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Best Bank Account Interest Rates - Summary for October 17, 2017

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Best Bank Account Interest Rates - Summary for October 17, 2017

Last Friday’s consumer inflation report that showed a surge in inflation is unlikely to have any impact on the Fed. Higher energy prices due to Hurricane Harvey was the main reason for the surge in the consumer price index (CPI), but the core CPI which excludes food and energy rose a much smaller amount (0.1%), and on a yearly basis, the core CPI remains unchanged at 1.7% for the fifth month in a row. Even though core CPI isn’t the preferred inflation index for the Fed, it does add to the evidence that low inflation won’t be going away anytime soon. On Sunday, Fed Chair Janet Yellen gave a speech on the U.S economy and monetary policy, and in that speech, she reviewed the concerns about inflation:

To be sure, our understanding of the forces that drive inflation is imperfect, and we recognize that this year's low inflation could reflect something more persistent than is reflected in our baseline projections.

The good news for us savers hoping for more rate hikes is that Fed Chair Yellen still thinks that the low inflation will only be temporary.

My best guess is that these soft readings will not persist, and with the ongoing strengthening of labor markets, I expect inflation to move higher next year.

As economist Tim Duy described in his Fed Watch newsletter, “[t]he Federal Reserve remains committed to a December rate hike, persistent low inflation not withstanding.” That may change in 2018 if low inflation is seen as a more persistent condition. That’s where new Fed members could have an impact. Fed Chair Yellen’s term ends in February, and if she is replaced with an inflation hawk, that may increase the chance that we’ll see more Fed rate hikes in 2018. According to Bloomberg, President Trump is planning to choose the next Fed Chair before his Asian trip that is scheduled to begin on November 3, 2017.

The odds of a December Fed rate hike based on the Fed funds futures continue to be very high, and they have gone up slightly from last week from 90.6% to 93.1%.

Treasury yield changes from last week were mixed. The 2-year and 5-year yields went up slightly while the long-dated yields fell. The 30-year bond yield had the largest change, falling 8 bps.

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

Treasury Yields:

  • 1-month: 0.99% down from 1.03% last week (0.52% on Jan 3)
  • 6-month: 1.25% down from 1.26% last week (0.65% on Jan 3)
  • 2--year: 1.54% up from 1.51% last week (1.22% on Jan 3)
  • 5--year: 1.97% up from 1.95% last week (1.94% on Jan 3)
  • 10-year: 2.30% down from 2.35% last week (2.45% on Jan 3)
  • 30-year: 2.80% down from 2.88% last week (3.04% on Jan 3)

Fed funds futures' probabilities of future rate hikes by:

  • Dec 2017 - up by at least 25bps: 93.1% up from 90.6% last week
  • Dec 2017 - up by at least 50bps: 1.4% same as last week
  • Jun 2018 - up by at least 25bps: 97.7% up from 96.3% last week
  • Jun 2018 - up by at least 50bps: 64.0% up from 57.6% last week

Savings and Checking Account Rates

The expectation that another Fed rate hike is coming continues to be encouraging internet banks into hiking their savings and money market rates. And when internet banks start hiking rates, competition seems to keep the hikes coming. In the last two weeks, three big internet banks increased rates on their savings and money market accounts.

Two of the big internet banks increased their savings account rates to 1.30% APY. First, Barclays increased its savings account by 10 bps to 1.30% APY, and GS Bank followed with the same rate hike.

Discover Bank increased both its savings account and money market rates. However, Discover isn’t keeping up with the banks like Barclays and GS Bank. Discover raised its savings account by 5 bps to 1.20% APY, and it raised its money market account rate by 5 bps to 1.10% APY for balances of at least $100k.

Three other banks increased their rates, but their new rates are far from the rate leaders. One noteworthy bank is Capital One which raised the top-tier rate of its 360 Checking by 10 bps to 1.00% APY. This top-tier requires a $100k minimum balance.

CIT Bank didn’t have a recent rate increase, but it did increase the maximum balance that qualifies for its top yield of 1.35%. Its savings account now earns 1.35% APY for balances up to $250k. If the balance exceeds $250k, the entire balance now earns 1.30% APY. This tier used to be $100k.

Incredible Bank did the opposite of CIT Bank. If your balance exceeds $250k, you’ll get the top rate, and that is now 1.41% APY. Balances under $250k and above $2.5k continue to earn 1.21% APY.

