Featured Savings Rates

Popular Posts

Featured Accounts

Best Bank Account Interest Rates - Summary for May 16, 2017

POSTED ON BY

Best Bank Account Interest Rates - Summary for May 16, 2017

The odds of a June Fed rate hike went down a little from last week, but they’re still strong. Economist Tim Duy reviewed recent economic data and concluded in his Fed Watch blog post that “this all clears the way for the Fed to hike rates again in June.” This US News article echoed a similar review of the economy and summed it up by saying “Strong labor market and inflation data this week have primed June for higher interest rates.”

The picture after June is much more cloudy. There is speculation that the Fed has again been too optimistic in its Fed funds projections. Instead of the three rate hikes that most on the Fed expected for this year, we may end 2017 with only two hikes. According to this CNBC article:

The markets are no longer convinced the economy will be strong enough for the Federal Reserve to raise interest rates two more times this year.

U.S. economic data has missed the mark for weeks now, and even though April data is improved over March, it is still disappointing.

Economic news on Friday impacted both Treasury yields and Fed rate expectations. According to this MarketWatch article:

Treasury yields moved firmly lower on Friday for the biggest weekly decline in a month, after weak inflation data and lukewarm consumer spending lowered expectations for two more Fed rate increases this year.

That explains why most Treasury yields are down from last week. The 2-year and the 5-year are down the most (both down by 8 basis points).

It also explains the big drop in the implied probability of two additional rate hikes in 2017. The Fed fund futures are showing a 44% chance that there will be at least two rate hikes by the Fed’s December meeting. That’s down from 60% from last week.

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

Treasury Yields:

  • 1-month: 0.72% down from 0.74% last week
  • 6-month: 1.04% same as last week
  • 2--year: 1.29% down from 1.37% last week
  • 5--year: 1.86% down from 1.94% last week
  • 10-year: 2.33% down from 2.42% last week
  • 30-year: 2.99% down from 3.04% last week

Fed funds futures' probabilities of future rate hikes by:

  • Jun 2017 - at least one hike: 69.2% down from 87.7% last week
  • Dec 2017 - at least one hike: 86.9% down from 95.8% last week
  • Dec 2017 - at least two hikes: 44.1% down from 60.0% last week

Savings and Checking Account Rates

More internet banks have been raising their savings account rates in the last two weeks. The rate hikes aren’t big, but at least we’re seeing upward movement.

Two more savings accounts reached 1.30% APY. This is the highest rate from a nationally available savings account that doesn’t require a $500k balance (Self-Help FCU continues to offer 1.36% APY for balances of $500k+).

The first to reach the 1.30% APY is UFB Direct, a division of BofI Federal Bank. It started a new savings account, called Premium Savings, that earns 1.30% APY on balances of at least $50k.

The second to reach the 1.30% APY is DollarSavingsDirect (DSD), a division of Emigrant Bank. In April, the DSD savings account rate increased from 0.55% to 1.25%. Last week, the rate increased again to its current rate. Unlike UFB Direct, DollarSavingsDirect’s savings account has no minimum balance requirement to qualify for the 1.30% APY.

In addition to the above rate leaders, two of the large internet banks increased their rates. CIT Bank introduced a new savings account called Spring Savings that earns 1.15% APY on all balances. Barclays increased the APY of its online savings account from 1.00% to 1.05% APY. This also applies to all balances.

Lastly, New York-based M.Y. Safra Bank added a Direct Online Money Market account that earns 1.10% APY on balances between $5k and $500k, and the stated APY is guaranteed through December 31, 2017. A minimum $5k of new money is required to open the account and maintained to earn the stated APY.

With the recent rate increases, my new 1.25% club has 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 five accounts in this club (Self-Help FCU, BankPurely, UFB Direct, PurePoint Financial and Dollar Savings Direct). Just like the 1% club, I’m going to exclude accounts that have rates that are clearly promotional and temporary. These include savings account at 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

There was only one change to the list of nationally available reward checking accounts . Northpointe Bank’s UltimateAccount was added. Previously, this account had been excluded since it had a balance cap of only $5k.The cap has been increased to $10k. With an APY of 5%, the UltimateAccount is now on top of the list.

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.

Connexus Credit Union continues to offer three CD specials (2% APY 3-year, 1.70% APY 2-year and 1.50% APY 1-year). You can join Connexus by first joining an association (see blog post).

The best 3-year CD deal continues to be at USALLIANCE Financial Credit Union which offers a 36-month CD special with a 2.20% APY. Minimum deposit is $500, and new money is required. There’s no stated maximum deposit, but the credit union is limiting the CD to one per member.

