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Best Bank Account Interest Rates - Summary For May 14, 2019

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This was another week with only a few rate changes on savings and money market accounts. Unfortunately, one was a rate cut. Most of the internet banks have kept their savings account rates unchanged since early this year. This will likely continue as long as the Fed holds rates steady. Below are the noteworthy savings and money market account rate changes that have occurred in the last two weeks:

  • Investors eAccess 6-mo No Penalty CD (new, 2.50% APY, $500 min)
  • USALLIANCE Financial High Dividend Savings (+3 bps to 2.50% APY, $500 min)
  • CIT Bank Savings Builder (-5 bps to 2.40% APY, $25k min or $100/mo deposits)
  • BMO Harris Platinum Money Market (+30 bps to 2.35% APY, $5k min)
  • HSBC Direct Savings (+5 bps to 2.30% APY, $1 min)

CIT Bank lowered the rate of its Savings Builder account from 2.45% to 2.40% APY. CIT Bank had held steady with the 2.45% APY since early January. Compared to other of the large, well-established internet banks, this 2.45% was on the high end. So it’s not a surprise that CIT Bank reduced this rate. Based on CIT Bank’s history, we may see more rate cuts on this account.

Two large banks increased the rates of their online accounts. The large regional bank, BMO Harris, made a large rate increase (30 bps) on its Platinum Money Market account. This is a new online money market account that BMO Harris recently introduced. The other large bank that increased its online account rate was HSBC’s online division, HSBC Direct. The HSBC Direct Savings account had a small rate gain of 5 bps to 2.30% APY.

Two more accounts joined the 2.50% club. The easy-to-join credit union, USALLIANCE Financial, increased the rate of its High Dividend Savings account from 2.47% to 2.50% APY. USALLIANCE Financial launched this account at the start of the year with a 2.30% APY, and it has been hiking rates at the start of every month. One issue with this account is that there is a $5 fee for any withdrawal.

The other account that joined the 2.50% club is the new 6-month No Penalty CD from Investors eAccess. The CD functions just like the no-penalty CDs from Ally and PurePoint Financial. It just has a shorter term, which is not a benefit for these no-penalty CDs. Investors eAccess also offers 2.50% APY on its eAccess Money Market Account, which has been in effect since April 1st. The 2.50% APY applies to all balances up to $2 million, and there are no monthly fees. Unlike the No Penalty CD, the rate isn’t guaranteed. That’s the only advantage of the No Penalty CD. One important downside is the difficulty accessing funds when the CD is closed. The bank’s FAQs only list one option to receive the funds: they mail you a check.

The top spot continues to be held by Susquehanna Community Bank’s Eagle Premium Savings account, which earns 2.53% APY for balances of at least $100k. The rate is based on the Prime rate minus 3%, and the Prime rate is 3% above the upper range of the federal funds target rate. The downside is that this 2.53% APY requires a $100k minimum balance. The rate plummets to 0.35% for balances between $25k and $100k. There are also other downsides with this account as described in this account review.

Nine liquid accounts now share second place with a 2.50% APY. Investors eAccess joins PurePoint Financial with its no-penalty CD. USALLIANCE Financial’s High Dividend Savings account joins Customers Bank’s High-Yield Savings Account as the only two savings accounts with a 2.50% APY. The other five accounts are money market accounts.

Out of these nine 2.50% liquid accounts, I would consider the eAccess Money Market account from Investors eAccess and the High Yield Money Market account from Western State Bank to be the best two deals. Neither has a minimum balance requirement. All balances up to a very large balance qualify for the 2.50% APY, and there are no monthly maintenance fees. Both are fairly new accounts, so it’s still questionable if these accounts will remain competitive over the long run.

The two 2.50% liquid accounts that have the best chance of maintaining the 2.50% are the Mega Money Market accounts of All America Bank and Redneck Bank, a division of All America Bank. Both have a long history of maintaining very competitive rates. The primary downside is a balance cap of $50k. Only balances up to $50k qualify for the 2.50% APY. The portion of the balance above $50k only earns 0.50%.

There are many accounts now with yields between 2.40% and 2.50%. Comenity Direct’s High-Yield Savings account is the latest addition to this group.

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 are starting to fall in this current environment.

