Best Bank Account Interest Rates - Summary For December 10, 2019

Rate cuts on the top savings and money market accounts are still widespread. However, the number of rate cuts has gone down from two weeks ago. If the Fed holds rates steady tomorrow, the number of rate cuts should keep trending down, and within a month or two, the widespread cuts should come to an end.

Below are the noteworthy savings and money market account rate changes that have occurred in the last two weeks (All percentages are APYs):

• FitnessBank Savings (-30 bps to 2.30%)
• SFGI Direct Savings (-20 bps to 2.07%)
• TotalDirectBank Money Market (-19 bps to 2.06%)
• Vio Bank Savings (-5 bps to 2.02%)
• My eBanc eRelationship Savings (- 5 bps to 2.00%, $100k min)
• Prime Alliance Bank Personal Savings (-26 bps to 1.96%, $10k min)
• BMO Harris Bank Platinum Money Market (-10 bps to 1.95%, $5k min)
• Northpointe Bank Ultimate Savings (-10 bps to 1.95%, $25k min)
• PNC Bank High Yield Savings (-10 bps to 1.90%)
• MySavingsDirect MySavings (-10 bps to 1.90%)
• TIAA Bank Yield Pledge Money Market - 1yr intro (-15 bps to 1.85%)
• Envision Bank Savvy Savings (-21 bps to 1.80%)
• Barclays Online Savings (-10 bps to 1.70%)
• Alliant Credit Union High-Rate Savings (-5 bps to 1.65%)

The rate leader had a big rate cut in December. FitnessBank lowered the rate of its savings account by 30 bps to 2.30% APY. This rate requires that the customer average 12,500 steps per day for the month as measured by a step tracker app. The rate falls to 2.00% APY when the step average is between 10,000 and 12,500. The rate falls significantly for lower step averages. Since only some of the customers receive these high rates, the average interest yield that FitnessBank pays out is much less than 2.30%. That may increase the odds of FitnessBank maintaining the rate lead status. The current rate is now 70 bps below its peak of 3.00% APY that was in effect from July through August of this year. We’ll see how long they’ll be able to maintain 2.30% APY.

FitnessBank savings account rate is now tied with the Online Money Market rate at CFG Community Bank. Unlike FitnessBank, CFG Community Bank does not have activity requirements for its money market account. However, it does require a minimum balance of $25k to qualify for the 2.30% APY. The rate falls to 2.15% APY for balances between $1k and $25k. The CFG Community Bank Money Market Account is a new online account that started out with a 2.50% APY in early October. I’ll be surprised if it continues to retain the top spot.

SFGI Direct had a brief period of being the rate leader for accounts without activity requirements and without any large balance requirements. That ended last Friday when the rate fell 20 bps to 2.07% APY. This is the first time SFGI Direct has cut the rate of this savings account since the rate reached 2.27% APY in January. This account has a long history of remaining competitive that dates back to 2009. The new rate is still very competitive when compared to the well-established online savings accounts.

State Bank of India Chicago’s savings account is now the rate leader for accounts without activity requirements and without any large balance requirements. This has a rate of 2.25% APY for all balances, but there’s a $500 minimum opening deposit and a $500 minimum to avoid a quarterly fee. This rate has been in effect since May. DA first started to track this account in 2014 when the rate was 0.85%. There have only been three rate changes to this account: 1) an increase to 0.90% in 2015, 2) an increase to 1.60% APY in April 2018, and 3) an increase to 2.25% APY in May 2019.

Rate guarantees without withdrawal penalties

When rates are falling, the best savings and money market deals are specials that guarantee a rate for a period of time. There are currently five accounts with rate guarantees that are worth mentioning. One was recently added.

First, Customers Bank continues to offer a promotion on its Ascent Money Market Savings Account with a 2.25% APY guaranteed until 6/30/2020. A minimum balance of $25k is required.

In September, I reported on the MAX-Yield Money Market Account promotion at Sun East Federal Credit Union. This is still available. The account offers 2.20% APY on balances from $5k to $250k, and the rate is guaranteed for 13 months from account opening. Withdrawals are much more limited than the average money market account. Fee-free withdrawals are restricted to only one per calendar quarter.