The best 4-year CD deal continues at Hanscom FCU which is offering a 4-year CD that earns 2.50% APY. The CD requires that the member have or open a Premier Checking account.

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).

Rates as of May 16, 2017

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
Self-Help Federal Credit Union1.36% ($500k), 1.26% ($500) Money Market - Account review
DollarSavingsDirect1.30% (no min)Dollar Savings Account - Account review
BankPurely1.30% ($1 min) SavingPurely - 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%eOne Savings, for new customers only 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
CIT Bank1.15%Spring Savings - Account review
Popular Direct1.15%High Rise Savings - Account review
MyBankingDirect1.15% ($5k+), 0.25% (<$5k) Earn >More Money Market
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
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
CIT Bank1.05%High Yield Savings - Account review
Alliant Credit Union1.05% ($100 min)Savings account - See 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
Sallie Mae Bank1.05%MMA - Account review
Barclays1.05%Online Savings - Account review
Discover Bank1.01% (no min) Savings account - Account review
Pacific National Bank1.00% Money Market Deposit Account - See review
ableBanking1.00% ($250 min)Money Market Savings
iGObanking.com1.00%Savings 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
Discover Bank0.90% ($100k min), 0.85% ($2.5k) MMA - Account review
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
MySavingsDirect0.85%MySavings account - Account review
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)
California First National Bank0.75%Money Market Checking - Account review
Bank of Internet USA0.75%MMA
Capital One 3600.75%360 Savings account
Quorum Federal Credit Union0.70%HighQ Savings 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:
InstitutionRatesNotes
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
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

InstitutionRatesNotes
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 Fund0.95% 7-day yield
Fidelity Money Market Fund0.81% 7-day yieldreviews on Fatwallet
Vanguard Tax-Exempt Money Market Fund0.69% 7-day yield
Fidelity Municipal Money Market Fund0.56% 7-day yield

Post Publication Edits

5/17/17: Salem Five Direct eOne Savings rate increased.

5/18/17: American Express Bank High Yield Savings rate increased.

Related Pages: savings accounts, money market accounts, reward checking accounts, nationwide deals, Internet banks
Comments
Hoody
Hoody   |     |   Comment #1
Doesn't seem to make much difference, rates are still no more than they were before rates started to "creep" up. If I was able to get a 3.1% 7yr CD at Navy "before" any rates were even increased by .25%, they should be showing up by now since the banks or CU's would want to lock in as many people at any lower rates that look good for these times before they actually do "rise" again.

I'm thinking maybe the FED and the banks/CU's had this planned out as usual, the FED knew they were sitting on 0 too long, but didn't want the banks/CU's actually raising rates, and may have put in place some sort of agreement.

As far as Navy goes, due to the open door policy that was in place they probably have more accounts now than they need and it may be time for PenFed to come up with something to draw some away again before they make any moves.
captain beefart
captain beefart   |     |   Comment #3
also were able to get 3% northwest deal and 3% penfed deal before rates even started to move up.
deplorable 1
deplorable 1   |     |   Comment #4
The long term rates haven't changed much but the short term rates seem to be moving up as you can get 1.3% on liquid cash now. Maybe when the FED decides to reduce their balance sheet the long term rates will rise and CD yields will get better. We should be getting another rate hike in June which should help. Banks seem to be unusually slow to hike rates on CD's though. Until then their is always paying down your mortgage and REIT's.
DCGuy
DCGuy   |     |   Comment #5
Money market mutual fund rates are trending downward recently. Not a good sign for the immediate future.
deplorable 1
deplorable 1   |     |   Comment #6
You know I have never owned a money market fund as the yields always seem to be lower than what I could find in a savings or regular MMA and that's going all the way back to the 80's. Even some of the lowest yielding monthly paying dividend stocks would be a better investment.
DCGuy
DCGuy   |     |   Comment #8
Back in the early 1980s when bank passbook savings account rate were fixed, the 5.25% at the bank could not compete with the around 10% rate at the money market mutual funds. Banks asked to remove the fixed rate so it could float and compete with the money funds.

"Hard-pressed by inflation, thousands of families have abandoned the traditional savings account for an array of alternative investments -- from money-market funds to certificates of deposit -- that offer far greater returns on their money.
In the last decade, passbook savings have plummeted from more than a half to a little more than one-fourth of savings deposits in the United States. Since 1978, when six-month certificates were introduced, the amount of money in savings accounts nationwide has dropped almost $80 billion."

