility,” says Dan Keady, director of financial planning at TIAA-CREF. A coach, as a neutral third party, can also help couples work through the personal dynamics to help them reach a compromise on an overall plan.

Choose your coach carefully

Once you decide you want a retirement coach the big question is where to find good help? You want to focus on those who have not only training in coaching, but a specialty in retirement. If your inner circle doesn't have any recommendations, you can find pros through organizations like the International Coach Federation, the Life Planning Network and 2Young2Retire. Like with any advisor, ask about their credentials and experience. The International Coach Federation has a mid-level certification, the Professional Certified coach, which lets you know that the individual have at least 750 hours of coaching experience, 25 clients, among other criteria.

Know that prices are all over the map. You could be charged between $250-$1,000 to come up with a comprehensive plan and then $250 a year. How much you pay, says Shepard, “Really depends on a number of variables or complexity but for the most part, on average, you can expect to pay less than 1%.”

Some coaches may want a 3-6 month contract, but how much coaching you want and for how long is generally negotiable.

Like with any professional, all coaches are not created equal. “You want someone who has experience with working with clients similar to you,” says Keady. Ask for several references and don't be shy in interviewing them. You want to get a sense of what the coach did and didn't do. How did they help them the most? What were any short comings? Was the coaching experience worth the money?

Your initial consultation with the coach should be free. Don't dismiss intangibles like chemistry and their style. “You must feel comfortable. Avoid anyone who looks like they are offering a generic solution. Retirement is a different animal for everyone. The coach should be asking you what are your priorities, like whether you want to work part-time in retirement or if you would like to spend time volunteering, for example,” says Ron Mizell, vice president at Wright Wealth Management Group.

Bottom line: if your initial impression is not impressive, walk away before putting up any cash.

Edit 1/14/2013: Quote corrections made in paragraph 7.

This was a slow week in economic news. Attention is starting to turn to the debt ceiling which has the potential of damaging the economy. This is just one of several downside risks for the economy this year. Calculated Risk blog has an interesting review of the economic risks along with forecasts for 2013. In summary, even if there are some compromises in Washington, the economy is likely to look a lot like 2012. In addition, the Fed will almost surely continue its ultra easy policies.

The concerns over the debt ceiling contributed to lower Treasury yields this week. But yields weren't much lower than last week. Treasury yield changes over the last week and the expectation of future Fed funds rates are shown below. Numbers are based on Yahoo bond rate data and the CME Group FedWatch.

Treasury Yields:

• 6-month: 0.09% same as last week
• 2--year: 0.25% down from 0.26% last week
• 5--year: 0.78% down from 0.81% last week
• 10-year: 1.87% down from 1.90% last week
• 30-year: 3.04% down from 3.10% last week

Fed funds futures' probability of rate hike by:

• Jan 2015: 62% up from 61% last week
• Apr 2015: 65% down from 74% last week

We had our first 2013 bank and credit union failure this week. A tiny Wisconsin credit union failed on Monday, and a small Washington State bank failed on Friday. There were a total of 51 bank failures and 15 credit union failures in 2012. I have more details in my review of the 2012 bank failures.

Savings & Checking Account Rates

This was a slow week in savings account rate changes. Only one bank on my list cut rates, and that was TIAA Direct which lowered its savings and money market yield from 1.25% to 1.00% APY. TIAA Direct also announced a change that's more worrisome. Effective February 9th, it's limiting ACH withdrawals intiated at TIAA Direct to $5,000 per day. I have more details in this blog post.

I did a review of 2012 rate trends this week. I found it interesting that we saw little decline in the average rate of internet savings and money market accounts. There were a few internet banks that had big cuts (like HSBC and CNB Bank Direct), but there were also some banks that raised rates. As I described in the review, internet savings and money market accounts are starting to look more attractive than many CDs.

For those with large balances, the best non-promo deal continues to be at Connexus Credit Union which has a money market account that pays 1.15% APY for balances of at least $100K. The next best are the four internet banks with money market accounts that continue to pay 1.05% APY.

Two internet banks are offering 1.25% APY, but these are promo rates. You can also get 1.10% APY at AmericaNet Bank and its two sister banks, but all three have a $35K balance cap.

Reward Checking Accounts

There were no changes this week on my list of nationally available reward checking accounts. However, there continues to be several reward checking accounts that are only local deals that had cuts in their rates and/or balance caps. Thanks to the readers who have reported on these in the reward checking forum.

We may see more rate and balance cap cuts this year. It's not only the awful interest rate environment, but lower debit card interchange revenue may also push down rates. This week I posted about news of lower interchange revenue in the third quarter of 2012.

One new thing I did to the list this week is highlighting the reward checking accounts that have balance caps of at least $25K. As you can see, there aren't many with decent rates. However, there are still many local deals with balance caps of $25K and yields over 2.00%. To find the highest reward checking rates and balance caps in your state or nationwide, please refer to our reward checking rate table. If you're new to these tables, my rate table guide should be useful. If you're new to reward checking, please refer to my blog post, 10 Common Traits of High-Yield Reward Checking.

Rate Hikes:

1. None

Rate/Balance Cap Cuts:

1. TIAA Direct Savings/MMA - 1.00% [was 1.25%]

Certificate of Deposit Rates

My recap of CD rate changes and the list of CD deals will now be in my survey of the best CD rates. This recap will now focus on banking news of the week and liquid accounts.

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

• One Bank and One Credit Union Closed by Regulators
• Forum Highlights: Navy Fed IRAs, Coping with ZIRP and Credit Card Rewards
• Deposit Account Rate Trends of 2012
• Deposit Rate Survey and Commentary for January 2013
• Five Financial Lessons from 2012

• TIAA Direct Cuts Rates and Announces New Limits on ACH Withdrawals
• New Internet Banks Often Neglect ACH Transfers - Why This Is a Mistake

• Survey of the Best CD Rates for January 11, 2013
• 17-Month CD Special at Northern Bank & Trust Company - Online Application
• Special 15-Month CD Rate at USAlliance FCU - Easy Membership
• Long-Term CD Rates Fall at Navy Federal But Remain Competitive

• BB&T Offers Another $100 Checking Account Bonus

• Drop in Debit Card Interchange Revenue and Effect on Reward Checking

• Top Long-Term CD Rates at Gesa Credit Union - Washington State
• Competitive CD Rates at Keesler Federal Credit Union in Mississippi
• Best CD in America has a Rate Cut - Navy Army Community CU in Texas - Local Only

• Archive of 2013 Posts

Rates as of January 12, 2013

Checking/Savings/Money Market Accounts:

• Best Savings Account Rates (Nationwide & by State)
• Best Money Market Rates (Nationwide & by State)
• Best Checking Account Rates (Nationwide & by State)

• How to View Rates for Your State

• Noteworthy Accounts Available Nationwide:

• Salem Five Direct - 1.25% savings, for new customers only (~0.75% for existing customers)
• EverBank - 1.25% MMA/Checking (6mo intro rate) 0.76% ongoing rate, account review
• Connexus Credit Union - 1.15% ($100K) 1.00% ($50K) 0.75% ($20K) active chk required
• Redneck Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• AmericaNet Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• Evantage Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• Sallie Mae Bank - 1.05% MMA account review
• Union Federal Savings Bank - 1.05% MMA (min $2.5K) account review
• MyBankingDirect - 1.05% (min $5K)
• Incredible Bank - 1.05% MMA ($2.5K min) account review
• CIT Bank - 1.00% ($25K) 0.90% ($0) Savings, account review
• Acacia Federal - 1.00% MMA (min $25K), account review
• Acacia Federal - 1.00% Metro Checking, account review
• Barclays - 1.00% Savings account review
• SmartyPig - 1.00% ($50K max), account review
• TIAA Direct - 1.00% MMA/Savings (not accepting new customers) account review
• ableBanking - 0.96% MMA (min $1K)
• Ally Bank - 0.95% MMA/savings
• SFGI Direct - 0.94% account review
• AloStar Bank of Commerce - 0.91% ($50K) 0.50% ($0) MMA Advantage
• Sallie Mae Bank - 0.90% Savings account review
• American Express Bank - 0.90%, account review
• Incredible Bank - 0.88% Checking ($1K min) account review
• Colorado Federal Savings Bank - 0.85% ($2.5K min) account review
• ING Direct - 0.85% ($100K) 0.80% ($50K) Electric Orange Checking
• FNBO Direct - 0.85% Savings
• Clear Sky Accounts - 0.80% (max $250K) account review
• Discover Bank - 0.80% Savings (min $500) account review
• Alliant Credit Union - 0.80% (min $100) Savings account review
• UFB Direct (BofI Federal) - 0.80% MMA/savings account review
• Nationwide Bank - 0.76% MMA (min $1K)
• One United Bank - 0.75% ($100K) 0.70% ($25K) 0.65% ($1K) E-Money Market
• Alliant Credit Union - 0.75% Checking (req's elec. dep & e-stmts) account review
• ING Direct - 0.75% Orange Savings

Reward Checking Accounts:

• Best Reward Checking Account Rates for a $10,000 Balance - Nationally Available
• Best Reward Checking Account Rates for a $25,000 Balance - Nationally Available

• How to View Rates for Your State

• Noteworthy Accounts Available Nationwide:

• Consumers Credit Union - 3.09% (up to $5K) 0.20% ($5K-$25K) 0.10% ($25K+)
• Money One Federal Credit Union - 3.01% (up to $10K) 0.51% (over $10K)
• Lake Michigan Credit Union - 3.00% (up to $15K) 0.00% ($15K+)
• Capital Educators Federal Credit Union - 2.50% (up to $10K) 0.20% ($10K+)
• ABCO Federal Credit Union - 2.12% (up to $25K) 0.30% ($25K+)
• Redneck Bank - 2.00% (up to $10K) 0.50% (over $10K)
• AmericaNet Bank - 2.00% (up to $10K) 0.50% (over $10K)
• Evantage Bank - 2.00% (up to $10K) 0.50% (over $10K)
• INOVA Federal Credit Union - 2.00% (up to $20K) 0.15% ($20K+)
• First Tech Federal Credit Union - 1.78% (up to $10K) 0.21% ($10K+)
• Provident Credit Union - 1.76% (up to $25K) 0.11% ($25K+)
• Connexus Credit Union - 1.75% (up to $25K) 0.50% ($25K+) Xtraordinary Checking
• Community Bank of Raymore - 1.75% (up to $10K) 0.50% ($10K+)
• Community Bank of Pleasant Hill - 1.75% (up to $10K) 0.50% ($10K+)
• Pacific Resource Credit Union - 1.75% (up to $15K) 0.50% ($15K+)
• First New England Federal Credit Union - 1.52% (up to $15K) 0.10% ($15K+) (extra 1% w/relationship)
• Heritage Bank - 1.51% (up to $25K) 0.10% ($25K+)
• Legence Bank - 1.50% (up to $25K) 0.25% ($25K+)
• BankFirst Financial Services - 1.50% (up to $50K) 0.25% ($50K+)
• Avidia Bank - 1.36% (up to $25K) 0.05% ($25K+)
• West Texas National Bank - 1.26% (up to $25K) 0.25% ($25K+)
• Bank of Blue Valley - 1.25% (up to $15K) 0.10% ($15K+), $1K/month debit card req (account review)
• Bank of Internet USA - 1.25% (all balances)
• North Country Savings Bank - 1.05% (up to $25K) 0.75% ($25K+)
• State Bank of Toledo - 1.00% (up to $25K) 0.15% ($25K+)

Certificates of Deposit:

• Best CD Rates (Nationwide & by State)
• Best IRA CD Rates (Nationwide & by State)

• How to View Rates for Your State

• Survey of the Best CD Rates for January 11, 2013 (Nationwide & Local)

Various Deposit Account Deals

• Bank Promotions
• Best IRA CD rates, local and nationwide deals
• Latest CD and Savings Account Deals with No Major Deposit Limitiations

Bank Account Alternatives - NOT FDIC Insured

• Ally Financial Demand Notes - 1.75%, Ally Demand Notes review
• Duke Energy PremierNotes - 1.50% rate for $50K+, Duke Energy PremierNotes review
• Ford Interest Advantage - 1.10% rate for $50k+, Ford Interest Advantage review
• GE Interest Plus - 1.10% rate for $50k+
• Vanguard Prime Money Market Fund - 0.01% 7-day yield
• Vanguard Tax-Exempt Money Market Fund - 0.01% 7-day yield
• Fidelity Money Market Fund - 0.01% 7-day yield (reviews on Fatwallet)
• Fidelity Municipal Money Market Fund - 0.01% 7-day yield
• TIAA-CREF Money Market Fund - 0.00% 7-day yield
• PayPal Money Market Fund has ended effective 7/29/11
• FW Thread on Treasury Bills
• Series I Savings Bond Purchases from Nov 2012 thru Apr 2013, I Bond Article, I Bonds as CD Alternatives

After almost a year at 1.25% APY, TIAA Direct lowered the APY of its savings and money market accounts this week to 1.00%. This news only affects existing customers since TIAA Direct remains closed to new customers. There has also been additional news on TIAA Direct. Thanks to the readers who emailed me on this. Customers have received notice from TIAA Direct about changes taking effect on February 9, 2013. For savers the big change is a new $5,000 limit for ACH withdrawals initiated from within TIAA Direct. If you haven't received a notice in the mail about these changes, you can read about them at the bottom of TIAA Direct's deposit agreement. Here's the important excerpt:

On February 9, 2013, TIAA-CREF Trust Company, FSB is making the following changes that will apply to you and all of your deposit accounts.
[...]
You may not instruct us to process more than $5,000 in ACH withdrawal transactions from any or all of your accounts with us in one business day.

Currently, there is no limit on the size of ACH withdrawals. So this is a major change. I could see going down to a $250K or $100K limit, but a $5K limit seems extreme. I haven't been able to get a reason for this change from TIAA Direct. It is suspicious that this change is occurring right after a rate cut. For savers who don't have accounts at other internet banks, this could be a major issue especially if more rate cuts come.

One important thing to note is that this new $5K limit won't apply to ACH withdrawals initiated from another bank (i.e. an ACH pull). This has been confirmed with TIAA Direct CSRs. If you don't have another internet bank, you might want to consider either withdrawing your funds from your TIAA Direct account before February 9th or opening an account at another internet bank like Ally Bank or Sallie Mae Bank which allows for large ACH transfers. Another option for making large withdrawals after February 9th is by check if you have TIAA Direct's checking or money market account.

In July 2012 TIAA Direct stopped accepting new customers for its bank accounts. This continues to be the case as of today (1/12/2013). They continue to claim that this was just a pilot of TIAA Direct, and before moving on to the next phase, they "will be making enhancements to the customer experience." I was hoping this next phase would begin in early 2013. Perhaps these changes are in preparation for this next phase.

Another disappointment with TIAA Direct has been on the issue of designating beneficiaries. According to the bank's FAQs as of 1/12/2013, you still can't assign beneficiaries to your accounts. I was told in October that they expected to have this ready by December.

I hope the management at TIAA-CREF Trust Company is committed in making TIAA Direct a competitive internet bank. With the internet bank still not accepting new customers and with the recent changes, you have to wonder about its future.

After a holiday break, the FDIC is back in action this Friday. Westside Community Bank was closed by Washington State regulators. The FDIC entered into a purchase and assumption agreement with Sunwest Bank of Irvine, California, to assume all of the deposits. This is the first bank failure of 2013. Last year the first bank failures didn't occur until January 20th. This is the first Washington State bank failure since August 2011 when Bank of Whitman failed.

The closure of Westside Community Bank was typical with the FDIC arranging for another bank to assume all deposits. The FDIC had the following message in its Q&As:

No one lost any money on deposit as a result of the closure of this bank. All deposits, regardless of dollar amount, were transferred to Sunwest Bank.

CD customers at Westside Community Bank will have to wait to see what happens with the rates. The FDIC has its typical message about interest rates in its Q&As:

Interest on deposits accrued through close of business January 11, 2013 will be paid at your same rate. Westside Community Bank's rates will be reviewed by Sunwest Bank and may be lowered; however, you will be notified in writing of any changes. You may withdraw funds from any transferred account, regardless of whether your interest rate changes, without early withdrawal penalty until you enter into a new deposit agreement with Sunwest Bank.

