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Latest Liquid Bank Account Rates

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The December Fed meeting is just two weeks away. The highest odds are for a 50-bp rate hike, but those odds have fallen a bit from two weeks ago. Currently, the odds of a 50-bp rate hike are 77.0%, down from 83.0% two weeks ago. The odds of a 75-bp rate hike are now 23.0%, up from 17.0% two weeks ago (Odds are based on the CME FedWatch Tool.)

This Thursday, October PCE inflation data will be released (PCE is the Fed’s preferred inflation gauge,) and this Friday, the November employment report will be released. If this data surprises on the upside, it could push the Fed to hike 75 bps. However, based on the minutes of the November FOMC meeting and today’s speech by Fed Chair Powell, I think a 50-bp rate hike is by far the most likely outcome. Hot inflation or jobs data may impact future Fed meetings.

For next year, the highest odds are for the target federal funds rate (TFFR) to reach a maximum of 5.00%-5.25% in the first half of the year, a total gain of 125 bps from the current level. The odds that it’ll be higher by June 2023 are just 13.8%. The Fed is then expected to pause and keep rates at this peak level for some time. Fed officials have warned that we should expect a long pause, but the markets don’t think it’ll be too long. The odds that the TFFR will be below 5.00%-5.25% by December 2023 are close to 91%.

I reviewed my old bank deals summary from November 2006 when the TFFR was 5.25%. The highest savings account yield was 5.50% (at E-LOAN). The money market account at GMAC Bank (now Ally Bank) had a yield of 5.25%, and the savings account at ING Direct (now under Capital One) had a yield of 4.40%. So we may see 5% savings accounts next year, even from a few of the major online banks. However, as we currently see, the major online banks haven’t been in a hurry to keep up with the Fed.

Instead of chasing the highest savings account rate, it may make more sense to prepare yourself to jump on any hot long-term CDs that come up. If a serious recession does occur, rates may again fall to near zero. Locking in a long-term CD before rates fall would be ideal, but as we’ve seen recently, long-term CD rates may fall long before the first Fed rate cut.

From the November 2006 bank deals summary, the highest 5-year CD yield was 5.82% (at Melrose Credit Union). The highest at a bank was 5.75% (at E-LOAN).

In October, the average online savings account yield finally exceeded the peak average in 2019 (2.23%). In the last month, the average increased almost 31 bps to 2.42%. I expect that it’ll be just above 3% when December starts. That’s disappointing when the TFFR is now 3.75%-4.00% and is expected to rise to at least 4.25%-4.50% in two weeks. The online savings account average is based on the Online Savings Account Index. This index tracks the average rate of ten well-established online savings accounts.

I’ve listed the most noteworthy rate changes that have occurred in the last two weeks. There are two lists. The first list includes rate changes from the major online banks or online banks that have a long history. The second includes rate changes from online banks which are generally not well-known names.

The number of rate increases went down quite a bit as compared to the number from two weeks ago. Two weeks ago, there were so many rate hikes that I had to limit the non-major bank list to those that had raised yields to at least 3.50%. This week I lowered the threshold to just 3.00%. Even with this lower threshold, the number of rate hikes are less than a third of the number from two weeks ago. One reason may be that many banks early in the month were responding to the November Fed rate hike. Also, many banks took a break during Thanksgiving week. Nevertheless, this decline in rate hikes still appears worse than what should be expected with another big Fed rate hike just two weeks away.

All percentages are APYs.

Rate changes from the major online banks:

  • CIT Bank Savings Connect (3.25% → 3.60%)
  • Citi Accelerate Savings (3.10% → 3.25%)
  • Live Oak Bank Online Savings (2.75% → 3.10%)
  • SFGI Direct Savings (2.51% → 3.01%)
  • American Express National Bank HY Savings (2.75% → 3.00%)
  • Ally Bank Online Savings & MM (2.75% → 3.00%)
  • FNBO Direct Online Savings (2.15% → 3.00%)

Rate changes from the less well-known CUs & online banks:

  • American First CU via SaveBetter MMDA (3.50% → 4.00%)
  • Patriot Bank via SaveBetter MMDA (3.65% → 4.00%)
  • Blue FCU via SaveBetter MMDA (3.65% → 3.75%)
  • SkyOne FCU via SaveBetter MMDA (3.25% → 3.75%)
  • FACILE MMA (3.25% → 3.75%)
  • Valleydirect Online Savings (3.50% → 3.60%)
  • My Banking Direct HY Savings (3.15% → 3.55%)
  • Popular Direct High-Rise Savings (3.25% → 3.35%)
  • Quontic Bank HY Savings (3.00% → 3.20%)
  • Stopped at 3.00% APY

Current rate leaders

There were no new top rates in the last two weeks. The top APY for savings and money market accounts is still 4.01%. That’s still available from the money market account at Brilliant Bank, the online division of Kansas-based Equity Bank. This was reached on November 10th when yield increased from 3.60% to 4.01%.

Even though Brilliant Bank rates have remained competitive, it’s not the most saver friendly account. There’s a $2k minimum balance to avoid a $10 monthly service charge. Its ACH bank-to-bank transfer service is weak with a $5k daily/monthly limit on outgoing/incoming ACH transfers initiated by Brilliant Bank. In addition, there is a $2.55 charge for external transfers initiated by Brilliant Bank.

Republic Bank has also maintained its 4.00% APY on its Digital Money Market account. Like Brilliant Bank, Republic Bank has a monthly fee if a minimum balance isn’t maintained ($2.5k minimum balance to avoid $25 monthly maintenance fee.) Also like Brilliant Bank, its ACH transfer service is weak. Outgoing ACH transfers initiated by Republic Bank are limited to a low $2.5k per day and $10k per 30 day rolling cycle.

Three new institutions have raised the yields of their money market accounts to 4.00% APY.

The first is the Mega Money Market accounts at All America Bank and its internet banking division, Redneck Bank. The Mega Money Market now earns 4.00% APY on balances up to $75k. The portion of the balance above $75k only earns 0.50%. The balance cap increased from $50k, but the cap is still not high enough for these MMAs to be moved into the main list. These MMAs remain in the Reverse Tier list in which smaller balances earn the highest rates.