The third rate guarantee is being offered by Elements Financial Credit Union. It’s a new promotion of its Helium Savings Account. For new account holders, the account earns 2.10% APY on balances of $2.5k and above. That rate is guaranteed for one year. After that one year, there will likely be a large rate drop. The current rate on its standard Helium Savings Account is only 1.30% APY.

The fourth rate guarantee is the Yield Pledge Money Market Account at TIAA Bank. In December, the new-customer rate fell from 2.00% to 1.85% APY for balances up to $250k. This is guaranteed for the first year of account opening. A version of this offer has long been available at TIAA Bank/EverBank. After the 1-year intro period, a tiered-rate structure takes effect. The current ongoing APYs range from 1.01% for under $10k to 1.70% for over $100k.

The fifth rate guarantee is the new one. It's the Xclusive Money Market account from Xceed Financial Credit Union. This is a tiered rate account with a top rate of 2.00% APY for balances of $50k+. The rate is guaranteed to last through June 30, 2020.

No-penalty CDs have some of the liquidity of savings and money market accounts, but like CDs, they offer a rate lock which can be useful when rates are falling. No-penalty CDs have become more common at online banks in the last year, and they are something to consider, especially if you already have a savings account at the bank. The main issue now is that their rates have been falling. If their rates are higher than the savings account, these can be good deals in this falling rate environment.

Some banks like Ally make it easy to open and close the No Penalty CDs. You just lose access to the money in the No Penalty CD for the first six days from account funding. After that, you are free to close the CD without penalty. Ally makes it very quick and easy to move the CD funds into your savings or checking account.

Below is a list of noteworthy no-penalty CDs. I’m happy to report that there have been no rate cuts since my last liquid account summary. The highest rate continues to be 2.00% APY for the 11-month Flex Time Deposit with $100k minimum deposit. The rate drops to 1.90% APY for a $10k minimum deposit. This is tied with CDs at three other banks. The best deal out of these four is the 13-month No-Penalty CD at PurePoint Financial.

• 2.00% APY 11-month Flex Time Deposit ($100k min) - M.Y. eBanc
• 1.90% APY 11-month Flex Time Deposit ($10k min) - M.Y. eBanc
• 1.90% APY 13-month No-Penalty CD ($10k min) - PurePoint Financial
• 1.90% APY 11-month No Penalty CD ($25k min) - Ally Bank
• 1.90% APY 7-month No-Penalty CD ($500 min) - Goldman Sachs Bank USA
• 1.85% APY 11-month Liquid CD ($5k min) - Citizens Access
• 1.80% APY 11-month No-Penalty CD ($1k min) - CIT Bank
• 1.80% APY 6-month No-Penalty CD ($500 min) - Investors eAccess
• 1.75% APY 14-month No-Penalty CD ($10k min) - PurePoint Financial
• 1.73% APY 11-month No Penalty CD ($5k min) - Colorado Federal Savings Bank
• 1.70% APY 11-month No-Penalty CD ($500 min) - Goldman Sachs Bank USA
• 1.70% APY 11-month No Penalty CD ($5k min) - Ally Bank
• 1.65% APY 13-month No-Penalty CD ($500 min) - Goldman Sachs Bank USA
• 1.65% APY 11-month No Penalty CD (no min) - Ally Bank
• 1.65% APY 11-month No-Penalty CD ($10k min) - PurePoint Financial

Remember that when talking about no-penalty CDs (that function like Ally’s No Penalty CD), a longer term is always better. Since you can close these types of no-penalty CDs at anytime after the first six days, I can’t think of a reason to choose a shorter-term no-penalty CD if the rate is the same.

Competition from Money Market Funds

Another option for your cash instead of savings accounts and money market accounts are money market funds from brokerages. These don’t have FDIC coverage, but they can be reasonable alternatives to deposit accounts. Back when the Fed was holding rates near zero, money market funds had yields of around 0.01%. Keeping your cash at internet banks made a lot more sense back then. Now, it’s not so clear. Money market fund yields have risen substantially as the Fed hiked rates. However, their yields have been falling in this current environment. After three Fed rate cuts, we have seen large yield cuts on money market funds.

Vanguard Prime Money Market Fund 7-day yield fell 4 bps in the last two weeks, falling from 1.75% to 1.71%. Fidelity Money Market Fund 7-day yield fell 1 bp in the last two weeks, falling from 1.51% to 1.50%.