The first credit union failure of 2013 was announced by the NCUA on January 7th. The failed credit union was New Covenant Missionary Baptist Church Credit Union of Milwaukee, Wisconsin, and it was a tiny credit union with only 294 members and $585,000 in assets. The NCUA did not find another credit union to assume members' deposits, so checks will be mailed for the insured deposits.

Below is the summary of the recent bank and credit union failures:

1st Bank Failure of 2013 (1st in Washington State)

• Closed Bank: Westside Community Bank, University Place, WA
• FDIC Press Release
• Size: 2 branches, $97.7 million in assets and $96.5 million in deposits
• Acquiring Bank: Sunwest Bank, Irvine, CA
• Possible Uninsured Deposits: all deposit accounts, including brokered deposits, have been assumed by Sunwest Bank (FDIC Q&A)
• Rate Changes: Westside Community Bank's rates will be reviewed by Sunwest Bank and may be lowered (FDIC Q&A)
• Estimated Cost to Deposit Insurance Fund: $20.3 million
• Enforcement Action: FDIC 9/24/10 consent order, FDIC 6/5/12 PCA
• Financial Ratings: 1 star at Bankrate.com, 0 star at BauerFinancial, 1 star & Texas Ratio of 962.56% at DepositAccounts.com (see financial rating note)

1st Credit Union Liquidation of 2013 (Jan 7th)

• Liquidated CU: New Covenant Missionary Baptist Church Credit Union of Milwaukee, WI
• NCUA Press Release
• Size: 294 members and had assets of approximately $585,000
• Acquiring CU: None

Financial Ratings Notes: 0 star is lowest at BauerFinancial, 1 star is lowest at DepositAccounts.com & Bankrate.com, Texas Ratios over 100% is considered at risk. Ratings at DepositAccounts.com and BauerFinancial are based on September 30, 2012. Ratings at Bankrate.com are based on June 30, 2012 data.

References:

• FDIC list of failed banks
• Texas Ratios for banks and credit unions
• Latest FDIC info on deposit insurance
• My bank failure review posts
• Review of the 2012 bank and credit union failures
• Review of the 2011 bank and credit union failures
• Review of the 2010 bank and credit union failures
• 10 Lessons from the 2008 bank failures

On Tuesday I looked at the deposit rate trends in 2012, and as you might have expected, there was a steady decline in all rates. One interesting thing to note was that 5-year CD rates had larger declines than 1-year CD rates. That trend appears to be continuing this week as a few banks and credit unions cut their long-term CD rates.

Navy Federal Credit Union was one of these. Its 7-year, 6-year and 5-year CD rates fell from 15 to 11 basis points. The highest yield is now 2.00%, and this requires a 7-year term with a $100K minimum deposit.

Ally Bank also had a rate reduction on its 5-year CD. The yield fell from 1.61% to 1.59% APY. I still include this CD due to Ally Bank's small early withdrawal penalty of 60 days of interest. Barclay's 5-year CD is now a better deal than Ally's 5-year CD if the CD is kept open until at least 18 months. Barclay's 5-year CD still has a 1.70% APY and an early withdrawal penalty of 90 days of interest. When relying on a CD early withdrawal, just be aware of the risks.

Salem Five Direct also reduced its longest-term CD rate. Its 30-month CD yield was cut from 1.50% to 1.40%. Its 18-month CD yield remains at 1.15%.

I did add a few new nationally available CDs to the list. Dime Savings Bank came out with two IRA CD specials: 1.50% APY for 30 months and 2.00% APY for 5 years. These are only available as an IRA CD. It's common for banks and credit unions to offer IRA specials during this time of year when IRA contributions can be made for both the current and past year.

The other two CD additions are for terms between 12 and 18 months. USAlliance Federal Credit Union is offering a special 1.30% APY 15-month CD. An association can be joined to qualify for membership in the credit union. The other new CD is at Northern Bank & Trust Company in MA. It's offering a special 1.25% APY 17-month CD. This can be opened online from any state.

The highest CD rate that's nationally available continues to be at Citizens State Bank which is offering a 5-year CD with a 2.05% APY. This is a small Florida bank, but they are accepting deposits nationwide and the CDs can be opened online. Before January the bank required a $100K minimum deposit to qualify for a 2.00% APY. The minimum for this 2.05% APY is now just $1,000.

Local CD Deals

For CDs that are only available locally, there were a few noteworthy rate cuts this week. Following the trend I described above, most of the rate cuts came from long-term CDs.

BBVA Compass ended its 2% 5-year CD. The yield fell to 1.75% APY for part of its market area. In other areas, the new yield is 1.50%. The 1.75% APY is available in parts of Florida, California and Arizona. For the other market areas (parts of Alabama, Colorado, New Mexico and Texas), the 5-year CD has a 1.50% APY. The 2-year CD still has a 1.25% APY in all areas. For both of these CDs, an extra 10 basis points is available with a CompassLink checking account.

The last 3% CDs ended this week. Both were in Texas. Navy Army Community Credit Union in the Corpus Christi metro area reduced its 30-month CD yield from 3.00% to 2.50%. San Antonio Credit Union (SACU) reduced its 10-year CD yield from 3.00% to 2.80%.

Unless you're lucky and live in one of a handful of areas in the nation, the best CD rate available is only around 2%, and most of these have terms from 5 to 10 years. I found three more of these CDs this week.

Keesler Federal Credit Union in Mississippi has a Jumbo 5-year CD with a 2.00% APY. It's a large credit union, and it has an online application. Also, you can qualify for membership via associations. I didn't classify this as an all-access credit union since all of the associations appear to be tied to Mississippi.

The second addition is a 2.06% APY 7-year CD from Gesa Credit Union. Anyone in Washington State is eligible to join this credit union.

The third addition is a 2.01% APY Jumbo 7-year CD at Amplify Credit Union which is open to those who live in the Austin Texas metro area. If you have at least $100K, this is now a better deal than the 7-year Jumbo CD at Randolph-Brooks Federal Credit Union. Its rate dropped below 2% last year.

Long-Term CD Break Strategy

For the short-term CDs in my lists, you might notice CDs with the note "5-year CD closed after X years". These take into account the yield after the early withdrawal penalty is applied. Since Ally Bank's 5-year CD only has a 60-day interest penalty, it's still a good deal when closed early even with the recent rate cuts.

The risks of planning for early withdrawals of long-term CDs were recently highlighted by the deposit agreement change at Ally. The risks have also been seen at credit unions which have raised the early withdrawal penalties on existing CDs. I have more details in this blog post.

Note About the CD Survey

As I described in my rate table overview, you can use our CD rate tables to find the best rates for both nationally available CDs and local CDs. This CD survey blog posts are intended to highlight nationwide CD deals that may not be apparent in the tables. For example, I'll include the post-penalty yields of a few long-term CDs.

The CD survey blog posts are also intended to highlight the local CD deals that are available in large metro areas. There are many high CD rates, but most of these are at small banks in rural areas or at small credit unions with very narrow fields of membership. In these local CD surveys, my focus is on local CD deals that are in big cities or that are available in large areas of a state.

Yields Accurate as of January 11, 2013

Under 1-Year CD Rates

• EverBank - 1.25% checking/MMA intro 6-month rate ($100K/$50K max) account review
• Ally Bank - 1.06% (1.59% 5-year CD closed after 6 months, see review & risks)
• Connexus Credit Union - 1.00% 6-month CD w/active chk
• Xceed Financial Credit Union - 1.00% 9-month CD
• Doral Bank Direct - 0.94% 9-month CD, account review
• Ally Bank - 0.91% 11-month No-Penalty CD, see account review
• Doral Bank Direct - 0.90% 6-month CD, account review
• Barclays - 0.85% (1.70% 5-year CD closed after 6 months, see review & risks)
• Colorado Federal Savings Bank - 0.80% 6-month CD

• Noteworthy Local Deals

• HomeBanc N.A. - 1.50% ($75K max) 3-month CD (Central Florida)
• Gulf Coast Federal Credit Union - 1.10% 6-month CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 1.05% ($250K) 0.95% ($100K) 0.85% ($1K) 7-month CD (several parts of Iowa)
• Veridian Credit Union - 1.00% ($100K) 0.80% ($1K) 7-month CD (several parts of Iowa)
• First Choice Bank - 0.90% ($50K) 0.85% ($2.5K) 288-day CD (Los Angeles & Orange County, CA)
• LOMTO Federal Credit Union - 0.85% 6-month CD (parts of New York City)

1-Year CD Rates

• Ally Bank - 1.32% (1.59% 5-year CD closed after 1 year, see review & risks)
• Barclays - 1.27% (1.70% 5-year CD closed after 1 year, see review & risks)
• Pentagon Federal Credit Union - 1.25% 1-year CD
• State Bank of India - Chicago - 1.16% ($95K) 1.05% ($2.5K) 1-year CD
• Connexus Credit Union - 1.10% 1-year CD w/active chk
• CIT Bank - 1.05% ($25K min) add-on & bump-up 1-year CD
• NexBank - 1.05% 1-year CD, account review

• Noteworthy Local Deals

• City County Credit Union - 1.51% 1-year IRA-only CD (many FL counties)
• Gulf Coast Federal Credit Union - 1.50% 12-month CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 1.35% ($250K) 1.25% ($100K) 1.15% ($1K) 13-month CD (several parts of Iowa)
• General Electric Credit Union - 1.27% ($100K) 1-year CD (Cincinnati OH metro)
• LOMTO Federal Credit Union - 1.20% 1-year CD (parts of New York City)
• Mansfield Bank - 1.20% 14-month CD (Massachusetts)
• Doral Bank NY - 1.15% 1-year CD (NYC)
• Beal Bank - 1.11% 1-year CD (Southeast FL)
• East River Bank - 1.00% 14-month CD (Philly, PA)
• First Choice Bank - 0.95% ($50K) 0.90% ($2.5K) 366-day CD (Los Angeles & Orange County, CA)

18-month CD Rates

• Ally Bank - 1.41% (1.59% 5-year CD closed after 18 months, see review & risks)
• Barclays - 1.41% (1.70% 5-year CD closed after 18 months, see review & risks)
• USAlliance Federal Credit Union - 1.30% 15-month CD
• Northern Bank & Trust Company - 1.25% 17-month CD
• Salem Five Direct - 1.15% 18-month CD
• NexBank - 1.15% 18-month CD, account review
• MetLife Bank - 1.12% 18-month CD
• Doral Bank Direct - 1.06% 18-month CD, account review

• Noteworthy Local Deals

• Gulf Coast Federal Credit Union - 1.65% 18-month CD (Corpus Christi, TX metro)
• Generations Federal Credit Union - 1.50% 18-21-month CD ends on 1/18/13 (San Antonio, TX)
• TEXAR Federal Credit Union - 1.35% 18-month CD (Northeast TX)
• Veridian Credit Union - 1.30% ($100K) 1.11% ($1K) 15-month CD (several parts of Iowa)
• Libertad Bank - 1.25% 18-month CD (Texas)
• El Paso Area Teachers FCU - 1.21% ($50K) 1.11% ($500) 18-month CD (El Paso, TX)
• Meetinghouse Bank - 1.20% 18-month CD (Boston, MA)
• Valley Green Bank - 1.20% 18-month CD (Philadelphia, PA)
• Doral Bank NY - 1.20% 18-month CD (NYC)
• First Choice Bank - 1.00% ($50K) 0.95% ($2.5K) 541-day CD (Los Angeles & Orange County, CA)

2-Year CD Rates

• Pentagon Federal Credit Union - 1.60% 2-year CD, account review
• Barclays - 1.49% (1.70% 5-year CD closed after 2 years, see review & risks)
• Ally Bank - 1.46% (1.59% 5-year CD closed after 2 years, see review & risks)
• Citizens State Bank - 1.36% ($100K) 1.21% ($1K) 2-year CD, account review
• Sandia Laboratory FCU - 1.36% ($200K) 1.26% ($100K) 1.16% ($50K) 1.06% ($1K) 2-year CD
• NexBank - 1.30% 2-year CD, account review
• Connexus Credit Union - 1.30% 2-year CD w/active chk
• Northwest Federal Credit Union - 1.26% ($100K) 1.15% ($25K) 2-year CD (+0.25% w/relationship)
• CIT Bank - 1.20% ($25K min) add-on & bump-up 2-year CD

• Noteworthy Local Deals

• TEXAR Federal Credit Union - 1.85% 2-year CD (Northeast TX)
• Gulf Coast Federal Credit Union - 1.85% 2-year CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 1.55% ($250K) 1.45% ($100K) 1.35% ($1K) 21-month CD (several parts of Iowa)
• Veridian Credit Union - 1.45% ($100K) 1.25% ($1K) 25-month CD (several parts of Iowa)
• Doral Bank NY - 1.40% 2-year CD (NYC)
• LOMTO Federal Credit Union - 1.40% 2-year CD (parts of New York City)
• BBVA Compass - 1.35% 2-year CD w/chk, 1.25% w/o chk (parts of AZ, CA, CO, NM, AL, FL, TX)
• BrightStar Credit Union - 1.25% 23-month CD (+0.25% w/chk relationship) (parts of Southeast FL)

3-Year CD Rates

• Wilshire State Bank - 2.28% 3-year installment savings account w/auto xfers, $100K max (account review)
• Pentagon Federal Credit Union - 1.85% 3-year CD, account review
• Connexus Credit Union - 1.75% 3-year CD w/active chk
• Barclays - 1.56% (1.70% 5-year CD closed after 3 years, see review & risks)
• Dime Savings Bank - 1.50% 30-month IRA-only CD
• Ally Bank - 1.50% (1.59% 5-year CD closed after 3 years, see review & risks)
• State Bank of India - Chicago - 1.51% ($95K) 1.41% ($2.5K) 3-year CD
• Citizens State Bank - 1.46% ($100K) 1.31% ($1K) 3-year CD, account review
• Melrose Credit Union - 1.46% 3-year CD
• Salem Five Direct - 1.40% 30-month CD
• NexBank - 1.40% 3-year CD, account review
• Northwest Federal Credit Union - 1.40% ($100K) 1.30% ($25K) 3-year CD (+0.25% w/relationship)
• CIT Bank - 1.35% ($100K) 1.30% ($1K) 3-year CD
• Pentagon Federal Credit Union - 1.33% (2.00% 7-year CD closed after 3 years, see review & risks)
• Discover Bank - 1.30% 3-year CD

• Noteworthy Local Deals

• NavyArmy Community Credit Union - 2.50% 30-month CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 2.20% ($250K) 2.10% ($100K) 2.00% ($1K) 37-month CD (several parts of Iowa)
• Encompass Credit Union - 2.02% 3-year CD (Central Indiana)
• Gulf Coast Federal Credit Union - 2.02% 3-year CD (Corpus Christi, TX metro)
• Workers Credit Union - 1.50% 30-month CD w/chk+dd (MA & Southern NH)
• One Source Federal Credit Union - 1.86% ($50K) 1.76% ($1K) 3-year CD (El Paso, TX)
• Veridian Credit Union - 1.80% ($100K) 1.60% ($1K) 39-month CD (several parts of Iowa)
• Doral Bank NY - 1.55% 3-year CD (NYC)
• LOMTO Federal Credit Union - 1.55% 3-year CD (parts of New York City)
• Sea Comm Federal Credit Union - 1.52% 3-year CD (Northern NY)
• Valley Green Bank - 1.50% 3-year CD (Philadelphia, PA)
• Wings Financial Credit Union - 1.46% 3-year CD (Seattle & Minneapolis Metro areas)

4-Year CD Rates

• Pentagon Federal Credit Union - 1.85% 4-year CD, account review
• Citizens State Bank - 1.77% ($100K) 1.61% ($1K) 4-year CD, account review
• Andrews Federal Credit Union - 1.71% 4-year CD
• Melrose Credit Union - 1.71% 4-year CD
• Green Bank, N.A. - 1.70% 4-year CD
• Communitywide Federal Credit Union - 1.70% 49-month special CD
• Alliant Credit Union - 1.65% 4-year CD
• Nationwide Bank - 1.61% ($100K) 1.56% ($500) 4-year CD
• Barclays - 1.59% (1.70% 5-year CD closed after 4 years, see review & risks)
• Pen Air Federal Credit Union - 1.55% ($100K) 1.45% ($500) 4-year CD
• Ally Bank - 1.52% (1.59% 5-year CD closed after 4 years, see review & risks)
• Discover Bank - 1.50% 4-year CD
• Pentagon Federal Credit Union - 1.50% (2.00% 7-year CD closed after 4 years, see review & risks)
• Barclays - 1.45% 4-year CD
• Ally Bank - 1.35% Raise-Your-Rate 4-year CD