The other two institutions to reach 4% are offering their money market accounts on the SaveBetter.com platform.

The first to reach 4% was American First Credit Union. It’s offering a Money Market Deposit Account through the SaveBetter.com platform with a 4.00% APY on all balances of $1 and above.

The other one on SaveBetter just reached 4% today. It’s Patriot Bank N.A., and its Money Market Deposit Account also has a 4.00% APY on all balances of $1 and above.

It should be noted that the SaveBetter Money Market Deposit Accounts are no different than the High Yield Savings Accounts. Both lack check writing capability. One important downside with SaveBetter savings and money market accounts is that all transfers must be initiated through the SaveBetter platform. You cannot initiate transfers from your other banks. I have more details in my early review of SaveBetter.

Rate guarantees without withdrawal penalties

With rising rates, promotional savings accounts with a rate guarantee period aren't of much value. However, at least rate guarantees provide certainty that rates won’t fall soon after you open the account. That’s important for banks that don’t have a long track record with high-yield savings accounts.

No-penalty CDs are also of less value during rising rates, but if they have a higher rate than your online savings account, you can use the no-penalty CD to boost your overall yield without losing any significant liquidity. You just have to make sure you monitor rates so that you can close the no-penalty CD and move the funds into a higher-rate savings account or new no-penalty CD.

Some banks like CIT Bank and Ally Bank 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

The top rate for No Penalty CDs continues to be the 14-month No Penalty CD from Sallie Mae Bank via the SaveBetter platform. The yield increased from 3.75% to 4.05% APY just a day after the last summary. Sallie Mae Bank also has the second place spot with its 10-month No Penalty CD via SaveBetter (4.00% APY). One recent change to these CDs is that you now must wait at least 30 days after opening to be able to do a penalty-free early withdrawal. Previously, you only had to wait 7 days, which is the minimum time required by banking regulation.

Just behind Sallie Mae Bank is USALLIANCE Financial Credit Union. It increased its 11-month No Penalty CD yield by 100 bps to 4.00% APY.

Two other recent rate hikes were from CIT Bank and Ally Bank. Today, CIT Bank increased the yield of its 11-month No Penalty CD by 35 bps to 3.65% APY. Ally Bank increased its 11-month No Penalty CD just after the last summary by 20 bps to 3.30% APY.

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. Their rates tend to be close to zero when the Fed sets the target federal funds rate to 0%, and they tend to follow the target federal funds rate during a rate-hiking cycle.

Before March, the four money market funds that I have followed have maintained a 7-day yield of only 0.01%. Now that the Fed has been hiking rates, money market fund yields are rising, and their yields are generally rising faster than online savings account yields from the major online banks.

Fidelity still has a slight yield advantage over Vanguard. Today, the Fidelity Money Market Fund 7-day yield was 3.69%, up slightly from 3.66% two weeks ago. The Vanguard Federal Money Market Fund 7-day yield was 3.68%, up from 3.59% two weeks ago.

Municipal money market fund yields have been up and down even as the Fed keeps hiking. Yields have fallen for the last month. The Vanguard Municipal Money Market Fund 7-day yield is now 1.73%, down from 1.97% two weeks ago. The 7-day yield of the Fidelity Municipal Money Market Fund is now 1.63%, down from 1.89% two weeks ago.

Reward Checking Accounts

For the nationally-available reward checking accounts, there were just two noteworthy rate increases in the last two weeks. Reward checking accounts have a history of being slow to respond to rising rates, especially when compared to online savings accounts.

All America Bank and its internet banking division, Redneck Bank, increased the yields of their Rewards Checking Accounts from 3.30% to 4.25%. In addition, the balance caps were increased from $10k to $15k.

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 publish my CD survey as a separate post. Please refer to my survey of the best CD rates. This recap focuses on liquid accounts, but I’ll include a few of the best CD deals since rates are rising fast.

CD Deals: For direct CDs that are nationally available (without any membership limitations), there are still 5% CDs available.

There are now two CDs available from the SaveBetter platform with a 5% APY. The new one is a 27-month CD from Sallie Mae Bank. Unlike most of the CDs on SaveBetter, this one has a more mild early withdrawal penalty (only 180 days of interest).

The other 5% SaveBetter CD is a 22-month CD from SkyOne Federal Credit Union. This one has the typical SaveBetter early withdrawal penalty for terms from 12 to 60 months (270 days of interest).

One important attribute to note regarding SaveBetter CDs is that there is no option to withdraw interest. Interest can only be added back into the CD. To access any of the CD balance requires a closure of the CD with an early withdrawal penalty. SaveBetter’s product term sheets for the CDs don't clearly describe this. Under “transaction limitations”, it only states that “One-time full withdrawal of the Certificate.”

For nationally available CDs, the only other 5% CD is a 7-month CD promotion from Andrews Federal Credit Union (see post). Maximum deposit is $100k. This is scheduled to end on Friday (12/2/2022).

As you can see with these 5% CDs, the longest-term CDs no longer have the highest rates.

One example is at Synchrony Bank. Its highest rate CD is its 19-month CD Special that earns 4.75% APY. That’s 45 bps higher than the yields of its 24-, 36-, 48- and 60-month CDs.

Another example is at Connexus Credit Union. Its highest rate CD is its 15-month CD Special that earns 4.85% APY. The yield of its 4- and 5-year CDs is only 3.51%.

The highest 5-year CD yield is currently 4.80% APY at Department of Commerce Federal Credit Union. This requires a $25k minimum deposit. The yield falls to 4.70% for smaller deposits. These yields are also available on terms up to 84 months.

The highest 5-year CD yield at a bank is 4.75% APY. This is currently available from Bread Financial.

A couple of banks that had long-term CD rates near 5% have pulled back. KS StateBank was offering 4.99% APY on 3-, 4-, 5- and 7-year terms. Now it’s only offering 4.47% APY on those terms. Merrick Bank had reached 4.75% APY on its 5-year CD earlier in November. Within about a week, the rate fell to 4.60% APY.

