Bank Deals Blog

CD rate cuts continue as the odds of another Fed rate cut keep rising. We still see a few credit unions offering CD specials, but the best ones aren’t lasting long. Many of the noteworthy CD specials have been around for several months. They have just become competitive as CD rates have fallen at other institutions.

In the last two weeks, noteworthy cuts have occurred at the following banks. I’ve separated them into two groups. The first includes the popular banks. All percentages are APYs.

• Goldman Sachs Bank USA (5yr fell 20...

Based on the market’s expectations, the odds of a Fed rate cut at next week’s FOMC meeting (Oct 29-30), are very high. However, based on what Fed officials have been saying in recent speeches, a rate cut may not be such a sure thing.

One example was an October 16th speech by Chicago Federal Reserve President Charles Evans (a 2019 FOMC voting member). In that speech, he suggested that he still agreed with the Fed’s median outlook from the September meeting:

As Evans stated, the September median outlook saw no additional rate...

Fintech developer Varo offers a cash management account that boasts a high interest rate and no fees. For people who want a simple, high-yield mobile bank account, Varo is worth considering — especially if you’re looking to save with some extra tools from an app. However, watch out for third-party fees for depositing cash into your account, plus limited access to checks. Note also that Varo itself isn’t a bank — it partners with The Bancorp Bank to hold deposits and...

Travis Credit Union's (Travis CU) product line currently includes two CD Specials: 13-month CD Special (2.40% APY, $500 minimum) and 24-month Bump-Up CD Special (2.50% APY, $1k minimum). Both CD Specials require new money, defined as “funds not currently on deposit with Travis Credit Union.” The Bump-Up CD Special comes...

Now through November 30, 2019, MECU (pronounced “ME-q”) is offering 2.25% APY on its Money Market Promotion on balances between $10k and $1 million. The minimum opening deposit is $10k of new money, defined as “funds not on deposit at MECU during the past 90 days.” Average daily balances below $10k and above $1 million earn 0.05% APY.

I had hoped there was a rate guarantee, but the fine print on...

SkyOne Federal Credit Union (SkyOne) has unveiled its new High-Yield Savings (HYS) account, which earns 2.25% APY. The minimum opening deposit is only $1, but to earn the stated APY, an on-going minimum $1k monthly deposit is required. This deposit can go into any SkyOne account(s), as long as the aggregate is $1k per month.

There is a lack of complete documentation on SkyOne’s...

In celebration of its 80^th anniversary, Streator Onized Credit Union (SOCU) is offering 2.38% APY on three different CD Specials: 7-month, 16-month, and 30-month. These limited-time Specials require a $500 minimum opening deposit, with no stated balance cap.

The 7- and 16-month CD Specials are available as IRAs (Traditional, Roth, CESA), earning the same 2.38% APY with the same funding requirements....

The last time I wrote about a Dover Federal Credit Union (Dover Federal) Share Certificate was during the 2016 International Credit Union Week. Coincidentally, today is International Credit Union Day and I’m writing about Dover Federal’s long-term Share Certificates, which were added to the most recent CD Rates Summary.

These three Share Certificates are also available as IRAs (Traditional, Roth, CESA), earning the...

TruMark Financial Credit Union (TruMark Financial) is currently offering a Money Market Account Special, which earns 2.00% APY on balances of $2.5k and above. The minimum opening deposit is $2.5k of new money, defined as “funds not on deposit” at TruMark Financial.

The 2.00% APY is guaranteed for six months following account opening. Following the six-month period, the...

Now through November 30, 2019, Heartland Credit Union (Heartland) is offering a 15-month CD Special, which earns 2.40% APY. The minimum opening deposit is $10k of new money, with no stated balance cap. According to the fine print on the Savings Rates page, this offer is subject to change.

Heartland CDs come with a one-time bump option.

More banks lowered rates on their savings and money market accounts. The sizes of the rate cuts have generally been less than 25 bps, the size of the September Fed rate cut. As we saw after the July Fed rate cut, online banks will typically spread out their rate cuts over a period of a month or two.

Below are the noteworthy savings and money market account rate reductions that have occurred in the last two weeks (All percentages are APYs):

• CFG Community Bank High Yield Money Market (-5 bps to...

The recent progress on the trade talks has slightly reduced the odds that the Fed will cut rates again at its October 29-30 meeting. However, the Fed may determine that one more rate cut would be wise based on the risks to the economy that have grown since their last meeting.

The minutes of the last Fed meeting were released last Wednesday, and they showed that the Fed’s concern about the economy has grown since their July meeting:

The effects of the trade tensions and global developments have been impacting business investment,...