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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Deposit Rate Survey and Commentary for August 2012

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Deposit Rate Survey and Commentary for August 2012

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 August 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. In the last two monthly surveys, we saw some slight increases in online savings account rates thanks to some recent rate hikes. Even though we have seen some new rate increases in July, these were offset by some big rate cuts like at Ready Saver. Last month, its online savings account rate plummeted to only 0.10%.

Advantages of Internet Savings Accounts Grow - 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 consumer savings products. Even the average internet saving account rate had a decline in July after 2 straight months of slight increases. Although the average internet savings account rate declined, a few internet banks have increased their rates, and some of these institutions now offer rates in excess of 1.00%. With the 10-year Treasury yields falling below 1.50% in July, internet savings accounts with yields over 1.00% have remained very good deals compared to other savings options.

Top Stories for This Month:

Bank Failures for July

8 banks and 0 credit unions closed in July 2012. This is a decrease from the 10 banks and 2 credit unions that closed in July 2011. Notable closures included First Cherokee State Bank in Georgia with $223 million in assets (rated 1-star at DepositAccounts.com, indicating “high risk”; view health ratings for any bank or credit union and a list of troubled banks by Texas ratios).

Internet Savings

The average internet savings and money market account rate decreased by 2.8% from 0.675% to 0.656% in August. The average rate for internet savings accounts exceeds the average rate of all savings accounts by 44 basis points.

Savings

The average savings account rate decreased by over 3% from 0.221% in July to 0.214% in August. The average rate among the top 10% of the most competitive nationwide banks decreased by over 3% from 0.677% to 0.659%. Alabama has the best average rate in the nation at 0.390% while Arizona has the worst at 0.120%.

Checking

The average checking account rate decreased by over 3% from 0.138% in July to 0.135% in August. The average rate among the top 10% of the most competitive nationwide banks decreased by over 2% from 0.460% to 0.449%. Arkansas has the best average rate in the nation at 0.210% while Vermont has the worst at 0.070%.

1-year CD

The average 1-year CD rate decreased by over 2% from 0.503% in July to 0.491% in August. The average rate among the top 10% of the most competitive nationwide banks decreased by over 2% from 0.961% to 0.941%. District of Columbia has the best average rate in the nation at 0.640% while Oregon has the worst at 0.350%.

5-year CD

The average 5-year CD rate decreased by over 2% from 1.460% in July to 1.427% in August. The average rate among the top 10% of the most competitive nationwide banks decreased by over 2% from 2.078% to 2.043%. Utah has the best average rate in the nation at 1.630% while North Carolina has the worst at 1.210%.

Reward Checking

The average reward checking account rate decreased by over 1% from 1.067% in July to 1.054% in August. The average rate among the top 10% of the most competitive nationwide banks decreased by over 1% from 3.120% to 3.093%. The average balance cap for reward checking accounts has decreased from $21,090 to $21,023. Montana has the best average rate in the nation at 1.720% while New Hampshire has the worst at 0.460%. 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.

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