For brokered CDs, it’s even worse. It’s now hard to find non-callable new-issue 4- and 5-year CDs. If you do find one, the yield will likely be disappointing. For example, today I checked Fidelity, and there was just one non-callable 5-year CD listed, and its rate was only 4.00%.

It’s hard to know when CD rates will peak. It’s possible that we may already be past the peak for long-term CD rates. Falling long-dated Treasury yields don’t bode well for long-term CD rates. The 5-, 7- and 10-year Treasury yields continue to be under 4%. At yesterday’s market close, the 5-, 7- and 10-year yields were 3.92%, 3.85% and 3.75%, respectively. The yield curve is now deeply inverted with short-dated Treasury bills offering the highest yields. At yesterday’s market close, the 3-, 6- and 12-month Treasury yields were 4.38%, 4.72% and 4.78%, respectively. These yields are based on Daily Treasury Par Yield Curve Rates.

Since my Fed review is no longer weekly, I touched on Fed and economic issues at the start of this post. Please keep discussions of the Fed and the economy to a minimum in the comments of this post. The focus of the comments should be deposit accounts and rates.

Rates as of November 30, 2022

Checking/Savings/Money Market Accounts:

InstitutionAPYsNotes
Brilliant Bank4.01% ($1k min)Money Market Account Internet bank, deposits held by Equity Bank - Account review
CFG Bank4.00 ($1k)High Yield Money Market Account - Account review
Patriot Bank4.00% ($1 min) Money Market Deposit Account via SaveBetter - Account review
American First Credit Union4.00% ($1 min) Money Market Deposit Account via SaveBetter - Account review
Republic Bank of Chicago4.00% ($2.5k min opening)Digital Money Market (not available in IL, IN, MI, or WI) - Account review
UFB Direct3.91%UFB High Rate Money Market - Account review
UFB Direct3.91% UFB High Rate Savings - Account review
First Internet Bank3.87% ($1m+), 3.04% (up to $1m) Money Market Savings
Bask Bank3.85% (no min)Bask Interest Savings Account - Account review
ConnectOne Bank3.85% ($250k+), 3.75% ($2.5k)Connection Plus Savings - Account review
Merchants Bank of Indiana3.82% (up to $1m)Money Market Account
FACILE3.75%Money Market Account - Internet bank, deposits held by Pacific National Bank
SkyOne Credit Union3.75% ($1 min)Money Market Deposit Account via SaveBetter - Account review
Blue Federal Credit Union3.75% ($1 min)Money Market Deposit Account via SaveBetter - Account review
BrioDirect3.75% ($500 min)High-Yield Savings Plus - Account review
Third Coast Bank3.70% ($1 min)High Yield Savings via SaveBetter - Account review
Lemmata Savings Bank3.70% ($1 min) Money Market Deposit Account via SaveBetter - Account review
Continental Bank3.65% ($1 min) High Yield Savings Account via SaveBetter - Account review
CFBank3.65% ($25k min)Money Market, 6 month rate guarantee - Account review
TAB Bank3.64% ($1 min)High Yield Savings - Account review
First Foundation Bank3.60% Online Savings - Account review
First Foundation Bank3.60% ($5m max) Online Money Market Account (*NTS) - Account review
The State Exchange Bank3.60% ($1 min)High Yield Savings via SaveBetter - Account review
ValleyDirect3.60%Online Savings - Internet bank, deposits held by Valley Bank
CIT Bank3.60% ($100 min)Savings Connect - Linked eChecking required Account review
State Bank of Texas (SBT)3.56% ($100k min, new money only) Jumbo Money Market
My Banking Direct3.55% ($1 min) High Yield Savings - Account review
Idabel National Bank3.55% ($1 min) Money Market Deposit Account via SaveBetter - Account review
Vio Bank3.52%Cornerstone Money Market
DollarSavingsDirect3.50%Dollar Savings Account - Account review
Salem Five Direct3.50% (up to $1m)eOne Savings, new customers only - Account review
FitnessBank3.50% ($250k max) (Requires using step tracker app and averaging 12.5k steps/daily, extra 10 bps with checking and debit card usage) Fitness Savings Account - Account review
Liberty Savings Bank3.50% ($1 min)High Yield Savings via SaveBetter - Account review
mph.bank3.50% ($1 min) Money Market Deposit Account via SaveBetter - Account review
Bread Financial (formerly Comenity Direct)3.50% ($100 min)High-Yield Savings - Account review
Upgrade3.50% ($1k min)Premier Savings (deposits held by Cross River Bank) Account review
Ivy Bank3.50% ($2.5k), 0.05% ($10)High-Yield Savings - Account review
BankPurely3.50% ($25k min) PurelyMoneyMarket - Account review
iGObanking.com3.50% ($25k min) iGOmoneymarket, new accounts and new money only - Account review
ConnectOne Bank3.35% ($2.5k min)OneConnection Savings - Account review
Ivy Bank3.35% ($2.5k), 0.05% ($10)Indexed Savings - Account review
Popular Direct3.35% ($5k min opening) High Rise Savings - Account review
CIBC Bank USA 3.27%Agility Savings Account - Account review
Synchrony Bank3.25%High Yield Savings - Account review
Citi3.25%Citi Accelerate Savings Account (Not available in all states, chk relationship required)
Affirm3.25%Affirm Savings (deposits held by a partner bank)
LendingClub Bank3.25%High-Yield Savings - Account review
E*TRADE from Morgan Stanley3.25%Premium Savings Account (sweeps account) - Account review
Prime Alliance Bank3.25% ($1 min)Personal Savings - Account review
Prime Alliance Bank3.25% ($1 min)Personal Money Market - Account review
Ponce Bank3.25% ($1 min) Money Market Deposit Account via SaveBetter - Account review
Northern Bank Direct3.25% ($5k min)Money Market - Account review
Rising Bank3.25% ($1k min)High Yield Savings - Account review
Northpointe Bank3.25% ($25k), 0.35% ($5k), 0.25% ($2.5k min)Ultimate Money Market - Account review
Quontic Bank3.20%High Yield Savings - Account review
Sallie Mae Bank3.20%Money Market Account - Account review
Live Oak Bank3.10% ($5 million max)High Yield Savings - Account review
Sallie Mae Bank3.10%High Yield Savings - Account review
Smarty Pig3.10%SmartyPig Savings - Account review
ConnectOne Bank3.10% ($25k), 3.00% (up to $$25k)Connect Money Market - Account review
Customers Bank3.05% High-Yield Digital Savings, active checking required
Lafayette Federal Credit Union3.03% ($250k), 2.52% ($150k), 2.27% ($100k), 2.17% ($50) Premier Savings
SFGI Direct3.01%SGFI Direct Savings Account - Account review
Connexus Credit Union3.01% ($1m), 2.91% ($500k), 2.51% ($250k), 2.01% ($100k), 1.50% ($20k), 0.25% ($1k)Money Market Account (Active checking requirement has been removed) - Forum post
Ally Bank3.00%Online Savings - Account review
Ally Bank3.00%Money Market Account - Account review