• Noteworthy Local Deals

• University of Iowa Community Credit Union - 2.35% ($250K) 2.25% ($100K) 2.15% ($1K) 49-month CD (several parts of Iowa)
• Jefferson Financial Credit Union - 2.00% 4-year CD (parts of Louisiana)
• One Source Federal Credit Union - 1.97% ($50K) 1.87% ($1K) 4-year CD (El Paso, TX)
• HAPO Community Credit Union - 1.85% 4-year CD (all of Washington State)
• LOMTO Federal Credit Union - 1.75% 4-year CD (parts of New York City)
• Empower Federal Credit Union - 1.75% ($100K) 1.60% ($10K) 4-year CD, extra 0.25% for seniors w/dd (western NY)
• Sea Comm Federal Credit Union - 1.70% 4-year CD (Northern NY)
• Doral Bank NY - 1.65% 4-year CD (NYC)
• Wings Financial Credit Union - 1.61% 4-year CD (Seattle & Minneapolis Metro areas)
• Shell Federal Credit Union - 1.60% ($50K) 1.55% ($500) 4-year CD (Houston, TX)

5-Year CD Rates

• Citizens State Bank - 2.05% ($1K) 5-year CD, account review
• State Department Federal Credit Union - 2.02% 5-year IRA CD, 1.91% 5-year CD
• Stanford Federal Credit Union - 2.02% ($100K) 5-year CD, requires chk w/dd, account review
• Mountain America Credit Union - 2.00% 5-year CD, account review
• Connexus Credit Union - 2.00% 5-year CD w/active chk
• Communitywide Federal Credit Union - 2.00% 5-year CD
• Dime Savings Bank - 2.00% 5-year IRA-only CD
• Melrose Credit Union - 1.96% 5-year CD
• Green Bank, N.A. - 1.95% 5-year CD
• Pen Air Federal Credit Union - 1.95% ($100K) 1.85% ($500) 5-year CD
• Pentagon Federal Credit Union - 1.90% 5-year CD
• CIT Bank - 1.85% ($100K) 1.80% ($1K) 5-year CD
• Nationwide Bank - 1.85% ($100K) 1.80% ($500) 5-year CD
• Barclays - 1.70% 5-year CD
• Discover Bank - 1.65% 5-year CD
• Pentagon Federal Credit Union - 1.60% (2.00% 7-year CD closed after 5 years, see review & risks)
• Ally Bank - 1.59% 5-year CD

• Noteworthy Local Deals

• Encompass Credit Union - 2.53% 5-year CD (Central Indiana)
• American Airlines Credit Union - 2.47% 5-yr/1.46% 2.5-yr CD ladder (limited membership)
• One Source Federal Credit Union - 2.37% ($50K) 2.27% ($1K) 5-year CD (El Paso, TX)
• General Electric Credit Union - 2.33% 5-year CD (Cincinnati OH metro)
• Security Service Federal Credit Union - 2.30% ($100K) 2.15% ($500) 5-year CD (parts of Texas, lower rates in CO and UT)
• Jefferson Financial Credit Union - 2.25% 5-year CD (parts of Louisiana)
• Ukrainian Selfreliance FCU - 2.20% ($75K) 2.15% ($500) 5-year CD (Philadelphia, PA)
• American United Family of Credit Unions - 2.15% ($75K) 2.10% ($500) 5-year CD (parts of Utah)
• Idaho Central Credit Union - 2.15% 5-year bump-up CD (Idaho)
• SACU - 2.05% ($90K) 2.00% ($10K) 5-year CD (San Antonio, TX)
• Denver Community Credit Union - 2.10% ($50K) 1.85% ($100) 5-year CD (Denver County)
• Superior Choice Credit Union - 2.08% 58-month CD special (parts of WI and MN)
• Texell Credit Union - 2.05% 5-year CD (Central Texas)
• Empower Federal Credit Union - 2.05% ($100K) 1.90% ($10K) 5-year CD, extra 0.25% for seniors w/dd (Northwest NY)
• HEW Federal Credit Union - 2.02% 5-year CD (DC metro area)
• Keesler Federal Credit Union - 2.00% ($100K) 1.90% ($1K) 5-year CD (MS)
• LOMTO Federal Credit Union - 2.00% 5-year CD (parts of New York City)
• American Eagle Bank of Chicago - 2.00% (relationship checking required) 5-year CD (Chicago, IL)
• Police and Fire Federal Credit Union - 2.00% 5-year CD (Pennsylvania)
• Shell Federal Credit Union - 1.95% ($50K) 1.90% ($500) 5-year CD (Houston, TX)
• HAPO Community Credit Union - 1.95% 5-year CD (all of Washington State)
• Miami Postal Service Credit Union - 1.91% 5-year CD (Southeast FL)
• Freedom Credit Union - 1.90% add-on 5-year CD (Philadelphia)
• Wings Financial Credit Union - 1.86% 5-year CD (Seattle & Minneapolis Metro areas)
• BBVA Compass - 1.85% 5-year CD w/chk, 1.75% w/o chk (parts of AZ, CA & FL) 0.25% lower for CO, NM, AL, TX

Over 5-Year CD Rates

• Navy Federal Credit Union - 2.00% ($100K) 1.90% ($20K) 7-year CD (membership restrictions)
• Discover Bank - 2.00% 10-year CD
• Pentagon Federal Credit Union - 2.00% 7-year CD
• Air Force FCU - 2.00% ($100K) 1.85% ($2.5K) 7-year CD
• Apple Federal Credit Union - 2.00% 10-year CD
• Northrop Grumman FCU - 1.93% ($40K) 1.77% ($2.5K) 7-year CD
• Discover Bank - 1.90% 7-year CD
• Navy Federal Credit Union - 1.90% ($100K) 1.80% ($20K) 6-year CD (membership restrictions)
• E-LOAN - 1.70% 6-year CD
• Dime Savings Bank - 1.70% 7-year CD

• Noteworthy Local Deals

• SACU - 2.80% ($90K) 2.75% ($10K) 10-year CD (San Antonio, TX)
• Security Service Federal Credit Union - 2.85% ($100K) 2.70% ($500) 7-year CD (parts of Texas, lower rates in CO and UT)
• Workers Credit Union - 2.50% 6-year CD w/chk+dd (MA & Southern NH)
• SACU - 2.45% ($100K) 2.40% ($10K) 7-year (San Antonio, TX)
• Gesa Credit Union - 2.06% 7-year CD
• Empower Federal Credit Union - 2.05% ($100K) 1.90% ($10K) 7-year CD, extra 0.25% for seniors w/dd (Northwest NY)
• Gateway Metro Federal Credit Union - 2.05% 6-year CD (St. Louis metro)
• HeritageWest Credit Union - 2.02% 6-year CD (parts of Utah)
• Amplify Credit Union - 2.01% ($100K) 1.75% ($50K) 7-year CD (Austin, TX)
• Mansfield Bank - 2.00% 8-year CD (Massachusetts)
• Columbia Bank - 2.00% 6-year IRA CD 1.85% 6-year CD (New Jersey)
• Randolph-Brooks Federal Credit Union - 1.92% ($75K) 1.92% ($1K) 7-year CD (San Antonio & Austin, TX)
• Randolph-Brooks Federal Credit Union - 1.76% ($75K) 1.76% ($1K) 6-year CD (San Antonio & Austin, TX)

Note: All rates listed above are Annual Percentage Yields (APY) which factor in compounding.

Northern Bank & Trust Company is having two deposit specials. The first is a 17-month CD with a 1.25% APY. Minimum deposit is $500, and the maximum is $500,000. This can be opened online and is available for personal and business accounts. The second special is just for business accounts. It's a business savings account with a 1.00% APY guaranteed for up to $250,000 until 6/30/2013. These specials and rates are listed in the bank's deposit specials page as of 1/11/2013. I was told by a bank CSR that these specials would probably not last past next week.

The CD can be opened online, and according to a bank's CSR, people in any state are eligible to open this account. Links to and information on the online application are available at this bank page.

The CDs can also be opened at one of the banks eleven branches. Northern Bank & Trust Company branches are located in Massachusetts north of Boston.

The bank has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas ratio of 22.67% (average) based on September 2012 data. Please refer to our financial overview of Northern Bank & Trust Company for more details. The bank has been a FDIC member since 1960 (FDIC Certificate # 18266).

How This CD Rate Compares

The highest 18-month CD rate that's nationally available is 1.15% APY at Salem Five Direct and at NexBank. The best deal for a CD term close to 17 months is at Pentagon Federal Credit Union which has a 1.25% APY 1-year CD and a 1.60% APY 2-year CD. These rates are accurate as of 1/11/2013.

Searching for the Best CD Rates

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.

Gesa Credit Union has competitive rates on its long-term certificates and IRA certificates. These include a 2.06% APY 7-year CD, a 1.91% APY 5-year CD and a 1.81% APY 4-year CD. Minimum deposit is $5,000. Rates are 10 basis points lower for a $500 minimum. These rates are listed in Gesa CU's savings page as of 1/11/2013.

The early withdrawal penalty for the CDs with terms from over 2 years to under 7 years is 180 days of interest on the amount withdrawn. The penalty for the 7-year CD is 365 days of interest on the amount withdrawn. Please refer to the credit union's Truth-in-Savings disclosure for the full details.

Gesa Credit Union also has a reward checking account called Colossal Checking. I first reported on this account in 2008 when the yield was 6.01%. The top yield is now 1.50% APY for balances up to $10,000 (as of 1/11/2013).

Gesa Credit Union membership is open to all who live, work, worship or attend school in the State of Washington, or are a close relative of someone who qualifies as a member. Please refer to the credit union's membership page for more details and for a link to a membership application form. The form can be mailed or faxed. Membership requires a minimum balance of $5 in the savings account.

Gesa Credit Union branches are located in the Washington cities of Richland, Kennewick, Pasco, Walla Walla and Wenatchee.

The credit union has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas ratio of 2.78% (excellent) based on September 2012 data. Please refer to our financial overview of Gesa Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 68278).

How These CD Rates Compare

The highest 7-year CD rate that's nationally available is 2.00% APY at Pentagon Federal Credit Union and at Air Force Federal Credit Union. The highest 5-year CD rate is 2.05% APY at Citizens State Bank Florida and the highest 4-year CD rate is 1.85% APY at Pentagon Federal Credit Union . These rates are accurate as of 1/11/2013.

Searching for the Best CD Rates

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.

I've recently come across some banks that have started internet divisions with online savings accounts. The rates are above average, but they are not great. So I'm not in a hurry to post on them. Also, I'm not having an easy time learning about the banks' ACH transfer systems. They have little documentation on their websites, and when I contact their customer service, the CSRs have trouble providing more details. This reminds me of a common problem that I've seen over the years with new internet banks. They neglect their ACH transfer capability.

Since you can't go to a branch to deposit or withdraw money, the ACH transfer capability of an internet bank is very important. It's also one of the most overlooked features. Many internet banks provide little information on these features.

Overview of ACH Transfers

If you don't have a lot of experience with internet banking, you might not be familiar with ACH transfers. ACH stands for Automated Clearing House, and it's an electronic network for financial transactions in the U.S. Direct deposit is one of the best known transactions that is done via ACH. An ACH transfer may also be called an electronic funds transfer (EFT).

An internet bank should allow customers to log into their accounts and initiate bank-to-bank transfers via ACH. For example, if you deposited a check into your checking account at your local bank, you should be able to log into your internet bank account and initiate an ACH transfer from your local checking account into your internet account (pulling funds from your local bank). Likewise, if you need money at your local bank, you should be able to log into your internet bank and initiate an ACH transfer to your local bank account (pushing funds to your local bank).

If an internet bank doesn't offer ACH transfers, making deposits and withdrawals probably won't be easy. You might have to mail checks for deposit, or you may have to do a wire transfer which may require faxing forms and/or phone calls. Also, wire transfers for outgoing transfers most always have fees.

Important ACH Transfer Features

Even if an internet bank has an ACH transfer capability, you might still experience problems when you try to initiate transfers. This is why it's important for internet banks to provide clear documentation describing their ACH transfer features. If you're trying to choose a new internet bank, the ACH transfer features should be a major criteria in your decision. Below are a few of the important ACH features that an internet bank should clearly disclose:

1. How Links are Established - A link for an ACH transfer is a connection to an external account. This is typically done before you can initiate an ACH transfer. The typical process for establishing a link is to specify your bank's routing and account number. Trial deposits are sent to the external bank account. You then have to verify the trial deposits by entering the deposit amounts. This proves to the internet bank that you own the external account. Some internet banks require this to be done at least twice: once when you initially fund the account and again after the account is established.
2. How Many Links Are Allowed - Many internet banks restrict the number of links to your external accounts. If you hit the limit and you need to add a new link, you'll first have to delete an existing link. So if the bank has a small limit, it should make it easy to delete links.
3. Type of Accounts That Can Be Linked To - Ideally, the internet bank should allow you to link to checking accounts, savings accounts and brokerage accounts. Some internet banks limit linking to just checking accounts.
4. Cost to Initiate ACH Transfers - ACH transfers should be free. I've seen some banks that have a fee for outgoing transfers.
5. Dollar Transfer Limits - This is the maximum dollar amount that can be transferred. Banks often have different limits for deposits and withdrawals. There are often limits for a single day and limits for a month. Banks sometimes limit this to small amounts. For example, one internet bank has a limit of $10,000 transferred out per day.
6. Restrictions on the Number of Deposits and Withdrawals - All savings and money market accounts limit withdrawals via ACH to a maximum of six per month. If you go above this number, you will likely be hit with a fee. This is due to federal regulation. However, some banks place additional restrictions.
7. Allow ACH Deposits/Withdrawals Initiated from Other Banks - If a bank's ACH capability is weak, you may have an easier time to initiate transfers from another internet bank. Most banks allow ACH deposits and withdrawals that you initiate from your other banks. Some have restrictions.
8. Hold Times - When you make an ACH deposit, the hold time is how many days it will take before those funds are available. During the hold time, the money is typically earning interest, but it's frozen, and it can't be withdrawn.
9. Speed of ACH Transfers - Some banks can take three or more business days between the time you initiate the transfer and the time that the money is credited to the destination account. Some banks can transfer as fast as one day. If a bank mentions the transfer time, it will often list a range of time for the transfers or the worst case time. So it's hard to know the true speed until you use it.

Some banks say they have low limits or restrictions on ACH transfers for security reasons. Sometimes they will increase limits for long-time customers or on a case-by-case basis. These limits and restrictions are usually just on ACH transfers initiated from that bank. ACH transfers initiated from another bank usually have fewer restrictions. This is due to how liability is assigned in the ACH system. The bank that initiates the ACH transfer is the one liable for the ACH. If an ACH is received by a bank, regulations allow that bank to reverse the transaction within 60 days.

Regardless of the reason why internet banks have low limits and restrictions on ACH transfers, they should ensure the limits and restrictions are clearly documented so customers aren't surprised by the delay and cost when they want to withdraw their money.

As I was reviewing today's rate changes, I came across Keesler Federal Credit Union which had increased some of its CD rates. I was surprised I had not noticed this credit union before since it's the largest credit union in Mississippi. Its new CD rates got my attention since they're very competitive. Its Jumbo share certificates have the highest rates. These include a 2.00% APY for a 5-year term, a 1.65% APY for a 4-year term and a 1.40% APY for a 3-year term. Minimum deposit is $100,000. Rates are 10 basis points lower for a $1,000 minimum deposit. There's also a bump-up 3-year CD with rates 5 basis points lower than the regular 3-year CD. This gives one option to bump-up the rate during the CD term. All CDs are also available as IRA certificates. These rates are listed in the credit union's savings rates page as of 1/10/2013.

I was only able to find the truth in savings disclosure in the online application so I can't provide a link to it. The early withdrawal penalties were described in the disclosure. The penalty for CD terms of 1 year or less is up to 90 days of dividends. For CDs with terms over 1 year, the penalty is up to 180 days of dividends. The penalty doesn't eat into the principal so if the 5-year CD is closed before 6 months, the member will just lose all of the interest.

