What Same-Day ACH Debit Means for You
Why You Should Think Twice About Freezing Your Credit
Credit Unions on the Hunt for Small Banks
After the Equifax Debacle, Does Your Bank Have Your Back?Best Bank Account Interest Rates - Summary for October 3, 2017
The odds of a December Fed rate hike continue to look solid. As long as the economy doesn’t nosedive, the Fed is likely to hike rates at its December meeting. There might be some disappointments in the economic news in the next month. We’ll soon be seeing some of the effects of the hurricanes on the economic data. The September jobs report that’s scheduled for release this Friday is anticipated to show fewer jobs gains than previous months. Nevertheless, the Fed made the point at its last meeting that the impact of the hurricanes should only be temporary, and that will not alter its plans. Thus, it’s likely the Fed will hike in December. Economist Tim Duy described what he expects from the Fed in December and in 2018 in his Fed Watch newsletter:
If this pace of job gains continues through the end of the year and does not look likely to slow to 100k in early 2018, the Fed will tend toward maintaining the current pace of rate hikes (three in each 2017 and 2018) despite weak inflation.
One thing that should increase the odds of at least three rate hikes in 2018 is the appointment of a new Fed Chair. Last week President Trump interviewed Fed Governor Jerome Powell and former Fed governor Kevin Warsh. The odds seem to be rising that President Trump will choose a new Fed Chair to replace Janet Yellen when her term ends in February. Any new Fed Chair will likely lead to a faster pace of rate hikes than would occur if Janet Yellen remains as Fed Chair.
The odds of a December Fed rate hike based on the Fed funds futures declined slightly from last week, but the odds continue to be strong at almost 78%.
All Treasury yields are up from last week with the long-dated Treasury yields up the most (both the 10-year and 30-year were up 9 bps).
The following numbers are based on Daily Treasury Yield Curve Rates and the CME Group FedWatch.
Treasury Yields:
- 1-month: 1.01% up from 0.96% last week (0.52% on Jan 3)
- 6-month: 1.21% up from 1.19% last week (0.65% on Jan 3)
- 2--year: 1.47% up from 1.45% last week (1.22% on Jan 3)
- 5--year: 1.92% up from 1.87% last week (1.94% on Jan 3)
- 10-year: 2.33% up from 2.24% last week (2.45% on Jan 3)
- 30-year: 2.87% up from 2.78% last week (3.04% on Jan 3)
Fed funds futures' probabilities of future rate hikes by:
- Dec 2017 - up by at least 25bps: 77.9% down from 83.1% last week
- Dec 2017 - up by at least 50bps: 1.2% down from 1.7% last week
- Jun 2018 - up by at least 25bps: 90.5% down from 91.5% last week
- Jun 2018 - up by at least 50bps: 47.8% up from 43.8% last week
Savings and Checking Account Rates
The expectation that another Fed rate hike is coming appears to be encouraging the internet banks into hiking their savings and money market rates. In the last two weeks, four internet banks and a credit union raised their savings or money market rates.
The most noteworthy rate increase was at Popular Direct which raised its Plus Savings Account by 19 bps to 1.40% APY. Unlike some of Popular Direct’s past rate hikes, this one didn’t involve the creation of a new account. So both existing and new customers will benefit.
Two other significant rate hikes were at two large internet banks. Synchrony Bank increased its High Yield Savings Account rate by 10 bps to 1.30% APY, and American Express Bank increased its High Yield Savings Account rate by 10 bps to 1.25% APY. Hopefully, these rate hikes will put pressure on the other large internet banks like Ally and Barclays to increase their rates.
Alliant Credit Union increased its High-Rate Savings Account rate at the start of October by 5 bps to 1.16% APY. Alliant continues to be a little disappointing. Ten years ago when rates were "high", Alliant was a rate leader. They are now far away from the rate leaders with no sign they plan to compete.
My 1.25% club (nationally available savings and money market accounts with non-promo rates of at least 1.25% APY) has grown to 17. With this large number of banks, it’s time to start a new, more exclusive club that I’ll track going forward. That will be the 1.40% club. There are currently five members: 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.
We finally have a 3% CD. Unfortunately, it’s not nationally available. 1st United Credit Union in California is offering a 3-year CD earning 3% APY. Minimum deposit is $1k, with no stated balance cap. Membership is open to residents in several Northern California counties. For more details, please refer to this blog post).
For nationally available CDs, the highest rate is 2.60% APY for a 5-year CD from Mountain America Credit Union (see blog post).
You can now get 2% for terms as short as 24 months. One of the best deals is a 30-month CD with a 2.21% APY. This is available at EBSB Direct (see blog post).
