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Best Bank Account Interest Rates - Summary for July 26, 2016


Best Bank Account Interest Rates - Summary for July 26, 2016

The Fed’s fifth meeting of the year began today and is scheduled to end on Wednesday with the release of the FOMC statement. Fed Chair Janet Yellen is not scheduled to give a press conference. It is widely expected that the Fed will hold rates steady once again. If we’re lucky, there will be hints in the FOMC statement pointing to a rate hike at its September meeting. Here’s what Bill McBride of Calculated Risk Blog said in his FOMC preview post:

The key for a possible September rate hike is if the first paragraph in the FOMC statement is more positive than in June. If the first sentence is changed to something like "Information received since the Federal Open Market Committee met in June indicates that labor market conditions have improved and growth in economic activity appears to have picked up", then the FOMC is probably preparing - if the improved data flow continues - to raise rates in September.

In this Bloomberg article, economist Tim Duy describes the battle inside the FOMC between the doves and the hawks:

Assuming the data evolves along its current path, the doves will find it increasingly difficult to delay additional rate hikes under the current policy framework. They will need to lean increasingly on their asymmetric risk argument to stave off a rate hike in September. And even if they can hold the line in September, it seems unlikely under these circumstances that they could do so again in December. So I continue to believe the stage is set for a minimum of one, and possibly two, rate hikes this year.

So if we’re lucky, we’ll get a Fed rate hike in September and December. Based on history, I think we may be lucky if we just get one in December.

Changes over the last week in Treasury yields and the Fed funds future contracts are mixed. Treasury yields for maturities over one year are up. The Fed funds futures are showing a slightly higher chance of a September rate hike from last week (up from 18% to 22%). However, they’re showing a slightly lower chance in December and February. The following Treasury yields and Fed funds future probabilities are based on Daily Treasury Yield Curve Rates and the CME Group FedWatch.

Treasury Yields:

  • 1-month: 0.24% down from 0.29% last week
  • 6-month: 0.43% down from 0.44% last week
  • 2--year: 0.75% up from 0.70% last week
  • 5--year: 1.15% up from 1.12% last week
  • 10-year: 1.57% up from 1.56% last week
  • 30-year: 2.28% up from 2.27% last week

Fed funds futures' probability of at least one additional rate hike by:

  • Sep 2016: 22% up from 18% last week
  • Dec 2016: 45% down from 47% last week
  • Feb 2017: 48% down from 49% last week

Savings & Checking Account Rates

For the most part, banks are holding steady on their savings and money market account rates. As long as the Fed delays the next rate hike, this pattern will likely continue.

The only change to my list of top nationally available savings, checking and money market accounts is the savings account rate decline at Incredible Bank (1.17% to 1.11% APY). This savings account had long been the rate leader for non-promo rates and rates without a small balance cap. The 1.17% APY had held since October 2015 when the APY had increased from 1.07% to 1.17%. Incredible Bank first launched this account in December 2014 with the 1.07% APY.

The number of accounts in the 1% club remains at 22. This is the group of nationally available checking, savings and money market accounts that have rates of at least 1% APY. I exclude accounts that have promotional rates that are scheduled to fall after a certain amount of time. Also, I exclude accounts in which the 1%+ rate is available only for new customers. The ones on the promotional category include HSBC, EverBank, The Palladian PrivateBank, Northeast Bank, iGObanking.com’s MMA and Salem Five Direct.

Reward Checking Accounts

Banks and credit unions also continue to be on a holding pattern with their reward checking accounts. There was just one small change to my list of top nationally available reward checking accounts. Flanagan State Bank’s Kasasa Cash account has been removed from the list since the bank is now limiting new accounts to just Illinois 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 reward checking, please refer to my blog post, 10 Common Traits of High-Yield Reward Checking.

Certificate of Deposit Rates

I’m now publishing my CD survey as a separate post. Please refer to my survey of the best CD rates. This recap will focus on banking news of the week and liquid accounts.