Reward Checking Account

The credit union also has a reward checking account that's called eAdvantage Checking. Its rate is a little disappointing with a 1.40% APY for balances up to $25K. Monthly requirements to qualify for this rate include: 1) 15 debit card purchases, 2) one bill paid with online bill pay, 3) direct deposit and 4) eStatements. The rate, balance cap and requirements are listed in the credit union's savings rates page as of 1/10/2013.

Membership Eligibility

The credit union was initially established to serve those who work at the Keesler Air Force Base. Membership has expanded, and many more people are eligible to join. Anyone who lives, works, worships or attends school in Pearl River County, Hancock County, Harrison County, or parts of Jackson County, MS are eligible.

Many more people can also qualify via an association. The first page of the online application has the following in the eligibility list:

Belong to, or volunteer with various associations, for example the American Cancer Society or Air Force Association.

In the online application, you can select one of the associations. They all appear to be tied to Mississippi (One example is "American Cancer Society/Mid-South Division"). So I'm hesitant to call this easy membership for anyone in the nation. Before joining one of these associations, it would be a good idea to contact the credit union to ensure your association membership will make you eligible for credit union membership.

More details about membership and a link to the online application are located at this this credit union page.

Credit Union Overview

Branches are located in several Southern Mississippi cities. Some of these include Biloxi, Waveland, Gulfport, Pascagoula and Wiggins. There are also some branches in air force bases in the U.K.

Keesler Credit Union is headquartered in Biloxi and is the largest credit union in the state of Mississippi. It has over $2 billion in assets. The credit union has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas ratio of 3.38% (excellent) based on September 2012 data. Please refer to our financial overview of Keesler FCU for more details. The credit union is federally insured by the NCUA (Charter # 5561).

How This CD Rate Compares

Finding 2% CDs has become difficult. There are still a few 2% 5-year CDs that are available nationwide. The highest is 2.05% APY at Citizens State Bank. Some all-access credit unions also offer 2.00% APY 5-year CDs. The largest is Mountain America Credit Union. These rates are accurate as of 1/10/2013.

Searching for Top CD Rates

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.

The recent reward checking rate cuts may not be just due to the awful interest rate environment. There are reports that debit card interchange revenue has fallen for small institutions. According to this Washington Post article, credit unions saw the first-ever decline in interchange revenue in the third quarter of 2012. This is due to the routing and exclusivity provision to the Dodd-Frank Act that took effect last April. It gives merchants more choices in how they process the transactions, and in summary, it drives down costs.

Each time you make a purchase with a debit or credit card, the merchant is charged an interchange fee, and a portion of that fee is paid to the bank that issued the card. I've heard that interchange revenue that small banks receive averages around 1% of debit card purchases. So if you make $500 in purchases with your debit card, your bank will receive around $5 from interchange fees. The bank can then use part of this interchange fee for rewards back to the customer, like high interest rate on the checking account.

The Durbin Amendment of the Dodd-Frank Act took effect in October 2011. This put a cap on debit card interchange fees for large banks. Small banks and credit unions were exempt from this cap. It appears that this exemption has spared small banks and credit unions from lower interchange fees. However, they are being affected by the routing and exclusivity provision.

This is another headwind for high-yield reward checking accounts. It may explain why we have been seeing many rate and balance cap cuts in the last month. It also may discourage banks and credit unions to launch new reward checking accounts. When we do see new reward checking accounts, the balance caps are often under $25K. Balance caps of $15K and $10K have become much more common. The balance cap is the maximum balance that qualifies for the reward checking account's top rate.

High-yield reward checking accounts have provided savers an alternative to internet savings accounts over the last five years. There's more work involved with reward checking due to the debit card usage requirements, but this extra work can be worthwhile when reward checking accounts offer high rates with reasonable balance caps. As reward checking rates come closer to internet savings account rates and as balance caps are reduced, there will be a point where the extra work won't be worthwhile.

Searching for the Highest Reward Checking Rates

You can find reward checking accounts available in your state by using our reward checking table. You can also use the table to find reward checking accounts available nationwide. Refer to this post to learn how to use the table.

To learn more about reward checking accounts, please refer to my post 10 Common Traits of High-Yield Reward Checking Accounts.

As I mentioned last month, I plan to regularly highlight a few of the forum posts. This is intended to help readers who may not regularly read the forum. It will also give me a chance to recognize and give thanks to the DA members for their contributions to the website. I've listed a few recent forum posts on topics that I think may interest DA readers. If you don't see your username mentioned this time, keep posting and you will likely see your posts mentioned in future forum highlights posts.

1. Add-On IRA CDs at Navy Federal: DA member bbug posted that Navy Federal is accepting additions to existing IRA CDs through April 30.
2. 1.10% Savings Account in Massachusetts: Last month scottj reported on an unlisted high yield savings account that's offered by Metro Credit Union.
3. Rate and Balance Cap Changes: Unfortunately, rate cuts have been much more common than rate hikes. For reward checking, balance cap cuts have also been common. DA member 51hh posted on balance cap cuts at UniWyo FCU and at BankIowa. However, there have been occasional balance cap increase as reported by pearlbrown.
4. Special 13-Month CD in SoCal: This week I reported on Kinecta FCU's 1% APY 13-month CD special. I will often post on rate specials in the forum instead of the blog when the rates aren't that great.
5. Problems meeting reward checking requirements at Consumers CU: PaulF describes a downside with Consumers CU's reward checking account and its online banking system. It has one of the reward checking accounts that require signature-based (or credit) debit card purchases to qualify for the high rate.
6. Coping With The Zero-Interest-Rate Policy: DA member cumulus posted a link to a Scott Burns article with a few useful tips for savers in this awful interest rate environment.
7. Woman Drains Ex’s Retirement Account: This shows what can go wrong during a divorce when you don't stay on top of your retirement paperwork. Thanks to shorebreak for posting on this.
8. Favorite Credit Card Rewards Programs: This might give you some ideas of new cash back credit cards. Thanks to 51hh for posting on the WSJ article and listing his favorites.
9. Trillion-Dollar Platinum Coin: You may have seen news reports of this. Some are proposing this for the President if Congress doesn't raise the debt limit. Thanks to Kaight for posting on this news.

Discussion Forum Tutorial

If you like a simple blog format, you can view the forum using this link. This page shows the latest featured threads in an expanded format that shows the first post of each featured thread. Click on the title of the post to view any comments for that post or to leave a comment. Unlike the blog, the forum requires you to log in before you can comment.

You can get to this Featured Threads page by using the forum menu and clicking on the "Featured Threads" link. Then click on the "Posts" link below the menu. I actually prefer the "Threads" view which shows just the title of the posts along with the number of comments or posts for each thread.

I'm the one who gives a thread "featured" status. I try to select those that I think are most interesting. The "Latest Threads" link in the forum menu will show you all of the threads including ones that haven't been marked as featured. The "Latest Posts" link will show you the latest forum comments.

Posting to the Forum

If you find a noteworthy bank deal or some interesting financial news, please consider posting this information in the forum. This can be done in 3 steps:

1. You have to be logged in to post in the forum. If you have never registered, just click the "Register" link on the top right of a DepositAccounts.com page. Note, you don't have to be logged in before you write your post, but it's required before the post can be submitted.
2. Find the appropriate subforum. Start at the top of the forum and click on the appropriate topic.
3. Click the "New Threads" button at the top of the subforum page, and follow the instructions. For the subforums that are specific to a particular bank, you first have to identify the bank. When you get to the message box, you can start typing your information. Note the icons at the top of the message box. These can be used to format your message. The one I use most is the link icon. This isn't active until you highlight the text that you want to convert into a link. Once the link icon is active, you can click on the icon which will open up a box where you can enter the web address.

Viewing and posting are more complicated in the forum than in the blog, but as I mentioned, this helps keep things organized. For more details on using the forum, please refer to my forum announcement post.

The rate has fallen, but it remains a great deal. It's the 30-month CD at Navy Army Community Credit Union. Most of last year it had a 3.00% APY. On Monday the yield fell to 2.50%. Minimum deposit is $1,000, and the maximum is $500,000. The credit union shorter-term CDs are still very competitive. These include a 1.45% APY 1-year CD and a 1.85% APY 2-year CD. Minimum deposit is $100,000. Rates are 10 basis points lower for a $1,000 minimum deposit. These rates are listed in the credit union's term share rates page as of 1/9/2013.

The credit union also has one of the best reward checking accounts in the nation with a 3.51% APY for balances up to $25K. It's called the Liberty Checking Share Draft Account, and I did my first review of the account in this 2009 blog post.

As you might have guessed, membership is limited. Because of the name you might think it's limited to the Navy and Army personnel. However, its field of membership is community based. Anyone who lives, works, worships or attends school in any of the following Southeast Texas counties are eligible to join: Aransas, Bee, Jim Wells, Kleberg, Nueces and San Patricio. Please refer to the credit union's membership page for the full details.

Branches are located in the Southeast Texas cities of Corpus Christi, Beeville, Kingsville, Portland and Rockport. New branches have recently opened at Brownsville and McAllen.

It's a sizable credit union with $1.40 billion in deposits. The credit union has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 2.08% (excellent) based on September 2012 data. Please refer to our financial overview of Navy Army Community Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 68615).

How This 30-Month CD Rate Compares

Even with this rate cut, Navy Army Community's 30-month CD rate is still higher than most all 60-month CD rates. The highest 30-month CD rate that's nationally available is 1.40% APY at Salem Five Direct. This had recently been 1.50%. The best nationally available 2-year and 3-year CD yields are 1.60% and 1.85% at PenFed. These rates are accurate as of 1/9/2013.

Searching for the Best CD Rates

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.

Over the last year I've been tracking the average deposit account rates. As you might have expected, rates have declined. However, not all have gone down by the same amount. Comparing the rate changes between the different account types are interesting, and this information may be useful if you're trying to decide on the type of deposit accounts for your savings in 2013.

Below is a graph showing how the average annual percentage yields (APY) of six deposit accounts have changed in 2012. The accounts include a 5-year CD, a 1-year CD, a regular savings account, a regular checking account, an internet savings account and a reward checking account. The average APYs include accounts from both banks and credit unions. The one exception is the internet savings account. This only includes internet banks. Also, this includes both internet savings accounts and internet money market accounts.

Below is a summary of the average APY changes for all of the above accounts from January of 2012 to January of 2013. For each account I've listed the change in terms of basis points (bps). A basis point is equal to one hundredth of a percentage point.

For reward checking accounts, I have also listed the change in the average balance cap. This is the maximum balance that qualifies for the reward checking account's top rate.

Average 5-Year CD APYs

• 2012: 1.685%
• 2013: 1.300%
• Down by 38.5 bps

Average 1-Year CD APYs

• 2012: 0.604%
• 2013: 0.447%
• Down by 15.7 bps

Average Savings Account APYs

• 2012: 0.264%
• 2013: 0.192%
• Down by 7.2 bps

Average Checking Account APYs

• 2012: 0.163%
• 2013: 0.121%
• Down by 4.2 bps

Average Internet Savings/MMA APYs

• 2012: 0.676%
• 2013: 0.662%
• Down by 1.4 bps

Average APYs: Top 10 Internet Savings/MMA

• 2012: 0.98%
• 2013: 1.02%
• Up by 4.0 bps

Average Reward Checking APYs and Balance Caps

• 2012: 1.551%, Balance cap: $22,512
• 2013: 0.964%, Balance cap: $20,471
• APY down by 58.7 bps
• Balance cap down by $2,041

Internet Savings Accounts - Holding Up the Best

The rates of internet savings and money market accounts had the smallest decline. The average rate fell by less than two basis points. A lot of this decline was driven by a few banks that slashed their rates this year. HSBC Bank is one of these. Its online savings account rate plummeted this year from 0.80% to 0.30%.

The impact of a few internet banks that have slashed rates this year had me wondering about the averages if these banks were excluded. I decided to look at the averages of just the top 10 internet savings and money market accounts. This is a useful average for rate chasers who don't mind moving their money to new internet banks once or twice a year. As you can see above, this average has actually gone up in the last year by 4 basis points.

Reward Checking Changes - Advantage Over Internet Savings Accounts?

Out of all the deposit accounts, reward checking account rates had the largest decline. Its average rate is now under 1%. Reward checking balance caps have also fallen. On the plus side, the rate decline has slowed in the last half of 2012.

This shows that reward checking has become less useful for savers as an alternative to CDs and internet savings accounts. If you have an average reward checking account, the top rate is probably not much higher than the best internet savings account rates. Also, it's likely that the balance cap is no longer $25,000. You'll have to decide the minimum rate spread and the balance cap that makes the extra work to meet the monthly requirements worthwhile. If you're only getting an extra 50 basis points on a $15K balance, that's only an extra $6.25 per month.

Long-Term CD Rate Changes - Continue with CD Ladders?

From the graph you can see that long-term CD rates have gone down more than 1-year CD rates and savings account rates.

These rate averages make the case for savers to keep more of their savings in internet savings accounts. The 5-year CD rates have gone down the most. Consequently, current 5-year CD rates are not that much higher than savings account rates. For example, if you look at the best rates that are nationally available today, you will only get an extra percentage point with a 5-year CD over an internet savings account.

Over the last four years, the rate lock of 5-year CDs was nice as rates continued to fall. Many were locked into 6% CDs while savings account rates dropped from 5% to under 1%. That rate lock is less useful now with CD rates under 2% and savings account rates that are not falling as much.

If you have been using CD ladders with long-term CDs, I don't want to suggest that you should stop renewing those CDs on the ladder as they mature. If rates remain low for many years to come, CD ladders with long-term CDs will do better than keeping that money in savings accounts. However, the big drop in long-term CD rates over the last year has reduced the benefit of CD ladders. A mixture of CDs and savings accounts still make sense. As the spread between CD rates and savings account rates shrink, it's making more sense to allocate more into savings accounts.

Note About Our Rate Averages

One final note is that these averages are based on accounts from both banks and credit unions. This results in averages that are higher than the averages reported by others. For example, the FDIC uses averages gathered by RateWatch and uses these averages to determine rate caps for less than well capitalized banks. The FDIC's current averages for savings accounts, 1-year CDs and 5-year CDs are 0.07%, 0.23% and 0.84%.

Over the last year we have been issuing monthly press releases. These are intended to highlight important DepositAccounts.com articles from the previous month. They are also intended to provide a summary of average deposit account rates and how they have changed in the last month. We thought these press releases would be of interest to readers. Thus, I've been posting them in the blog. The January press release is below. Please note that I will continue to post my weekly summaries without any changes.

Why Savers Can't Be Complacent - DepositAccounts.com Monthly Rate Survey and Commentary

Across a nationwide survey of more than 275,000 rates at 8,000 banks and credit unions, average savings account interest rates continued a steady decline in most major categories of consumer savings products. The average internet savings account rate declined slightly this month due to a handful of internet banks that have let their rates fall to levels that are no longer competitive. One example is CNB Bank Direct, which is the internet division of Citizens National Bank in Ohio. CNB Bank Direct was launched in 2008 with very competitive rates, and the rates stayed competitive until 2012, but its savings account rate has now fallen to less than half of the average for internet banks. Another example is HSBC, which had offered top internet savings account rates in 2007. The rate plummeted in 2012, and like CNB Bank Direct, its rate is less than half of the average. The lesson for savers is that they can't be complacent with their internet bank accounts. Savers should stay on top of rate changes and move their money when the rates no longer remain competitive. With many internet banks offering above-average rates, savers do not have to settle for rates far below average.

Top Stories for December:

• Review of the 2012 Bank Failures and Their Effects on Depositors
• Replacing Savings Accounts with an Interest Checking Account
• Credit Unions Paying Out 2012 Bonus Dividends
• How Do You Define a Community Bank?
• Preventing Accounts From Being Labeled Inactive - Review of PenFed's Policy

Bank Failures for December

One bank and three credit unions were closed in December 2012. This total is equivalent to the two banks and two credit unions that closed in December 2011. Notable closures included Chetco Federal Credit Union in Oregon with $259.0 million in assets (rated 1-star at DepositAccounts.com, indicating “high risk”; view health ratings for any bank or credit union and a list of troubled banks by Texas ratios).