FNBO Direct3.00%Online Savings
Quontic Bank3.00%Personal Money Market (all balances) - Account review
American Express National Bank3.00%High Yield Savings - Account review
Discover Bank3.00%Online Savings - Account review
USALLIANCE Financial3.00% ($500)High Dividend Savings - Account review
Capital One3.00%360 Performance Savings - Account review
Barclays3.00%Online Savings - Account review
M1 Finance3.00% (all balances, $125 annual fee) M1 Plus Checking (deposits held by a partner bank)
Marcus by Goldman Sachs3.00% ($500 min)High-Yield Online Savings Account (additional 10 bps for AARP members) - Account review
Western State Bank3.00% ($5k min)High Yield Money Market - Account review
TotalDirectBank3.00% ($5k min)Direct Money Market Deposit Account (not available in CA or FL) - Account review
Citizens Access3.00% ($5k min)Online Savings Account - Account review
Langley Federal Credit Union3.00% ($1m), 2.50% ($500k), 1.80% ($250k min), 1.50% ($100k), 1.25% ($25k)Platinum Money Market Savings - Account review
SoFi Bank, N.A.3.00% (w/direct deposit), 1.20% (w/o direct deposit)SoFi Checking and Savings
Discover Bank2.95% ($100k min), 2.90% ($2.5k) Money Market - Account review
Luana Savings Bank2.89% ($750k), 2.78% ($250k), 2.68% ($100k), 2.58% ($50k), 2.38% ($2.5k)Money Market
American Heritage Credit Union2.85% ($10k min)High Yield Savings
Virtual Bank2.84% eMoney Market Special - Account review
Axiom Bank2.75% ($1 min)High Yield Savings Account via SaveBetter - Account review
Spectrum Credit Union2.75% ($100k), 2.65% ($50k), 2.55% ($25k), 2.50% ($2.5k), 0.60% (<$2.5)MarketEdge Money Market - Account review
CBN Bank Direct2.63% ($25k min/$2m max)Premium Money Market - Account review
Sun East Federal Credit Union2.60% ($5k min)MAX-Yield Money Market Account Special (13 month introductory rate), free withdrawals can only be done once per quarter - Account review
CBN Bank Direct2.53% ($1 min)High Yield Savings - Account review
EmigrantDirect.com2.50%AmericanDream Savings Account - Account review
Quorum Federal Credit Union2.50%HighQ Savings Account
Alliant Credit Union2.50% ($100 min)High-Rate Savings - Account review
The Federal Savings Bank2.50% ($2k min)Online Money Market Promo - Account review
My eBanc2.48% ($5k min opening)Super Saver Money Market Account - Account review
TIAA Bank2.45% ($25 min)Basic Savings
CFSB (Colorado Federal Savings Bank)2.45% ($50k min) Premier Savings (New customers) - Account review
Dow Credit Union2.42% ($500k), 2.24% ($100k), 2.05% ($50k), 1.59% (up to $50k)Premium High Yield Deposit - Account review
CFSB (Colorado Federal Savings Bank)2.40%High Yield Savings - Account review
Laurel Bank (a brand of KeyBank, N.A.)2.35% ($2m max)Laurel Road High Yield Savings Account (NTS) - Account review
TIAA Bank2.25% ($100k), 2.00% ($50k), 1.75% (%25k), 1.60% (up to $25k)Yield Pledge Money Market - Account review
Revolut2.25% Savings Vault - subscription rate (deposits held by Metropolitan Commercial Bank) (*NTS) - Account review
T-Mobile Money2.25% (4.00% up to $3k w/checking requirements)Checking Account (deposits held by a partner bank) (1.50% effective July 15, 2022) - Account review
Lafayette Federal Credit Union2.17% ($20k), 1.51% ($50)Preferred Savings
Security State Bank (KS)2.09% ($110k), 2.00%-2.09% ($100k+), 0.75% (under $100k)Investment Savings Account (linked Investment Checking required), APY is average of Savings and Checking, 0.60%+ APY assumes Savings balance of at least $100k - Account review
PenFed Credit Union2.00%Premium Online Savings Account review
Synchrony Bank2.00%Money Market - Account review
CommunityWide Federal Credit Union2.00% (penalty-free withdrawals first 5 days of each calendar quarter)High Rate Quarterly Funds Account - Account review
Chime2.00% (no min/max, active checking required)Chime Savings Account (deposits held by a partner bank) - Account review
Paramount Bank2.00% (up to $100k), 0.10% APY ($100k+) ($100 min deposit) Interest Checking (non-reward checking) - Account review, $100k cap only applies to accounts opened after 3/24/21
Veridian Credit Union2.00% ($1m) 1.80% ($500k), 1.60% (%250k), 1.50% ($100k), 1.40% ($50k), 1.30% ($25k), 1.15% ($10k), 1.00% ($2.5k) Premier Money Market - Account review
Varo2.00% (5.00% up to $5k w/chk requirements)Varo Savings - Account review
MapleMark Bank2.00% ($25k min opening)Platinum Money Market - Account review
MainStreet Bank2.00% ($50k) 1.00% ($25k), 0.50% ($0.01)Personal Super Savings Money Market ($2.5k min opening) - Account review
UmbrellaBank.com1.85% ($25k min), 0.21% ($1k)Money Market
Amalgamated Bank1.75%Online Savings (*NTS) - Account review
Bethpage Federal Credit Union1.75% ($500 min)Money Market
CIT Bank1.55% ($100 min)Money Market - Account review
MySavingsDirect1.50%MySavings Account - Account review
Bank5 Connect1.50% ($100 min)High Interest Savings - Account review
Customers Bank1.50% ($25k min)Ascent Money Market Savings
Bellco Credit Union1.50% ($50k) 0.95% ($10k)Premier Money Market Account
Banesco USA1.35% ($100 min)BanesGrow Savings Account Account review
Banesco USA1.35% ($2.5k-$1m)BanesFlex Money Market Account - Account review
ZYNLO Bank1.25% (up to $250k) 0.10% ($250k+)Money Market - Account review
Vibrant Credit Union1.15% ($200k), 0.50% ($100k), 0.25% ($25k), 0.10% ($10k), 0.05% (up to $10k) Yellow Money Market (promotional rate)
Andrews Federal Credit Union1.15% ($200k+), 0.85% (<$200k) Prestige Money Market
State Department Federal Credit Union1.06% ($100k), 1.00% ($50k), 0.95 ($25k)Premier Money Management Shares - Account review
NASA Federal Credit Union1.05% ($100k), 0.95% ($50k), 0.75% (up to $50k)Premier Advantage Money Market - Account review
Vio Bank1.00% Online High Yield Savings - Account review
Bank Onward1.00% ($250 opening deposit)Bo Savings - Account review
SkyOne Credit Union1.00% ($1k min)Sky-high Savings
State Bank of India (IL)1.00% ($5k min) Money Market
CIT Bank1.00% ($25k min)Savings Builder - Account review
Freedom Northwest Credit Union0.80% ($15k+), 0.65% ($10k+), 0.50% ($5k+), 035% (up to $5k) Rise Money Market (checking account w/$15k min balance required, no online application, small credit union) - Account review
U.S. Postal Federal Credit Union0.75% (0.85% with relationship rewards) IRA Savings - See review
BrioDirect0.70%Money Market - Account review
State Bank of India (IL)0.60% ($500 min) Savings Account
PurePoint Financial0.40 ($10k min)Online Savings - Account review