I don’t think it’ll be too long before we see rates on CD terms around 12 months reaching 2%. The latest CD to get close to this rate is the 14-month CD that earns 1.75% APY from INOVA Federal Credit Union. Minimum deposit is only $200 (see blog post)
Ally Bank’s 11-month No Penalty CD continues to earn 1.50% APY for balances of at least $25k. Balances of $5k to under $25k earn a 1.25% APY. The advantage of Ally is an easy account opening process and easy account management. Please refer to this blog post for more details. CIT Bank is also giving Ally some competition with its 11-month No-Penalty CD which earns 1.45% APY, with only a $1k minimum deposit (see blog post).
Rates as of October 3, 2017Checking/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:
| Institution | Rates | Notes |
|---|---|---|
| State Bank of Texas | 1.55% ($100k) | Jumbo MMDA - Account review |
| All America Bank | 1.50% (up to $35k), 0.50% ($35k+) | Mega Money Market Account - Account review |
| Redneck Bank | 1.50% (up to $35k), 0.50% ($35k+) | Mega Money Market Account |
| UFB Direct | 1.41% ($5k min) | Money Market Savings - Account review |
| DollarSavingsDirect | 1.40% (no min) | Dollar Savings Account - Account review |
| Live Oak Bank | 1.40% ($250k max) | Savings Account - Account review |
| Popular Direct | 1.40% | Popular Direct Plus Savings - Account review |
| EBSB Direct | 1.39% ($50k+), 0.20% ($5k+) | Money Market Direct - Account review |
| Self-Help Federal Credit Union | 1.37% ($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 Bank | 1.35% (up to $100k), 1.30% ($100k+) | Premier High Yield Savings - Account review |
| Salem Five Direct | 1.35% | eOne Savings, for new customers only Account review |
| Signal Financial Credit Union | 1.35% ($25k, enrollment in Premium Bundle) | Premium Money Market - Account review |
| EverBank | 1.31% (1yr intro rate) 0.86% ongoing rate | MMA - Account review |
| SFGI Direct | 1.31% | Savings account - Account review |
| Synchrony Bank (formerly GE Capital Retail Bk) | 1.30% | High Yield Savings - Account review |
| Nationwide Bank | 1.30% | Online Savings - Account review |
| Sallie Mae Bank | 1.30% | MMA - Account review |
| BankPurely | 1.30% ($1 min) | SavingPurely - Account review |
| ableBanking | 1.30% ($250 min) | Money Market Savings - Account review |
| PurePoint Financial | 1.30% ($10k min) | Online Savings - Account review |
| UFB Direct | 1.30% ($25k+), 0.20% ($100) | Premium Savings - Account review |
| The Palladian PrivateBank | 1.30% (6mo intro rate) 1.10% blended APY | Savings Account - Account review |
| Northern Bank Direct | 1.26% ($250k max) | Money Market - See review |
| American Express Bank | 1.25% | High Yield Savings - Account review |
| BBVA Compass | 1.25% ($10k min) | ClearChoice MMA Promo - Account review |
| McGraw-Hill Federal Credit Union | 1.25% ($75k), 1.10% ($20k),1.00% ($5k) (guaranteed through 8/31/17) | Ascend Account - Account review |
| EverBank | 1.21% (1yr intro rate) 0.71% ongoing rate | Checking - Account review |
| Incredible Bank | 1.21% ($2.5k), 0.05% ($250k+) | IncredibleBank Savings - Account review |
| Barclays | 1.20% | Online Savings - Account review |
| GS Bank | 1.20% | Online Savings Account - Account review |
| Radius Bank | 1.20% ($2.5k min) | Radius High-Yield Savings - See review |
| Ally Bank | 1.20% | Online Savings - Account review |
| Capital One | 1.20% ($10k+), 0.60% (up to $10k) | 360 Money Market - Account review |
| Alliant Credit Union | 1.16% ($100 min) | High-Rate Savings - See review |
| My e-BAnC by BAC Florida Bank | 1.15% | Super Saver - Account review |
| Discover Bank | 1.15% (no min) | Online Savings - See review |
| FNBO Direct | 1.15% | Online Savings |
| MyBankingDirect | 1.15% ($5k+), 0.25% (less than $5k) | Earn >More Money Market |
| SmartyPig | 1.15% ($10k min), 1.05% (less than $10k) | SmartyPig Savings - Account review |
| Nationwide Bank | 1.15% ($10k), 1.00% ($1) | Nationwide Member Checking Account |
| Connexus Credit Union | 1.15% ($100k), 1.00% ($50k,) 0.75% ($20k) | MMA - active chk required |
| Northpointe Bank | 1.12% | Statement Savings - Account review |
| Northeast Bank | 1.10% | Pearl Money Market Promo, new customers - Account review |