Internet Savings

The average internet savings and money market account rate decreased by 0.32% from 0.662% in December to 0.660% in January. The average rate for internet savings accounts exceeds the average rate of all savings accounts by 47 basis points.

Savings

The average savings account rate decreased by over 2% from 0.196% in December to 0.192% in January. The average rate among the top 10% of the most competitive nationwide banks decreased by over 1% from 0.613% to 0.605%. Alabama has the best average rate in the nation at 0.33% while Arizona has the worst at 0.12%.

Checking

The average checking account rate decreased by over 2% from 0.124% in December to 0.121% in January. The average rate among the top 10% of the most competitive nationwide banks decreased by over 2% from 0.410% to 0.399%. Louisiana has the best average rate in the nation at 0.180% while Vermont has the worst at 0.060%.

1-year CD

The average 1-year CD rate decreased by over 2% from 0.454% in December to 0.447% in January. The average rate among the top 10% of the most competitive nationwide banks decreased by over 1% from 0.892% to 0.886%. Louisiana has the best average rate in the nation at 0.580% while Oregon has the worst at 0.310%.

5-year CD

The average 5-year CD rate decreased by over 2% from 1.320% in December to 1.300% in January. The average rate among the top 10% of the most competitive nationwide banks decreased by over 1% from 1.934% to 1.917%. Rhode Island has the best average rate in the nation at 1.530% while North Carolina has the worst at 1.090%.

Reward Checking

The average reward checking account rate decreased by over 1% from 0.978% in December to 0.964% in January. The average rate among the top 10% of the most competitive nationwide banks decreased by over 1% from 3.014% to 2.984%. The average balance cap for reward checking accounts decreased from $20,535 to $20,471. The balance cap is the maximum balance that qualifies for the reward checking account's top rate. Louisiana has the best average rate in the nation at 1.590% while Hawaii has the worst at 0.380%.

About Deposit Accounts

DepositAccounts.com monitors more than 8,000 banks and credit unions and provides weekly and monthly rate surveys and monthly commentary covering savings trends. On its consumer-facing site, DepositAccounts.com, it provides in-depth, unbiased reviews and the industry’s most thorough comparison tools to help better inform consumers in their banking decisions.

Last month USAlliance Federal Credit Union offered a one-day CD special. The credit union has a new CD special that is scheduled to last for all of January. It's a 15-month CD with a 1.30% APY. Maximum deposit is $50,000. New money and e-statements are required. An extra 0.13% will be added (for an APY of 1.43%) if the member brings a new member to the credit union. This special is listed at the credit union's promotions page as of 1/8/2013.

In addition to this 15-month CD special, the credit union has another CD special for January. Members can get a bonus rate on certain CDs when a new CD is opened on Fridays during the month of January. Like the 15-month CD special, an extra 0.13% will be added if the member brings a new member to the credit union. Maximum deposit is $50,000. New money and e-statements are required. Below is a list of the CDs eligible for the bonus, the bonus amounts and the post-bonus APYs:

• 12-month CD: 0.50% bonus, 1.20% APY
• 24-month CD: 0.35% bonus, 1.30% APY
• 36-month CD: 0.25% bonus, 1.51% APY

The bonus amounts are listed at the credit union's CD bonus day promo page and the pre-bonus CD rates are listed in the credit union's rates page as of 1/8/2013.

Membership

The credit union has an online application that can be used to apply for membership and new accounts. In the first page of the new-member application, you must select how you are eligible to join. The first option can be chosen by anyone:

I will become a WARC supporter. WARC is a community outreach program dedicated to helping children with developmental disabilities and their families. To thank you, USAlliance will happily make your $15 donation.

The online application doesn't include the bonus APYs for the CDs. So make sure to contact the credit union to find out what they require to take advantage of these promotions.

Credit Union Overview

USAlliance FCU branches are located in New York, New Jersey and Massachusetts.

The credit union has an overall health score at DepositAccounts.com of 3 stars (out of 5) with a Texas ratio of 33.54% (below average) based on September 2012. Please refer to our financial overview of USAlliance FCU for more details. The credit union is federally insured by the NCUA (Charter # 17587).

How This CD Rate Compares

The best 1-, 2- and 3-year CD rates that are nationally available are 1.25% APY, 1.60% APY and 1.85% APY at Pentagon Federal Credit Union. These rates are accurate as of 1/8/2013.

Searching for the Best CD Rates

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.

Over the last year, long-term CD rates have fallen the most, and as a result, the best long-term CD rates are less than a percentage point above the best short-term CD rates. That's the case at Navy Federal Credit Union which just made some more cuts to its long-term CD rates. The rates still remain competitive. Below are the new rates for the $100K deposit tier. I've also listed the change in basis points. These rates are listed at the Navy Federal certificates rates page as of 1/7/2013:

• 2.00% APY 7-year CD (-15 bps)
• 1.90% APY 6-year CD (-10 bps)
• 1.74% APY 5-year CD (-11 bps)
• 1.60% APY 4-year CD (no change)
• 1.40% APY 3-year CD (no change)
• 1.20% APY 2-year CD (no change)
• 1.10% APY 18-month CD (no change)
• 1.00% APY 1-year CD (no change)
• 0.85% APY 9-month CD (no change)
• 0.75% APY 6-month CD (no change)
• 0.65% APY 3-month CD (no change)

These same rates also apply to IRAs and ESAs.

The smaller tiers had the same rate cuts. For example, the 7-year CD yield for a $1K minimum deposit fell from 2.00% to 1.85% APY.

It's interesting to see how these rates have changed over the last year. The long-term CD rates have fallen the most. In May, the top 7-year and 5-year CD yields were 2.75% and 2.25%. These are now 2.00% and 1.74%. The short-term CD rates are only 5 basis points lower.

Special EasyStart Certificate

If you review Navy Federal's certificate rate table, you may notice the EasyStart Certificate which has a 12-month term with a 3.00% APY. As you many have guessed, there are details that make this much less attractive. First, there's a maximum balance of $3,000. Second, it requires that you have a Navy Federal checking account and direct deposit of at least $300.

Early Withdrawal Penalty

The early withdrawal penalty for terms over 1 year and up to 5 years is equal to up to 180 days of dividends on the amount withdrawn. The penalty for terms over 5 years is up to 365 days of dividends on the amount withdrawn. The penalty won't eat into the principal if the withdrawal is made early into the term. In those cases the penalty will equal all of the accrued interest.

The early withdrawal penalty and other CD details are listed in the Navy Federal Combined Certificate Disclosure.

Membership

Unlike PenFed, there's no association that can be joined to qualify for Navy Federal membership. To be eligible to join Navy Federal, you must have some connection with the military. This includes Navy, Army, Marine Corps and Air Force. Please refer to their Eligibility Checklist for the full details.

Navy Federal Overview

Navy Federal Credit Union branches are located around the US and the world.

Navy Federal is the largest credit union in the nation with $51.6 billion in assets and $37.2 billion in deposits. It has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 5.82% (excellent) based on September 2012 data. Please refer to our financial overview of Navy Federal Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 5536).

How These CD Rates Compare

Before these rate cuts, Navy Federal had the best deal for 7-year CDs for those with balances of at least $20K. With a $100K balance, you could get a rate 15 bps higher than PenFed's 7-year CD. Now Navy Federal has no advantage over PenFed which has a 2.00% APY 7-year CD with a $1K minimum deposit. For shorter terms, PenFed has higher rates.

To get a 2% APY from an internet bank, you'll have to go with a 10-year term at Discover Bank. You can still get 2% APY with a 5-year term at a few institutions that are available nationwide. A couple all-access credit unions still have a 2% APY 5-year CD. The largest is Mountain America Credit Union. One small bank in Florida, Citizens State Bank, is offering a 2.05% APY 5-year CD that's available online to anyone in the nation.

The above rates are accurate as of the morning of 1/7/2013.

Searching for Top CD Rates

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.

BB&T is again offering a $100 bonus for opening a checking account and performing some additional activities. Just like most large banks, BB&T's checking accounts have potential monthly service fees. So if you open the checking account for the bonus, you have to make sure to avoid the fees.

To qualify for the $100 bonus, customers must open a BB&T checking account and set-up and receive 2 direct deposits of at least $100 OR make 3 online bill payments of at least $25. The offer is scheduled to end on 3/1/2013. Here's the link to the BB&T promotion page. Promotion code is AJCAP.

Below is the offer's small print. I've highlighted some of the important details:

Eligibility: This special limited time offer is available for personal checking accounts only that are opened between 11/05/2012 and 03/1/2013. Offer is subject to change or be withdrawn at any time without notice and cannot be combined with any other offer. Offer is limited to one incentive per household, and does not apply to second or multiple personal accounts. In order to receive the $100 incentive, clients must open a checking account and do at least one of the following. 1) Use BB&T online bill payment service to initiate 3 online bill payments (minimum payment of $25) from your new checking account within 90 days of account opening; OR 2) Enroll in and receive 2 direct deposits (minimum of $100 each) to the new personal checking account within 90 days of account opening. Any account not in good standing, closed, and/or with a balance less than or equal to zero at the time we review account eligibility (between 90-120 days of account opening) will not receive the $100 incentive. Normal minimum balance requirements apply. Some BB&T checking account options accrue interest. For example, an Elite Gold account earns 0.01% Annual Percentage Yield (APY) for balances $0 - $2,499, 0.01% APY on balances of $2500 - $24,999 and 0.01% APY on all balances $25,000 - $99,999,999,999 in North Carolina; rates are good as of 11/1/2012 and are subject to change.

The $100 account opening incentive will be deposited directly to your account within 120 days of account opening, and will be reported to the IRS as required by law.

As I mentioned above, BB&T has ended its free checking account in 2011. BB&T Bright Banking has a $10 monthly maintenance fee ($12 for IN/KY) unless you meet at least one of the following requirements:

• Direct Deposit (One monthly ACH Direct Deposit of $100 or greater per statement cycle)
• $1,500 ($2,000 in KY/IN) average checking balance per statement cycle
• $6,000 ($7,500 in KY/IN) combined in deposit and retail outstanding loan balances
• Any BB&T personal mortgage

Those 55 and over can qualify for BB&T Senior Checking which has a lower monthly fee and lower balance requirements to avoid the monthly fee.

Regarding a hard credit inquiry (that can temporarily ding your credit score), I was told that when you apply for an account, BB&T "may require a credit check and/or a ChexSystems report be pulled for account approval." I assume that credit check may be a hard pull.

Availability

I was told by the bank's CSR that a new customer must have an address in BB&T's footprint to open an account. BB&T branches are located in Florida, Georgia, Alabama, North Carolina, South Carolina, Tennessee, Texas, Kentucky, Indiana, Virginia, West Virginia, Maryland and Washington DC.

Closing a BB&T account

In my post from 2010, several readers reported that BB&T makes it difficult to close accounts. If you can't make it into a branch, you may be required to mail in a notarized letter requesting that the account to be closed. One reader commented that he wasn't required to mail a notarized letter, but instead he was required to mail a copy of his ID with the letter.

BB&T Bank Overview

BB&T is one of the nation's largest banks. It has $176 billion in assets and around 1,800 branches throughout the Mid-Atlantic, Southeast and Texas. BB&T added 346 branches and expanded into Texas in 2009 when BB&T acquired the failed Colonial Bank.

Other Bank Bonuses

We have a bank promotions page with a table of all of the active bank and credit union promotions. You can filter the table based on the type of promotion and based on your state. I have more details about how to use this page in this blog post.

You can view my latest bank bonus blog posts in this bank bonus page. I and DepositAccounts.com readers often post on bonuses in the checking account deals forum.

You made it through 2012 – the good, the bad, the ugly. Exhale, reflect. What financial lessons did 2012 offer about retirement and saving? Plenty. The experts weigh in on what you should think long and hard about and use to your advantage in 2013.

Tune out the noise

One of the biggest mistakes of 2012 was to panic and listen too much to the media. “People thought the world was going to end, consequently why save? Why worry? Too many retirees depend on the market for their retirement income and they are the ones who get hurt the most. Having a plan is the biggest key,” says Annalee Leonard, president of Mainstay Financial Group. Avoid the temptation to react to market gyrations, insulate yourself from the talking heads. “Many headlines contribute to negative investor behaviors. Don't let your emotions get the best of you,” said Jeremy Welther, a principal and senior financial advisor with wealth management firm Brinton Eaton in a prepared statement.

Manage risks

Stock market volatility isn't likely to go away any time soon, with so much uncertainty still in the global economy. “If any lesson was to be learned from 2012, it was to expect more of the same when it comes to the market,” says Roy Laux, president of Synergy Financial Services.

Instead of panicking, focus on managing risks. Diversification and re-balancing remain the cornerstones of asset allocation, a time-tested portfolio management tool, points out Welther. Over time, your portfolio will become unbalanced as some asset classes grow faster than others. Periodically trim winners and add to your losers to stay on target, he says. “It's counter-intuitive, but it works. Systematically buying low and selling high allows you to reduce your overall risk and can actually help improve your returns over time.”

“Despite all the warnings of doom and gloom all year long, the doomsayers didn't get it right. The stock markets had a good year, despite all the warnings to the contrary. The Dow, the S&P 500 and NASDAQ were all up nicely, year over year, on December 31st,” says James Poe, founder of Texas Retirement Specialists.

Stuff happens

Whether it's Hurricane Sandy, tornadoes, or floods, the unusual happens, and seemingly with increasing frequency. Prepare for the unexpected. Review your insurance portfolio. “Ensure that you are neither over insured and paying more than you have to, nor under insured with not enough financial protection in the event of an emergency. Examine your coverage in property and casualty, disability, liability and long-term care,” says Welther.

Save more

Despite whatever priorities you have, there's no getting around making saving for the short and long-term top that list. Survey, after survey last year showed that while many Americans are paying down their debt, many aren't prepared for emergencies. A survey from Creditdonkey.com revealed that in 2012, close to half of those polled had no more than $500 in savings for emergencies. “Make 2013 the year you start saving more,” says Charles Tran, founder of the credit card comparison site. Many however, are thinking otherwise. A new survey from American Consumer Credit Counseling found that less than 5 percent of those polled said retirement savings will be an important goal for 2013.

Housing isn't dead

While residential real estate has been mostly, a sad, sad story since 2008, 2012 showed signs of life in the real estate market. With interest rates still low and prices slowly ticking upward, “the market is a great opportunity to invest in a second home that ultimately can be used as a permanent residence upon retirement,” says Jordan Hoefar, a spokesperson for HomeAway, a vacation rental site. By taking a buy-and-rent approach before you're ready to retire, a new home will have partly paid for itself by the time you're ready to move into it, says Hoefar. Among those owners who have a mortgage on their vacation rental home, nearly half are able to cover nearly 75 percent of their mortgage payment by renting it on websites. Says Hoefar, “On average, owners who advertise on HomeAway rent their home 19 weeks per year and generate more than $26,000 in rental income.”

Whatever financial mistakes you may have made or saw others make last year, what's done is done. Learn the lesson and make it work for you in 2013.

The big economic news this week was the fiscal cliff compromise. There are many issues with the compromise, but it has reduced concerns that the economy will be dragged back into recession. The Calculated Risk Blog explained it well in its summary for the week:

it appears the amount of austerity will not be large enough to drag the economy into a new recession. Still, austerity will be a drag in 2013 and that probably means another year of sluggish growth.

We saw sluggish growth in 2012, and this is likely to continue in 2013. Friday's employment report is another indication of this. The job growth for December was mediocre, and the unemployment rate remains high at 7.8%.

One surprise development this week came from the release of the Fed's December meeting minutes. It showed that several FOMC members thought the Fed should cut back on its quantitative easy (QE) before the end of 2013. It's debatable if this is really a sign that the Fed will end QE earlier than expected. Nevertheless, that's how the market interpreted it. This and the fiscal cliff deal pushed Treasury yields higher. According to Bloomberg, "Treasury 10-year yields soared the most since March" this week. Treasury yield changes over the last week and the expectation of future Fed funds rates are shown below. Numbers are based on Yahoo bond rate data and the CME Group FedWatch.

