Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

Best Bank Account Interest Rates


Summary for July 22, 2014

The Fed’s decisions on monetary policy should be driven by economic data, primarily the unemployment rate and the inflation rate. Today, inflation data was released by the government, and it showed that CPI increased 0.3% in June, which was inline with the consensus forecast. The core CPI, which excludes food and energy, increased by 0.1% which was under the consensus forecast of 0.2%. Over the past 12 months, CPI is up 2.1%, and the core CPI is up 1.9%. These are close to the Fed’s 2% target, and thus, this inflation data won’t encourage the Fed to raise rates sooner.

There are a few on the Fed who are known to be inflation hawks. Three in particular have expressed concern over the last week about keeping rates too low for too long. According to this CNN Money article, Dallas Fed President Richard Fisher, Kansas City Fed President Esther George and Philadelphia Fed President Charles Plosser have suggested that "we are closer than a lot of people might think" to a hike in interest rates. However, these inflation hawks are a minority on the Fed. Thus, I think it’s unlikely we’ll see a rate hike sooner than expected. Currently, the consensus for the first rate hike is the third quarter of 2015. The next Fed meeting is scheduled for next week on July 29 and 30.

Treasury yield changes were mixed last week while the Fed fund futures’ probabilities went up slightly indicating a slight increase in the chance of a rate hike next year. Below is a summary of the changes. The following numbers are based on Daily Treasury Yield Curve Rates and the CME Group FedWatch.

Treasury Yields:

  • 1-month: 0.03% up from 0.02% last week
  • 6-month: 0.05% down from 0.07% last week
  • 2--year: 0.51% up from 0.48% last week
  • 5--year: 1.69% up from 1.65% last week
  • 10-year: 2.50% down from 2.53% last week
  • 30-year: 3.29% down from 3.34% last week

Fed funds futures' probability of rate hike by:

  • Jan 2015: 10% up from 9% last week
  • Apr 2015: 34% same as last week
  • Jul 2015: 74% up from 72% last week
  • Oct 2015: 94% up from 93% last week

Savings & Checking Account Rates

Last week was another quiet week in the savings and money market accounts that I track below. There were no rate changes.

The number of institutions offering a non-promo 1% savings or money market account remains at five. Out of these five, the accounts at Connexus Credit Union and SmartyPig have the longest history of top rates. Note, I exclude EverBank and Salem Five Direct. Only new customers can earn over 1% at these banks.

Reward Checking Accounts

Last week was also a quiet week for the nationally available reward checking accounts. There were no rate changes.

There continues to be six banks and credit unions in my table below offering reward checking yields of 2.00% or above for balances of at least $15,000. Please note that one of these institutions, INOVA Federal Credit Union, has added requirements to its reward checking account that make it harder to qualify for the high rate.

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 reward checking, please refer to my blog post, 10 Common Traits of High-Yield Reward Checking.

Certificate of Deposit Rates

I’ve gone back to publishing my CD survey as a separate post. Please refer to my survey of the best CD rates. This recap will focus on banking news of the week and liquid accounts.

Best Nationally Available MM, Savings and Checking Accounts

Rate Hikes:

  • none

Rate/Balance Cap Cuts:

  • none

The rates listed below are based on Annual Percentage Yield (APY). No minimum balances are required unless noted. MMA next to the rates indicate a money market account. Most MMAs have check writing and ATM cards. Online savings accounts usually lack both of these. Previous weekly summaries are available at this page.

Rates as of July 22, 2014

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
EverBank1.40% (6mo intro rate) 0.61% ongoing rateMMA/Checking - account review
Connexus Credit Union1.15% ($100K) 1.00% ($50K) 0.75% ($20K)MMA - active chk required
Quorum Federal Credit Union1.05%HighQ Savings Account
SFGI Direct1.01%savings account, account review
MySavingsDirect1.00%savings account - account review
SmartyPig1.00%savings account - account review
Salem Five Direct1.00%savings, for new customers only
Synchrony Bank (formerly GE Capital Retail Bk) 0.95%Savings
Incredible Bank0.95% ($2.5K min) MMA account review
CIT Bank0.95% ($25K) 0.90% ($100) savings account, account review
Bank5 Connect0.90% (min $100) online savings account (not available for MA and RI residents)
GE Capital Bank0.90%online savings account
Sallie Mae Bank0.90%MMA account review
Barclays0.90%Savings account review
Redneck Bank0.90% (up to $35K) 0.50% (over $35K)MMA
AmericaNet Bank0.90% (up to $35K) 0.50% (over $35K)MMA
Evantage Bank0.90% (up to $35K) 0.50% (over $35K)MMA
Palladian Private Bank0.90% (min $10K)savings account
iGObanking.com0.90% ($100K) 0.90% ($75K) 0.90% ($25K)New accounts and new money only, account review
Ally Bank0.87%savings
First Trade Union Bank0.85% ($2.5K)FT High-Yield Savings, account review
Union Federal Savings Bank0.85% (min $2.5K)MMA account review
Ally Bank0.85%MMA
Discover Bank0.85% (min $500) savings account, account review
Colorado Federal Savings Bank0.85% ($2.5K min)savings account, account review
Synchrony Bank (formerly GE Capital Retail Bk)0.85%MMA
Mutual of Omaha Bank0.85% (min $25) MMA, account review
TIAA Direct0.80%high yield savings account
FNBO Direct0.75%savings account
Capital One 3600.80% ($100K) 0.75% ($50K)360 Checking
American Express Bank0.80%savings account, account review
Sallie Mae Bank0.80%savings account, account review
Digital Credit Union0.80% ($100K) 0.65% ($50K)MMA
MyBankingDirect0.80% (min $5K) MMA
ableBanking0.80% (min $250) MMA
Discover Bank0.80% (min $100K) 0.70% ($2.5K) MMA, account review
Bank5 Connect0.76% (min $100) checking account (not available for MA and RI residents)
Bank of Internet USA0.75%MMA
Capital One 3600.75%360 savings account
Clear Sky Accounts0.70% (max $250K) savings account, account review
Alliant Credit Union0.70% (min $100) savings account, account review
Nationwide Bank0.66% (min $1K) MMA
FNBO Direct0.65%checking account
Alliant Credit Union0.65%Checking (req's elec. dep & e-stmts) account review
Incredible Bank0.59% ($1K min) checking, account review

