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Best Bank Account Interest Rates - Summary for June 13, 2017


Best Bank Account Interest Rates - Summary for June 13, 2017

The Fed has begun its two-day FOMC meeting. The FOMC statement is scheduled to be released at 2:00pm EDT Wednesday. At this same time, the Fed is also scheduled to release its federal funds rate projections and its quarterly economic projections. Then at 2:30pm, Fed Chair Janet Yellen is scheduled to hold a press conference.

A Fed rate hike on Wednesday appears to be almost a sure thing. What’s less certain is the federal funds rate projections. Do most Fed members still anticipate three rate hikes in 2017? Also, do the projections indicate fewer anticipated rate hikes in 2018? Economist Tim Duy described his prediction about the Fed’s new projections in this Bloomberg article:

The bottom line is that the Fed will resist pulling back on rate projections if they can justify holding their inflation forecast and unemployment remains poised to decline further in the months ahead.

If the Fed does resist in pulling back on rate projections, that will be good news for savers. With at least one more Fed rate hike anticipated for this year after Wednesday and more to come in 2018, that should help push banks to raise deposit rates. The primary issue that could derail higher deposit rates is if the economy disappoints. As Tim Duy warned in his article:

If weak inflation remains persistent through the second half of this year, the Fed would then be forced to rethink their 2018 plans.

Both the federal funds futures and Treasury yields have been moving in the right direction over the last week. The federal funds futures now show a 99.6% chance of a rate hike on Wednesday. The chance of another rate hike in December went up a little from last week, rising to just above 50-50.

All Treasury yields went up from last week, with the largest increase seen on the 2-year and 5-year Treasury yields (up by 8 bps from last week).

The following numbers are based on Daily Treasury Yield Curve Rates and the CME Group FedWatch.

Treasury Yields:

  • 1-month: 0.89% up from 0.83% last week (0.52% on Jan 3)
  • 6-month: 1.12% up from 1.08% last week (0.65% on Jan 3)
  • 2--year: 1.38% up from 1.30% last week (1.22% on Jan 3)
  • 5--year: 1.79% up from 1.71% last week (1.94% on Jan 3)
  • 10-year: 2.21% up from 2.14% last week (2.45% on Jan 3)
  • 30-year: 2.87% up from 2.81% last week (3.04% on Jan 3)

Fed funds futures' probabilities of future rate hikes by:

  • Jun 2017 - rate hike: 99.6% up from 95.8% last week
  • Dec 2017 - at least one more rate hike: 52.2% up from 49.9% last week
  • Dec 2017 - at least two more rate hikes: 10.4%

Savings and Checking Account Rates

We continue to see a few more rate hikes in my list of top nationally available savings and money market accounts.

In the last two weeks, three large internet banks increased their savings account rates. These include GS Bank (1.05% to 1.20% APY), Synchrony Bank (1.05% to 1.15% APY) and Discover Bank (1.01% to 1.10% APY). It seems likely that the expected Fed rate hike on Wednesday along with competition are contributing to these higher rates.

In addition to these large internet banks, Live Oak Bank introduced a new internet savings account that earns 1.25% APY on all balances up to $250k.

The highest rate isn’t from an internet bank. It’s the money market account from Self Help Federal Credit Union. Self Help increased the top-tier APY of the MMA from 1.36% to 1.41%. This requires a large balance of $500k. Its bottom-tier APY increased to 1.31%, and this requires only a $500 balance.

I not only include savings and money market accounts on this list, but also standard checking accounts. If a standard checking account has a top rate, there’s no reason to ignore it. Checking accounts offer more liquidity than savings accounts due to check writing privileges, and unlike savings and money market accounts, checking accounts aren’t limited to six withdrawals per statement period.

Due to this extra liquidity, the standard checking accounts typically have lower rates than savings and money market accounts. Sometimes, however, there are exceptions. The latest exception is the Nationwide Member Checking Account. In early May, the APY of this account increased from 0.50% to 1.00%, and then this week, Nationwide Bank increased the rate again. It’s now at 1.15% APY for balances of at least $10k. I’ll soon be publishing a review of this checking account.

With the addition of Live Oak Bank, my new 1.25% club has again added a member. This 1.25% club is the group of nationally available checking, savings and money market accounts that have rates of at least 1.25% APY. We now have seven accounts in this club (ableBanking, Self-Help FCU, BankPurely, UFB Direct, PurePoint Financial, Dollar Savings Direct and Live Oak Bank). Just like the 1% club, I’m going to exclude accounts that have rates that are clearly promotional and temporary. These include savings accounts at Salem Five Direct and The Palladian PrivateBank and the Ascend Money Market account at McGraw-Hill FCU. I also exclude accounts that have small balance caps like Redneck Bank’s Mega Money Market account.