Treasury Yields:

• 6-month: 0.09% up from 0.08% last week
• 2--year: 0.26% up from 0.24% last week
• 5--year: 0.81% up from 0.71% last week
• 10-year: 1.90% up from 1.70% last week
• 30-year: 3.10% up from 2.86% last week

Fed funds futures' probability of rate hike by:

• Jan 2015: 61% up from 58% last week
• Apr 2015: 74% up from 68% last week

There were no bank failures or credit union failures this week. There were a total of 51 bank failures and 15 credit union failures in 2012. I have more details in my review of the 2012 bank failures.

Savings & Checking Account Rates

The first week of the new year was quiet with no rate cuts on my list of the top nationally available savings and money market accounts. There was one rate hike, but it wasn't a surprise since it was announced last month. Effective on January 2nd, FNBO Direct increased its online savings account rate from 0.65% to 0.85%. It's not high enough to get excited about it, but it's high enough to qualify for my list. I'm a little worried that this rate is just temporary to prevent customers who participated in FNBO Direct's savings promo from moving their money. Hopefully, it's a sign that FNBO Direct intends to keep the savings account competitive. FNBO Direct had done a decent job at this before 2011, but in late 2011 and early 2012 the rate plummeted.

One bank that will probably never bring back a competitive online savings account rate is HSBC. Its online savings account had yet another rate cut this week. Its rate is now only 0.20%. This account dropped off my list in June when the rate fell from 0.80% to 0.50%. It's clear that HSBC has essentially given up on its online savings account and has no intention of keeping the rate competitive.

It's interesting to note that the online savings accounts at HSBC and FNBO Direct had a yield of 6.00% back in 2007. They were both rate leaders back then.

For today's rate leaders, I have 12 banks and credit unions on my list with non-promo savings or money market account yields of at least 1.00%.

For those with large balances, the best non-promo deal continues to be at Connexus Credit Union which has a money market account that pays 1.15% APY for balances of at least $100K. The next best are the four internet banks with money market accounts that continue to pay 1.05% APY.

Two internet banks are offering 1.25% APY, but these are promo rates. You can also get 1.10% APY at AmericaNet Bank and its two sister banks, but all three have a $35K balance cap.

Reward Checking Accounts

On my list of nationally available reward checking accounts, two institutions cut their reward checking rates this week. The most disappointing cut was at Provident Credit Union which reduced its yield from 2.01% to 1.76% for balances up to $25K. This leaves ABCO Federal Credit Union as the only institution on my list with a reward checking account with a yield of at least 2% for balances up to $25K. Provident is now tied with Connexus Credit Union with essentially the same rate for balances up to $25K.

The second institution with a rate cut this week is Heritage Bank. Its yield fell from 1.61% to 1.51% for balances up to $25K.

If you want a reward checking account with a balance cap of at least $25K, there are only six institutions on my list that have this balance cap (at minimum) and have a top yield of at least 1.50%.

There are still new reward checking accounts being introduced, but these are local deals. I reviewed two Illinois banks with new reward checking accounts this week. One has a 4.07% APY and the other has a 2.50% APY. However, both have a balance cap of only $15K.

There are still many local deals with balance caps of $25K and yields over 2.00%. To find the highest reward checking rates and balance caps in your state or nationwide, please refer to our reward checking rate table. If you're new to these tables, my rate table guide should be useful. If you're new to reward checking, please refer to my blog post, 10 Common Traits of High-Yield Reward Checking.

Rate Hikes:

1. FNBO Direct Savings - 0.85% [was 0.65%]

Rate/Balance Cap Cuts:

1. Provident Credit Union reward checking - 1.76% (up to $25K) [was 2.01%]
2. Heritage Bank reward checking - 1.51% (up to $25K) [was 1.61%]
3. HSBC Online Savings - 0.20% [was 0.30%]

Certificate of Deposit Rates

My recap of CD rate changes and the list of CD deals will now be in my survey of the best CD rates. This recap will now focus on banking news of the week and liquid accounts.

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

• Happy New Year! - My 12 Top Posts of 2012
• Review of the 2012 Bank Failures and Their Effects on Depositors
• Five New Year's Resolutions to Jump Start Your Savings

• No new posts this week

• Survey of the Best CD Rates for January 4, 2013
• Pen Air Federal Credit Union Falls Off 5-Year CD Rate Leader Spot
• New CD, Savings & Money Market Specials at Citizens State Bank - Available Nationwide
• PenFed Increases CD Rates Again - Top 1-, 2- & 3-Year CD Rates

• New $100 Checking Account Bonus at First Trade Union Bank

• New Reward Checking Accounts in Illinois

• Top Long-Term CD & IRA CD Rates at Columbia Bank - NJ Only

• Archive of 2012 Posts

Rates as of January 5, 2013

Checking/Savings/Money Market Accounts:

• Best Savings Account Rates (Nationwide & by State)
• Best Money Market Rates (Nationwide & by State)
• Best Checking Account Rates (Nationwide & by State)

• How to View Rates for Your State

• Noteworthy Accounts Available Nationwide:

• TIAA Direct - 1.25% MMA/Savings (not accepting new customers) account review
• EverBank - 1.25% MMA/Checking (6mo intro rate) 0.76% ongoing rate, account review
• Salem Five Direct - 1.25% savings, for new customers only (~0.75% for existing customers)
• Connexus Credit Union - 1.15% ($100K) 1.00% ($50K) 0.75% ($20K) active chk required
• Evantage Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• AmericaNet Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• Redneck Bank - 1.10% MMA (up to $35K) 0.50% (over $35K)
• Incredible Bank - 1.05% MMA ($2.5K min) account review
• MyBankingDirect - 1.05% (min $5K)
• Union Federal Savings Bank - 1.05% MMA (min $2.5K) account review
• Sallie Mae Bank - 1.05% MMA account review
• SmartyPig - 1.00% ($50K max), account review
• Barclays - 1.00% Savings account review
• Acacia Federal - 1.00% Metro Checking, account review
• Acacia Federal - 1.00% MMA (min $25K), account review
• CIT Bank - 1.00% ($25K) 0.90% ($0) Savings, account review
• ableBanking - 0.96% MMA (min $1K)
• Ally Bank - 0.95% MMA/savings
• SFGI Direct - 0.94% account review
• AloStar Bank of Commerce - 0.91% ($50K) 0.50% ($0) MMA Advantage
• American Express Bank - 0.90%, account review
• Sallie Mae Bank - 0.90% Savings account review
• Incredible Bank - 0.88% Checking ($1K min) account review
• FNBO Direct - 0.85% Savings
• ING Direct - 0.85% ($100K) 0.80% ($50K) Electric Orange Checking
• Colorado Federal Savings Bank - 0.85% ($2.5K min) account review
• UFB Direct (BofI Federal) - 0.80% MMA/savings account review
• Alliant Credit Union - 0.80% (min $100) Savings account review
• Discover Bank - 0.80% Savings (min $500) account review
• Clear Sky Accounts - 0.80% (max $250K) account review
• Nationwide Bank - 0.76% MMA (min $1K)
• ING Direct - 0.75% Orange Savings
• Alliant Credit Union - 0.75% Checking (req's elec. dep & e-stmts) account review
• One United Bank - 0.75% ($100K) 0.70% ($25K) 0.65% ($1K) E-Money Market

Reward Checking Accounts:

• Best Reward Checking Account Rates for a $10,000 Balance - Nationally Available
• Best Reward Checking Account Rates for a $25,000 Balance - Nationally Available

• How to View Rates for Your State

• Noteworthy Accounts Available Nationwide:

• Consumers Credit Union - 3.09% (up to $5K) 0.20% ($5K-$25K) 0.10% ($25K+)
• Money One Federal Credit Union - 3.01% (up to $10K) 0.51% (over $10K)
• Lake Michigan Credit Union - 3.00% (up to $15K) 0.00% ($15K+)
• Capital Educators Federal Credit Union - 2.50% (up to $10K) 0.20% ($10K+)
• ABCO Federal Credit Union - 2.12% (up to $25K) 0.30% ($25K+)
• INOVA Federal Credit Union - 2.00% (up to $20K) 0.15% ($20K+)
• Evantage Bank - 2.00% (up to $10K) 0.50% (over $10K)
• AmericaNet Bank - 2.00% (up to $10K) 0.50% (over $10K)
• Redneck Bank - 2.00% (up to $10K) 0.50% (over $10K)
• First Tech Federal Credit Union - 1.78% (up to $10K) 0.21% ($10K+)
• Provident Credit Union - 1.76% (up to $25K) 0.11% ($25K+)
• Pacific Resource Credit Union - 1.75% (up to $15K) 0.50% ($15K+)
• Community Bank of Pleasant Hill - 1.75% (up to $10K) 0.50% ($10K+)
• Community Bank of Raymore - 1.75% (up to $10K) 0.50% ($10K+)
• Connexus Credit Union - 1.75% (up to $25K) 0.50% ($25K+) Xtraordinary Checking
• First New England Federal Credit Union - 1.52% (up to $15K) 0.10% ($15K+) (extra 1% w/relationship)
• Heritage Bank - 1.51% (up to $25K) 0.10% ($25K+)
• BankFirst Financial Services - 1.50% (up to $50K) 0.25% ($50K+)
• Legence Bank - 1.50% (up to $25K) 0.25% ($25K+)
• Avidia Bank - 1.36% (up to $25K) 0.05% ($25K+)
• West Texas National Bank - 1.26% (up to $25K) 0.25% ($25K+)
• Bank of Internet USA - 1.25% (all balances)
• Bank of Blue Valley - 1.25% (up to $15K) 0.10% ($15K+), $1K/month debit card req (account review)
• North Country Savings Bank - 1.05% (up to $25K) 0.75% ($25K+)
• State Bank of Toledo - 1.00% (up to $25K) 0.15% ($25K+)

Certificates of Deposit:

• Best CD Rates (Nationwide & by State)
• Best IRA CD Rates (Nationwide & by State)

• How to View Rates for Your State

• Survey of the Best CD Rates for January 4, 2013 (Nationwide & Local)

Various Deposit Account Deals

• Bank Promotions
• Best IRA CD rates, local and nationwide deals
• Latest CD and Savings Account Deals with No Major Deposit Limitiations

Bank Account Alternatives - NOT FDIC Insured

• Ally Financial Demand Notes - 1.75%, Ally Demand Notes review
• Duke Energy PremierNotes - 1.50% rate for $50K+, Duke Energy PremierNotes review
• Ford Interest Advantage - 1.10% rate for $50k+, Ford Interest Advantage review
• GE Interest Plus - 1.10% rate for $50k+
• Vanguard Prime Money Market Fund - 0.02% 7-day yield
• Vanguard Tax-Exempt Money Market Fund - 0.01% 7-day yield
• Fidelity Money Market Fund - 0.01% 7-day yield (reviews on Fatwallet)
• Fidelity Municipal Money Market Fund - 0.01% 7-day yield
• TIAA-CREF Money Market Fund - 0.00% 7-day yield
• PayPal Money Market Fund has ended effective 7/29/11
• FW Thread on Treasury Bills
• Series I Savings Bond Purchases from Nov 2012 thru Apr 2013, I Bond Article, I Bonds as CD Alternatives

Many credit unions came out with new CD rates in this first week of the new year. Most were cuts. However, PenFed was one of the rare credit unions that increased its CD rates. PenFed's 1-, 2- , 3- and 4-year CDs are now rate leaders for nationally available CDs. In my opinion, PenFed's 3-year CD is the best deal with a 1.85% APY. That matches the best 5-year CD yield that's available from an internet bank. Another nice aspect of this CD is that the early withdrawal penalty is only up to 180 days of interest. PenFed's 5-year and 7-year CDs have an EWP of up to 365 days of interest.

If you want a higher rate than 1.85%, you'll need a 5-year term, and you won't get a rate that's much higher. One all-access credit union, Pen Air FCU, used to have the top 5-year Jumbo CD with a 2.20% APY. That ended this week, and the new APY is down to 1.95%. There are still a few all-access credit unions with a 2.00% APY. Two that don't have relationship checking requirements are Mountain America Credit Union and Communitywide Federal Credit Union.

The highest 5-year CD rate that's nationally available is now at Citizens State Bank which is offering a 5-year CD with a 2.05% APY. This is a small Florida bank, but they are accepting deposits nationwide and the CDs can be opened online. Before January the bank required a $100K minimum deposit to qualify for a 2.00% APY. The minimum for this 2.05% APY is now just $1,000.

We didn't see many CD rate changes this week at the internet banks. The top 5-year CD APY continues to be 1.85% at CIT Bank and Nationwide Bank ($100K minimum deposit). For shorter terms, Salem Five Direct continues to offer the best deals with a 1.50% APY 30-month CD and a 1.15% APY 18-month CD.

Local CD Deals

For CDs that are only available locally, this was a very busy week, and unfortunately, it wasn't good for savers. Many credit unions cut rates and ended their CD specials. Some of the noteworthy credit unions that lowered rates include Fort Knox, Shell, Sea Comm, Dover and San Antonio.

The highest CD rate in the nation continues to be at San Antonio Federal Credit Union (SACU), but this is now tied with another Texas credit union. SACU's 10-year Jumbo CD yield fell from 3.25% to 3.00%. This 3.00% is also the same yield that NavyArmy Community Credit Union offers. However, the NavyArmy Community CD has a term of only 30 months. This credit union is open to residents in the Corpus Christi metro area.

I added only one new institution to the list this week. Columbia Bank in New Jersey offers a 2.00% APY on its 6-year IRA CDs (1.85% APY for non-IRA 6-year CDs).

Finally, I'm happy to see that BBVA Compass has continued its CD specials into the new year. These include a 2.00% APY 5-year CD and a 1.25% APY 2-year CD. An extra 10 bps is added to the CD rates if the customer opens a CompassLink Checking. BBVA Compass requires new customers to reside near one of the bank's branches. These are located in Alabama, Arizona, California, Colorado, Florida, New Mexico and Texas.

Long-Term CD Break Strategy

For the short-term CDs in my lists, you might notice CDs with the note "5-year CD closed after X years". These take into account the yield after the early withdrawal penalty is applied. Since Ally Bank's 5-year CD only has a 60-day interest penalty, it's still a good deal when closed early even with the recent rate cuts.

The risks of planning for early withdrawals of long-term CDs were recently highlighted by the deposit agreement change at Ally. The risks have also been seen at credit unions which have raised the early withdrawal penalties on existing CDs. I have more details in this blog post.

Note About the CD Survey

As I described in my rate table overview, you can use our CD rate tables to find the best rates for both nationally available CDs and local CDs. This CD survey blog posts are intended to highlight nationwide CD deals that may not be apparent in the tables. For example, I'll include the post-penalty yields of a few long-term CDs.

The CD survey blog posts are also intended to highlight the local CD deals that are available in large metro areas. There are many high CD rates, but most of these are at small banks in rural areas or at small credit unions with very narrow fields of membership. In these local CD surveys, my focus is on local CD deals that are in big cities or that are available in large areas of a state.

