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 July 6, 2013


Best Bank Account Interest Rates - Summary for Week Ending July 6, 2013

Treasury yields shot up on Friday after the better-than-expected jobs report. As described in this Bloomberg article, the markets are “boosting bets Federal Reserve will begin curbing the pace of its bond purchases as soon as September.” It may not be such a sure bet that the Fed will start tapering QE3 in September. The Calculated Risk blog makes some good points in its blog post that “[i]n the two plus weeks since the last FOMC meeting, the data has been below the Fed forecasts [...] I think it will take a clear pickup in the economy during July and August for the FOMC to begin to taper in September.”

If QE3 tapering does begin in September, there is still a question about when deposit rates will rise. I reviewed this issue of Treasury yields and CD rates a week ago, and I’ll keep looking for CD rate hike trends in my CD rates weekly recaps. There’s also a question about short-term rates. Those are driven primarily by the Fed funds rate, and it’s still unlikely we’ll see that rise before 2015. The Calculated Risk blog described the kind of job numbers we’ll need to see every month for the unemployment rate to hit the Fed's threshold for raising the Fed's funds rate.

Except for the 6-month Treasury bill, you can see the big increases in Treasury yields over the last week below. The markets are also seeing a greater chance of Fed funds rate hikes by sometime in 2015. The following numbers are based on Daily Treasury Yield Curve Rates and the CME Group FedWatch.

Treasury Yields:

  • 6-month: 0.08% down from 0.10% from last week
  • 2--year: 0.40% up from 0.36% last week
  • 5--year: 1.60% up from 1.41% last week
  • 10-year: 2.73% up from 2.52% last week
  • 30-year: 3.68% up from 3.52% last week

Fed funds futures' probability of rate hike by:

  • Jan 2015: 79% up from 70% last week
  • Apr 2015: 91% up from 87% last week

This was another week with no bank failures. The total for the year remains at 16. At this time last year there had been 32 bank failures. Banks haven’t been the only institutions failing this year. Credit unions have also been failing, and there was another credit union failure this week. So far this year there have been 11 credit union failures.

Savings & Checking Account Rates

This was another quiet week for rate changes. The only bank on my list that had rate cuts this week was EverBank which reduced its ongoing rate of its money market account from 0.67% to 0.61%. It still has a 6-month intro rate of 1.10% for balances up to $50K (up to $100K for the checking).

It’s nice that we didn’t see more rate cuts with the start of the new month. Perhaps the higher Treasury yields has at least discouraged banks from cutting rates.

Connexus Y.E.S. Money Market Account continues to hold the top spot with a top-tier APY of 1.15% for a $100K minimum balance. An important downside of this account is that it requires an active checking account and direct deposit.

MyBankingDirect’s money market account is still the best deal for those who don’t want checking requirements or balance caps. It still has a 1.05% APY. This rate has held since June 2012.

Third place goes to SmartyPig’s savings account which has a 1.00% APY with no balance cap.

Reward Checking Accounts

This was also a quiet week for reward checking rate changes, at least for those on my list of nationally available accounts.

There was a rate cut this week on one of the reward checking rate leaders. It’s not nationally available, but the cut is noteworthy since it’s a rate leader. Erie Federal Credit Union lowered the top rate of its Dividend +Plus Checking account from 3.56% to 3.30% APY (Hat tip to DA member Pearlbrown for noting this change in the DA reward checking subforum.). This 3.30% APY applies to balances up to $25K which makes this account still a good deal.

With this rate cut at Erie FCU, we now have only four reward checking accounts with top yields of at least 3.50% for balances of at least $20K. The best one continues to be at Southwest Airlines FCU which offers 4.00% APY for up to $25K. Home Federal Bank in Louisiana also has a 4.00% APY, but this only applies to balances up to $20K. The next two have rates about 50 bps lower. Both are in Texas. One is Navy Army Community Credit Union with a 3.51% APY for balances up to $25K, and the other is Chemcel Federal Credit Union with a 3.50% APY for balances up to $20K. All three of the above credit unions have limited membership, and Home Federal Bank limits new accounts to Louisiana residents.

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. EverBank MMA ongoing rate - 0.61% [was 0.67%]

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 July 6, 2013

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 #2
MyBankingDirect is only offering a .80% rate for its money market account. To get the 1.05% rate listed above you need to do a 1 year CD with AmTrust (I assume it is their parent company). The .80% rate is prominently displayed on the welcome page of their website (https://www.mybankingdirect.com/) and I confirmed it by speaking with their customer service rep.