*New to Summary

No-Penalty CDs

InstitutionAPYsNotes
Sallie Mae Bank4.05% ($1 min)14-month No Penalty CD via SaveBetter - Account review
USALLIANCE Financial4.00% ($500)11-month No Penalty CD Special - Account review
Sallie Mae Bank4.00% ($1 min)10-month No Penalty CD via SaveBetter - Account review
CIT Bank3.65% ($1k min)11-month No-Penalty CD - Account review
Ally Bank3.30% (no min)No-Penalty 11-month CD - Account review
Marcus by Goldman Sachs3.05% ($500)13-month No Penalty CD - Account review
Marcus by Goldman Sachs3.05% ($500)8-month No Penalty CD (AARP members only) - Account review
Synchrony Bank3.00% (no min)11-month No Penalty CD - Account review
MainStreet Bank2.75% ($500 min)1-year No Penalty CD (early closure only) - Account review
My eBanc2.69% ($100k), 2.58% ($10k)11-month Online Flex Time Deposit - Account review
Citi2.50% ($500 min)12-month No Penalty CD
Bellco Credit Union2.40% ($2.5k min)36-month Smart Move CD - Account review
CFSB (Colorado Federal Savings Bank)2.35% ($5k min)11-month No Penalty CD - Account review
Chartway Federal Credit Union1.50% ($500 min)12-month No Penalty CD (early closure only) - Account review
Marcus by Goldman Sachs0.45% ($500 min)7-month No Penalty CD - Account review
Marcus by Goldman Sachs0.35% ($500 min)11-month No Penalty CD - Account review
Investors eAccess0.15% ($500)6-month No-Penalty CD - Account review
PurePoint Financial0.15% ($10k)11-month No-Penalty CD - Account review
PurePoint Financial0.10% ($10k)13-month No-Penalty CD - Account review
PurePoint Financial0.10% ($10k)14-month No-Penalty CD - Account review

Reverse Tier Savings/Money Market Accounts/Checking:

InstitutionAPYsNotes
Blue Federal Credit Union5.00% ($25-$1k), 1.00% ($1k-$5k), 0.50% ($5k-10k), 0.25% ($10k-$50k), 0.15% ($50k+)Accelerated Savings (*NTS) - Account review
La Capitol Federal Credit Union4.25% (up to $3k), 2.00% ($3k-10k), 0.10% ($10k+)Choice Checking
All America Bank4.00% (up to $75k), 0.25% ($50k+)Mega Money Market Account - Account review
Redneck Bank4.00% (up to $75k), 0.25% ($50k+)Mega Money Market Account
NuVision Federal Credit Union4.00% (up to $1k), 2.00% ($1k-5k), 1.00% ($5k-$10k), 0.50% ($10k-$25k), 0.20% ($25k+)Advantage Choice Money Market
Workers Credit Union3.56% (up to $1k), 0.55% ($1k-$2k), 0.60% ($2k-$3k), plus 13 more rate tiers (0.65%-1.26% in 5 bps increments)SaveUp Savings - Account review
Affinity Plus Federal Credit Union3.50% (up to $5k), 1.00% ($5k+)SmartStart Savings (*NTS) - Account review
SafeAmerica Credit Union3.10% (up to $2k), 1.10% ($2k-$5k), 0.60% ($5k-$10k), 0.55% ($10k+)Blended Rate Money Market
Porte3.00% (up to $15k), 0.20% ($15k+)Savings Account, Checking with one-time direct deposit required (deposits held by a partner bank) - Account review
Michigan State University Credit Union2.25% (up to $1k), 1.42% ($1k-$2k), 0.56% ($2k+)Savings Builder (*NTS) - Account review
Dover Federal Credit Union2.00% (up to $50k), 1.50% ($50k+), 1.25% ($100k+), 0.50% ($250k+)High Yield Savings
Affinity Plus Federal Credit Union2.00% (up to $25k), 1.50% ($25k+)Superior Money Market (min $500 direct deposit into any account)
Patelco Credit Union1.00% (up to $2k), 0.50% ($2k-$5k), 0.30% ($5k-$10k), 0.25% ($10k-$50k), 0.20% ($50k-$100k), 0.10% ($100k-$100m)Money Market Select Account - Account review
Axos Bank0.61% (up to $25k), 0.25% ($25k to $100k), 0.15% ($100k+)High Yield Savings - Account review