Yields Accurate as of January 4, 2013

Under 1-Year CD Rates

• EverBank - 1.25% checking/MMA intro 6-month rate ($100K/$50K max) account review
• Ally Bank - 1.07% (1.61% 5-year CD closed after 6 months, see review & risks)
• Connexus Credit Union - 1.00% 6-month CD w/active chk
• Xceed Financial Credit Union - 1.00% 9-month CD
• Doral Bank Direct - 0.94% 9-month CD, account review
• Ally Bank - 0.91% 11-month No-Penalty CD, see account review
• Doral Bank Direct - 0.90% 6-month CD, account review
• Barclays - 0.85% (1.70% 5-year CD closed after 6 months, see review & risks)
• Colorado Federal Savings Bank - 0.80% 6-month CD

• Noteworthy Local Deals

• HomeBanc N.A. - 1.50% ($75K max) 3-month CD (Central Florida)
• Gulf Coast Federal Credit Union - 1.10% 6-month CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 1.05% ($250K) 0.95% ($100K) 0.85% ($1K) 7-month CD (several parts of Iowa)
• Veridian Credit Union - 1.00% ($100K) 0.80% ($1K) 7-month CD (several parts of Iowa)
• First Choice Bank - 0.90% ($50K) 0.85% ($2.5K) 288-day CD (Los Angeles & Orange County, CA)
• LOMTO Federal Credit Union - 0.85% 6-month CD (parts of New York City)

1-Year CD Rates

• Ally Bank - 1.34% (1.61% 5-year CD closed after 1 year, see review & risks)
• Barclays - 1.27% (1.70% 5-year CD closed after 1 year, see review & risks)
• Pentagon Federal Credit Union - 1.25% 1-year CD
• State Bank of India - Chicago - 1.16% ($95K) 1.05% ($2.5K) 1-year CD
• Connexus Credit Union - 1.10% 1-year CD w/active chk
• CIT Bank - 1.05% ($25K min) add-on & bump-up 1-year CD
• ableBanking - 1.05% 1-year CD

• Noteworthy Local Deals

• City County Credit Union - 1.51% 1-year IRA-only CD (many FL counties)
• Gulf Coast Federal Credit Union - 1.50% 12-month CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 1.35% ($250K) 1.25% ($100K) 1.15% ($1K) 13-month CD (several parts of Iowa)
• General Electric Credit Union - 1.26% ($100K) 1-year CD (Cincinnati OH metro)
• LOMTO Federal Credit Union - 1.20% 1-year CD (parts of New York City)
• Mansfield Bank - 1.20% 14-month CD (Massachusetts)
• Doral Bank NY - 1.15% 1-year CD (NYC)
• Beal Bank - 1.11% 1-year CD (Southeast FL)
• East River Bank - 1.00% 14-month CD (Philly, PA)
• BBVA Compass - 1.00% 15-month CD (parts of AZ, CA, CO, NM, AL, FL, TX)
• First Choice Bank - 0.95% ($50K) 0.90% ($2.5K) 366-day CD (Los Angeles & Orange County, CA)

18-month CD Rates

• Ally Bank - 1.43% (1.61% 5-year CD closed after 18 months, see review & risks)
• Barclays - 1.41% (1.70% 5-year CD closed after 18 months, see review & risks)
• Salem Five Direct - 1.15% 18-month CD
• NexBank - 1.15% 18-month CD, account review
• MetLife Bank - 1.12% 18-month CD
• Doral Bank Direct - 1.06% 18-month CD, account review

• Noteworthy Local Deals

• Gulf Coast Federal Credit Union - 1.65% 18-month CD (Corpus Christi, TX metro)
• Generations Federal Credit Union - 1.50% 18-21-month CD ends on 1/18/13 (San Antonio, TX)
• TEXAR Federal Credit Union - 1.35% 18-month CD (Northeast TX)
• Veridian Credit Union - 1.30% ($100K) 1.11% ($1K) 15-month CD (several parts of Iowa)
• Libertad Bank - 1.25% 18-month CD (Texas)
• El Paso Area Teachers FCU - 1.21% ($50K) 1.11% ($500) 18-month CD (El Paso, TX)
• Meetinghouse Bank - 1.20% 18-month CD (Boston, MA)
• Valley Green Bank - 1.20% 18-month CD (Philadelphia, PA)
• Doral Bank NY - 1.20% 18-month CD (NYC)
• First Choice Bank - 1.00% ($50K) 0.95% ($2.5K) 541-day CD (Los Angeles & Orange County, CA)

2-Year CD Rates

• Pentagon Federal Credit Union - 1.60% 2-year CD, account review
• Barclays - 1.49% (1.70% 5-year CD closed after 2 years, see review & risks)
• Ally Bank - 1.47% (1.61% 5-year CD closed after 2 years, see review & risks)
• Citizens State Bank - 1.36% ($100K) 1.21% ($1K) 2-year CD, account review
• Sandia Laboratory FCU - 1.36% ($200K) 1.26% ($100K) 1.16% ($50K) 1.06% ($1K) 2-year CD
• NexBank - 1.30% 2-year CD, account review
• Connexus Credit Union - 1.30% 2-year CD w/active chk
• Northwest Federal Credit Union - 1.26% ($100K) 1.15% ($25K) 2-year CD (+0.25% w/relationship)
• CIT Bank - 1.20% ($25K min) add-on & bump-up 2-year CD
• ableBanking - 1.19% 2-year CD

• Noteworthy Local Deals

• TEXAR Federal Credit Union - 1.85% 2-year CD (Northeast TX)
• Gulf Coast Federal Credit Union - 1.85% 2-year CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 1.55% ($250K) 1.45% ($100K) 1.35% ($1K) 21-month CD (several parts of Iowa)
• Workers Credit Union - 1.50% 2-year CD w/chk+dd (MA & Southern NH)
• Veridian Credit Union - 1.45% ($100K) 1.25% ($1K) 25-month CD (several parts of Iowa)
• Doral Bank NY - 1.40% 2-year CD (NYC)
• LOMTO Federal Credit Union - 1.40% 2-year CD (parts of New York City)
• BBVA Compass - 1.35% 2-year CD w/chk, 1.25% w/o chk (parts of AZ, CA, CO, NM, AL, FL, TX)
• BrightStar Credit Union - 1.25% 23-month CD (+0.25% w/chk relationship) (parts of Southeast FL)

3-Year CD Rates

• Wilshire State Bank - 2.28% 3-year installment savings account w/auto xfers (account review)
• Pentagon Federal Credit Union - 1.85% 3-year CD, account review
• Connexus Credit Union - 1.75% 3-year CD w/active chk
• Barclays - 1.56% (1.70% 5-year CD closed after 3 years, see review & risks)
• Ally Bank - 1.52% (1.61% 5-year CD closed after 3 years, see review & risks)
• State Bank of India - Chicago - 1.51% ($95K) 1.41% ($2.5K) 3-year CD
• Salem Five Direct - 1.50% 30-month CD
• Citizens State Bank - 1.46% ($100K) 1.31% ($1K) 3-year CD, account review
• Melrose Credit Union - 1.46% 3-year CD
• NexBank - 1.40% 3-year CD, account review
• Northwest Federal Credit Union - 1.40% ($100K) 1.30% ($25K) 3-year CD (+0.25% w/relationship)
• CIT Bank - 1.35% ($100K) 1.30% ($1K) 3-year CD
• Pentagon Federal Credit Union - 1.33% (2.00% 7-year CD closed after 3 years, see review & risks)
• Discover Bank - 1.30% 3-year CD

• Noteworthy Local Deals

• NavyArmy Community Credit Union - 3.00% 30-month CD (Corpus Christi, TX metro)
• University of Iowa Community Credit Union - 2.20% ($250K) 2.10% ($100K) 2.00% ($1K) 37-month CD (several parts of Iowa)
• Encompass Credit Union - 2.02% 3-year CD (Central Indiana)
• Gulf Coast Federal Credit Union - 2.02% 3-year CD (Corpus Christi, TX metro)
• One Source Federal Credit Union - 1.86% ($50K) 1.76% ($1K) 3-year CD (El Paso, TX)
• Veridian Credit Union - 1.80% ($100K) 1.60% ($1K) 39-month CD (several parts of Iowa)
• Doral Bank NY - 1.55% 3-year CD (NYC)
• LOMTO Federal Credit Union - 1.55% 3-year CD (parts of New York City)
• Sea Comm Federal Credit Union - 1.52% 3-year CD (Northern NY)
• Valley Green Bank - 1.50% 3-year CD (Philadelphia, PA)
• Wings Financial Credit Union - 1.46% 3-year CD (Seattle & Minneapolis Metro areas)

4-Year CD Rates

• Pentagon Federal Credit Union - 1.85% 4-year CD, account review
• Citizens State Bank - 1.77% ($100K) 1.61% ($1K) 4-year CD, account review
• Andrews Federal Credit Union - 1.71% 4-year CD
• Melrose Credit Union - 1.71% 4-year CD
• Green Bank, N.A. - 1.70% 4-year CD
• Communitywide Federal Credit Union - 1.70% 49-month special CD
• Alliant Credit Union - 1.65% 4-year CD
• Nationwide Bank - 1.61% ($100K) 1.56% ($500) 4-year CD
• Barclays - 1.59% (1.70% 5-year CD closed after 4 years, see review & risks)
• Pen Air Federal Credit Union - 1.55% ($100K) 1.45% ($500) 4-year CD
• Ally Bank - 1.54% (1.61% 5-year CD closed after 4 years, see review & risks)
• Discover Bank - 1.50% 4-year CD
• Pentagon Federal Credit Union - 1.50% (2.00% 7-year CD closed after 4 years, see review & risks)
• Barclays - 1.45% 4-year CD
• Ally Bank - 1.35% Raise-Your-Rate 4-year CD

• Noteworthy Local Deals

• University of Iowa Community Credit Union - 2.35% ($250K) 2.25% ($100K) 2.15% ($1K) 49-month CD (several parts of Iowa)
• Jefferson Financial Credit Union - 2.00% 4-year CD (parts of Louisiana)
• One Source Federal Credit Union - 1.97% ($50K) 1.87% ($1K) 4-year CD (El Paso, TX)
• HAPO Community Credit Union - 1.85% 4-year CD (all of Washington State)
• LOMTO Federal Credit Union - 1.75% 4-year CD (parts of New York City)
• Empower Federal Credit Union - 1.75% ($100K) 1.60% ($10K) 4-year CD, extra 0.25% for seniors w/dd (western NY)
• Sea Comm Federal Credit Union - 1.70% 4-year CD (Northern NY)
• Doral Bank NY - 1.65% 4-year CD (NYC)
• Wings Financial Credit Union - 1.61% 4-year CD (Seattle & Minneapolis Metro areas)
• Shell Federal Credit Union - 1.60% ($50K) 1.55% ($500) 4-year CD (Houston, TX)

5-Year CD Rates

• Citizens State Bank - 2.05% ($1K) 5-year CD, account review
• State Department Federal Credit Union - 2.02% 5-year IRA CD, 1.91% 5-year CD
• Stanford Federal Credit Union - 2.02% ($100K) 5-year CD, requires chk w/dd, account review
• Mountain America Credit Union - 2.00% 5-year CD, account review
• Connexus Credit Union - 2.00% 5-year CD w/active chk
• Communitywide Federal Credit Union - 2.00% 5-year CD
• Melrose Credit Union - 1.96% 5-year CD
• Green Bank, N.A. - 1.95% 5-year CD
• Pen Air Federal Credit Union - 1.95% ($100K) 1.85% ($500) 5-year CD
• Pentagon Federal Credit Union - 1.90% 5-year CD
• CIT Bank - 1.85% ($100K) 1.80% ($1K) 5-year CD
• Nationwide Bank - 1.85% ($100K) 1.80% ($500) 5-year CD
• Barclays - 1.70% 5-year CD
• Discover Bank - 1.65% 5-year CD
• Ally Bank - 1.61% 5-year CD
• Pentagon Federal Credit Union - 1.60% (2.00% 7-year CD closed after 5 years, see review & risks)

• Noteworthy Local Deals

• Encompass Credit Union - 2.53% 5-year CD (Central Indiana)
• American Airlines Credit Union - 2.47% 5-yr/1.46% 2.5-yr CD ladder (limited membership)
• One Source Federal Credit Union - 2.37% ($50K) 2.27% ($1K) 5-year CD (El Paso, TX)
• General Electric Credit Union - 2.33% 5-year CD (Cincinnati OH metro)
• Security Service Federal Credit Union - 2.30% ($100K) 2.15% ($500) 5-year CD (parts of Texas, lower rates in CO and UT)
• Jefferson Financial Credit Union - 2.25% 5-year CD (parts of Louisiana)
• SACU - 2.20% ($90K) 2.15% ($10K) 5-year CD (San Antonio, TX)
• Ukrainian Selfreliance FCU - 2.20% ($75K) 2.15% ($500) 5-year CD (Philadelphia, PA)
• American United Family of Credit Unions - 2.15% ($75K) 2.10% ($500) 5-year CD (parts of Utah)
• Idaho Central Credit Union - 2.15% 5-year bump-up CD (Idaho)
• BBVA Compass - 2.10% 5-year CD w/chk, 2.00% w/o chk (parts of AZ, CA, CO, NM, AL, FL, TX)
• Denver Community Credit Union - 2.10% ($50K) 1.85% ($100) 5-year CD (Denver County)
• Superior Choice Credit Union - 2.08% 58-month CD special (parts of WI and MN)
• Texell Credit Union - 2.05% 5-year CD (Central Texas)
• Empower Federal Credit Union - 2.05% ($100K) 1.90% ($10K) 5-year CD, extra 0.25% for seniors w/dd (Northwest NY)
• HEW Federal Credit Union - 2.02% 5-year CD (DC metro area)
• LOMTO Federal Credit Union - 2.00% 5-year CD (parts of New York City)
• American Eagle Bank of Chicago - 2.00% (relationship checking required) 5-year CD (Chicago, IL)
• Police and Fire Federal Credit Union - 2.00% 5-year CD (Pennsylvania)
• Shell Federal Credit Union - 1.95% ($50K) 1.90% ($500) 5-year CD (Houston, TX)
• HAPO Community Credit Union - 1.95% 5-year CD (all of Washington State)
• Miami Postal Service Credit Union - 1.91% 5-year CD (Southeast FL)
• Freedom Credit Union - 1.90% add-on 5-year CD (Philadelphia)
• Wings Financial Credit Union - 1.86% 5-year CD (Seattle & Minneapolis Metro areas)

Over 5-Year CD Rates

• Navy Federal Credit Union - 2.15% ($100K) 2.05% ($20K) 7-year CD (membership restrictions)
• Discover Bank - 2.00% 10-year CD
• Pentagon Federal Credit Union - 2.00% 7-year CD
• Navy Federal Credit Union - 2.00% ($100K) 1.90% ($20K) 6-year CD (membership restrictions)
• Air Force FCU - 2.00% ($100K) 1.85% ($2.5K) 7-year CD
• Apple Federal Credit Union - 2.00% 10-year CD
• Northrop Grumman FCU - 1.92% ($40K) 1.76% ($2.5K) 7-year CD
• Discover Bank - 1.90% 7-year CD
• E-LOAN - 1.70% 6-year CD
• Dime Savings Bank - 1.70% 7-year CD

• Noteworthy Local Deals

• SACU - 3.00% ($90K) 2.95% ($10K) 10-year CD (San Antonio, TX)
• Security Service Federal Credit Union - 2.85% ($100K) 2.70% ($500) 7-year CD (parts of Texas, lower rates in CO and UT)
• SACU - 2.65% ($100K) 2.60% ($10K) 7-year (San Antonio, TX)
• Workers Credit Union - 2.50% 6-year CD w/chk+dd (MA & Southern NH)
• Empower Federal Credit Union - 2.05% ($100K) 1.90% ($10K) 7-year CD, extra 0.25% for seniors w/dd (Northwest NY)
• Gateway Metro Federal Credit Union - 2.05% 6-year CD (St. Louis metro)
• HeritageWest Credit Union - 2.02% 6-year CD (parts of Utah)
• Mansfield Bank - 2.00% 8-year CD (Massachusetts)
• Columbia Bank - 2.00% 6-year IRA CD 1.85% 6-year CD (New Jersey)
• Randolph-Brooks Federal Credit Union - 1.92% ($75K) 1.92% ($1K) 7-year CD (San Antonio & Austin, TX)
• Randolph-Brooks Federal Credit Union - 1.76% ($75K) 1.76% ($1K) 6-year CD (San Antonio & Austin, TX)

Note: All rates listed above are Annual Percentage Yields (APY) which factor in compounding.

Most of the reward checking news in the New Year has been disappointing as several rate cuts have been reported. On the plus side, new reward checking accounts are still being launched at community banks and credit unions around the nation. I thought it would be useful to point out new ones at two Illinois banks.

For those of us who have been following reward checking for years, these new ones are often disappointing since the balance caps are lower than they used to be. The $25,000 balance cap used to be typical. Now, $15,000 and $10,000 balance caps are more common. A Lower balance cap makes it easier for the banks to pay the high yields. For example, if a reward checking account pays 3% for balances up to $25K, the bank may have to pay out $750 in interest over a year. If the balance cap is only $10K, the maximum payout goes down to only $300.

For the two new Illinois banks, both have balance caps of $15,000. However, the rates are competitive which may make these accounts worthwhile for some. Below are the two banks and a summary of their reward checking accounts:

Community Bank of Trenton

Community Bank of Trenton has a reward checking account called Moolah Checking. It has the following rates and features as of 1/4/2013:

• 4.07% APY on balances up to $15,000
• 0.10% on balances over $15,000
• 0.10% on all balances if requirements are not met
• up to $10 in ATM fees refunded per statement cycle if requirements are met

Monthly requirements:

• 12 debit card purchases
• 1 direct deposit per month
• eStatements
• $1,000 minimum balance

There's an online application link at the bottom of the rates page, but the online application is limited to residents of a few Southern Illinois counties near St. Louis.

