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 October 2012

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Deposit Rate Survey and Commentary for October 2012

In the last several 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 October press release is below. Please note that I will continue to post my weekly summaries without any changes.

As you might have guessed, the big story for savers in September was the Fed.

Fed Disappoints Savers Again - 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. The Fed disappointed savers again with a major increase in policy accommodation. In addition to new quantitative easing (QE3), the Fed pushed out its low-rate guidance from late-2014 to mid-2015. It's unlikely that savers will see significant deposit rate hikes before 2015. Previous Fed policy announcements have lead to widespread deposit rate cuts. That did not occur this time which was a small bright spot for savers.

Top Stories for This Month:

Bank Failures for September

3 banks and 0 credit unions were closed in September 2012. This is a decrease from the 6 banks and 0 credit unions that closed in September 2011. Notable closures included First United Bank in Illinois with $328.4 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 increased by 0.38% from 0.666% to 0.669% in October. The average rate for internet savings accounts exceeds the average rate of all savings accounts by 47 basis points.

Savings

The average savings account rate decreased by over 2% from 0.208% in September to 0.203% in October. The average rate among the top 10% of the most competitive nationwide banks decreased by over 2% from 0.643% to 0.629%. Alabama has the best average rate in the nation at 0.370% while Arizona has the worst at 0.110%.

Checking

The average checking account rate decreased by over 2% from 0.133% in September to 0.130% in October. The average rate among the top 10% of the most competitive nationwide banks decreased by over 2% from 0.441% to 0.433%. Louisiana has the best average rate in the nation at 0.190% while Nevada has the worst at 0.070%.

1-year CD

The average 1-year CD rate decreased by over 2% from 0.481% in September to 0.472% in October. The average rate among the top 10% of the most competitive nationwide banks decreased by over 1% from 0.921% to 0.911%. Louisiana has the best average rate in the nation at 0.600% while Oregon has the worst at 0.330%.

5-year CD

The average 5-year CD rate decreased by over 2% from 1.395% in September to 1.369% in October. The average rate among the top 10% of the most competitive nationwide banks decreased by over 1% from 2.009% to 1.985%. Utah has the best average rate in the nation at 1.590% while North Carolina has the worst at 1.160%.

Reward Checking

The average reward checking account rate decreased by over 1% from 1.018% in September to 1.008% in October. The average rate among the top 10% of the most competitive nationwide banks decreased by over 1% from 3.059% to 3.035%. The average balance cap for reward checking accounts has decreased from $20,848 to $20,641. Louisiana has the best average rate in the nation at 1.63% while Hawaii has the worst at 0.43%. 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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