Vanguard Prime Money Market Fund SEC yield continues to be well over 2%. It had a slight rate decrease in the last two weeks, falling from 2.44% to 2.43%. Fidelity Money Market Fund’s 7-day yield also had a small decrease, falling 2 bps to 2.20%.

Allan Roth has a review at AARP of using money market funds to replace savings accounts. He suggests using funds such as Vanguard Federal Money Market and Vanguard Treasury Money Market instead of the Vanguard Prime Money Market Fund. The yields are slightly lower, but they are a little safer due to recent regulation changes. Treasury money market funds have an additional advantage of being exempt from state income taxes.

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. Two weeks ago, I reported on a big yield increase of Vanguard Municipal Money Market Fund. As one reader noted, these rate increases usually don’t last, and that was the case. The yield fell from 2.01% to 1.63%. However, the Fidelity Municipal Money Market Fund had a big yield gain this time. From two weeks ago, the yield increased from 1.26% to 1.86%. We’ll see next time if this yield falls like Vanguard did.

Reward Checking Accounts

In the last two weeks, we just had two changes to my list of nationally-available reward checking accounts. First, Partner Colorado Credit Union increased the rate of its High Interest Checking from 3.00% to 3.50% APY for balances up to $10k. It’s still not close to the new deal that I reported on last month from TAB Bank. Its Kasasa Cash account, which earns 4.00% APY on balances up to $50k, continues to be the best reward checking account in the nation.

The other change is the removal of the Kasasa Cash account from The State Bank in Michigan. This used to be nationally available, but the bank recently started to limit applications to Michigan residents. The account still earns 2.50% APY on balances up to $50k.

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 liquid accounts.

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

CD Bank continues to offer the best rates on nationally-available CDs with terms of 12-month (3.00% APY), 18-month (3.10% APY), and 24-month (3.20% APY). Minimum deposit is $10k

CD Bank also has a very competitive 6-month CD that earns 2.75% APY, but the top short-term CD that’s nationally available continues to be the 8-month CD special at Andrews Federal Credit Union (2.86% APY). They also have one of the top 7-year CD rates (3.45% APY). There had been confusion regarding the early withdrawal penalty (EWP) of this Special 7-year CD. Documentation and CSRs had stated 180 days’ interest. However, they have updated both the small print and the Truth-in-Savings disclosure. Both now state an EWP of 360 days’ interest for this 7-year CD Special.

Connexus Credit Union raised the rates on its Share Certificates last week, making its 60-month Certificate (3.40% APY) the rate leader for nationally available 5-year CDs. The minimum opening deposit is $5k, with no stated balance cap. The early withdrawal penalty is 365 days dividends on the amount withdrawn.

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.

