Best Bank Account Interest Rates

Summary for Week Ending May 18, 2013

In economic news this week, the Labor Department released April Consumer Price Index (CPI) numbers. According to the report, this was another month of lower inflation, primarily due to falling gas prices. CPI fell 0.4% for April, and over the last year, CPI is only up by 1.1%. Even with the slight decrease in gas prices in April, it sure seems like we have seen more inflation over the last year. I know many of my grocery staples have increased in price (or the package sizes have shrunk).

Unfortunately, only these government-reported inflation numbers matter in determining monetary policy. And this data gives the Fed justification to keep its easy money policies. According to this CNNMoney.com article:

"With inflation dropping to a two-and-a-half year low and labor markets still soft, the Fed is well-positioned to keep the monetary spigots open in support of the economy," said Jim Baird, partner and chief investment officer for Plante Moran Financial Advisors, in a note.

However, not all news this week pointed to a never-ending zero interest rate policy. According to this Bloomberg article:

Treasuries fell in the longest losing streak this year as the economy showed more signs of strength, prompting speculation the Federal Reserve may start to slow the pace of its monetary stimulus.

The article had another description of the economic news as "modestly better data", and this Reuters article warns of "fresh signs of slower growth in the second quarter." In summary, I wouldn't get my hopes up for higher deposit rates any time soon.

The Treasury yield changes over the last week and the expectation of future Fed funds rates are shown below. Numbers are based on Daily Treasury Yield Curve Rates and the CME Group FedWatch.

Treasury Yields:

• 6-month: 0.08% same as last week
• 2--year: 0.26% same as last week
• 5--year: 0.84% up from 0.82% last week
• 10-year: 1.95% up from 1.90% last week
• 30-year: 3.17% up from 3.10% last week

Fed funds futures' probability of rate hike by:

• Jan 2015: 32% up from 28% last week
• Sep 2015: 69% up from 67% last week

There was a rare Tuesday bank failure this week. The total number of bank failures for the year is now 13. At this time last year there had already been 24 bank failures, and at this time in 2011, there had been 43 bank failures.

Savings & Checking Account Rates

Two rate leaders had rate cuts this week. Incredible Bank cut its money market rate by 5 bps and its checking account rate by 10 bps. The money market account yield is now 0.91% for balances up to $250K. The last cut was in early April when the money market yield fell from 1.01% to 0.96%.

The other rate cut came from Barclays. Its online savings account yield fell from 1.00% to 0.90%. This is the first cut since Barclays started offering this account in March 2012. Let's hope that rate cuts at Barclays remain rare.

We now have only two savings and money market accounts with yields of at least 1.00%. This is when you exclude accounts that are promotions (like EverBank), that have small balance caps (like Evantage Bank and SmartyPig) and have checking requirements (like Connexus Credit Union). Those two remaining accounts are at MyBankingDirect which has a 1.05% APY money market account and CIT Bank which has savings account with a 1.00% APY for balances of at least $25K.

Reward Checking Accounts

No reward checking accounts on my list of nationally available accounts had rate cuts or balance cap cuts this week. However, we are still seeing cuts for the local reward checking accounts, and you can view the latest in the reward checking subforum.

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. Incredible Bank MMA - 0.91% [was 0.96%]
2. Barclays Savings Account - 0.90% [was 1.00%]
3. ableBanking MMA - 0.80% [was 0.85%]
4. Incredible Bank Checking - 0.71% [was 0.81%]

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

Banking News/Resources

• Rare Tuesday Bank Failure in Arizona
• Why It's Time to Take A New Look at Credit Unions

Savings/MMA - National

• Barclays Online Savings Account Rate Falls After More Than a Year at 1.00%
• Incredible Bank Makes It Easier To Avoid New Monthly Maintenance Fee

CD Deals/Resources - National

• Survey of the Best CD Rates for May 17, 2013
• Higher CD Rates at GE Capital Retail Bank
• Barclays Now Allows Interest Disbursement On CDs

Checking/Savings/CC Bonuses

• $100 Checking Account Bonus at Western State Bank in AZ and ND
• $150 Checking Account Bonus (with Caveats) at KeyBank in Certain States Only
• Free Checking Account Bonus at Widget Financial Credit Union in PA

