About Ken Tumin

Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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Best Bank Account Interest Rates - Summary for Week Ending October 22, 2011


Best Bank Account Interest Rates - Summary for Week Ending October 22, 2011

There were signs this week that the Fed is in the planning stages for more stimulus. The possibility of more Fed action was described in this week's WSJ articles Fed Is Poised for More Easing and Fed Official Hints at Possible Effort to Boost Economy. However, in a meeting with Democrat Senators, Bernanke told them "that they should not expect additional monetary stimulus from the Fed". There have been signs this month of modest improvements in the economy. If the positive economic trends continue and if Europe resolves its debt issues, perhaps we are nearing a bottom for interest rates.

The concerns over Europe seemed to offset the mild good news on the economy causing Treasury yields to change little from last week. The yield summary below shows the changes (Numbers are based on Yahoo bond rate data and the CME Group FedWatch.)

Treasury Yields:

  • 6-month: 0.04% same as last week
  • 2--year: 0.26% same as last week
  • 5--year: 1.06% down from 1.11% last week
  • 10-year: 2.21% down from 2.25% last week
  • 30-year: 3.26% up from 3.23% last week

Fed funds futures' implied probability for a higher rate by:

  • Dec 2012: 11.9% up from 8.7% last week
  • Mar 2013: 18.4% up from 15.9% last week

The Labor Department released September CPI numbers this week. The report showed that we have seen more inflation in the last year than we have in the last 3 years. One bit of good news from this higher inflation is that it creates a good deal for new Series I Savings Bonds that are purchased in October. As I described in my I Bond post, you can get a yield of almost 3.28% for up to 14 months if you buy an I Bond before November. The downside is that you are limited to a total of $10K in I Bond purchases per year and per social security number.

Savings & Checking Account Rates

Two of the big internet banks cut their savings account rates this week. The first was Ally Bank which should not have been a surprise since it has been slowly cutting rates almost every week. Its savings and money market account rates fell from 0.91% to 0.85%. The rate cut at the other big internet bank was more of a surprise. ING Direct cut its Orange Savings Account yield from 1.00% to 0.90%. The 1.00% yield had held since February.

The other cuts came from the internet divisions of New York Community Bank. Its two internet divisions, AmTrustDirect and MyBankingDirect, cut their money market promo yields from 1.25% to 1.15%.

So now UFB Direct's Airline Rewards Savings is way out in front as the rate leader with a 1.30% APY. UFB Direct is Bank of Internet USA's new internet division. I've been told this isn't a promo rate. However, there's no guarantee about how long it'll last. The rate has held since UFB Direct was launched in August.

Reward Checking Accounts

There were no rate cuts this week on my short list of nationally available reward checking accounts. The best deal for a $25K balance continues to be at ABCO Federal Credit Union which offers a 2.52% APY for balances up to $25K (see my review).

If you want higher rates than these, you'll have to look at what's available in your state. There are still some local deals that offer at least 4.00% APY on balances of at least $25K. However, this 4-percent club is getting smaller. Texas Bank left this club when it cut its reward checking APY from 4.07% to 3.04%. The total number in this club now stands at 10. These 10 banks and credit unions are located in parts of Texas, Oklahoma, Missouri, Louisiana, Illinois, Iowa, Ohio and Pennsylvania.

Most of these local deals are only available in the market areas of the banks and credit unions. These can be small areas. However, there are a few that are available online to residents of one or more states. This week I reviewed some of the best of these deals in this post.

To see the reward checking account rates available in your state, please refer to the reward checking rate table. If you're new to these tables, my rate table guide should be useful, and if you're new to reward checking, my blog post, 10 Common Traits of High-Yield Reward Checking, should also be useful.

Rate Hikes:

  1. None

Rate Cuts:

  1. AmTrustDirect Premium e-MMA - 1.15% [was 1.25%]
  2. MyBankingDirect MMA - 1.15% [was 1.25%]
  3. ING Direct Orange Savings - 0.90% [was 1.00%]
  4. Ally Bank Savings/MMA - 0.85% [was 0.91%]
  5. DollarSavingsDirect - 0.70% [was 0.75%]

Certificate of Deposit Rates

My recap of CD rate changes and the list of CD deals will now be in my Friday survey of the best CD rates. My Saturday recaps 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 Savings/Checking Accounts - Nationwide CD Deals - National Checking/Savings/CC Bonuses Reward Checking Accounts CD and Money Market Deals - Local Posts from Previous Weeks 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 October 22, 2011

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:

Reward Checking Accounts:

  • Noteworthy Accounts Available Nationwide:

Certificates of Deposit:

Various Deposit Account Deals

Bank Account Alternatives

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

Anonymous   |     |   Comment #2
is ken on vacation? no sunday posts or monday as of this time
Kmr-71   |     |   Comment #8
why bank account interest rate falldown?
abir   |     |   Comment #10
I don't identify exactly why part conspiracy falldown?