| Dime Savings Bank | 1.10% | Dime Direct Money Market, new money - Account review |
| iGObanking.com | 1.10% ($25k min) | MMA, New accounts and new money only, Account review |
| Chevron Federal Credit Union | 1.10% ($250k+), 1.00% ($2.5k+) | MarketEdge Savings |
| Quorum Federal Credit Union | 1.10% | HighQ Savings |
| Pacific National Bank | 1.06% | Money Market Deposit Account - See review |
| AloStar Bank of Commerce | 1.05% | Savings account - Account review |
| Bank of Internet USA | 1.05% | Smart Money Market |
| Bank of Internet USA | 1.05% | Smart Savings |
| Discover Bank | 1.05% ($100k min), 1.01% ($2.5k) | MMA - See review |
| NBKC Bank | 1.01% | Personal Money Market Savings |
| iGObanking.com | 1.00% | iGOsavings - Account review |
| MySavingsDirect | 1.00% | MySavings Account - Account review |
| UFB Direct | 1.00% ($20k min) | UFB Savings - Account review |
Reward Checking Accounts:
- Noteworthy Accounts Available Nationwide:
| Institution | Rates | Notes |
|---|---|---|
| Northpointe Bank | 5.00% (up to $10k), 0.10% ($10k+) | UltimateAccount - Account review |
| Consumers Credit Union | 4.59% (up to $20k) | Rewards Checking - debit card and $1k credit card requirements |
| Consumers Credit Union | 3.59% (up to $15k) | Rewards Checking - debit card and credit card requirements |
| One American Bank | 3.50% (up to $10k), 0.25% ($10k+) | Kasasa Cash - Account review |
| Consumers Credit Union | 3.09% (up to $10k) | Rewards Checking - debit card with NO credit card requirements |
| Evansville Teachers Federal Credit Union | 3.00% (up to $15k), 0.00% ($15k+) | Vertical Dividend Checking - Account review |
| Lake Michigan Credit Union | 3.00% (up to $15k), 0.00% ($15k+) | Max Checking |
| Great Lakes Credit Union | 3.00% (up to $10k), 0.10% ($10k+) | Ultimate Checking |
| Security State Bank | 3.00% (up to $10k), 0.25% ($10k+) | Kasasa Cash - Account review |
| Partner Colorado Credit Union | 3.00% (up to $10k), 0.50% ($10k+) | High Interest Checking |
| American Bank & Trust | 2.51% (up to $10k), 0.25% ($10k+) | Kasasa Cash |
| Industrial Bank | 2.50% (up to $15k), 0.25% ($25k+) | Kasasa Cash |
| Capital Educators Federal Credit Union | 2.50% (up to $10k), 0.20% ($10k+) | High Yield Checking |
| New Buffalo Savings Bank | 2.27% (up to $35k), 0.2497% ($35k+) | Kasasa Cash - Account review |
| Bellco Credit Union | 2.25% (up to $25k), 0.25% ($25k+) | Boost Interest Checking - Account review |
| Main Street Bank | 2.25% (up to $25k), 0.25% ($25k+) | Kasasa Cash - Account review |
| Altra Federal Credit Union | 2.25% (up to $15k), 0.50% ($15k+) | A+ Checking |
| Coastal Credit Union | 2.25% (up to $10k), 0.10% ($10k+) | Go Green Checking - Account review that includes companion Go Green MMA |
| Georgia Bank Company | 2.15% (up to $25k), 0.40% ($25k+) | Kasasa Cash - Account review |
| TruStone Financial Credit Union | 2.02% (up to $20k), 0.10% ($20k+) | TruRate Checking - Account review |
| BankFirst | 2.02% (up to $10k), 0.15% ($10k+) | Kasasa Cash |
| Finex | 2.018% (up to $25k), 0.20% ($25k+) | Axcess Rewards Checking, Premier Account (formerly First New England Federal Credit Union) |
| XCEL Federal Credit Union | 2.01% (up to $25k), 0.03% ($25k+) | Kasasa Cash Checking |
| Bay State Savings Bank | 2.01% (up to $20k), 0.25% ($20k+) | Kasasa Cash - Account review |
| Legence Bank | 2.01% (up to $10k), 0.25% ($10k+) | Kasasa Cash |
| 5Star Bank | 2.00% (up to $25k), 0.15% ($25k+) | Kasasa Cash Checking Account review |
| Country Bank | 2.00% (up to $20k), 0.25% ($20k+) | Kasasa Cash Checking Account review |
| Elements Financial | 2.00% (up to $20k), 0.10% ($20k+) | High Interest Checking - Account review |
| MainStreet Bank | 2.00% (up to $15k), 0.25% ($15k+) | Kasasa Cash - Account review |
| Blue Federal Credit Union | 2.00% (up to $15k), 0.25% ($15k+) | Extreme Checking (up to 4% w/account relationships) - Account review |
| All America Bank | 2.00% (up to $10k), 0.50% ($10k+) | Ultimate Rewards Checking |
| United Educators Credit Union | 2.00% (up to $10k), 0.25% ($10k+) | Kasasa Cash |
| KS StateBank | 1.95% (up to $25k), 0.50% ($25k+) | Check PLUS - Account review |