Rates as of May 14, 2019

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
Susquehanna Community Bank2.53% ($100k+) Eagle Premium Savings - Account review
Western State Bank2.50% (up to $3m)High Yield Money Market - Account review
Investors eAccess2.50% (up to $2m)eAccess Money Market - Account review
Investors eAccess2.50% ($500)6-month No Penalty CD - Account review
USALLIANCE Financial2.50% ($500)High Dividend Savings - Account review
WebBank2.50% ($1k)High Yield Savings - Account review
All America Bank2.50% (up to $50k), 0.50% ($50k+)Mega Money Market Account - Account review
Redneck Bank2.50% (up to $50k), 0.50% ($50k+)Mega Money Market Account
PurePoint Financial2.50% ($10k) 13-month No-Penalty CDInternet bank Account review
Customers Bank2.50% ($25k min)High-Yield Savings Account - Account review
Vibrant Credit Union2.50% ($100k), 0.65% (less than $100k)Purple Money Market - Account review
Comenity Direct2.48% ($100)High-Yield Savings - Account review
Banesco USA2.47% ($300)BanesGrow Savings - Account review
Vio Bank2.46% Online High Yield Savings
earn.bank2.46%Money Market Account - Account review
MemoryBank2.45% ($1 million max) Online Money Market - Account review
Rising Bank2.45% ($1k min)High Yield Savings - Account review
UFB Direct2.45% ($25k min)Premium Money Market - Account review
BankPurely2.45% ($25k min) PurelyMoneyMarket - Account review
iGObanking.com2.45% ($25k min) MMA, New accounts and new money only - Account review
MySavingsDirect2.40%MySavings Account - Account review
BBVA Compass2.40%ClearChoice MMA Promo - Account review
TAB Bank2.40% ($2.5k)High Yield Savings - Account review
CIT Bank2.40% ($25k min)Savings Builder - Account review
Quontic Bank2.40% ($100k), 2.35% ($5k), 2.00% APY (up to $5k)Personal Money Market - Account review
CIBC USA (formerly The Palladin PrivateBank)2.39%Agility Savings Account - Account review
NASB2.38% ($50k-$5m) High Rate Savings - Account review
Virtual Bank2.36% eMoney Market Special - Account review
Popular Direct2.36% ($5k min) Popular Direct Plus Savings (60-day freeze on new accounts, see details)Popular Direct Plus Savings - Account review
Marcus by Goldman Sachs2.35%13-month No Penalty CD ($500) - Account review
PNC Bank2.35% Online High Yield Savings (not available in all states) - Account review
Bank 72.35% ($100 min)High Rate Online Savings Account
Bank 72.35% ($5k min)High Rate Online Money Market
Citizens Access2.35% ($5k min)Online Savings Account - Account review
Bay State Savings Bank2.35% ($5k)Smile Worcester County Consumer Money Market - Account review
BMO Harris Bank2.35% ($5k)Platinum Money Market - Account review
PurePoint Financial2.35% ($10k min)Online Savings - Account review
Sallie Mae Bank2.30%Money Market Account - Account review
Live Oak Bank2.30% ($5 million max) Savings Account - Account review
HSBC Direct2.30%HSBC Direct Savings
Salem Five Direct2.30% eOne Savings (up to $1m), for new customers only - Account review
CommunityWide Federal Credit Union2.30% (penalty-free withdrawals first 5 days of each calendar quarter)High Rate Quarterly Funds Account - Account review
Northpointe Bank2.30% ($25k-$1m, guaranteed for 2 years) Ultimate Money Market - Account review
United Bank (CT)2.30% (6mo rate guarantee) Advantage Money Market, not available in all states - Account review
Ally Bank2.30% ($25k)No-Penalty 11-month CD - Account review
MutualOne Bank2.27% ($1m max)Online Statement Savings - Account review
SFGI Direct2.27%SGFI Direct Savings Account - Account review
Synchrony Bank2.25%High Yield Savings - Account review
Marcus by Goldman Sachs2.25%High-Yield Online Savings Account - Account review
FNBO Direct2.25%Online Savings
Pacific National Bank2.25% ($5k min) Money Market Deposit Account - Account review
Zions Bank2.25% ($25k min)Online Money Market (not available in all states) - Account review
Customers Bank2.25% ($25k min)Ascent Money Market Savings (rate guarantee through 6/30/2019 - Account review
My eBanc2.25%Super Saver Money Market - Account review
Northfield Bank2.25% ($225k max) Online Platinum Savings - Account review
Presidential Bank2.25% ($100k+), 1.25% ($250k+), 0.25% (less than $100k)Money Market Plus Checking - Account review
Ally Bank2.20%Online Savings - Account review
Barclays2.20%Online Savings - Account review
TIAA Bank2.15% (1yr intro rate), 2.00% ($100k+) 1.75% ($50k+) ongoing ratesYield Pledge Money Market - Account review
Empower2.15% Savings
CFSB (Colorado Federal Savings Bank)2.15% ($50k+) Premier Savings (New customers) - Account review
Discover Bank2.10% Online Savings - Account review
American Express National Bank2.10%High Yield Savings - Account review
Sallie Mae Bank2.10%High Yield Savings - Account review
Alliant Credit Union2.10% ($100 min)High-Rate Savings - Account review
Chartway Federal Credit Union2.10% ($500)12-month No Penalty CD - Account review
Quorum Federal Credit Union2.05%HighQ Savings Account
Bank5 Connect2.05% ($100 min)High Interest Savings - Account review
CIT Bank2.05% ($1k min)11-month No-Penalty CD - Account review
Radius Bank2.05% ($25k+), 1.50% ($2.5k+)Radius High-Yield Savings - Account review
First Internet Bank2.02% (no min) Money Market Savings
M.Y. Safra Bank2.01% ($500k max), 1.75% ($500k+) MYSB Direct Online Money Market - Account review
BankUnitedDirect2.01%Online Money Market - Account review
UmbrellaBank.com2.01% ($25k min), 1.00% ($1k)Money Market
PenFed Credit Union2.00%Premium Online Savings
MidFirst Direct2.00%High Yield Online Savings - Account review
CFSB (Colorado Federal Savings Bank)2.00% High Yield Savings - Account review
Bethpage Federal Credit Union2.00% ($500 min)Money Market
Mutual of Omaha Bank2.00% ($1k min/ $1m max)Online Money Market
BBVA Compass2.00% ($10k min)ClearChoice MMA Promo - Account review
Capital One2.00% ($10k+), 0.85% (up to $10k)360 Money Market - Account review
American Heritage Credit Union2.00% ($10k min)High Yield Savings (guaranteed through 12/31/2019)
Hanscom Federal Credit Union2.00% ($25k min)Higher Yield Savings - Account review
Discover Bank2.00% ($100k min), 1.95% ($2.5k) MMA - Account review
Northpointe Bank1.95% ($25k+), 1.12% (below $25k and $1m+)Ultimate Savings - Account review
iGObanking.com1.90%iGOsavings - Account review
BankPurely1.90% ($1 min) SavingPurely - Account review
Franklin Synergy Bank1.90% ($500k), 1.80% ($250k), 1.70% ($100k), 1.60% ($50k) Synergy Money Market
Self-Help Federal Credit Union1.88% ($500) Money Market - Account review
CIT Bank1.85% ($100 min)Money Market - Account review
ableBanking1.85% ($250 min)Money Market Savings - Account review
Spectrum Credit Union1.85% ($2.5k+), 0.50% ($1+) MarketEdge Money Market
MyBankingDirect1.85% ($25k+), 1.50% ($5k+), 0.25% (less than $5k) Money Market
DollarSavingsDirect1.80%Dollar Savings Account - Account review
EBSB Direct1.80% ($10k+), 0.80% ($2m+), 0.50% ($10+)Money Market Special 3 - Account review