Due to Incredible Bank’s rate change, we now have six banks in the 1.40% club. This “club” is the group of banks and credit unions offering nationally-available savings and money market accounts with non-promo rates of at least 1.40% APY. In addition to Incredible Bank’s savings account, the group includes State Bank of Texas Jumbo Money Market (1.55% APY), UFB Direct Money Market Savings (1.41% APY), DollarSavingsDirect Savings (1.40% APY), Live Oak Bank Savings (1.40% APY) and Popular Direct Plus Savings (1.40% APY). I’m excluding the Mega Money Market accounts from All America Bank and Redneck Bank since these have $35k balance caps.

Reward Checking Accounts

Again, there were no changes to my list of nationally available 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.

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.

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

The hottest nationally-available CD deal is currently at GTE Financial Credit Union. Five special CDs are available with terms from 6 months to 30 months. The special 30-month Jumbo CD earns 2.78% APY, and the non-Jumbo earns 2.53% APY. These even have an add-on deposit option. Please refer to this blog post and the 200+ comments under the blog post for more details.

Rates as of October 17, 2017

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
State Bank of Texas1.55% ($100k)Jumbo MMDA - Account review
All America Bank1.50% (up to $35k), 0.50% ($35k+)Mega Money Market Account - Account review
Redneck Bank1.50% (up to $35k), 0.50% ($35k+)Mega Money Market Account
UFB Direct1.41% ($5k min)Money Market Savings - Account review
Incredible Bank1.41% ($250k+), 1.21% ($2.5k), IncredibleBank Savings - Account review
DollarSavingsDirect1.40% (no min)Dollar Savings Account - Account review
Live Oak Bank1.40% ($250k max) Savings Account - Account review
Popular Direct1.40%Popular Direct Plus Savings - Account review
EBSB Direct1.39% ($50k+), 0.20% ($5k+)Money Market Direct - Account review
Self-Help Federal Credit Union1.37% ($500k), 1.27% ($500) Money Market - Account review
United Bank (MA)1.36% ($500k max, guaranteed for 6mo) Advantage Money Market, Not available in all states, Account review
CIT Bank1.35% (up to $250k), 1.30% ($250k+) Premier High Yield Savings - Account review
Salem Five Direct1.35% eOne Savings, for new customers only Account review
Signal Financial Credit Union1.35% ($25k, enrollment in Premium Bundle) Premium Money Market - Account review
EverBank1.31% (1yr intro rate) 0.86% ongoing rateMMA - Account review
SFGI Direct1.31%Savings account - Account review
Synchrony Bank (formerly GE Capital Retail Bk) 1.30%High Yield Savings - Account review
Nationwide Bank1.30%Online Savings - Account review
Barclays1.30%Online Savings - Account review
GS Bank1.30%Online Savings Account - Account review
Sallie Mae Bank1.30%MMA - Account review
BankPurely1.30% ($1 min) SavingPurely - Account review
ableBanking1.30% ($250 min)Money Market Savings - Account review
PurePoint Financial1.30% ($10k min)Online Savings - Account review
UFB Direct1.30% ($25k+), 0.20% ($100) Premium Savings - Account review
CIBC USA (formerly The Palladin PrivateBank)1.30% (6mo intro rate) 1.10% blended APYSavings Account - Account review
Northern Bank Direct1.26% ($250k max) Money Market - Account review
American Express Bank1.25%High Yield Savings - Account review
BBVA Compass1.25% ($10k min)ClearChoice MMA Promo - Account review
McGraw-Hill Federal Credit Union1.25% ($75k), 1.10% ($20k),1.00% ($5k) (guaranteed through 12/31/17)Ascend Account - Account review
EverBank1.21% (1yr intro rate) 0.71% ongoing rateChecking - Account review
Discover Bank1.20% (no min) Online Savings - Account review
Radius Bank1.20% ($2.5k min)Radius High-Yield Savings - Account review
Ally Bank1.20%Online Savings - Account review
Capital One1.20% ($10k+), 0.60% (up to $10k)360 Money Market
Alliant Credit Union1.16% ($100 min)High-Rate Savings - Account review
My e-BAnC by BAC Florida Bank1.15%Super Saver - Account review
FNBO Direct1.15%Online Savings
MyBankingDirect1.15% ($5k+), 0.25% (less than $5k) Earn >More Money Market
SmartyPig1.15% ($10k min), 1.05% (less than $10k)SmartyPig Savings - Account review
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% Statement Savings - 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
Quorum Federal Credit Union1.10% HighQ Savings
iGObanking.com1.10% ($25k min) MMA, New accounts and new money only, Account review
Discover Bank1.10% ($100k min), 1.05% ($2.5k) MMA - Account review
TIAA Direct1.10%($100k), 0.91% ($50k), 0.86% ($2.5k) Money MarketInternet bank
Chevron Federal Credit Union1.10% ($250k+), 1.00% ($2.5k+) MarketEdge Savings
Pacific National Bank1.06% Money Market Deposit Account - Account review
AloStar Bank of Commerce1.05%Savings account - Account review
Bank of Internet USA1.05% Smart Money Market
Bank of Internet USA1.05% Smart Savings
NBKC Bank1.01% Personal Money Market Savings
iGObanking.com1.00%iGOsavings - Account review
MySavingsDirect1.00%MySavings Account - Account review
Sallie Mae Bank1.00%High Yield Savings
UFB Direct1.00% ($20k min)UFB Savings - Account review
Capital One1.00% ($100k+), 0.75% ($50k), 0.20% (less than $50k)360 Checking - 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 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
Bay State Savings Bank2.01% (up to $20k), 0.25% ($20k+)Kasasa Cash - Account review
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
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
All America Bank2.00% (up to $10k), 0.50% ($10k+)Ultimate Rewards Checking
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
Superior Choice Credit Union1.50% (up to $30k)AMP Checking
Bank of Internet USA1.25% (up to $150k), 0.00% ($150k+)Rewards Checking
Heritage Bank1.25% (up to $25k), 0.10% ($25k+)eCentive Account
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), 0.21% ($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
Duke Energy PremierNotes1.41% rate for $50K+Duke Energy PremierNotes review
Ally Financial Demand Notes1.15% rate for $50k+
Ford Interest Advantage1.15% rate for $50k+Ford Interest Advantage review
Vanguard Prime Money Market Fund1.13% 7-day yield
Fidelity Money Market Fund0.98% 7-day yield
Vanguard Tax-Exempt Money Market Fund0.81% 7-day yield
Fidelity Municipal Money Market Fund0.57% 7-day yield
Related Pages: savings accounts, money market accounts, checking accounts, reward checking accounts, nationwide deals, Internet banks
Comments
jennifer
jennifer   |     |   Comment #1
I simply adore all of these rates. I'm all about options.
???
???   |     |   Comment #2
Ken ...links to Fatwallet are Dead
now links to Ebates
deplorable 1
deplorable 1   |     |   Comment #3
Yep fatwallet pulled the plug. I had to delete all my bookmarks as they all go to ebates now:-(. On the plus side there is a new site for us FWF refugees PhatWallet
https://phatwalletforums.com/
???
???   |     |   Comment #5
as a courtesy to readers, the other site, split off from FatWallet that more represents the Financial side of FatWallet rather than the coupons and sales deals is

