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.

Featured Savings Rates

Popular Posts

Featured Accounts

Best Bank Account Interest Rates - Summary for Week Ending December 8, 2012


Best Bank Account Interest Rates - Summary for Week Ending December 8, 2012

Yesterday's jobs report was better than expected. The economy created 146,000 jobs last month compared to 80,000 that was expected. Also, the unemployment rate fell to a near four-year low of 7.7 percent. However, the drop in the unemployment rate was primarily due to a decline in the participation rate (people who gave up looking and were dropped from the count). So there is still a long way to go. One economist was quoted in this Reuters article as saying "it could take more than 10 years for the unemployment rate to drop back to its pre-recession level of around 5 percent at the current pace of job growth."

With no significant improvements in employment and with the potential fiscal cliff coming in January, we may see more stimulus from the Fed when the FOMC meets next week for its last scheduled meeting of the year. There are rumors of QE4 which would be more bond-buying to replace Operation Twist which is ending. Also, there may be a change in the Fed's language on interest rates. Instead of saying to expect low rates until mid 2015, they may tie low rates to unemployment and inflation rate thresholds. In summary, there's still no end in sight for these very low rates.

Treasury yields changed little this week. 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: 0.10% down from 0.12% last week
  • 2--year: 0.23% down from 0.24% last week
  • 5--year: 0.62% up from 0.61% last week
  • 10-year: 1.62% up from 1.61% last week
  • 30-year: 2.80% same as last week

Fed funds futures' probability of rate hike by:

  • Sep 2014: 24% down from 26% last week
  • Jan 2015: 38% down from 42% last week

No banks have failed since November 16th. The total number of bank failures for the year remains at 50. At this time last year there had been 90 bank failures for the year.

Savings & Checking Account Rates

In this first week of December, there was only one bank on my list below that made a cut to its savings account rate. CIT Bank reduced the savings account rate of its top tier from 1.05% to 1.00% APY. This requires a balance of at least $25K. Balances under $25K continue to earn 0.90%.

With this CIT Bank rate cut, it's now down to four banks with a 1.05% APY money market account. These include Sallie Mae Bank, Union Federal Savings Bank, MyBankingDirect and Incredible Bank. Except for the Y.E.S Money Market Account at Connexus Credit Union, the 1.05% APY is the highest non-promo yield for large balances that's available to new customers. The 1.25% at Salem Five Direct and EverBank is a promo rate that is only available for new customers. The 1.25% at TIAA Direct is only for existing customers since TIAA Direct is currently not accepting new customers. The 1.10% APY that's available on the money market accounts from Redneck, AmericaNet and Evantage Banks only applies to balances up to $35K.

Reward Checking Accounts

After over four weeks of no rate cuts for the nationally available reward checking accounts in my list below, rates for two of these reward checking accounts fell this week. Both were at banks. Heritage Bank cut its eCentive Account yield from 1.71% to 1.61% APY, and North Country Savings Bank cut its Advantage Checking yield from 1.15% to 1.05% APY. The balance cap remains unchanged at $25K for both banks.

The two best reward checking accounts that are nationally available continue to be ABCO Federal Credit Union's Premiere Checking that pays 2.12% APY and Provident Credit Union's Super Reward Checking that pays 2.01% APY. Both yields apply to balances up to $25,000.

There are still many local deals that are better than these. 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. Heritage Bank reward checking - 1.61% (up to $25K) [was 1.71%]
  2. North Country Savings Bank reward checking - 1.05% (up to $25K) [was 1.15%]
  3. CIT Bank Savings - 1.00% ($25K+) [was 1.05%]