Reward Checking Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
Consumers Credit Union5.09% (up to $10k), 0.20% ($10k-$25k), 0.10% ($25k+) Rewards Checking Tier A- debit card and $1k credit card requirements (Changes effective 10/1/18)
La Capitol Federal Credit Union4.25% (up to $3k), 2.00% ($3k-10k), 0.10% ($10k+)Choice Checking
Consumers Credit Union4.09% (up to $10k), 0.20% ($10k-$25k), 0.10% ($25k+)Rewards Checking Tier B- debit card and $500 credit card requirements (Changes effective 10/1/18)
TAB Bank4.00% (up to $50k), 0.25% ($50k+)Kasasa Cash - Account review
Orion Federal Credit Union4.00% (up to $30k), 0.05% ($30k+)Premium Checking - Account review
Partner Colorado Credit Union3.50% (up to $10k), 0.50% ($10k-$25k), 0.10% ($25k+)High Interest Checking
One American Bank3.50% (up to $10k), 0.25% ($10k+)Kasasa Cash - Account review
Heritage Bank3.33% (up to $25k), 0.15% ($25k+)eCentive Account
Consumers Credit Union3.09% (up to $10k), 0.20% ($10k-$25k), 0.10% ($25k+)Rewards Checking Tier C - debit card with NO credit card requirements (Changes effective 10/1/18)
Legence Bank3.05% (up to $10k), 0.25% ($10k+)Kasasa Cash
Market USA Federal Credit Union3.01% (up to $15k), 0.05% ($15k+)VIP Checking Platinum Tier - Account review
Main Street Bank3.00% (up to $30k), 0.25% ($25k+)Kasasa Cash - Account review
Evansville Teachers Federal Credit Union3.00% (up to $20k), 0.00% ($20k+)Vertical Dividend Checking - Account review
MainStreet Bank3.00% (up to $15k), 0.25% ($15k+)Kasasa Cash - Account review
Lake Michigan Credit Union3.00% (up to $15k), 0.00% ($15k+)Max Checking
INOVA Federal Credit Union3.00% (up to $15k), 0.07% ($15k+)Shield Checking - Account review
Signature Federal Credit Union3.00% (up to $15k), 0.10% ($15k+)Choice Checking
All America Bank3.00% (up to $10k), 0.50% ($10k+)Ultimate Rewards Checking
Redneck Bank3.00% (up to $10k), 0.50% ($10k+)Redneck Rewards Checking
Great Lakes Credit Union3.00% (up to $10k), 0.20% ($10k+)Free Checking
Georgia Banking Company2.95% (up to $25k), 1.00% ($25k+)Kasasa Cash - Account review
Campus Federal2.51% (up to $10k), 0.05% ($10k+)Lagniappe Checking
Hanscom Federal Credit Union2.50% ($15k min), 0.40% ($15k+)Kasasa Cash Checking - Account review
Industrial Bank2.50% (up to $15k), 0.25% ($25k+)Kasasa Cash
New Buffalo Savings Bank2.27% (up to $15k), 0.2497% ($15k+)Kasasa Cash - Account review
Bellco Credit Union2.25% (up to $25k), 0.25% ($25k+)Boost Interest Checking - Account review
Garden Savings Federal Credit Union2.25% (up to $15k), 0.20% ($15k+)Platinum Checking
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), 0.30% ($25k+)Kasasa Cash Checking
Bay State Savings Bank2.01% (up to $20k), 0.25% ($20k+)Kasasa Cash - Account review
Hawaii Pacific Federal Credit Union2.00% (up to $25k), 0.25% ($25k+)Kasasa Cash Checking
Northwest Federal Credit Union2.00% (up to $25k), 0.25% ($25k+)Kasasa Cash - Account review
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
First Tech Federal Credit Union2.00% (up to $15k), 0.20% ($15k+)Dividend Rewards Checking
Blue Federal Credit Union2.00% (up to $15k), 0.10% ($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 StateBank1.90% (up to $25k), 0.50% ($25k+)Check PLUS - Account review
Connexus Credit Union1.75% (up to $25k), 0.25% ($25k+)Xtraordinary Checking
Superior Choice Credit Union1.75% ($30k-$75k), 1.50% (up to $30k)AMP Checking
Axos Bank1.25% (up to $150k), 0.00% ($150k+)Rewards Checking

