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, 2013


Best Bank Account Interest Rates - Summary for Week Ending October 27, 2013

The Fed will be holding another FOMC meeting this week on Tuesday and Wednesday. It’s widely expected that no monetary policy changes will be announced. A few months ago, it was expected that the Fed would be announcing the start of tapering around this time. However, the government shutdown and the debt ceiling debate have changed that expectation. Also, recent economic news like the employment report has been disappointing. Most now think the tapering won’t begin until next year, and there are many factors that could delay it even more such as another government shutdown and Janet Yellen taking over as Fed chief. Savers will need to continue to be patient.

Treasury yields fell for the second straight week as expectations grew that the Fed will delay tapering. Last week’s change in Treasury yields and Fed funds futures are shown below. The following numbers are based on Daily Treasury Yield Curve Rates and the CME Group FedWatch.

Treasury Yields:

  • 1-month: 0.02% up from 0.01% last week
  • 6-month: 0.08% same as last week
  • 2--year: 0.32% down from 0.33% last week
  • 5--year: 1.30% down from 1.35% last week
  • 10-year: 2.53% down from 2.60% last week
  • 30-year: 3.60% down from 3.65% last week

Fed funds futures' probability of rate hike by:

  • Jan 2015: 34% down from 38% last week
  • Apr 2015: 51% down from 56% last week

No banks failed last week so the total bank failures for the year remains at 22. As a comparison, at this time last year there had been 47 bank failures for the year.

Savings & Checking Account Rates

Like the previous week, there was just one bank that changed its rate, and that change was a rate increase. That was at Ally Bank which increased its savings and money market account rate from 0.84% to 0.86%. It’s a small increase, but it’s nice to finally see some rate increases.

Most of the top internet savings and money market accounts continue to have a non-promo rate around 0.90%. Only four financial institutions have higher rates. Three of those four are the new iGObanking.com money market account, the SmartyPig savings account and Palladian Private Bank savings account. All of these now offer a 1.00% APY. The highest rate continues to be at Connexus Y.E.S. Money Market Account which has 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.

Reward Checking Accounts

There were again no rate changes last week for the nationally available reward checking accounts.

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:

  • Ally Bank Savings/MMA - 0.86% [was 0.84%]

Rate/Balance Cap Cuts:

  • None

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 October 27, 2013

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:
Connexus Credit Union1.15% ($100K) 1.00% ($50K) 0.75% ($20K)MMA - active chk required
EverBank1.10% (6mo intro rate) 0.61% ongoing rateMMA/Checking account review
iGObanking.com1.00% ($100K) 0.75% ($75K) 0.50% ($25K)money market account - account review
SmartyPig1.00%savings account - account review
Palladian Private Bank1.00% (min $10K)savings account
Incredible Bank0.91% ($2.5K min)MMA account review
Bank5 Connect0.90% (min $100)online savings account (not available for MA and RI residents)
GE Capital Bank0.90%online savings account
Sallie Mae Bank0.90%MMA account review
Union Federal Savings Bank0.90% (min $2.5K)MMA account review
Barclays0.90%Savings account review
Redneck Bank0.90% (up to $35K) 0.50% (over $35K)MMA
AmericaNet Bank0.90% (up to $35K) 0.50% (over $35K)MMA
Evantage Bank0.90% (up to $35K) 0.50% (over $35K)MMA
CIT Bank0.90% ($25K) 0.85% ($100)savings account, account review
Ally Bank0.86%MMA/savings
SFGI Direct0.86%savings account, account review
American Express Bank0.85%savings account, account review
Colorado Federal Savings Bank0.85% ($2.5K min)savings account, account review
Capital One 3600.85% ($100K) 0.80% ($50K)360 Checking
FNBO Direct0.85%savings account
GE Capital Retail Bank (formerly MetLife)0.85% ($25K) 0.80% ($10K)Savings/MMA
Mutual of Omaha Bank0.85% (min $25)MMA, account review
Sallie Mae Bank0.80%savings account, account review
Salem Five Direct0.80%savings, for new customers only
MyBankingDirect0.80% (min $5K)MMA
Discover Bank0.80% (min $500)savings account, account review
ableBanking0.80% (min $1K)MMA
Bank5 Connect0.76% (min $100)checking account (not available for MA and RI residents)
Nationwide Bank0.76% (min $1K)MMA
Bank of Internet USA0.75%MMA
Capital One 3600.75%360 savings account
Clear Sky Accounts0.70% (max $250K)savings account, account review
Alliant Credit Union0.70% (min $100)savings account, account review
Incredible Bank0.66% ($1K min)checking, account review
Alliant Credit Union0.65%Checking (req's elec. dep & e-stmts) account review

Reward Checking Accounts:

  • Noteworthy Accounts Available Nationwide:
Consumers Credit Union3.09% (up to $5K) 0.20% ($5K-$25K) 0.10% ($25K+)Rewards Checking
Money One Federal Credit Union3.01% (up to $10K) 0.51% ($10K+)Kasasa Cash
INOVA Federal Credit Union3.00% (up to $20K) 0.15% ($20K+)Ovation Checking
Lake Michigan Credit Union3.00% (up to $15K) 0.00% ($15K+)Max Checking
Great Lakes Credit Union3.00% (up to $10K) 0.05% ($10K+)Ultimate Checking
Belvoir FCU2.53% (up to $15K) 0.05% ($15K+)CUXcel Checking
Lee Bank2.50% (up to $15K) 0.50% ($15K+)CACHEChecking
Capital Educators Federal Credit Union2.50% (up to $10K) 0.20% ($10K+)High Yield Checking
Security Bank2.05% (up to $25K) 0.30% ($25K+)Security Bonus Checking
ABCO Federal Credit Union2.02% (up to $25K) 0.20% ($25K+)Premiere Checking
XCEL Federal Credit Union2.01% (up to $15K) 0.30% ($15K+)Redneck Rewards Checking
Redneck Bank2.00% (up to $10K) 0.50% (over $10K)Redneck Rewards Checking
AmericaNet Bank2.00% (up to $10K) 0.50% ($10K+)AmericaNet Rewards Checking
Evantage Bank2.00% (up to $10K) 0.50% ($10K+)Evantage Rewards Checking
Provident Credit Union1.76% (up to $25K) 0.11% ($25K+)Super Reward Checking
Connexus Credit Union1.75% (up to $25K) 0.31% ($25K+)Xtraordinary Checking
Community Bank of Raymore1.75% (up to $10K) 0.25% ($10K+)Rewards Checking
Community Bank of Pleasant Hill1.75% (up to $10K) 0.25% ($10K+)Rewards Checking
First Tech Federal Credit Union1.58% (up to $10K) 0.16% ($10K+)Dividend Rewards Checking
Aspire Federal Credit Union1.51% (up to $10K) 0.25% ($10K+)Kasasa Cash
Avidia Bank1.36% (up to $25K) 0.05% ($25K+)eChecking
West Texas National Bank1.26% (up to $25K) 0.25% ($25K+)Ultimate Checking
Heritage Bank1.26% (up to $25K) 0.10% ($25K+)eCentive Account
First New England Federal Credit Union1.25% (up to $15K) 0.10% ($15K+)extra 1% w/relationship
Bank of Blue Valley1.25% (up to $15K) 0.10% ($15K+)$1K/month debit card req (account review)
Bank of Internet USA1.25% (up to $150K) 0.00% ($150K+)Rewards Checking
BankFirst Financial Services1.25% (up to $50K) 0.15% ($50K+)Kasasa Cash
Legence Bank1.05% (up to $25K) 0.25% ($25K+)Kasasa Cash
North Country Savings Bank1.05% (up to $25K) 0.75% ($25K+)Advantage Checking
State Bank of Toledo1.00% (up to $25K) 0.15% ($25K+)Hometown Rewards Checking

Certificates of Deposit:

Various Deposit Account Deals

Bank Account Alternatives - NOT FDIC Insured

Duke Energy PremierNotes1.40% rate for $50K+Duke Energy PremierNotes review
Ally Financial Demand Notes1.35%Ally Demand Notes review
Ford Interest Advantage1.10% rate for $50k+Ford Interest Advantage review
GE Interest Plus1.10% rate for $50k+
Vanguard Prime Money Market Fund0.01% 7-day yield
Vanguard Tax-Exempt Money Market Fund0.01% 7-day yield
Fidelity Money Market Fund0.01% 7-day yieldreviews on Fatwallet
Fidelity Municipal Money Market Fund0.01% 7-day yield
TIAA-CREF Money Market Fund0.00% 7-day yield

Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)

QED   |     |   Comment #1
Ken wrote as follows:  "The Fed will be holding another FOMC meeting this week on Tuesday and Wednesday. It’s widely expected that no monetary policy changes will be announced."

It's not a fun thing to live long enough to where you realize you've been an idiot.  I used to think the Fed was a good and necessary American institution.  Others, back then, spoke disparagingly about the Fed.  I was certain they were nuts.  Now, too late, I realize I was the nut.  The Fed is a pernicious, threatening, institution.  I was wrong. 

And yeah, sure I know about the “dual mandate”.  It makes no difference to my current low opinion of the Fed.  For America, the Fed has become our grim reaper.
Anonymous   |     |   Comment #2
QED quit complaining and take all your money out of CDs and invest it all in stocks and whatever is left buy an annuity or lotto ticket cuz that's what you're supposed to do and while your waiting for them big profits read up on the latest scholarly articles on the use of derivatives for hedging and leveraging strategies of alternative inverse exchange traded funds that are 80% diversified in mortgage backed inflation protected securities.
QED   |     |   Comment #3
Yeah . . . scholarly writings . . . I need to read more of such stuff.  After all, those scholarly folks are never wrong.  Muuu ha ha!!  
Anonymous   |     |   Comment #4
Stock prices of Netflix and Google back on January 2009 - $25 and $300 a share.  Now they are around $355 and $1000 a share. This is where the money was to be made in thw past 5 years.
Anonymous   |     |   Comment #5
The Septemeber statement from Bankfirst Financial Services provided notification of interest rate tier structure changes for the Reward Checking account (Kasasa Cash).  The 1.25/0.15/0.10% rates will remain unchanged, but the top rate will be earned only on balances up to $25,000.99 vice $50,000.99, effective November 1st.
Sperry8   |     |   Comment #6
Bank of Hampton Roads is offering a .8% money market account with $25k minimum.  http://www.bankofhamptonroads.com/pdf/BHR%20Money%20Market%20Flyer%20FINAL%20No%20Bleeds.pdf