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 27, 2012


Best Bank Account Interest Rates - Summary for Week Ending October 27, 2012

Unlike the September FOMC meeting, this week's FOMC meeting was uneventful. All of the new actions announced in September were continued including QE3 and the guidance for rates to remain near zero through mid 2015. In summary, it's probably going to take at least a few more years before we see higher deposit rates. It could come quicker with a new Fed Chairman, and we will likely see a new chairman when Bernanke's term ends in January 2014. However, as I described in this post, the next Fed chairman could be more of an inflation dove than Bernanke.

A strengthening economy will eventually lead to higher deposit rates. Unfortunately, the economic news continues to point to only slow growth. From CR's summary for the week, "this was the fourth week in a row with somewhat better than expected data, and this suggests a little pickup in economic activity."

Treasury yields ended the week with little change from the previous week. The summary of Treasury yield changes over the last week and the expectation of future Fed funds rates are shown below. Numbers are based on Yahoo bond rate data and the CME Group FedWatch.

Treasury Yields:

  • 6-month: 0.13% up from 0.12% last week
  • 2--year: 0.29% no change from last week
  • 5--year: 0.76% up from 0.74% last week
  • 10-year: 1.75% down from 1.76% last week
  • 30-year: 2.91% down from 2.93% last week

Fed funds futures' probability of rate hike by:

  • Sep 2014: 41% down from 46% last week
  • Jan 2015: 62% down from 65% last week

There was just one bank failure this Friday, but it was a rare bank closure in which the FDIC wasn't able to find a buyer. The total number of bank failures for the year is now up to 47.

Savings & Checking Account Rates

There were no rate changes for the top nationally available savings and money market accounts that I monitor in this weekly post.

The top non-promo rate that's available to new customers continues to be the Y.E.S Money Market Account at Connexus Credit Union. This is a tiered-rate account that has a top yield of 1.15% APY for balances of at least $100K. It also requires an active checking account (which can be the reward checking account).

Second place goes to 6 banks which are all offering a 1.05% APY. It's hard to say which has the best chance to remain a rate leader over the long term. One year ago, UFB Direct, Incredible Bank and MyBankingDirect were on top. However, it was UFB Direct's savings account that was on top. That savings account now has a rate of 0.80%. UFB Direct didn't launch its money market account until last May.

Reward Checking Accounts

After 6 weeks with no rate or balance cap cuts in my list of nationally available reward checking accounts, the streak has ended. BankFirst Financial Services slashed the yield of its reward checking account (Kasasa Cash) from 2.00% to 1.50%. The balance cap of $50K remains the same. The 2.00% APY for balances up to $50K had been an excellent deal. As history has shown, few banks or credit unions have been able to maintain top rates with a $50K balance cap.

We don't have many 2% reward checking accounts left on my list. There's now only 7, and only 2 have balance caps of $25K. The other 5 have balance caps that range from $5K to $20K. For the 2 with a $25K balance cap, both are credit unions. ABCO Federal Credit Union still has the best deal with a 2.52% APY. The other one is Provident Credit Union which has a 2.01% APY.

To find the highest reward checking rates and balance caps in your state or nationwide, please refer to our reward checking rate table. If you're new to these tables, my rate table guide should be useful. If you're new to reward checking, please refer to my blog post, 10 Common Traits of High-Yield Reward Checking.

Rate Hikes:

  1. None

Rate/Balance Cap Cuts:

  1. BankFirst Financial Services reward checking - 1.50% (0-$50K) 0.25% ($50K+) [was 2.00% (0-$50K) 0.50% ($50K+)]

Certificate of Deposit Rates

My recap of CD rate changes and the list of CD deals will now be in my survey of the best CD rates. This recap 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/MMA - National CD Deals/Resources - National Checking/Savings/CC Bonuses Reward Checking Accounts
  • No new posts this week
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 27, 2012

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 - NOT FDIC Insured

Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)
Truthseeker   |     |   Comment #1
Mr. Tumin, you are correct in thinking that a change in Federal Reserve Chairmen will NOT stop money printing policies. If the Fed ever actually stopped printing money, the non-debased dollar would result in an forced overt admission that the entire US banking system is insolvent. Several of the mega-banks would instantly fail. The FDIC does not have enough money, absent Congressional authorization for Congressionally authorized money printing (as opposed to covert Fed printing). A bank holiday (closure of all banks in America for a set period of time) would be inevitable, just like in the 1930s. So, aside from the possibility that one mega-bank might fail, it simply won't happen. Instead, it is the Federal Reserve will continue to print money until people refuse to accept the current version of the US dollar as a "store of value", and that will mean the Fed, itself, will fail.

The Fed is attempting to replace credit boom money with fiat currency. That is impossible to do successfully, without debasing the existing currency stock. Nevertheless, the process will continue because it is designed to help the executives at the biggest banks in NYC. The process will continue until one of two things happen. 1) when the big bank executives have managed shift their personal assets mostly out of the banking system and into tangible assets, or 2) when the world begins to reject the idea of continuing to support the Federal Reserve Note.

Meanwhile, the Fed will continue to fill itself with toxic garbage, otherwise known as "mortgage backed bonds" and other assets once belonging to insolvent banks that need to be propped up against their insolvency. It will also continue monetizing government debt. Some of the garbage Fed assets will eventually go bad, leading to Fed insolvency.  The solvency of the Fed will only be "saved" by its gold certificates, and that will prove that the Fed is, in fact, useless, since a monetary system based on gold does not need a central bank at all.

The alternatives are basically the insolvency of the Fed, or the insolvency of most American banks, including, particularly, several of the mega-banks. Both events will end the current fiat money regime and usher in the era of a new gold-backed dollar similar to the US Notes that existed prior to 1934. The FRN will be replaced by a US Note backed, in some yet unclear way, to gold or other valuable tangible asset. Those stuck in CDs, by that time, are going to receive a very unfavorable exchange rate and that is the main danger of buying them.