Municipal money market funds have the advantage of being exempt from federal income tax, but their yields continue to be quite a bit lower than the other money market funds. In the last two weeks, the Vanguard Municipal Money Market Fund 7-day yield fell 2 bps to 1.03%. Fidelity’s 7-day yield remained the same at 0.80%.

Reward Checking Accounts

In the last two weeks, only one nationally-available reward checking account had a rate cut.

Heritage Bank lowered the top rate of its eCentive Account from 3.33% to 3.03% APY in December. This top rate applies to balances up to $25k, which is the same as before.

Two additional rate cuts will take place on December 21st. All America Bank and its online division Redneck Bank announced that the top rate of their Rewards Checking accounts will be falling from 2.50% to 2.25% APY for balances up to $10k. Just last month, the top rate fell from 2.75% to 2.50% APY on these accounts.

Overall, reward checking accounts continue to buck the trend of falling rates. I wouldn’t be surprised if we keep seeing a few rate cuts and balance cap cuts as banks and credit unions slowly respond to the last three Fed rate cuts. However, history has shown that reward checking accounts can sustain rates significantly higher than online savings account rates, even during a zero interest rate environment.

TAB Bank’s Kasasa Cash account remains the best deal with a 4.00% APY for balances up to $50k. This account has been offering 4.00% APY on up to $50k since we began tracking this account in April.

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 focuses on liquid accounts.

CD Deals: I just wanted to include this reminder of a couple of noteworthy CD deals that are available.

Navy Federal Credit Union has just started to offer a 37-month IRA CD special with a 3.00% APY. This only applies to IRA and ESA CDs. There’s a $50 minimum balance and a $150,000 maximum balance. Additional deposits are allowed at any time, subject to the maximum balance. Thanks to DA member, CapitalClimate, who posted on this Special in the DA Forum. I’ll have a blog post soon on this Special.

For non-IRA CDs that are nationally available, there are only three credit unions that are offering CDs with yields of at least 3%.

The first one is Andrews Federal Credit Union, which continues to offer a 3.05% APY on its special 7-year CD. Its 3-month CD special (3% APY) ended last week. People in any state can join this credit union via the American Consumer Council.

The second 3%+ CD is the 5-year CD at from Justice Federal Credit Union. It’s offering 5-year rates up to 3.21% APY. This requires a $100k minimum deposit and a checking relationship. The rates are about 10 bps lower without a checking relationship, and 10 bps lower for a $500 minimum deposit.

The third 3%+ CD is the 5-year CD (3.03% APY) at the Maryland-based Lafayette Federal Credit Union. It’s also offering a competitive 3-year CD (2.52% APY) and 4-year CD (2.78% APY). These rates have been available since July, but it was just learned that people in any state can join the credit union by joining the Home Ownership Financial Literacy Council (one-time $10 fee).

The bank with the highest nationally available CD rate continues to be DollarSavingsDirect which has long been offering 2.80% APY on its 5-year CD. Minimum deposit is $1k, and a DollarSavingsDirect savings account is required. The early withdrawal penalty is only 180 days of interest. However, early withdrawals require the “consent of the Bank.” I have more details in this DollarSavingsDirect CD review.

This is my new weekly summary with the Fed review split off on a separate blog post. My weekly summaries will now be focused entirely on deposit rates and deals. Please keep all discussion about the Fed, the economy and politics to my Fed/Economy review blog post.

Checking/Savings/Money Market Accounts:

• Best Savings Account Rates (Nationwide and by State)
• Best Money Market Rates (Nationwide and by State)
• Best Checking Account Rates (Nationwide and by State)

• Noteworthy Accounts Available Nationwide:

Reward Checking Accounts:

• Best Reward Checking Account Rates

• Noteworthy Accounts Available Nationwide:

Certificates of Deposit:

• Best CD Rates (Nationwide and by State)
• Best IRA CD Rates (Nationwide and by State)
• Survey of the Best CD Rates (Nationwide and Local)

Bank Account Alternatives - May Not Be FDIC Insured

• Investment Discussion Forum

• Series I Savings Bond Purchased from November 1, 2019 to April 30, 2020

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