*New to Summary

Reward Checking Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionAPYsNotes
Pelican State Credit Union5.11% (up to $10k), 1.00% ($10k+) Kasasa Cash Account review
Consumers Credit Union5.00% (up to $10k), 0.20% ($10k-$25k), 0.10% ($25k+) Rewards Checking Tier A- debit card and $1k credit card requirements (Changes effective May 2020)
All America Bank4.25% (up to $15k), 0.25% ($15k+)Ultimate Rewards Checking
Redneck Bank4.25% (up to $15k), 0.25% ($15k+)Redneck Rewards Checking
Garden Savings Federal Credit Union4.07% (up to $15k), 0.15% ($15k+)Platinum Checking
Genisys Credit Union4.07% (up to $7.5k), 0.05% ($7.5k+) Genius Checking Account review
Ideal Credit Union4.00% (up to $20k), 0.05% ($20k+)High Yield Checking - Account review
Orion Federal Credit Union4.00% (up to $10k), 0.25% ($10k-$100k), 0.05% ($100k-$250k), 0.01% ($250k+)Premium Checking - Account review
Consumers Credit Union4.00% (up to $10k), 0.20% ($10k-$25k), 0.10% ($25k+)Rewards Checking Tier B- debit card and $500 credit card requirements (Changes effective May 2020)
Presidential Bank3.75% (up to $25k), 3.00% ($25k+)Advantage Checking - Account review
Department of Commerce Federal Credit Union3.50% (up to $20k), 0% ($20k+)Performance Checking Account review
Signature Federal Credit Union3.50% (up to $20k), 0% ($20k+)High-Yield Checking
Liberty Federal Credit Union3.45% (up to $20k), 0.00% ($20k+)Vertical Checking - Account review
Market USA Federal Credit Union3.25% (up to $15k), 0.05% ($15k+)VIP Checking Platinum Tier - Account review
First Bank3.04% (up to $25k), 0.10% ($25k+)First Performance Checking (available in CA, IL, MO) - Account review
EFCU Financial3.01% (up to $10k), 0.05% ($10k+)Rewards Checking - Account review
Keesler Federal Credit Union3.00% (up to $25k), 0.40% ($25k+)Kasasa Cash (easy membership in AL, LA, MS) - Account review
INOVA Federal Credit Union3.00% (up to $15k), 0.07% ($15k+)Shield Checking - Account review
Western Vista Federal Credit Union3.00% (up to $15k), 0.03% ($15k+)Panorama Checking - Account review
Lake Michigan Credit Union3.00% (up to $15k), 0.00% ($15k+)Max Checking
Sullivan Bank3.00% (up to $10k), 0.30% ($10k+)Cash Rewards Checking (available in AR, IA, IL, KS, KY, MO, NE, OK, TN) - Account review
Consumers Credit Union3.00% (up to $10k), 0.20% ($10k-$25k), 0.10% ($25k+)Rewards Checking Tier C - debit card with NO credit card requirements (Changes effective May 2020)
Finex2.53% (up to $25k), 0.10% ($25k+)Axcess Rewards Checking, Premier Account (formerly First New England Federal Credit Union)
Wings Financial Credit Union2.53% (up to $25k), 0.10% ($25k+)High Yield Checking - Account review
Great Lakes Credit Union2.50% (up to $10k), 0.05% ($10k+)Free Checking
Bellco Credit Union2.25% (up to $25k), 0.25% ($25k+)Boost Interest Checking - Account review
Community Bank (TN)2.08% (up to $20k), 0.25% ($20k+)Community Advantage Checking Account review
Union Bank2.07% (blended APY up to $25k), 0.03% ($25k+)1-2-3 Rewards Checking Account review
Heritage Bank2.02% (up to $25k), 0.14% ($25k+)eCentive Checking Account
Hiway Federal Credit Union2.02% ($1k-$25k), 0.01% ($25k+)Hi Yield Checking - Account review
TruStone Financial Credit Union2.02% (up to $20k), 0.10% ($20k+)TruRate Checking - Account review
Expedition Credit Union (formerly United Educators Credit Union)2.02% (up to $10k), 0.10% ($10k+)High Yield Checking
Campus Federal2.01% (up to $10k), 0.05% ($10k+)Lagniappe Checking
Elements Financial2.00% (up to $20k), 0.10% ($20k+)High Interest Checking - Account review
First State Bank (OH)2.00% (up to $15k), 0.25% ($15k+)Kasasa Cash - Account review
Cap Ed Federal Credit Union2.00% (up to $10k), 0.10% ($10k+)High Yield Checking
Connexus Credit Union1.75% (up to $25k), 0.25% ($25k+)Xtraordinary Checking
Partner Colorado Credit Union1.75% (up to $10k), 0.50% ($10k-$25k), 0.25% ($25k+)High Interest Checking
First Tech Federal Credit Union1.50% (up to $15k), 0.10% ($15k+)First Tech Rewards Checking
Industrial Bank1.47% (up to $15k), 0.20% ($15k+)Kasasa Cash
Axos Bank1.25% (up to $50k), 0.00% ($50k+)Rewards Checking
BankFirst1.25% (up to $15k), 0.15% ($15k+)Interest Checking
Quontic Bank1.10% (all balances)High Interest Checking - Account review
FitnessBank1.00% (up to $25k), 0.25% ($25k+) (requires using step tracker app and averaging 10k steps/daily) Fitness Checking Account - Account review
Northwest Federal Credit Union1.00% (up to $15k), 0.25% ($25k+)Kasasa Cash - Account review
Blue Federal Credit Union1.00% (up to $15k), 0.10% ($15k+)Extreme Checking (up to 3.00% w/account relationships) - Account review
Hanscom Federal Credit Union1.00% (up to $15k), 0.10% ($15k+)Kasasa Cash Checking - Account review
First Security Bank & Trust0.80% (up to $15k), 0.10% ($15k+)Kasasa Cash - Account review
Bay State Savings Bank0.50% (up to $20k), 0.05% ($20k+)Kasasa Cash - Account review

