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 July 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, online savings accounts continue to buck this trend. Thanks to some recent rate hikes, the average rate for internet savings accounts edged a little higher in June.
Another Surprise for Internet Savings 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 most major categories of savings products. The only exception was internet savings accounts. June marks the second straight month with a slight increase in the average rate of internet savings accounts, as competition continues to spur several prominent internet banks to hold steady or even raise rates despite the broader flagging interest rate environment.
Top Stories for This Month:
- Best Liquid Account? Money Market, Savings or Checking Account
- Comparison of Internet Checking Accounts at Ally Bank and ING DIRECT
- Comparison of Long-Term CD Rates After Early Withdrawal Penalties
- Should You Switch to a Brokerage Checking Account?
- Checking Account Disclosure at Some Banks Require Customers To Pay All Costs in Legal Disputes
- Federal Reserve Study Shows Big Declines in Retirees' Income
- Top Savings & Money Market Rates with Rate Guarantees
Bank Failures for June
7 banks and 1 credit union closed in June 2012. This is an increase from the 4 banks and 1 credit union that closed in June 2011. Notable closures included Waccamaw Bank in North Carolina with $533 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 0.2% from 0.673% in June to 0.675% in July. The average rate for internet savings accounts exceeds the average rate of all savings accounts by 45 basis points.
The average savings account rate decreased by over 3% from 0.229% in June to 0.221% in July. The average rate among the top 10% of the most competitive nationwide banks decreased by over 2% from 0.694% to 0.677%. Alabama has the best average rate in the nation at 0.400% while Arizona has the worst at 0.120%.
The average checking account rate decreased by over 4% from 0.143% in June to 0.137% in July. The average rate among the top 10% of the most competitive nationwide banks decreased by over 5% from 0.475% to 0.453%. Louisiana has the best average rate in the nation at 0.210% while Nevada has the worst at 0.080%.
The average 1-year CD rate decreased by over 3% from 0.520% in June to 0.503% in July. The average rate among the top 10% of the most competitive nationwide banks decreased by over 3% from 0.988% to 0.962%. District of Columbia has the best average rate in the nation at 0.650% while Oregon has the worst at 0.350%.
The average 5-year CD rate decreased by over 3% from 1.495% in June to 1.457% in July. The average rate among the top 10% of the most competitive nationwide banks decreased by over 1% from 2.110% to 2.082%. Maine has the best average rate in the nation at 1.660% while Arkansas has the worst at 1.250%.
The average reward checking account rate decreased by over 2% from 1.103% in June to 1.079% in July. The average rate among the top 10% of the most competitive nationwide banks decreased by over 1% from 3.149% to 3.126%. The average balance cap for reward checking accounts has decreased from $21,341 to $21,090. Louisiana has the best average rate in the nation at 1.650% while New Hampshire has the worst at 0.480%. 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.