Reward Checking Accounts

We still aren’t seeing many rate increases on reward checking accounts. Reward checking rates have been slower to respond to the Fed rate hikes as compared to internet savings account rates. Since much of the rates of reward checking accounts are paid for by debit card activity, banks may continue to go slow with rate hikes.

The only change to my list of nationally available reward checking accounts was the addition of the Kasasa Cash account from Security State Bank. The account earns 3% APY on balances up to $10k.

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, Overview of Reward Checking and Our Reward Checking Table.

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.

Hot CD Deals: I just wanted to include this reminder of a few hot CD deals that are available.

INOVA Federal Credit Union just came out with a special 42-month CD that earns 2.30% APY. As an additional incentive, they’re offering a $75 gift card when you open this CD with a minimum deposit of $100k of new money.

Ally Bank’s 5-year CD (2.25% APY for all balances) isn’t the 5-year rate leader, but its 5-year CD is very competitive when you factor in the mild early withdrawal penalty (150 days of interest).

For those who prefer short-term CDs, Ally Bank just increased the rate of its 11-month No Penalty CD to 1.35% APY for minimum deposits of $25k. With this no-penalty feature, you can make this CD have any term that you want from 7 days to 11 months.

Rates as of June 13, 2017

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:
Self-Help Federal Credit Union1.41% ($500k), 1.31% ($500) Money Market - Account review
DollarSavingsDirect1.30% (no min)Dollar Savings Account - Account review
BankPurely1.30% ($1 min) SavingPurely - Account review
ableBanking1.30% ($250 min)Money Market Savings - Account review
UFB Direct1.30% ($50k+), 0.20% ($100) Premium Savings - Account review
The Palladian PrivateBank1.30% (6mo intro rate) 1.10% blended APYSavings Account - Account review
Salem Five Direct1.25% (guaranteed through July 1, 2018)eOne Savings, for new customers only Account review
Live Oak Bank1.25% ($250k max) Savings Account - Account review
Redneck Bank1.25% (up to $35k), 0.50% ($35k+)Mega Money Market Account
PurePoint Financial1.25% ($10k min)Online Savings - Account review
McGraw-Hill Federal Credit Union1.25% ($75k), 1.10% ($20k),1.00% ($5k) (guaranteed through 8/31/17)Ascend Account - Account review
HSBC1.25% ($100k relationship required)Promo Premier Savings - Account review
Incredible Bank1.21% ($2.5k), 0.05% ($250k+)IncredibleBank Savings - Account review
GS Bank1.20%Online Savings Account - Account review
Sallie Mae Bank1.15%MMA - Account review
Synchrony Bank (formerly GE Capital Retail Bk) 1.15%High Yield Savings - Account review
CIT Bank1.15%Spring Savings - Account review
Popular Direct1.15%High Rise Savings - Account review
My e-BAnC by BAC Florida Bank1.15%Super Saver - Account review
MyBankingDirect1.15% ($5k+), 0.25% (<$5k) Earn >More Money Market
Nationwide Bank1.15% ($10k), 1.00% ($1)Nationwide Member Checking Account
Connexus Credit Union1.15% ($100k), 1.00% ($50k,) 0.75% ($20k)MMA - active chk required
Northpointe Bank1.12% ($10k min, 12mo rate guarantee)UltimateSavings - Account review
SmartyPig1.12% ($50k min), 0.95% ($10k min)Savings account - Account review
EverBank1.11% (1yr intro rate) 0.61% ongoing rateMMA/Checking - Account review
Discover Bank1.10% (no min) Savings account - See review
M.Y. Safra Bank1.10% Direct Online MMA - 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
First Central Savings Bank1.10% ($10k min)E-Premier Money Market - Account review
iGObanking.com1.10% ($25k min) MMA, New accounts and new money only, Account review
SFGI Direct1.06%Savings account - Account review
Ally Bank1.05%Online Savings
Northern Bank Direct1.05% ($250k max) Money Market - See review
Alliant Credit Union1.05% ($100 min)Savings account - See review
AloStar Bank of Commerce1.05%Savings account - Account review
Barclays1.05%Online Savings - Account review
Discover Bank1.01% ($100k min), 0.95% ($2.5k) MMA - See review
Pacific National Bank1.00% Money Market Deposit Account - See review
iGObanking.com1.00%Savings account - Account review
MySavingsDirect1.00%MySavings account - Account review
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
American Express Bank0.95%Savings account - Account review
FNBO Direct0.95%Savings account
Incredible Bank0.95% ($2.5k min) MMA - Account review
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
Clear Sky Accounts0.90% ($250k max) Savings account - Account review
Digital Credit Union0.90% ($100k) 0.85% ($50k)MMA
EBSB Direct0.88% ($5k min) High Yield Savings
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
Amboy Direct0.80% ($3k min/$100k max) Personal eSavings
EH National Bank0.79% Personal Savings
Bank5 Connect0.76% ($100 min) Checking account (not available for MA and RI residents)
Bank of Internet USA0.75%MMA
Capital One 3600.75%360 Savings account
Quorum Federal Credit Union0.70%HighQ Savings Account
Nationwide Bank0.75% ($100k), 0.50% (up to $100k)Money Market Account
TIAA Direct0.65%High Yield Savings account
FNBO Direct0.65%Checking account
Alliant Credit Union0.65%Checking (req's elec. dep & e-stmts) Account review
MyCBB0.60%MyCBB Money Market - Account review
Incredible Bank0.59% ($1k min) Checking - Account review
Elements Financial (formerly Eli Lilly Credit Union)0.55% ($10k min) Helium Savings - Account review