Certificates of Deposit:

Bank Account Alternatives - May Not Be FDIC Insured

InstitutionAPYsNotes
Aspiration5.00% (up to $10k), 0.10% ($10k+) Plus Save Account Aspiration Plus Save when $1k+/mo debit card purchases in Spend Account
Ford Interest Advantage3.80% (all balances)Ford Interest Advantage review
GM Financial Right Notes3.75% ($500+)
Duke Energy PremierNotes3.75% ($50k+), 3.60% ($10k+), 3.55% (less than $10k)Duke Energy PremierNotes review
Fidelity Money Market Fund3.69% 7-day yield
Vanguard Federal Money Market Fund3.68% 7-day yield
Wealthfront3.30% Cash Account Cash Management Account
Aspiration3.00% (up to $10k), 0.00% ($10k+) Save Account Aspiration Save when $1k+/mo debit card purchases in Spend Account
Vanguard Municipal Money Market Fund1.73% 7-day yield
Fidelity Municipal Money Market Fund1.63% 7-day yield

Accounts No Longer Available

Monifi0.70%Monifi Save - Internet bank, deposits held by MidFirst Bank (currently not accepting new applications)
WauBank0.40% ($5k min) High-Yield Savings (only available in AZ, CT, FL, MA, RI, TN, VA) - Account review
Envision Bank1.01% (up to $25k), 0.05% ($25k+)Envision Max Checking - Account review

Accounts Removed, Rate Too Low

The Federal Savings Bank0.60% ($100k), 0.40% ($50k), 0.30% ($25k), 0.20% ($10k), 0.15% ($1k)Money Market - Account review
FACILE0.50%Savings Account - Internet bank, deposits held by Pacific National Bank
National Cooperative Bank0.50% ($100 min deposit)Impact Money Market
Kinecta Federal Credit Union0.50% ($100k), 0.40% ($50k), 0.25% ($10k), 0.20% ($2.5k), 0.15% (up to $2.5kHigh-Yield Money Market - Account review
MutualOne Bank0.40% ($1m max)Online Statement Savings - Account review

Post Publication Edits

12/1/2022: CFG Bank High Yield Money Market Account rate has been increased.
12/1/2022: UFB Direct High Rate Money Market rate has been increased.
12/1/2022: UFB Direct High Rate Savings rate has been increased.

Related Pages: savings accounts, money market accounts, checking accounts, reward checking accounts, nationwide deals, Internet banks
Comments
P_D
  |     |   Comment #1
Great write up as always, lots of good information.

I thought Powell's speech and Q&A was pretty good today except for one glaring omission. I think he correctly attributed much of the inflation to a shortage of workers in the labor market, and explicitly detailed accurately some of the reasons why that is so. But I think his glaring omission was that the current people in charge of the federal government have been consistently paying people not to work since they took office and therefore forcing the private sector to have to compete with its own government on an unequal playing field in which the government has the monetery printing press. If Powell's excuse for obviously leaving that extremely critical explanation off of the list is that it is about fiscal policy and not monetary policy, I beg to differ. The two are inextricably intertwined and the fact that he did not even mention it calls his veracity into question in my mind.

I particularly enjoyed Ken's comparison to 2006. How I would love to have access to the DA database to perform some additional analyses.

In addition to the one or two financial institutions mentioned that had the highest savings account rates during that similar TFFR print, I would really like to know what say the top 1% of rates was for the various terms from savings accounts to CDs by term. I think it might give a more indicative picture of the comparison between TFFR then and now helping to eliminate the possibility that those two are just freak outliers.
milty
  |     |   Comment #8
#1: I don't think your omission is relevant in 2022, since the extra support for unemployment and PPP expired in 2021. But if they are relevant then it is worth noting that both those programs were started under the previous administration.
P_D
  |     |   Comment #10
That's just the tip of the iceberg. There has been a non-stop procession of proposals and legislation that encourage people not to work including extensions of student loan forbearance with no basis other than buying votes at taxpayers' expense and an attempt to pass illegal legislation to cancel student debt and force taxpayers to pay for it instead.