"In recent years, while regulatory ceilings held passbook interest rates to 5-1/2 percent at federally chartered savings and loans and 5-1/4 percent at federal commercial banks, the rates paid on a host of other accounts were rocketing:

Money market funds, established on a large scale in 1974, peaked in April at 16.29 percent. (The recession has driven the rate down to 8.89 percent now). They had lured $77.3 billion nationally as of last week, compared to $375.7 billion in passbook and regular savings accounts at banks, thrifts and credit union."

"The bill provides for a gradual lifting of passbook interest rate ceilings -- beginning Jan. 1 and lasting for six years -- ultimately allowing them to float with the market."

https://www.washingtonpost.com/archive/politics/1980/07/27/interest-rate-roller-coaster-has-upset-passbook-savings/bb207661-b27f-41d5-9a61-0414e55b2111/?utm_term=.d62fc1e253c9
jimdog
jimdog   |     |   Comment #2
The Federal Reserve banksters will continue their policy of financial rape of prudent savers. They will continue to devalue the dollar and destroy savers by inflation. They really should be put in jail but it's legal theft.
Anony
Anony   |     |   Comment #7
I worked in banking. Most of these offerings are teasers designed to get your money in the front door. There is no back door. Once in the expectation is you'll stay because it's just too much work to move. DD folks are after yield; banks are interested in the same thing and your yield doesn't matter to them. Theirs does. Read the limitations, examine the fine print and always beware. Miss a few deposits, fail to sufficiently debit or forget to email the AVP on his/her birthday and you could be out a month's interest...or more. By now there should be a "CD market" similar to the stock market but, except for brokered CD's at some of the large brokerages, people are left to scrounge on their own. I remember groups of "little old ladies" having breakfast on the first floor before ascending in the elevator to the majestic bank lobby to either renew or cash in their CD's for greener pastures down the street. The "little old ladies" were most often widows quietly managing a lifetime of savings. If we couldn't match yields (and we would if pressured) a million bucks could walk out the door before 9:05.
Anony
Anony   |     |   Comment #9
For the record (whatever that means in today's world) the term "little old ladies" was coined by the group of ladies who got together each month to socialize and discuss their finances. They were all old-fashioned, depression-era ladies who knew quite a bit about personal financial management. I bought them all breakfast one morning and they all insisted on leaving the tip...15% (no more, no less)! Oh how times have changed.
deplorable 1
deplorable 1   |     |   Comment #10
I made about $3,000 last year on those bank bonuses designed to get people in the door. Then I take the cash and put it in another bank that pays higher interest. We need a separate blog for bank bonuses that don't have direct deposit requirements or other hoops to jump through. That way it's easy in and out. Huntington $200 bonus looks like the only decent one this year.
ko26
ko26   |     |   Comment #11
Emigrant Bank (DollarSavingsDirect) has a tendency to offer higher rates and then reduce (see MySavingsDirect, a division on Emigrant, which dropped from 1.26% to a current 0.85%). Best to go with another bank
Att
Att   |     |   Comment #12
I have been trying for 2 weeks to open a savings account with BOFI. I finally gave up. I had prior accounts with dollar direct. So I decided to try. My login was still valid. I just clicked on tab open new account. The information was filled in already. The account was opened the same day and funded the next. It does have a 5 day hold but I'm getting interest. I'll keep an eye on it. Just very frustrating most times trying to open a new account at a CU OR bank. I'll check weekly to ensure the rate is competitive and I still have my GS Bank savings account.
Steve
Steve   |     |   Comment #13
I'm still looking for Banks (online are okay) thatr offer high rate CDS to Non-profit Corporations. Nealy all the big ones, Purepoint, Ally, Synchony only offer personal accounts. Google was know help. Anyone know of any institutions who want out money. It is substantial.
Nothing
Nothing   |     |   Comment #14
If any financial institution in which u have had a "long term" relationship will not negotiate higher than normal rates, u are using the wrong institutions!
Bozo
Bozo   |     |   Comment #15
To: Poster "Nothing"

My most recent experience attempting to "negotiate" a better rate on a maturing IRA CD was futile. Mind you, this was with an institution (USAA) with which I have almost a fifty year relationship, and healthy account balances. My last CD with USAA (after-tax) matures in a few months, and I'm not even going to bother trying to negotiate again. I'm just moving the money.
Nothing
Nothing   |     |   Comment #16
Clown: Different strokes for different folks. Negotiated a 5 yr IRA CD and 3 yr CD with a cu where there was a long term relationship and NO early withdrawals ever taken in the past...10 year relationship. Some relationships mean more than others! :-)
USAA does not appear that it needs to negotiate, i.e. if you have stayed for 50 years, why do they need to change if you didn't!