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 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 December 8, 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)
Anonymous   |     |   Comment #1
Does anybody really knows how the scam created by Bernanke works?
I’ll tell you in a short summary.
Obama goes to Bernanke and says: Pal, I’m short a trillion dollars.
Bernanke says: No problem, I’m already printing you the money, all you have to do is deposit it at the treasury and issue bonds against it and sell those bonds to the banks, Chinese or the people and give me those papers back to me, I’ll resell them to the banks again as security from the treasury and then, the banks can use those bonds to sell them back to me and I will use them in my  QE3 as another reason to print another trillion dollars since I’m in business to buy the bad bonds.
You see no hancky-pancky. all is legit and accounted for, except the dollar lost in value and who care about the people anyway, most of them are broke and we print the money for them anyhow.
Next year we will print 2 trillion to pay the interest from the last year debt and another trillion on top of it for the new debt.
Problem solved, says Obama, now give me the printing presses and lift the national debt ceiling into infinity and we will live like that until my presidency is over and then the economy will collapse. but we will still blame the republicans and the bush for it.
Paoli2   |     |   Comment #2
#1  How I wish you were kidding and this was NOT the reality we are trying to survive in!  I want to believe it can't be true but what is going on is a terrifying sign that it is.   When are the people going to wake up from this financial nightmare?
Anonymous   |     |   Comment #3
Forget about all the gloom and doom.  What happens, happens.   Politicians will never change.  After all. the majority of voters brought it on.  I don't believe you or I can change a thing.  We are getting what the majority voted for.  Relax and learn to live with it.  Life will be more enjoyable.
Anonymous/Paoli   |     |   Comment #5
#3 Learn to live with what??  It is your apathetic attitude that keeps us swimming in this river of pitiful low interest rates.  The politicians must be overjoyed to know people like you exist.  Thank goodness you don't speak for many of us.  What happens doesn't have to always happen if enough people speak out against it. 
Anonymous   |     |   Comment #4
To Anonymous - #3,

Do you know what happens to the pacifists and ignorant people, they get taken to the cleaners and get robbed blindly.
I will fight for my rights and will not turn over and play dead. I have few options to protect my wealth, but I will not post it here and educate you on how to bit the system, since already you proclaimed a defeat and that there is no point to absorbed anything else like financial news and
therefore, I wish you a happy life.

#1, got it right, that is the present system of deceit run by the manipulators from the top of out Government.
Anonymous   |     |   Comment #6
Absolutely right.  I speak for no one but myself and I allow no one to speak for me.  But I do call them like I see them.  While you go on worrying about your financial future, I will be enjoying mine whether I maintain my current standard in my retirement  or go flat broke.  All things come to an end.  And I do mean ALL things.

You can wine all you want, but just what are you going to do to change the political and financial future of our country.  Our votes were out numbered as proven by the recent election results.  About time to face reality.  There are more people in favor of our country's current direction than opposed.  Again, look at the election results!  
Paoli2   |     |   Comment #8
#6  Our people have been truly brainwashed to accept the unacceptable and as long as we are a democracy, the voters can continue to vote in the wrong people.  What can I do about it?  Be able to live with my conscience by making sure "I" try to vote in those who are willing to try to help our country while there is still time.  We also need to let those who have been voted in know that not all of us are willing to sit by idly and watch our country change before our eyes.  What you do is up to you but I have to believe there is a chance to turn things around before it is too late.  My deep concern is not just about our financial future but about politicians in Washington who prefere to work at making each other's party look bad rather than work at doing the jobs they were voted in to do.  In the meanwhile, we have to do whatever we can to survive financially.
Maecl   |     |   Comment #7
Paoli2:  I wish this was a nightmare I would wake up from.  I still can't believe this is happening.  We have a brainwashed uninformed electorate.
Anonymous   |     |   Comment #9
To the same guy posting as #3 and #6,
Lets suppose you are on fixed income and Obama will no longer raise your SS payments, but everything else go up in price and lets suppose a family member of yours is ill and the medications or operations put you in the poor house.
If you are OK with that, your are one of those 47% free loaders.
If you are going to blame anyone else but you for the situation you are in, you just confirm that you really are one of those 47%.
If you are going to blame yourself, well you can not do that, because you are to ignorant to fight your way through life and you could not care enough for anybody but yourself, it tells me you are uncorrectable and are wasting our time just to chit chat and be social or are enjoying the demise of our country.
No problem!
No problem!   |     |   Comment #10
The solution is easy...

Just spend whatever you have and when you eventually go broke, go onto the ever expanding welfare programs and continue to party on!

Example: use food stamps for steak and lobster, get onto social security disability, get subsidies for your heating bill, internet and cable service, get rent subsidies, get free Obamacare... all the whilefreeing up your 'other' money for fun things! Learn to become a government parasite like the rest of us and be happy.  Praise King Obama!
Anonymous   |     |   Comment #11
Heh... No Problem.  You forgot about the Obamaphone, headstart, a government funded mortgage write-downs.
Happy Aussie
Happy Aussie   |     |   Comment #12
Don't worry be happy. Come live with me in Aus like so many promised to do if the big O (not Oprah) won. Can still get 5 % on a 5 yr CD. The dollar is equivalent to $1.05 US so trips home to visit family are relatively cheap.
Anonymous   |     |   Comment #13
Can't thank you Aussies enough for your country's aid and hospitality during WWII.  Of course our younger generations here in the U.S. wouldn't understand all that.  Most think everything comes free without cost or any pain.