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Best Bank Account Interest Rates - Summary for May 17, 2016


Best Bank Account Interest Rates - Summary for May 17, 2016

Today’s inflation report increases the chance that we’ll see a Fed rate hike in June. The Labor Department reported that the CPI increased 0.4% in April, above expectations of 0.3%. The core CPI, which excludes energy and food, increased 0.2% which was inline with expectations. The increased chance of a June Fed rate hike doesn’t mean that it’s a good chance. It’s still low. According to this Wall Street Journal article:

A June rate increase would be a stretch. Still, a strong May jobs report along with upward revisions to previous months could make it happen.

On Wednesday the Fed will be releasing the minutes of last month’s FOMC meeting. That may provide hints of what we can expect in June. Recent speeches by Fed officials have been hawkish, suggesting there’s a higher chance of a June Fed rate hike. As economist Tim Duy said in his Fed Watch blog post:

The more hawkish Fedspeak could be foreshadowing that the minutes of the April FOMC meeting will have a hawkish tilt.

The chances are rising, but they’re rising from low levels. As Tim Duy concluded:

Bottom Line: Today's Fed speakers came looking for a fight with financial market participants. They don't like the low odds assigned to the June meeting. I don't think June is a go; the data isn't quite there yet. But odds are greater than 15%, in my opinion.

That 15% chance is what the Fed funds futures are indicating, and it’s up quite a bit from last week when it was 8%. Short-term Treasury yields are mostly up from last week. 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: 0.25% same as last week
  • 6-month: 0.40% up from 0.36% last week
  • 2--year: 0.82% up from 0.72% last week
  • 5--year: 1.29% up from 1.20% last week
  • 10-year: 1.76% down from 1.77% last week
  • 30-year: 2.59% down from 2.61% last week

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

  • June 2016: 15% up from 8% last week
  • Sep 2016: 49% up from 35% last week
  • Dec 2016: 71% up from 56% last week

Savings & Checking Account Rates

This is yet another week with most banks holding steady on rates. The only change to my list of top nationally available savings, checking and money market accounts was at Sallie Mae Bank. It recently introduced a promo rate of 1.19% for its money market account that’s guaranteed for the first 180 days of account opening. The ongoing rate remains at 0.90%. Thus, the bank calculates the 1-year APY as 1.05%.

The number of accounts in the 1% club remains at 21 since the club excludes promo rates. This is the group of nationally available checking, 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 continue to be on a holding pattern with their reward checking accounts. The only change to my list of top nationally available reward checking accounts is the Kasasa Cash account at Legence Bank. The top rate increased from 1.05% to 2.01% APY. However, the balance cap fell. The top rate now only applies to balances up to $10K, down from $25K. Thus, savers with a $25K balance will now earn less interest.

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 May 17, 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
Sallie Mae Bank1.05%MMA - 1st Year Promo APY - Account review
Radius Bank1.01% ($2.5k)Radius High-Yield Savings - Account review
HSBC1.01%HSBC Promotional Advance Savings
HSBC1.01%HSBC Promotional Premier Savings
PenFed Credit Union1.01% ($20k-$50k), 0.50% (up to $20k)Access America Checking
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 Bank0.95%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
Clear Sky Accounts0.90% (max $250k) Savings account - Account review
Ally Bank0.85%MMA
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
MyBankingDirect0.80% (min $5k) MMA
Digital Credit Union0.80% ($100k) 0.65% ($50k)MMA
Bank5 Connect0.76% (min $100) Checking account (not available for MA and RI residents)
MyCBB0.76% ($1K min)Personal Money Market - Account review
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
Legence Bank2.01% (up to $10k), 0.25% ($10k+)Kasasa Cash
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
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 Fund0.44% 7-day yield
Vanguard Tax-Exempt Money Market Fund0.29% 7-day yield
Fidelity Money Market Fund0.27% 7-day yieldreviews on Fatwallet
Fidelity Municipal Money Market Fund0.01% 7-day yield

Post Publication Edits

5/18/16: Clear Sky Accounts' Savings account rate raised.

Anonymous   |     |   Comment #1
 Effective June 13,2016, Synchrony bank increases the EWP for CDs of 48 months or longer to 360 days simple interest.  Existing CDs are not impacted by the EWP increase. 
Anonymous   |     |   Comment #3
How did you find out about the change? Synchrony's website still shows the 2014 Account Agreement, with a 180 day penalty for CDs with a term of more than 12 months. https://www.synchronybank.com/banking/resource-center/pdfjs2/?contentid=wres009913 (page 2)
Anonymous   |     |   Comment #4
I currently have CDs from Synchrony - I received a letter yesterday describing the EWP increase to 365 days for CDs of 48 months or longer.  Its effective June 13, so that's probably when their website will be updated.
Anonymous   |     |   Comment #24
I just got the letter. They have in their deposit agreement that accompanied the letter that they can change the terms of your CD except if prohibited by law.
Anonymous   |     |   Comment #2
Mr. Market seems to be signaling to the Fed that a tantrum will occur if a June rate rise takes effect.
Anonymous   |     |   Comment #5
This is a provision in the proposed Canadian budget. Are we next?

