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Best Bank Account Interest Rates - Summary for April 19, 2016


Best Bank Account Interest Rates - Summary for April 19, 2016

The Fed will be holding its third FOMC meeting of the year next week on April 26-27. No one is expecting a Fed rate hike in that meeting. However, there is reason to be more optimistic about a June Fed rate hike. The U.S. economy is showing strength that could push the Fed into a rate hike sooner than the market is now expecting. One of the most dovish members on the FOMC, Eric Rosengren, recently said that the financial markets are too pessimistic:

"While I believe that gradual federal funds rate increases are absolutely appropriate, I do not see that the risks are so elevated, nor the outlook so pessimistic, as to justify the exceptionally shallow interest rate path currently reflected in financial futures markets,"

This WSJ article from the Moneybeat blog mentioned the same thing:

As markets were plunging in mid-February, central bankers began highlighting the negative economic effects of a strong U.S. dollar and higher borrowing costs.

The financial impact of those market fluctuations has since been erased. That’s a good sign for the economy, but it also gives the Federal Reserve more room to lift rates.

The Fed may decide to postpone a rate hike in June if it wants to see actual improvement in Q2 data. September may be the most likely time for the next rate hike.

Upward movements in the last week in both Treasury yields and the Fed funds futures both suggest a slightly better chance of a Fed rate hike for later this year. 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: 0.18% down from 0.21% last week
  • 6-month: 0.36% up from 0.34% last week
  • 2--year: 0.77% up from 0.74% last week
  • 5--year: 1.26% up from 1.22% last week
  • 10-year: 1.79% same as last week
  • 30-year: 2.60% down from 2.61% last week

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

  • June 2016: 19% up from 14% last week
  • Sep 2016: 40% same as last week
  • Dec 2016: 58% up from 56% last week

Savings & Checking Account Rates

With no clear signs of near-term Fed rate hikes, most banks continue to hold steady on rates. Only two institutions changed rates on my list of top nationally available savings and money market accounts. One is actually new to the list. AloStar Bank of Commerce finally made its savings account competitive. The savings account rate increased from 0.50% to 1.05% APY for balances up to $250K. The other one is a rate cut. Quorum Federal Credit Union reduced the rate of its HighQ Savings account from 0.90% to 0.75%. The rate had been 1% for most of last year.

With the addition of the AloStar’s savings account, the number of accounts in the 1% club increases to 20. This is the group of nationally available 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 have also been on a holding pattern with their reward checking accounts. The only change in my list of top nationally available reward checking accounts is the addition of the reward checking account from Bay State Savings Bank. It’s a Kasasa Cash account with a top rate of 2.01% APY for balances up to $20K. It also has a companion Kasasa Saver account that pays 1.00% APY for balances up to $50K. There’s only one bank and one credit union with higher rates for balances of at least $20K for a nationally available account. So if you’re looking for another reward checking account, you may not want to wait. As we have seen many times before, banks often don’t keep their reward checking accounts nationally available for long.

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 April 19, 2016

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:
EverBank1.60% (6mo intro rate) 0.61% ongoing rateMMA/Checking - Account review
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
UFB Direct1.20% ($25k)UFB Savings - Account review
Incredible Bank1.17% ($2.5k), 0.05% ($250k+)IncredibleBank Savings - Account review
Connexus Credit Union1.15% ($100k) 1.00% ($50k) 0.75% ($20k)MMA - active chk required
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
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
Radius Bank1.01% ($2.5k)Radius High-Yield Savings - Account review
HSBC1.01%HSBC Promotional Advance Savings
HSBC1.01%HSBC Promotional Premier Savings
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% (min $100)Savings account - Account review
Capital One 3601.00% ($10k+), 0.60% (up to $10k)360 Money Market - Account review
California First National Bank1.00% ($50k)Money Market Checking
FNBO Direct0.95%Savings account
Discover Bank0.95% (min $500) Savings account - Account review
Incredible Bank0.95% ($2.5k min) MMA - Account review
CIT Bank0.90%Savings account - Account review
Sallie Mae Bank0.90%MMA
Bank5 Connect0.90% (min $100) Online savings account (not available for MA and RI residents)
Capital One 3600.90% ($100k) 0.75% ($50k)360 Checking
American Express Bank0.90%Savings account - Account review
Ally Bank0.85%MMA
Clear Sky Accounts0.85% (max $250k) Savings account - Account review
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% (min $100K) 0.80% ($2.5k) MMA - Account review
MyCBB0.83% ($1K min)Personal Money Market - Account review
MyBankingDirect0.80% (min $5k) MMA
Bank5 Connect0.76% (min $100) Checking account (not available for MA and RI residents)
Digital Credit Union0.80% ($100k) 0.65% ($50k)MMA
Quorum Federal Credit Union0.75%HighQ Savings Account
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 Bank0.55% (min $1k) 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
Flanagan State Bank2.25% (up to $10k), 0.25% ($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 $50k), 0.03% ($50k+)Kasasa Cash Checking
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
Avidia Bank1.06% (up to $25k), 0.05% ($25k+)eChecking
Legence Bank1.05% (up to $25k), 0.25% ($25k+)Kasasa Cash
North Country Savings Bank1.05% (up to $25k), 0.75% ($25k+)Advantage 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), 0.15% ($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 Fund0.42% 7-day yield
Fidelity Money Market Fund0.26% 7-day yieldreviews on Fatwallet
Vanguard Tax-Exempt Money Market Fund0.28% 7-day yield
Fidelity Municipal Money Market Fund0.02% 7-day yield

Accounts Removed Due To Low Rates Or Expired Specials

Accounts Removed, No Longer Available

Belvoir FCU1.01% (up to $15k), 0.05% ($15k+)CUXcel Checking (Belvoir FCU is merging with PenFed effective May 1, 2016)

Post Publication Edits

4/20/16: Nationwide Bank MMA rate lowered.