For more account details, please refer to this forum thread from DA reader ChadJack12.

Harvard Savings Bank

Harvard Savings Bank recently launched a reward checking account called WOW Rewards Checking. Here's a summary of the rates and features as of 1/4/2013:

• 2.50% apy on balances up to $15,000
• 0.05% apy for amount above $15,000
• up to $10 ATM refunds nationwide

Monthly requirements:

• 15 signature based debit card purchases
• 1 direct deposit each statement cycle

I don't see any online application, so new customers will probably have to visit one of the bank's branches. In addition to branches in Harvard, Illinois, the bank has a branch in Morris, Illinois which is about 40 miles southwest of Chicago.

For more account details, please refer to my forum thread which has an account overview.

Searching for the Highest Reward Checking Rates

You can find reward checking accounts available in your state by using our reward checking table. You can also use the table to find reward checking accounts available nationwide. Refer to this post to learn how to use the table.

To learn more about reward checking accounts, please refer to my post 10 Common Traits of High-Yield Reward Checking Accounts.

Columbia Bank in New Jersey has several competitive rates on its long-term CDs. The IRA CDs have the best rates. The highest is 2.00% APY for a 6-year IRA CD. For a regular CD, the 6-year term has a 1.85% APY. Minimum deposit is $500, and the early withdrawal penalty is 365 days of interest. Kudos to the bank for listing both the rates and the early withdrawal penalties in its rate tables. Below is a summary of the long-term CD and IRA CD rates as listed in the bank's CD rate table and IRA CD rate table as of 1/4/2013:

• 1.95% APY 7-year CD
• 1.85% APY 6-year CD, 2.00% APY 6-year IRA CD
• 1.60% APY 5-year CD, 1.75% APY 5-year IRA CD
• 1.45% APY 4-year CD, 1.60% APY 4-year IRA CD

Thanks to the reader who emailed news of these rates.

IRA Bonus Program

Another reason to open an IRA CD at Columbia Bank is its IRA bonus program. It's a limited-time promotion that offers a one-time cash bonus when you open an IRA. The bonuses range from 0.30% for a 3-year term to 0.60% for a 6-year term. Minimum deposit is $10,000. Please refer to the bank's IRA promotions page for more details.

Other Bank Deals

In addition the competitive CD rates and the IRA bonus program, Columbia Bank offers a high-rate checking account with a $100 new-account bonus. I last reviewed this account and bonus in this March 2012 post. The rates have remained the same. It pays 1.00% APY for balances between $10K and $250K when a monthly requirement is met. That requirement is a qualifying direct deposit or an online bill payment transaction to post to your account each statement cycle.

New Jersey Only

There's an online application. However, the first page of the application states that "you must live or work in the State of New Jersey".

Bank Overview

Columbia Bank branches are located in several New Jersey cities. Some of the cities include Edison, Fair Lawn, Paramus and Wayne.

The bank has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 18.18% (average) based on September 2012 data. Please refer to our financial overview of Columbia Bank for more details. The bank has been a FDIC member since 1937 (FDIC Certificate # 28834).

How The CD Rates Compare

It's difficult to find CD yields of 2.00% or higher in today's environment. The new highest 5-year CD rate that's nationally available is 2.05% APY at Citizens State Bank in Florida (see CD review). The next highest for 5-year CDs is 2.00% APY at Mountain America Credit Union and at Communitywide Federal Credit Union.

Unfortunately, you can't get higher rates for choosing longer terms. The highest 7-year CD rate that's nationally available is 2.00% APY at PenFed and at Air Force FCU.

These rates are accurate as of 1/4/2013.

Searching for Top CD and IRA CD Rates

To search for nationwide CD/IRA rates and CD/IRA rates in your state, please refer to the best CD rates and best IRA CD rates sections of DepositAccounts.com.

Pen Air Federal Credit Union had the top spot for the highest 5-year CD rate that's nationally available. Yesterday, Pen Air FCU reduced its CD rates. Its standard 5-year share certificate APY fell from 2.00% to 1.85%. Jumbo certificates used to have rates 20 basis points higher than the published standard rates. That has also gone down. According to a Pen Air FCU representative, the premium is now 10 basis points. So the new Jumbo 5-year share certificate APY is now 1.95%. Minimum deposits for the Jumbo certificates is $100,000. The regular CD and IRA CD rates are listed in the credit union's share rates page as of 1/3/2013.

For more details about Pen Air Credit Union's certificates including the early withdrawal penalties, please refer to my November Pen Air CD review.

Eligibility

The credit union used to limit membership to active duty or retired military and current or retired federal civil service employees. However, there's now an additional way to qualify. Membership is now open to Friends of the Navy-Marine Corps Relief Society Member. Please refer to the credit union's membership page for the full details.

There's an online application which allows people to join and open accounts. On the first page of the application, the user is required to select an eligibility option. Below is the option which appears to allow anyone to join:

Join the "Friends of the Navy Marine Corps Relief Society" association and become eligible for Pen Air FCU membership. A $3 membership fee required.

Credit union membership also requires a one-time $2 fee and a minimum balance of $25 in the savings account.

Credit Union Overview

Pen Air FCU branches are located in the Pensacola metro area in Florida and in the Mobile metro area in Alabama. The credit union is also part of the CU Service Centers which is a nationwide network of shared branches.

The credit union has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 10.45% (above average) based on September 2012 data. Please refer to financial overview of Pen Air Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 1303).

How These CD Rates Compare

The new highest 5-year CD rate that's nationally available is 2.05% APY at Citizens State Bank in Florida (see CD review). The next highest for 5-year CDs is 2.00% APY at Mountain America Credit Union and at Communitywide Federal Credit Union. These rates are accurate as of 1/3/2013.

Searching for Top CD Rates

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.

Update 2/5/13: The 5-year CD rates have fallen.

Citizens State Bank in Florida has come out with new deposit specials for the New Year. The first special is a 5-year CD with a 2.05% APY. Minimum deposit is $1,000. The other two specials are guaranteed rates for its savings account and money market account. The bank is offering 1.05% APY on its money market account and 1.01% APY on its personal savings account. These rates are guaranteed until 6/30/2013. The savings account APY requires a $1,000 minimum and the money market APY requires a $10,000 minimum. I was told they are in the process of updating the rates on their website. As of this morning (1/3/13), they still are not updated. However, I was sent a flyer showing the specials. Here's the link to the flyer.

I was told that these deposit account specials are available nationwide and may be opened in branch, online or over the phone. When I last checked the online application, these specials weren't listed. So you may need to call if you don't live near a branch.

The bank allows for POD beneficiaries. If this isn't designated when the account is opened, you can call and have the beneficiaries added over the phone.

One downside with these CDs is a large early withdrawal penalty. The early withdrawal penalties for CD terms from 2 to 5 years are:

• 9 months of interest for 2-year CD
• 12 months of interest for 3-year CD
• 18 months of interest for 4-year CD
• 24 months of interest for 5-year CD

These penalties apply on the amount withdrawn. Please refer to the fee tab of the bank's personal CD page for the full details on the early withdrawal penalties.

Bank Overview

Citizens State Bank is a small bank with 4 branches in north Florida. It just recently established a branch in Gainesville. The other branches are located in small towns between Gainesville and Tallahassee.

The bank has an overall health score at DepositAccounts.com of 3 stars (out of 5) with a Texas ratio of 36.90% (below average) based on September 2012 data. The Texas ratio that was based on June data was 42.33%, so the financial health has improved a little. Please refer to our financial overview of Citizens State Bank for more details. The bank has been a FDIC member since 1958 (FDIC Certificate # 17880).

How This 5-Year CD Rate Compares

This 5-year CD special is now on top as the highest 5-year CD rate that's nationally available. The next highest for 5-year CDs is 2.00% APY at Mountain America Credit Union and at Communitywide Federal Credit Union. The next highest at banks that take deposits nationwide is 1.95% APY at Green Bank, N.A. The highest 5-year CD rate at an internet bank is 1.85% APY at CIT Bank and at Nationwide Bank. Both of these are Jumbo CDs which require a $100,000 minimum deposit.

The above rates are accurate as of 1/3/2013.

Searching for Top CD Rates

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.

Edit: Included a revised flyer for promotion with lower CD minimum deposit.

Update 4/10/13: The promotion has changed. Please refer to this post for a new review of this promotion.

First Trade Union Bank has updated its promotion for its Virtual Checking Account. There is still a $100 cash bonus, but the requirements have changed a little. The new expiration date is 3/18/2013. A link to the promotion details is listed in the bank's Virtual Checking page. Here are the new requirements to receive the full $100:

• Open a new First Trade Virtual Checking account before 3/18/13
• $50 if you enroll in direct deposit and have at least one direct deposit of $50 or more credited to your Virtual Checking account by 4/30/13
• $50 if you enroll in FTUB Bill Pay service and pay at least one bill of $50 or more through FTUB Bill Pay by 4/30/13

The bank provides several details regarding what counts as a direct deposit:

A qualifying direct deposit is defined as the direct deposit of a paycheck, salary, pension, or government benefits electronically deposited by an employer or an outside agency. Bank-to-bank transfers between accounts held by the same individual, transfers between accounts both held at First Trade Union Bank, and deposits made via a banking location, ATM or remote capture process do not qualify. In the event that we determine in our sole discretion that the activity on your account does not qualify, we will not be obligated to credit your account with the payout.

Another important requirement mentioned is that your Virtual Checking account balance must be greater than $100 at the time the bonuses are credited to the account.

The nice thing about this promotion is that the checking account is something that you may want to keep for the long-term. The Virtual Checking account has no minimum balance requirement, no maintenance fees and online bill pay is free. Also, it offers ATM surcharge rebates (up to $20 per statement cycle). The first order of basic checks is free.

The account pays interest, but it's still low for internet checking accounts. The current rate is 0.20% for balances over $1,000 (as of 1/3/2013).

If you want a higher interest rate, you can open the bank's online savings account, High and Mighty Savings. This was much more competitive in 2011 when the top yield was 1.05%. The top yield is now only 0.70% APY for balances of $2,500 and over (as of 1/3/2013). However, this rate has held since last May. Like the checking, it has no monthly service fees.

The bank has offered some competitive CD rates in the past, but I don't see any competitive ones today. Most of the CD rates are under 1.00%.

Online Application - Available Nationwide

All of these accounts can be opened online with the bank's online application, and they're available to people in any state. The application is provided by andera.com which is common for online banks. Account funding can be done with an ACH transfer from your existing checking or savings account.

Bank Overview

The main office of First Trade Union Bank is located in Boston, MA.

The bank has an overall health score at DepositAccounts.com of 4 stars (out of 5) with a Texas Ratio of 13.67% (above average) based on September 2012 data. Please refer to our financial overview of First Trade Union Bank for more details. The bank has been a FDIC member since 1987 (FDIC Certificate # 32551).

Other Bank Bonuses

We have a bank promotions page with a table of all of the active bank and credit union promotions. You can filter the table based on the type of promotion and based on your state. I have more details about how to use this page in this blog post.

You can view my latest bank bonus blog posts in this bank bonus page. I and DepositAccounts.com readers often post on bonuses in the checking account deals forum.

After two months of special CD rates, I was worried Pentagon Federal Credit Union (PenFed) would not extend the specials into January. So I was pleasantly surprised to see the new January CD rates at PenFed this morning. The 1-year CD rate had the biggest increase. It went up from 1.00% to 1.25% APY. The CD rates from terms of 2 to 5 years went up 10 basis points. The 7-year CD rate remains the same. This now makes PenFed's 1-, 2- and 3-year CD rates the clear nationwide leaders. It's interesting to see PenFed putting more emphasis on its short- and mid-term CDs rather than its long-term CDs. The 7-year and 5-year CD rates are still competitive, but there are other credit unions that offer similar rates. In past years, PenFed's long-term CD rates had been the most competitive ones.

Below is the list of the new PenFed CD rates for terms of 1 to 7 years with the noteworthy rates highlighted. I've also listed the old rates in parentheses. These new rates are listed in PenFed's Money Market Certificates page as of 1/2/2013.

• 2.00% APY 7-year (no change)
• 1.90% APY 5-year (was 1.80%)
• 1.85% APY 4-year (was 1.75%)
• 1.85% APY 3-year (was 1.75%)
• 1.60% APY 2-year (was 1.50%)
• 1.25% APY 1-year (was 1.00%)

PenFed calls their CDs "Money Market Certificates", but they are essentially certificates of deposit (CD) with fixed rates for specific terms.

Minimum deposit is $1,000. The rates are also available in an IRA. Even though PenFed typically maintains CD rates through the month, they no longer guarantee it. For more details about PenFed CDs, please refer to my PenFed CD review.

PenFed 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 (one-time $20 fee) or by joining the Voices for America's Troops (one-time $15 fee). Joining one of these organizations and joining PenFed can be done at the same time all online.

To join PenFed, click on the "Join PenFed" link at the top of any PenFed page. This will take you to the start of the online application. That first page asks about eligibility. If you don't qualify via any of the listed options, click "None of the above". A popup informs users that "We can establish your membership eligibility through either National Military Family Association or Voices for America's Troops." When you close the popup, you are then asked to select one of these two organizations.

Branch Locations

Accounts can be opened online, but for those who prefer opening accounts in an office, PenFed has branches in several parts of the country including Washington DC, Maryland, Virginia, New York, North Carolina, Hawaii, Puerto Rico and Texas.

Financial/NCUA Info

PenFed is the third largest credit union in the nation. It has $12 billion in deposits. PenFed has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 3.55% (excellent) based on September 2012 data. Please refer to our financial overview of PenFed for more details. It's federally insured by the NCUA (Charter # 227).

How These New CD Rates Compare

For CDs nationally available, PenFed is now the rate leader for CD terms from 1 to 4 years. The best 1-year CD rate at an internet-capable bank is 1.05% APY at CIT Bank and at a few other banks. The best 2-, 3-, 4- and 5-year CD rates at an internet-capable bank is at Citizens State Bank in Florida. Its rates include a 1.36% APY 2-year CD, a 1.50% APY 3-year CD, a 1.77% APY 4-year CD and a 2.00% APY 5-year CD. Most of these are Jumbo CDs. For all-access credit unions, Pen Air Credit Union still has the best deal for 5-year CDs. It has a 2.20% APY for a Jumbo CD and a 2.00% APY for a regular CD.

The above rates are accurate as of 1/2/2013.

Searching for the Best CD Rates

To search for the best nationwide rates and the best rates in your state, please refer to the following tables at DepositAccounts.com:

• Best CD rates
• Best IRA CD rates

This is just a quick note to wish you and your family a happy, healthy and prosperous New Year. I would like to thank all of you for your support.

While we wait for credit unions to post their January rates, I thought it would be useful for me to list some of my top posts from 2012. I only included posts that are still relevant today. Posts that review old deals aren't included. Several of the posts may be useful for those who have CDs maturing this year. With long-term CDs paying so little today, should you roll over your maturing long-term CDs into new long-term CDs? I consider this issue in several of the posts. Some of the posts also provide examples of the risks of long-term CDs like the Ally Bank disclosure change and CEFCU increasing EWP on existing CDs.

1. Gotchas to Avoid When Planning to Close a CD at Maturity
2. Understanding Deposit Insurance Coverage with Multiple Beneficiaries
3. Ally Bank Changes Deposit Agreement Covering CD Early Withdrawals
4. Usefulness of Rate Chasing in the Last 3 Years
5. The Best Free Internet Checking Accounts
6. Higher CD Rates at Privately Insured Credit Unions
7. Deciding Between Short-Term and Long-Term CDs
8. Best Bank Accounts for a Future of Uncertain Interest Rates
9. Automatic Renewals Can Be Costly for CD Investors
10. Can Reward Checking Remain a Good Alternative to Internet Banks?
11. Another Credit Union Increases Early Withdrawal Penalty on Existing CDs
12. What to Do with Maturing CDs? Choosing Long-Term CDs with the Highest Rates

Here is hoping that 2013 starts well and brings us all happiness, health and prosperity in our lives.