| Connexus Credit Union | 1.75% (up to $25k), 0.25% ($25k+) | Xtraordinary Checking |
| First Tech Federal Credit Union | 1.58% (up to $10k), 0.16% ($10k+) | Dividend Rewards Checking |
| MemoryBank | 1.50% (up to $250k) | EarnMore Interest Checking - Account review |
| Superior Choice Credit Union | 1.50% (up to $30k) | AMP Checking |
| Bank of Internet USA | 1.25% (up to $150k), 0.00% ($150k+) | Rewards Checking |
| Heritage Bank | 1.25% (up to $25k), 0.10% ($25k+) | eCentive Account |
| ABCO Federal Credit Union | 1.01% (up to $25k), 0.10% ($25k+) | Rewards Checking |
| Community Bank of Raymore | 1.01% (up to $10k), 0.20% ($10k+) | Kasasa Cash |
| Community Bank of Pleasant Hill | 1.01% (up to $10k), 0.20% ($10k+) | Kasasa Cash |
| First American Bank | 1.00% (up to $15k), 0.21% ($15k+) | Everyday Rewards Checking |
| Bank of Blue Valley | 1.00% (up to $10k), 0.10% ($10k+) | $1k/month debit card req (formerly Ultimate Checking) |
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 - NOT FDIC Insured
| Institution | Rates | Notes |
|---|---|---|
| Duke Energy PremierNotes | 1.41% rate for $50K+ | Duke Energy PremierNotes review |
| Ally Financial Demand Notes | 1.15% rate for $50k+ | |
| Ford Interest Advantage | 1.15% rate for $50k+ | Ford Interest Advantage review |
| Vanguard Prime Money Market Fund | 1.12% 7-day yield | |
| Fidelity Money Market Fund | 0.98% 7-day yield | reviews on Fatwallet |
| Vanguard Tax-Exempt Money Market Fund | 0.81% 7-day yield | |
| Fidelity Municipal Money Market Fund | 0.57% 7-day yield |
Requisite acknowledgement:
I realize even Ken could be wrong about a December hike and about subsequent Fed rate hikes during 2018 as well. Nobody can predict interest rates, and I acknowledge Ken makes no pretence whatsoever about so doing.
Still, it is fun for a "CD person" like me to read such a wonderful and hopeful assessment as this. The Bellco Index Advantage CD brings out what little gambler remains in me, and it is very little indeed at my age. But the allure of reward in return for (albeit tiny) risk taken is nevertheless irresistible and, simultaneously, entertaining.
Most of Ken's readers are already aware of the Bellco Index Advantage deal. As service to anyone not familiar, the product is gone. It was pulled down by Bellco a while back. I cannot say as I blame Bellco for their withdrawal of this CD. After all, in a best case scenario (only), by the end of 2018 owners of this CD could be receiving 3.45% APY interest on a CD with only about 27 months remaining in its term. Conceded I will be shocked if that happens. But it is such fun to dream!
Gosh a bit of negativeness this morning in response to a happy post. I guess the natives are restless and concerned. If so do not, I emphasize DO NOT UNDER ANY CIRCUMSTANCES, read my forum thread here:
https://www.depositaccounts.com/community/misc/29877-potential-threat-older-americans.html
Now I'm getting out (majority, not totally) of my IRA VG funds. total skt mkt, selling 70% from it. Primecap, selling 80% of it and healthcare (my favorite fund) only 25%.
The market is really acting silly in the last 9 months and I refuse to get slaughtered like in the past.
It's sort of a "win some, win maybe more" scenario. I'm thinking seriously of plopping the gains in the 1st United 3% 3-year CD.
I do have one over-riding, old-fashioned philosophy. Once I harvest a gain, I never look back. It's now "my money".
I must sleep at night.
And 15% mortgage rates!
People with ultra low mortgage rates today aren't concerned about the pitiful low interest rates we savers are stuck with.
Not for much longer...
Sort of...
Few want Trump to succeed, especially the entrenched elites who are masters of all universes...political, financial and social. YOU only matter as a source of labor. Fly-over America is held in disdain, history is being forgotten or destroyed and yet the coffers at the top overflow. At this moment I'm surrounded by multi-million dollar second homes, luxury autos and smiling people. Trust me, hedge fund managers (across the street) NY lawyers and their subordinate politicians will do whatever is necessary to maintain the lifestyle to which they are entitled. It's a lot like 1929.