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 November 10, 2013


Best Bank Account Interest Rates - Summary for Week Ending November 10, 2013

Friday’s employment report was better than expected, and that pushed up Treasury yields for a big gain. With good economic news like this, the Fed is more likely to begin tapering in December. That’s the start of a long process that will eventually lead to higher interest rates. Even with economic data that’s better than expected, the Fed may find reasons to delay tapering.

The Calculated Risk blog describes what the Fed is probably looking at to decide if tapering should begin in December. As is shown in the CR post, the economic data might be good enough. Even if that happens and tapering begins, the Fed may take steps that could delay when they start to hike rates. For example, this ZeroHedge blog post describes forecasts by Goldman Sachs which predicts that the Fed will lower their rate-hike threshold in December to counter the start of tapering. So instead of a 6.5% unemployment threshold, the threshold may be changed to 6% or 5.50%.

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: 0.04% up from 0.03% last week
  • 6-month: 0.09% up from 0.08% last week
  • 2--year: 0.32% down from 0.33% last week
  • 5--year: 1.42% up from 1.37% last week
  • 10-year: 2.12% up from 2.03% last week
  • 30-year: 3.55% up from 3.40% last week

Fed funds futures' probability of rate hike by:

  • Jan 2015: 31% up from 30% last week
  • Apr 2015: 50% up from 49% last week
  • Jul 2015: 69% up from 68% last week

No banks failed last week so the total number of bank failures for the year remains at 23. As a comparison, at this time last year there had been 49 bank failures for the year.

Savings & Checking Account Rates

Like the previous three weeks, there was just one bank that changed its rate. However, this time it was a rate cut. Nationwide Bank reduced its money market rate from 0.76% to 0.71% for all balances.

There continues to be 11 internet banks with savings or money market accounts with rates of either 0.90% or 0.91%. Hopefully, this competition will encourage more banks to raise their rates closer to 1.00%.

We currently have only four institutions with non-promo rates at or above 1.00%. 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

Last week was quiet for reward checking. There were no rate cuts or balance cap cuts last week in my list of nationally available reward checking accounts.

I was hoping to add a new nationally available reward checking account, but the bank decided to restrict new accounts to just its local market area. That bank is Bank of the Bluegrass and Trust Co. in Kentucky, and it’s offering a Kasasa Cash account with a 2.01% APY for balances up to $15K. This isn’t a great deal, but it’s competitive for banks.

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:

  • None

Rate/Balance Cap Cuts:

  • Nationwide Bank MMA - 0.71% [was 0.76%]

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 Last 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 November 10, 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
SFGI Direct0.91%savings account, account review
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
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)
Bank of Internet USA0.75%MMA
Capital One 3600.75%360 savings account
Nationwide Bank0.71% (min $1K)MMA
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
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
ABCO Federal Credit Union1.76% (up to $25K) 0.20% ($25K+)Premiere 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 $25K) 0.15% ($25K+)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)

Anonymous   |     |   Comment #1
It's been ages since I've come here & you guys are still here talking about & waiting for rising rates..............from 1.0 to 1.1% that is. Perhaps it's time to change the name of this place from depositaccounts.com to waitingforgodot.com  :)
lou   |     |   Comment #2
Someday, it's got to happen. Right?

Anyway, there will come a day when stock market investors and those who are employing leverage to goose yields will wish they had been invested in these ugly looking CDs. So enjoy the party now, because the aftermath may not be very pretty.

Anonymous   |     |   Comment #3
Lou.........Perhaps, but today is not that day. Tomorrow will not be that day either. Beyond tomorrow? Recall the expression from the movie Wall Street (1987)............Money is something you need in case you don't die tomorrow. :)
lou   |     |   Comment #4
That movie is a perfect metaphor for the scenario I am describing. :)
Anonymous   |     |   Comment #5
Lou...........Yes, I suppose you're right. I'm no big "fan" of the stock market, but allocating zero percent to CDs these last 5-6 years has been the best financial decision I've made in my life. It would take a marjet drop of historical proportions to erase the over 80% gains I've made over those years. If I were to cash out now & just put the money under the matttress, I'd still be way ahead of anyone investing in CDs for the next 25-30 years..............maybe even longer.
lou   |     |   Comment #6
Where was your money during the 2007-09 timeframe or are you a world class stock market timer?
Anonymous   |     |   Comment #7
Lou.........My money was in the market throughout that time period & before...........but what gave me the outsized returns was that I tripled my allocation throughout the crisis. How did I do it, you ask? By completely divesting myself of CDs & cash equivalents. If you'd like to call it world class then I;m comfortable with that. :)

 I've also been eaning 13-14% in interest per year for over 4 years straight now with my p2p investments that I started at Lending Club in 2009. That's almost 60% compounded for the 4 years duriing the whole time people here have been whining about low interest rates, might I add. Sure that's way above average for the investment category & sure there's no guarantee of any sort..............but there's no guarantee in life, is there?  Evolve learn & adjust.................or be happy with 2%. It really is as simple as that.
lou   |     |   Comment #8
"It really is as simple as that."

This is probably what Bernie Madoff told his investors. You sound like you're trying to sell me a used car.    Generally, the people who possess the investment acumen to make outsized returns do not feel the need to tell everyone about their exploits.

You were actually somewhat convincing until you went off on a tangent about the lending club. That's when I knew you were full of s**t.
Anonymous   |     |   Comment #9
Yes Lou, I'm trying to sell you something. And btw its not the lending club. It's Lending Club, as in the name of a company. Ten years from now when it & its many competitors are mainstream names the high returns possible would have been long gone. At that time I would like you to recall this conversation where you critisized & insulted someone you didn't know for doing something you didn't understand. 

Also, it may interest you that people who have done something successful do in fact share all the time. People who are either too old or too set in their ways are just too stupid to grasp anything & instead choose to stay stupid & come to places like this to commiserate with other old stubborn people about how they've all been wronged..............instead of actually proactively doing something a bit more productive. 
lou   |     |   Comment #10
Okay, it's time to bring this discussion to an end. Yeah, you're the Warren Buffett of investors. Congratulations.

So from a stupid, stubborn person (I am not that old) just wanted to remind you that the Lending Club suffered a 25% default rate in 2008 in the higher yielding loans.

Lastly, very few people who frequent this site invest all their money in low yielding CDs. Maybe you weren't paying attention but many have diversified portfolios with some of their assets allocated to stocks and bonds. Unlike you, they don't feel the need to trumpet their genius investment capabilities.

BTW, where were you in 2007-09. I don't remember you posting here and telling us about your investment losses. For some reason, people don't come here bragging about how much money they have lost.

Anonymous   |     |   Comment #11
Lou..........Your post is a classic example of why you miss the mark. Yes, Lending Club does suffer substantial defaults, but the real monet is from "trading" notes, not from getting the interest. There are people who get returns of 40-50% per year from trading. But like I said, some people prefer to complain & remain ignorant. I'm done here.
Anonymous   |     |   Comment #12

It is a shame you did not invest like Warren Buffet II, but I think mabye be you are the one sitting on the catbird seat.