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've been posting them in the blog. The June press release is below. Please note that I will continue to post my weekly summaries without any changes.
As you might have guessed, rates continue to trend down. However, there was one exception to this trend as I described in the first paragraph.
Some Internet Bank Surprises in May - 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 most major categories of savings products. Even though most rates continue to trend down, competition has spurred some internet banks into raising their savings account rates. A few of the mature internet banks such as American Express Bank, BofI Federal Bank (formerly Bank of Internet USA) and Acacia Federal Savings Bank offered higher savings account rates in May. These banks likely felt the pressure of new internet banks from Barclays, CIT Bank and TIAA Direct. Due to these rate increases, the average internet savings account rate actually increased in May. It was a small increase of only 1 basis point, but in today's interest rate environment, any increase is noteworthy. These higher internet savings account rates are providing a little bit of good news to savers who have seen steady declines in their deposit rates over the last few years.
Top Stories for This Month:
- Giving Digital Savings Bonds as Gifts
- Barclays Officially Launches Its New Internet Bank
- Best Bank Accounts for a Future of Uncertain Interest Rates
- Do CD Ladders Still Make Sense?
- Why Some Checking Accounts Have Higher Rates Than Savings Accounts
- Deciding Between Short-Term and Long-Term CDs
Bank Failures for May
2 banks and 1 credit union closed in May of 2012. This is a decrease from the 5 banks and 2 credit unions that closed in May of 2011. Notable closures included Security Bank, N.A. in Florida with $101 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 increased by over 1% from 0.664% in May to 0.673% in June. The average rate for internet savings accounts exceeds the average rate of all savings accounts by 44 basis points.
The average savings account rate decreased by over 2% from 0.235% in May to 0.230% in June. The average rate among the top 10% of the most competitive nationwide banks decreased by over 2% from 0.711% to 0.700%. Alabama has the best average rate in the nation at 0.410% while Arizona has the worst at 0.130%.
The average checking account rate decreased by over 3% from 0.147% in May to 0.143% in June. The average rate among the top 10% of the most competitive nationwide banks decreased by over 3% from 0.490% to 0.477%. Louisiana has the best average rate in the nation at 0.230% while Idaho has the worst at 0.080%.
The average 1-year CD rate decreased by over 3% from 0.537% in May to 0.521% in June. The average rate among the top 10% of the most competitive nationwide banks decreased by over 2% from 1.015% to 0.991%. District of Columbia has the best average rate in the nation at 0.670% while Oregon has the worst at 0.370%.
The average 5-year CD rate decreased by over 2% from 1.533% in May to 1.498% in June. The average rate among the top 10% of the most competitive nationwide banks decreased by over 2% from 2.148% to 2.115%. Maine has the best average rate in the nation at 1.690% while Arkansas has the worst at 1.260%.
The average reward checking account rate decreased by over 2% from 1.131% in May to 1.111% in June. The average rate among the top 10% of the most competitive nationwide banks decreased by over 1% from 3.197% to 3.168%. The average balance cap for reward checking accounts has risen from $21,069 to $21,341. Montana has the best average rate in the nation at 1.72% while New Hampshire has the worst at 0.52%. 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.