Canadians’ bank accounts are recorded as liabilities on banks’ balance sheets, as a type of debt. The government is proposing that in the event of another financial crisis, such as was witnessed in 2008, banks could convert accounts to stock, in a similar way that CoCo bond issues have provisions for, and similar to what occurred in Cyprus in 2012/13 when the government allowed banks to convert about 40 percent of deposits over $100,000 (similar to what is protected in Canada by the CDIC) to shares, resulting in a portion of people’s savings, held in bank accounts they believed were safe, vanishing, as reported by Press For Truth and the Telegraph.
Read more at http://www.inquisitr.com/2928566/bank-bail-in-provision-cdic-contingent-convertible-debt-coco-budget...
Anonymous   |     |   Comment #6
In a normal bankruptcy unsecured creditors are lucky to get anything...here they "at least" get stock which is also normal for other creditors.  Another reason to use caution in the amount "at risk" in any/on financial institution.
Anonymous   |     |   Comment #7
There is to much money in circulation and nobody needs it to borrow, hence, innovative ways to destroy the excess, hit the people with a sledge hammer and confiscate it the "nice way".
Anonymous   |     |   Comment #8
If the fed doesn't increase rates in the next few months, it's doubtful rates will go up before the election. Imagine a taper tantrum happening during the debates. The fed doesn't want to influence the election, which is ironic, because manipulating rates low, gives advantage to the incumbent party. Voters that don't want to rock the boat, will vote to keep home equity loan rates low, and 401ks elevated. Unfortunately for the free market, the fed is just another political organization, as the fed chair and vice chair, both Obama appointees, manipulate rates, to protect the Obama legacy.
Anonymous   |     |   Comment #16
Uh, OK.  You mean the legacy of his having turned once-great America into a third world country?  He has even brought back TB!  What a President!!
Anonymous   |     |   Comment #17
He's the only one you/we have!  Move on!
Anonymous   |     |   Comment #20
He is not mine.  GFY
Anonymous   |     |   Comment #21
How is Canada?  Like with that other/born Canadian, Ted Cruz?
John Sears
John Sears   |     |   Comment #9
If the Fed raises interest rates in June as they are now sulggesting ,how will that effect, if at all, 5 year CD interest rates.  I have CDs expiring then, would it be wise to wait a few weeks?
Anonymous   |     |   Comment #12
Absolutely not. Take whatever rate you can get ......now. They will drop like a stone. Lock it now. before they go negative.....or outright confiscation.
Anonymous   |     |   Comment #10
Ken I am so sick of you telling us the Fed will raise rates. How many times have you been wrong???? Amazes me that you think they will.
Anonymous   |     |   Comment #15
Don't take your frustration out on Ken.  It's not his fault.  If you don't like what he has to say, don't bother to read his blog.  Simple.........................

By-the-way, Ken helped a lot of us earn an awful lot of interest in the past.  Now that interest rates are down in the dumps, there's no need to bash him.
Anonymous   |     |   Comment #11
The Fed will never increase rates. They want inflation and would do absolutely nothing to prevent it. Inflation cheapens the debt and it is the only way the economy does not implode. But it will anyway. Soon it will be like Venezuela. Thanks liberals.....Thanks for destroying my country.
Anonymous   |     |   Comment #25
"Thanks liberals"?

The financial crisis (and it's effects we are still suffering from) occurred under and was provoked by the administration of George W. Bush and the Republican appointed (and Republican) Fed chief Alan Greenspan.  The huge (and obscene) bailout of the criminal big banks (and other large financial institutions) was a George W. Bush administration initiative. 
Anonymous   |     |   Comment #13
Ring .....Ring......"Hello"? "Hi Charlie Brown, it's Lucy.Please come out and play football with us. I promise I will let you kick the football........."Well I don't know..You always pull it away!"........."No! I promise! This time I will really let you kick it!"........."Well, ok. I guess."
Anonymous   |     |   Comment #14
Are you done with your ridiculous rants?
Anonymous   |     |   Comment #18
Bla bla bla bla
#19 - This comment has been removed for violating our comment policy.
Anonymous   |     |   Comment #22
Rumor is the FED is seriously considering a rate hike in June or perhaps July depending on data driven by the probability that growth will be accompanied by further movement in the labor market in one direction or the other based on metadata resulting from a careful analysis of inflationary expectations as measured by the influx of new jobs generated in the last quarter though many of those jobs are part-time, low wage positions that may or may not affect the housing market prospects as foreseen by recent LIBOR benchmarks which fluctuate in concert with sustained economic movement resulting from years of QE and NIRP, the primary FED tools employed to move the economy to a sustained 2% inflation so people can spend more for less. 
Anonymous   |     |   Comment #23
A couple of hunters from Alabama are out in the woods when suddenly one of them falls to the ground.  He doesn't seen to be breathing and his eyes are rolled back in his head. The other guy  flips out his mobile phone and calls the emergency services.
He gasps to the operator   - "My friend is dead! What can i do?"
The operator, in a calm soothing voice says: "Take it easy, take it easy! I can help. First, let's make sure he's dead"
There's a moment of silence, then a shot is heard.
The guy's voice comes back on the line. He says: "OK, now what?..."
Anonymous   |     |   Comment #26
Per their website, XCEL FCU's Kasasa RCA now has a $25,000 ceiling (reduced from $50,000) for earning the 2.01% APY. 

They gave no advance notice of this change to their depositors.

What scumbags.