In the last few months 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'm starting to post them in the blog. The May press release is below. Please note that I will continue to post my weekly summaries without any changes.
Savers Petition for Fair Interest Rates - 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 all major categories of savings products. After the Fed committed to keep rates exceptionally low until late 2014, one desperate saver started an online petition asking for fair interest rates. Many savers have left comments with their e-signatures. One asked "why is it that the saver is being penalized, not the spender?" Another saver expressed his opinion that these extremely low rates are part of a "misguided plan for rescuing big banks on the shoulders of the most conservative, prudent savers." The Fed's April meeting continued this late-2014 pledge with no signs that this will change in the near future. In this environment, savers should do all they can to receive the highest deposit rates including taking advantage of the newest internet banks which offer rates higher than both brick-and-mortar banks and the mature internet banks.
Top Stories for This Month:
- Capital One Moving Customers Out of Free Checking Accounts
- Best Liquid Options for Your Money That You Want to Keep Safe
- 40 Ways to Get the Most Out of Your Bank
- CIT Bank Launches an Internet Savings Account
- Petition for Fair Interest Rates on Our Savings
Bank Failures for April
6 banks and 0 credit unions closed in April of 2012. This is a decrease from the 13 banks and 2 credit unions that closed in April of 2011. Notable closures included Plantation Federal Bank in South Carolina with $486.4 million in assets (rated 1-star at DepositAccounts.com, indicating "high risk"; view health ratings for any bank or credit union and list of troubled banks by texas ratios).
The average internet savings and money market account rate decreased by over 1% from 0.672% in April to 0.664% in May. The average rate for internet savings accounts exceeds the average rate of all savings accounts by 43 basis points.
The average savings account rate decreased by over 3% from 0.243% in April to 0.235% in May. The average rate among the top 10% of the most competitive nationwide banks decreased by over 3% from 0.731% to 0.713%. Alabama has the best average rate in the nation at 0.42% while Arizona has the worst at 0.14%.
The average checking account rate decreased by over 3% from 0.150% in April to 0.146% in May. The average rate among the top 10% of the most competitive nationwide banks decreased by over 3% from 0.503% to 0.490%. Louisiana has the best average rate in the nation at 0.23% while Idaho has the worst at 0.080%.
The average 1-year CD rate decreased by over 3% from 0.554% in April to 0.538% in May. The average rate among the top 10% of the most competitive nationwide banks decreased by over 2% from 1.040% to 1.016%. District of Columbia has the best average rate in the nation at 0.690% while Nevada has the worst at 0.380%.
The average 5-year CD rate decreased by over 2% from 1.567% in April to 1.534% in May. The average rate among the top 10% of the most competitive nationwide banks decreased by over 1% from 2.180% to 2.148%. Maine has the best average rate in the nation at 1.730% while Nevada has the worst at 1.250%.
The average reward checking account rate decreased by over 2% from 1.190% in April to 1.164% in May. The average rate among the top 10% of the most competitive nationwide banks decreased by over 1% from 3.221% to 3.200%. The average balance cap for reward checking accounts has fallen from $21,809 to $21,069. Louisiana has the best average rate in the nation at 1.87% while Hawaii has the worst at 0.53%. The balance cap is the maximum balance that qualifies for the reward checking account's top rate.
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.