Rates as of July 26, 2016

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:
The Palladian PrivateBank1.30% (6mo intro rate) 1.10% blended APYSavings Account - Account review
Redneck Bank1.25% (up to $35k), 0.50% ($35k+)Mega Money Market Account
Connexus Credit Union1.15% ($100k) 1.00% ($50k) 0.75% ($20k)MMA - active chk required
EverBank1.11% (1yr intro rate) 0.61% ongoing rateMMA/Checking - Account review
Incredible Bank1.11% ($2.5k), 0.05% ($250k+)IncredibleBank Savings - Account review
Silvergate Bank1.11% ($10k min)Premier Online Savings - $50K min to avoid $50 monthly fee, Account review
Northeast Bank1.10%Pearl Money Market Promo, new customers - Account review
Dime Savings Bank1.10% Dime Direct Money Market, new money - Account review
iGObanking.com1.10% ($25k min) MMA, New accounts and new money only, Account review
Salem Five Direct1.10% (Rate guarantee through January 1, 2017)eOne Savings, for new customers only Account review
EBSB Direct1.08% ($10k min/$2m max)Money Market Special 2 - Account review
SFGI Direct1.06%Savings account - Account review
AloStar Bank of Commerce1.05%Savings account - Account review
GS Bank1.05%Online savings account
Synchrony Bank (formerly GE Capital Retail Bk) 1.05%High Yield Savings
PenFed Credit Union1.01% ($20k-$50k), 0.50% (up to $20k)Access America Checking
MySavingsDirect1.00%Savings account - Account review
ableBanking1.00%Money Market Savings
iGObanking.com1.00%Savings account - Account review
Barclays1.00%Savings - Account review
Ally Bank1.00%Online Savings
Alliant Credit Union1.00% ($100 min)Savings account - Account review
Quorum Federal Credit Union1.00%HighQ Savings Account
Radius Bank1.00% ($2.5k min)Radius High-Yield Savings - Account review
Capital One 3601.00% ($10k+), 0.60% (up to $10k)360 Money Market - Account review
UFB Direct1.00% ($25k min)UFB Savings - Account review
California First National Bank1.00% ($50k min)Money Market Checking
FNBO Direct0.95%Savings account
Discover Bank0.95% ($500 min) Savings account - Account review
Incredible Bank0.95% ($2.5k min) MMA - Account review
CIT Bank0.95%Savings account - Account review
Sallie Mae Bank0.90%MMA
Bank5 Connect0.90% ($100 min) Online savings account (not available for MA and RI residents)
Capital One 3600.90% ($100k) 0.75% ($50k)360 Checking
TIAA Direct0.90% ($100k)MMA
American Express Bank0.90%Savings account - Account review
Clear Sky Accounts0.90% ($250k max) Savings account - Account review
Ally Bank0.85%MMA
Colorado Federal Savings Bank0.85% ($2.5k min)Savings account - Account review
Synchrony Bank (formerly GE Capital Retail Bk)0.85%MMA
Sallie Mae Bank0.85%Upromise GoalSaver Account
Mutual of Omaha Bank0.85% ($5k min) MMA - Account review
Discover Bank0.85% ($100k min) 0.80% ($2.5k) MMA - Account review
MyCBB0.83%MyCBB Money Market - Account review
MyBankingDirect0.80% ($5k min) MMA
Digital Credit Union0.80% ($100k) 0.65% ($50k)MMA
Bank5 Connect0.76% ($100 min) Checking account (not available for MA and RI residents)
SmartyPig0.75%Savings account - Account review
Bank of Internet USA0.75%MMA
Capital One 3600.75%360 Savings account
TIAA Direct0.70%High yield savings account
FNBO Direct0.65%Checking account
Alliant Credit Union0.65%Checking (req's elec. dep & e-stmts) Account review
Elements Financial (formerly Eli Lilly Credit Union)0.65% ($10k min) Helium Savings - Account review
Citizens State Bank (FL)0.60% ($100) 0.50% ($10k)Internet Savings
Incredible Bank0.59% ($1k min) Checking - Account review
Nationwide Bank0.50% ($1k min) MMA

Reward Checking Accounts:

  • Noteworthy Accounts Available Nationwide:
Consumers Credit Union4.59% (up to $20k) Rewards Checking - debit card and $1k credit card requirements
Consumers Credit Union3.59% (up to $15k)Rewards Checking - debit card and credit card requirements
One American Bank3.50% (up to $10k), 0.25% ($10k+)Kasasa Cash - Account review
Consumers Credit Union3.09% (up to $10k)Rewards Checking - debit card with NO credit card requirements
Destinations Credit Union3.01% (up to $10k), 0.25% ($10k+)Kasasa Cash - Account review
Lake Michigan Credit Union3.00% (up to $15k), 0.00% ($15k+)Max Checking
Great Lakes Credit Union3.00% (up to $10k), 0.10% ($10k+)Ultimate Checking
American Bank & Trust2.51% (up to $10k), 0.26% ($10k+)Kasasa Cash
Capital Educators Federal Credit Union2.50% (up to $10k), 0.20% ($10k+)High Yield Checking
Main Street Bank2.25% (up to $25k), 0.25% ($25k+)Kasasa Cash - Account review
Altra Federal Credit Union2.25% (up to $15k), 0.50% ($15k+)A+ Checking
Finex2.018% (up to $25k), 0.20% ($25k+)Axcess Rewards Checking, Premier Account (formerly First New England Federal Credit Union)
XCEL Federal Credit Union2.01% (up to $25k), 0.03% ($25k+)Kasasa Cash Checking
Legence Bank2.01% (up to $10k), 0.25% ($10k+)Kasasa Cash
Provident Credit Union2.01% (up to $25k), 0.08% ($25k+)Super Reward Checking
Bay State Savings Bank2.01% (up to $20k), 0.25% ($20k+)Kasasa Cash - Account review
Elements Financial2.00% (up to $20k), 0.10% ($20k+)High Interest Checking - Account review
MainStreet Bank2.00% (up to $15k), 0.25% ($15k+)Kasasa Cash - Account review
BankFirst2.00% (up to $10k), 0.15% ($10k+)Kasasa Cash
KS StateBank1.95% (up to $25k), 0.50% ($25k+)Check PLUS - Account review
Connexus Credit Union1.75% (up to $25k), 0.25% ($25k+)Xtraordinary Checking
First Tech Federal Credit Union1.58% (up to $10k), 0.16% ($10k+)Dividend Rewards Checking
ABCO Federal Credit Union1.51% (up to $25k), 0.20% ($25k+)Premiere Checking
Aspire Federal Credit Union1.51% (up to $10k), 0.25% ($10k+)Kasasa Cash
All America Bank1.50% (up to $10k), 0.50% ($10k+)Ultimate Rewards Checking
Heritage Bank1.26% (up to $25k), 0.10% ($25k+)eCentive Account
Bank of Internet USA1.25% (up to $150k), 0.00% ($150k+)Rewards Checking
North Country Savings Bank1.25% (up to $25k), 0.35% ($25k+)Kasasa Cash
Avidia Bank1.06% (up to $25k), 0.05% ($25k+)eChecking
Community Bank of Raymore1.01% (up to $10k), 0.20% ($10k+)Kasasa Cash
Community Bank of Pleasant Hill1.01% (up to $10k), 0.20% ($10k+)Kasasa Cash
First American Bank1.00% (up to $15k), 0.13% ($15k+)Everyday Rewards Checking
Bank of Blue Valley1.00% (up to $10k), 0.10% ($10k+)$1k/month debit card req (formerly Ultimate Checking)

Certificates of Deposit:

Bank Account Alternatives - NOT FDIC Insured

Duke Energy PremierNotes1.25% rate for $50K+Duke Energy PremierNotes review
Ally Financial Demand Notes1.15% rate for $50k+
Ford Interest Advantage1.05% rate for $50k+Ford Interest Advantage review
Vanguard Prime Money Market Fund0.45% 7-day yield
Vanguard Tax-Exempt Money Market Fund0.35% 7-day yield
Fidelity Money Market Fund0.33% 7-day yieldreviews on Fatwallet
Fidelity Municipal Money Market Fund0.07% 7-day yield

Accounts Removed Due To Low Rates, Expired Specials, or Availability

Accounts Removed, No Longer Available Nationally

Flanagan State Bank2.25% (up to $10k), 0.25% ($10k+)Kasasa Cash

Anonymous   |     |   Comment #1
Wall Street hasn't given Yellen the word yet, so no rate increase for whatever reasons they make up. There can be no change in FED policy until after the Wall Street boys have positioned themselves ahead of everybody else.
Anonymous   |     |   Comment #6
Partially correct, you are missing one ingredient: THE GLOBALISTS, they are the ones who pull the stings on Yellen, they the ones that buy the treasuries, they are the ones who dictate when and how much if at all to raise the rates. The wall street are second on line and the people are not existent at all,
If nobody buys the treasury, with the deficit the democrats piled up, this country is in very bad shape. Their utopia of the poor people come first, will destroy this nation from inside out.
Anonymous   |     |   Comment #2
Remember, the FED is loaded with liberals, several from calif. and the Yellen head from San Fran., the most liberal city in the country.   There will be absolutely no increases in rates until after the election. Several on the board have even made it public and given all the finger that they have contributed to Clinton for POTUS.  What a scam.  
Anonymous   |     |   Comment #3
That a bunch of unelected private bankers dominate the national psyche every month is truly Orwellian. When the next recession/depression/crash arrives and the average chump again loses 50% of their hard-earned savings socialism will errantly rear its ugly head and doom us all. Then, at last we will all be equal, though some will be more equal than others. 
Anonymous   |     |   Comment #4
It is a shame that the "useful idiots" don't understand the concept of you last sentence.
Anonymous   |     |   Comment #5
i dont get a seat in the bunker?
Anonymous   |     |   Comment #7
"Fed Holds Steady"

Did anyone really expect any thing different?