Reward Checking Accounts:

  • Noteworthy Accounts Available Nationwide:
Northpointe Bank5.00% (up to $10k), 0.10% ($10k+) UltimateAccount - Account review
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
Evansville Teachers Federal Credit Union3.00% (up to $15k), 0.00% ($15k+)Vertical Dividend Checking - 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
Security State Bank3.00% (up to $10k), 0.25% ($10k+)Kasasa Cash - Account review
Partner Colorado Credit Union3.00% (up to $10k), 0.50% ($10k+)High Interest Checking
American Bank & Trust2.51% (up to $10k), 0.25% ($10k+)Kasasa Cash
Industrial Bank2.50% (up to $15k), 0.25% ($25k+)Kasasa Cash
Capital Educators Federal Credit Union2.50% (up to $10k), 0.20% ($10k+)High Yield Checking
New Buffalo Savings Bank2.27% (up to $35k), 0.2497% ($35k+)Kasasa Cash - Account review
Bellco Credit Union2.25% (up to $25k), 0.25% ($25k+)Boost Interest Checking - Account review
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
Coastal Federal Credit Union2.25% (up to $10k), 0.10% ($10k+) Go Green Checking - Account review that includes companion Go Green MMA
Georgia Bank Company2.15% (up to $25k), 0.40% ($25k+)Kasasa Cash - Account review
TruStone Financial Credit Union2.02% (up to $20k), 0.10% ($20k+)TruRate Checking - Account review
BankFirst2.02% (up to $10k), 0.15% ($10k+)Kasasa Cash
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
5Star Bank2.00% (up to $25k), 0.15% ($25k+)Kasasa Cash Checking Account review
Bay State Savings Bank2.01% (up to $20k), 0.25% ($20k+)Kasasa Cash - Account review
Country Bank2.00% (up to $20k), 0.25% ($20k+)Kasasa Cash Checking 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
Blue Federal Credit Union2.00% (up to $15k), 0.25% ($15k+)Extreme Checking (up to 4% w/account relationships) - Account review
United Educators Credit Union2.00% (up to $10k), 0.25% ($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
MemoryBank1.50% (up to $250k) EarnMore Interest Checking - Account review
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
ABCO Federal Credit Union1.01% (up to $25k), 0.10% ($25k+)Rewards Checking
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

Ally Financial Demand Notes1.15% rate for $50k+
Duke Energy PremierNotes1.15% rate for $50K+Duke Energy PremierNotes review
Ford Interest Advantage1.05% rate for $50k+Ford Interest Advantage review
Vanguard Prime Money Market Fund0.99% 7-day yield
Fidelity Money Market Fund0.80% 7-day yieldreviews on Fatwallet
Vanguard Tax-Exempt Money Market Fund0.65% 7-day yield
Fidelity Municipal Money Market Fund0.48% 7-day yield

Removed, Following Rate Drop

California First National Bank0.40%Money Market Checking - Account review

Post Publication Edits

6/15/2017: My e-BAnC by BAC Florida Bank Super Saver rate raised.

6/15/2017: MySavingsDirect MySavings Account rate raised.

6/16/2017: SallieMae Bank Money Market Account rate raised.

Related Pages: savings accounts, money market accounts, checking accounts, reward checking accounts, nationwide deals, Internet banks
ichaelm   |     |   Comment #1
Ken, since rates have gradually increased and you've raised your 1% club to a 1.25% club, maybe you should also increase the minimum interest rate required to simply make your list. Maybe raise it from the present 0.55% to 1.00%? I can't imagine any of your readers opening an account which pays anything less than that.