Certificates of Deposit:

Bank Account Alternatives - May Not Be FDIC Insured

InstitutionRatesNotes
GM Financial Right Notes2.75% ($500+)
Duke Energy PremierNotes2.65% ($50k+), 2.50% ($10k+), 2.45% (less than $10k)Duke Energy PremierNotes review
Ford Interest Advantage2.65% ($50k+), 2.50% ($15k+), 2.45% (less than $15k)Ford Interest Advantage review
Vanguard Prime Money Market Fund2.43% 7-day yield
Haven2.35% Haven Money Savings Program Cash Management Account
Ally Financial Demand Notes2.25% ($50k+), 2.10% ($15k+), 1.90% (less than $15k)
SoFi2.25% SoFi Money Cash Management Account
Fidelity Money Market Fund2.20% 7-day yield
Aspiration2.00% Spend and Save Account Cash Management Account
Fidelity Municipal Money Market Fund1.86% 7-day yield
Vanguard Municipal Money Market Fund1.63% 7-day yield

Accounts Removed, No Longer Available Nationwide

The State Bank (MI)2.50% (up to $50k), 0.15% ($50k+)Kasasa Cash - Account review

Post Publication Edits

5/16/2019: WebBank High-Yield Savings rate raised.

Related Pages: savings accounts, money market accounts, checking accounts, reward checking accounts, 1-year CD rates, nationwide deals, Internet banks
Comments
DCGuy
DCGuy   |     |   Comment #1
"However, the Fidelity Municipal Money Market Fund had a big yield gain this time. From two weeks ago, the yield increased from 1.26% to 1.86%. We’ll see next time if this yield falls like Vanguard did."

Tax free money market funds have most of the funds invested in VRDNs (variable rate demand notes). Rates will fluctuate based on what the short term municipalities securities are offering. The rates can swing wildly from week to week. And it will not follow the Federal reserve rates that closely.
deplorable 1
deplorable 1   |     |   Comment #2
I was a bit surprised by CIT bank cutting their rate while others are still moving closer or matching 2.5%. I wish that a few banks would come out with some 5% APY capped savings/MMA accounts without debit card hoops. They could do this instead of offering a bank bonus for example and create more long term customers for the bank. I like bonuses but once the bonus posts I'm gone. If the bank would just maintain a higher rate even on a small capped amount I would stay a customer and possibly use their other services as well.

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