Reward Checking Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
Consumers Credit Union5.09% (up to $10K) 0.20% ($10K-$25K) 0.10% ($25K+)Rewards Checking - $1K debit card requirements
Consumers Credit Union4.09% (up to $10K) 0.20% ($10K-$25K) 0.10% ($25K+)Rewards Checking - debit and cc requirements
Consumers Credit Union3.09% (up to $10K) 0.20% ($10K-$25K) 0.10% ($25K+)Rewards Checking - debit with NO cc requirements
INOVA Federal Credit Union3.00% (up to $20K) 0.15% ($20K+)Ovation Checking (not available to PA residents)
Lake Michigan Credit Union3.00% (up to $15K) 0.00% ($15K+)Max Checking
Great Lakes Credit Union3.00% (up to $10K) 0.05% ($10K+)Ultimate Checking
Belvoir FCU2.53% (up to $15K) 0.05% ($15K+)CUXcel Checking
American Bank & Trust2.51% (up to $10K) 0.26% ($10K+)Kasasa Cash
Lee Bank2.50% (up to $15K) 0.50% ($15K+)Kasasa Cash
Capital Educators Federal Credit Union2.50% (up to $10K) 0.20% ($10K+)High Yield Checking
Flanagan State Bank2.25% (up to $10K) 0.25% ($10K+)Kasasa Cash
Security Bank2.05% (up to $15K) 1.00% ($15K-$25K) 0.30% ($25K+)Security Bonus Checking
XCEL Federal Credit Union2.01% (up to $15K) 0.30% ($15K+)Kasasa Cash Checking
ABCO Federal Credit Union1.76% (up to $25K) 0.20% ($25K+)Premiere Checking
Provident Credit Union1.76% (up to $25K) 0.11% ($25K+)Super Reward Checking
Connexus Credit Union1.75% (up to $25K) 0.25% ($25K+)Xtraordinary Checking
First Tech Federal Credit Union1.58% (up to $10K) 0.16% ($10K+)Dividend Rewards Checking
Aspire Federal Credit Union1.51% (up to $10K) 0.25% ($10K+)Kasasa Cash
First American Bank1.50% (up to $15K) 0.15% ($15K+)Everyday Rewards Checking
Community Bank of Raymore1.50% (up to $10K) 0.10% ($10K+)Rewards Checking
Community Bank of Pleasant Hill1.50% (up to $10K) 0.10% ($10K+)Rewards Checking
Redneck Bank1.50% (up to $10K) 0.50% (over $10K+)Redneck Rewards Checking
AmericaNet Bank1.50% (up to $10K) 0.50% ($10K+)AmericaNet Rewards Checking
Evantage Bank1.50% (up to $10K) 0.50% ($10K+)Evantage Rewards Checking
West Texas National Bank1.26% (up to $25K) 0.25% ($25K+)Ultimate Checking
Heritage Bank1.26% (up to $25K) 0.10% ($25K+)eCentive Account
Bank of Blue Valley1.25% (up to $15K) 0.10% ($15K+)$1K/month debit card req (account review)
Bank of Internet USA1.25% (up to $150K) 0.00% ($150K+)Rewards Checking
BankFirst Financial Services1.25% (up to $25K) 0.37% ($25K+)Kasasa Cash
Avidia Bank1.06% (up to $25K) 0.05% ($25K+)eChecking
Legence Bank1.05% (up to $25K) 0.25% ($25K+)Kasasa Cash
North Country Savings Bank1.05% (up to $25K) 0.75% ($25K+)Advantage Checking
First New England Federal Credit Union1.01% (up to $15K) 0.10% ($15K+)extra 1.01% w/relationship

Certificates of Deposit:

Bank Account Alternatives - NOT FDIC Insured

InstitutionRatesNotes
Ally Financial Demand Notes1.25% rate for $50k+Ally Demand Notes review
Duke Energy PremierNotes1.25% rate for $50K+Duke Energy PremierNotes review
Ford Interest Advantage1.10% rate for $50k+Ford Interest Advantage review
Vanguard Prime Money Market Fund0.01% 7-day yield
Vanguard Tax-Exempt Money Market Fund0.01% 7-day yield
Fidelity Money Market Fund0.01% 7-day yieldreviews on Fatwallet
Fidelity Municipal Money Market Fund0.01% 7-day yield

Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)