Reward Checking Accounts

CD and Money Market Deals - Local

• Texas Money Market and CD Specials with Top Rates at Libertad Bank

Posts from Previous Weeks

• Archive of 2013 Posts

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 May 18, 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
• 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)
• MyBankingDirect - 1.05% (min $5K)
• CIT Bank - 1.00% ($25K) 0.90% ($100) Savings, account review
• SmartyPig - 1.00% ($50K max), account review
• SFGI Direct - 0.94% account review
• Incredible Bank - 0.91% MMA ($2.5K min) account review
• Sallie Mae Bank - 0.90% MMA account review
• Union Federal Savings Bank - 0.90% MMA (min $2.5K) account review
• Salem Five Direct - 0.90% savings, for new customers only
• Barclays - 0.90% Savings account review
• American Express Bank - 0.85%, account review
• Colorado Federal Savings Bank - 0.85% ($2.5K min) account review
• Capital One 360 - 0.85% ($100K) 0.80% ($50K) 360 Checking
• FNBO Direct - 0.85% Savings
• GE Capital Retail Bank (formerly MetLife) - 0.85% ($25K) 0.80% ($10K) Savings
• Sallie Mae Bank - 0.85% Savings account review
• AloStar Bank of Commerce - 0.85% ($50K) 0.50% ($0) MMA Advantage
• Mutual of Omaha Bank - 0.85% Savings (min $25) account review
• Ally Bank - 0.84% MMA/savings
• Clear Sky Accounts - 0.80% (max $250K) account review
• Discover Bank - 0.80% Savings (min $500) account review
• ableBanking - 0.80% MMA (min $1K)
• TIAA Direct - 0.76% MMA/Savings (not accepting new customers) account review
• Nationwide Bank - 0.76% MMA (min $1K)
• Bank of Internet USA - 0.75% MMA
• Capital One 360 - 0.75% 360 Savings
• Incredible Bank - 0.71% Checking ($1K min) account review
• Alliant Credit Union - 0.70% (min $100) Savings account review
• Alliant Credit Union - 0.65% 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:

• Great Lakes Credit Union - 4.00% (up to $10K) 0.05% ($10K+) Ultimate Checking
• Belvoir FCU - 3.25% (up to $15K) 0.05% ($15K+) CUXcel Checking
• 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% ($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 - 2.02% (up to $25K) 0.20% ($25K+)
• American Savings Bank, fsb - 2.00% (up to $15K) 0.25% ($15K+) Kasasa Cash
• 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+)
• Provident Credit Union - 1.76% (up to $25K) 0.11% ($25K+)
• Connexus Credit Union - 1.75% (up to $25K) 0.31% ($25K+) Xtraordinary Checking
• Community Bank of Raymore - 1.75% (up to $10K) 0.35% ($10K+)
• Community Bank of Pleasant Hill - 1.75% (up to $10K) 0.35% ($10K+)
• Pacific Resource Credit Union - 1.75% (up to $15K) 0.50% ($15K+)
• First Tech Federal Credit Union - 1.58% (up to $10K) 0.16% ($10K+)
• BofI Federal Bank (affinity groups) - 1.50% (up to $150K) 0.00% ($150K+)
• Avidia Bank - 1.36% (up to $25K) 0.05% ($25K+)
• West Texas National Bank - 1.26% (up to $25K) 0.25% ($25K+)
• Heritage Bank - 1.26% (up to $25K) 0.05% ($25K+)
• First New England Federal Credit Union - 1.25% (up to $15K) 0.10% ($15K+) (extra 1% w/relationship)
• 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% (up to $150K) 0.00% ($150K+)
• BankFirst Financial Services - 1.24% (up to $50K) 0.15% ($50K+)
• Legence Bank - 1.05% (up to $25K) 0.25% ($25K+)
• 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 May 17, 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

• Investment Discussion Forum

• Duke Energy PremierNotes - 1.50% rate for $50K+, Duke Energy PremierNotes review
• Ally Financial Demand Notes - 1.50%, Ally Demand Notes review
• Ford Interest Advantage - 1.10% rate for $50k+, Ford Interest Advantage review
• GE Interest Plus - 1.10% rate for $50k+
• Vanguard Tax-Exempt Money Market Fund - 0.04% 7-day yield
• Vanguard Prime 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 May to October 2013, I Bond Article, I Bonds as CD Alternatives

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