https://www.fragiledeal.com/
deplorable 1
deplorable 1   |     |   Comment #6
Thanks! I wasn't aware of this site.
DCGuy
DCGuy   |     |   Comment #10
Fatwallet got shut down at around 4 PM ET on October 9 (Columbus Day).
deplorable 1
deplorable 1   |     |   Comment #4
I was able to open a second Mega Money Market account at All America bank and the second MMMA just shows up at Redneck bank when I login. No need to create another username and password. So the actual cap seems to be $70,000 @ 1.5% and $140,000 @1.5% for a married couple. This makes them a even better deal as I can now do up to 12 fee free withdrawals per month between both accounts and still earn the best rate on liquid cash. I love Redneck bank.
J. Sessions
J. Sessions   |     |   Comment #8
I have $500k maturing in 7 weeks. Any suggestions on what I should do?
deplorable 1
deplorable 1   |     |   Comment #9
@J. Sessions: Yes go lock in the jumbo 30 month promo CD @ GTE financial @2.78% as this is a add-on CD with no balance cap. If you don't have $100,000 lying around just lock in the regular 30 month promo CD @ 2.53% for as little as $500. This is also a add-on CD. Go check out Ken's blog post on this CD there is a link at the top of the page.
Bozo
Bozo   |     |   Comment #11
J. Sessions (re comment #8), if an after-tax CD, remember to style it so as to obtain full FDIC/NCUA coverage (e.g., Mr. and Mrs. Sessions, as joint tenants; Mr. Sessions POD (fill in the blank)). If an IRA CD, you'll need to split up the CD between two institutions, as your coverage is $250K per institution.

If you want to re-invest the interest, it gets more complicated.