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 March 23, 2013


Best Bank Account Interest Rates - Summary for Week Ending March 23, 2013

The second FOMC meeting of 2013 concluded last Wednesday, and as expected, no policy changes were announced. The Fed also released its economic projections. GDP growth forecast went down a bit for 2013, but the unemployment rate forecast improved a bit. A large majority on the Fed (14 out of 19) still don’t see any policy firming before 2015.

The markets paid more attention this week to the problems in Europe than to the Fed meeting. Specifically, the ongoing crisis in Cyprus was having an effect on the markets. As described in this Barrons article:

A plan to impose a bank-deposit tax (read: seizure) had investors wondering whether other troubled countries couldn't follow suit, and reports that Cyprus could exit from the euro zone rekindled doubts about the monetary union.

This appears to have been the main driver of Treasury yields causing longer-term yields to fall this week. The 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: 0.09% same as last week
  • 2--year: 0.24% same as last week
  • 5--year: 0.79% down from 0.83% last week
  • 10-year: 1.92% down from 1.99% last week
  • 30-year: 3.16% down from 3.22% last week

Fed funds futures' probability of rate hike by:

  • Jan 2015: 43% down from 56% last week
  • Apr 2015: 59% down from 65% last week

This was another week without a bank failure. The number of bank failures this year in the nation remains at four. At this time last year, there had been 15 bank failures, and at this time in 2011, there had been 26 bank failures. As you can see, the pace of bank failures continues to go down.

Savings & Checking Account Rates

This was a quiet week in terms of rate changes. Only two banks on my list cut rates this week.

Incredible Bank cut the rate it pays for the portion of balances over $250K from 0.45% to 0.25%. This applies to both its checking and money market account. It also cut its checking account rate from 0.88% to 0.81%. This applies to balances up to $250K. The money market account yield remains at 1.01% for balances up to $250K. So if you have a balance over $250K at Incredible Bank, you'll do much better to move that money to another bank. If you just have a checking account at Incredible Bank, there's now more of a reason to open its money market account. The money market yield is now 20 bps higher than the checking yield. Hopefully, Incredible Bank isn't planning a cut on its money market rate anytime soon.

The other rate cut was at AloStar Bank of Commerce. The top-tier rate of its Money Market Advantage account fell from 0.91% to 0.85%. This requires a minimum $50K balance.

The best non-promo rate for large balances continues to be Connexus Credit Union's Y.E.S. Money Market. It has a 1.15% APY for balances over $100K and 1.00% APY for balances of $50K to under $100K. The downside is that it requires an active checking account with direct deposit.

The highest rate without a checking requirement and without balance caps continues to be MyBankingDirect's money market account. It still has a 1.05% APY. This APY has held since June 2012. Its rates have been remained near the top of my list since June 2011.

Reward Checking Accounts

This was also a quiet week for nationally available reward checking accounts. There were no rate changes for the ones on my list. However, there was an addition. I learned this week that American Savings Bank in Ohio is offering its Kasasa Cash account nationwide. People from any state can apply for the account online. With a 2.00% APY for balances up to $15K, it's not the best deal, but it's competitive. In fact, the only bank with a better nationwide deal is First Financial Bank which has a 3.00% APY for balances up to $15K. A few higher rates and balance caps are available from all-access credit unions.

As usual, we'll have to regularly check with these banks to make sure they continue to accept new customers from all states. It's common for banks to restrict who can open reward checking accounts. There have been many nationally available reward checking accounts that have become only local deals. Last week I emailed First Financial Bank, and I received the reply that they are still accepting out-of-state customers as long as they're U.S. citizens.

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.


  1. Amercan Savings Bank Kasasa Cash (reward chk) - 2.00% (up to $15K) 0.25% ($15K+)

Rate Hikes:

  1. None

Rate/Balance Cap Cuts:

  1. Incredible Bank MMA - 1.01% (up to $250K) 0.25% ($250K+) [was 1.01% / 0.45%]
  2. Incredible Bank Checking - 0.81% (up to $250K) 0.25% ($250K+) [was 0.88% / 0.45%]
  3. AloStar Bank Money Market Advantage - 0.85% ($50K+) [was 0.91%]

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
  • No new posts this week
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 March 23, 2013

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:

Reward Checking Accounts:

  • Noteworthy Accounts Available Nationwide:

Certificates of Deposit:

  • Survey of the Best CD Rates for March 22, 2013 (Nationwide & Local)

Various Deposit Account Deals

Bank Account Alternatives - NOT FDIC Insured

Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)
51hh   |     |   Comment #1
For RCA, PB reported the pending rate/limit drop by Halliburton FCU: From (3.55%, $25K) to (3.05%, $20K) starting 4/1/13.

Thanks are due to PB for the advance notice so that we can prepare for such drops.
KenBDG   |     |   Comment #2
Thanks 51hh for mentioning Halliburton FCU and PB's forum thread. It has been one of the most noteworthy "non-nationwide" reward checking accounts.