It's no wonder that fewer people are working now than were working before the pandemic hit. And it's no wonder that employers can't fill millions of open positions at a price that consumers are willing to pay for.
denbish
  |     |   Comment #40
You viewpoint is so obviously partisan. I asked my 40 year son why people weren't working and he said because a lot of people think they can make money making videos for social media. That has nothing to do with you so -called biased opinion that the workplace is competing with government hand-out which ended in 2021 as milty said. You need to look at other reasons instead the same old tired "it is the democrats fault."
111
  |     |   Comment #75
@#40 - Really, denbish? I'll say one thing for your son's opinion - at least it's, in principle, a provable-versus-nonprovable hypothesis, unlike much of the tripe we get from government these days. If (enough) people really DO end up making “videos for social media” sufficient to keep food on their tables, then I guess that proves his hypothesis. If not, then, well - not. How's the tabulation coming out so far?
ChrisinFlorida
  |     |   Comment #33
I was thinking similar Milty and we are not of the same political preference. That money has been spent although attempts extended child tax credits, welfare for illegals, student loan payment pauses indefinitely, attempts to illegally forgive student loan debt and inflationary policies like the Orwellian Inflation Reduction Act show the effort is alive and kicking as policy preference. M2 is still historically higher than Hunter. The drop in longer term T Bills is not reassuring to prospects for liquid rates or CD's. I lean to recession next year with so many indicators heading south, unless this time is different....there was a similar head fake in rates a couple months ago.
milty
  |     |   Comment #57
#33: I believe the expanded child tax credits ended in 2021 and was not able to be extended. However, the 2017 TCJA doubled the benefit and increased the eligibility for the child tax credit for joint incomes up to $400K. Student loan pauses were/are part of the response, started by the previous administration, to the pandemic. (Last I heard around 300 are still dying each day from Covid.) As to whether it is illegal to forgive federal student loans, it appears that SCOTUS will be ruling on this. (As you know most PPP loans were forgiven regardless if they helped keep employees employed. This probably should have been as rigorously challenged.) Am not aware that undocumented immigrants are eligible for federal social services, but I do believe they are eligible to pay income taxes.
SmittyInTheCity
  |     |   Comment #65
Haha, yes forgiving rich ppls loans is okay. Forgiving broke punks loans is not. Get outta my society with that baloney.
kcfield
  |     |   Comment #30
CME odds are in my view a good indicator of how Powell's hinting was received. The odds are now 75.8% that there will only be a 50 basis point rate hike; whereas yesterday it was 66.3%. I wish Powell would speak more directly rather than cryptically. Why not just say, "There will either be a 50 or 75 basis point rate increase at the December meeting--my colleagues and I are still deciding" rather than the obtuse, enigmatic hints about what may possibly happen.
lou
  |     |   Comment #31
There was no news today. Everyone knew the increase was going to be 50 basis points. Nothing changed other than what another Fed Chairperson referred to as irrational exuberance.
MY2CENTSWORTH
  |     |   Comment #2
Maybe I'm just a Stew-Peed old man, but not for nuthin' I just came home from the grocery store and I don't have to tell anyone that inflation is still out of control. I realize that the interest rate tweeks that the Fed makes isn't going to change that overnight, but what happened to the idea of staying aggressive?? I don't get it! Happy that I am healthy, have no debt and that I am well enough off financially to make it to the finish line and leave whatever remains of my 50 years of hard work to my heirs.
hampshire
  |     |   Comment #3
Powell spoke......market skyrocketed......Think it may just be time to lock in a good rate.......I'm guessing when you look at this page a week from today CD rates will be lower.
P_D
  |     |   Comment #4
I love how both the stock and bond markets completely ignored Powell's repeated admonition that there are a lot of unknowns and risks that could cause them to have to accelerate their rate increases at some point.
deplorable_1
  |     |   Comment #7
Maybe but I'm guessing in 4-6 months CD rates will be higher. So enjoy being right for a few weeks.
MY2CENTSWORTH
  |     |   Comment #11
It's only Wednesday so two days left this week for the market to lose everything it gained today and maybe more!
deplorable_1
  |     |   Comment #5
The FED needs to hike another .75% at the next meeting to squash this irrational exuberance of the stock market. The market thinks the FED is going to quickly pivot and send rates back down to 0% based on a bogus lower than expected CPI and a .5% expected rate hike. They know darn well that inflation is still out of control and it didn't just disappear overnight just because they hiked rates to 4% which is still low by historical standards. Banks seem to be having a tough time figuring out that they will need to be paying savers 5% on liquid saving accounts again soon and are dragging their feet even though they have been hiking rates on loans and credit cards. Once liquid accounts get to that point I can't see CDs being below 5% for long.
P_D
  |     |   Comment #6
Powell said repeatedly that core PCE inflation, which is the inflation statistic that the Fed puts the most weight on, is essentially unchanged and not falling. The markets ignored it.

After his speech today I would be shocked if the increase at the December meeting is more than 50 bps. But I think there's expectation inflation going on in the markets. 50 bps used to be considered a pretty big increase. Now 75 bps seems to be the new norm below which is bullish. Have to wonder about that.
Kaight
  |     |   Comment #14
You're correct, d_1, that a 75 basis point hike is badly needed in December. But consider all recent FOMC appointments have been raging doves. Even if Powell wants to go 75, he is going to face a strong headwind.
milty
  |     |   Comment #9
I think Ken's admonition to gather ye long term CDs while ye may seems like sound advice given the Treasury inversions and the obvious slow down in rate increases. 2024 is a long way off to hope that your maturing CDs will renew at better rates. So, perhaps at least look into add-on opportunities for insurance against the pivot.
deplorable_1
  |     |   Comment #61
Oh add-on CDs for rate insurance is a must if you are going to hold out. Also when there was a long term 7 yr. 5%+ CD a while back I didn't advocate against it due to the length of time.
sams1985
  |     |   Comment #12
From Ken's liquid bank account rate summary: "From the November 2006 bank deals summary, the highest 5-year CD yield was 5.82% (at Melrose Credit Union). The highest at a bank was 5.75% (at E-LOAN)."

This was when the FFR was 5.25%. The general consensus is we' will get there sometime in early 2023. If that happens, savings account rates are going to be well over 4%. How can CD rates be below savings account rates??
lou
  |     |   Comment #13
It has never happened as far as I can remember.
sams1985
  |     |   Comment #16
Have CD rates ever peaked well before the FFR rate peaking?
MY2CENTSWORTH
  |     |   Comment #17
sams1985, I do remember well the info you referenced from Ken's 2006 summary. Both of those financial institutions are long gone so I suppose we have to be careful what we wish for during these changing times!
sams1985
  |     |   Comment #19
I'm guessing if those were peaks then > 5% must have been fairly common place?
CDMD
  |     |   Comment #15
Food for thought.... So the one thing that I have not seen discussed is how inverted can the 2 yr Treasury vs 10 year Treasury curve go? I think if my research is correct, today's inversion has not been seen since early 1980's recession. So..... Supposition.. if the 2 year treasury and shorter terms TBill's are somewhat anchored to FFR and if FFR goes to 5% - 5.25% as is being suggested and if the potential recession is wide but shallow (so i read elsewhere) and thus not like 1980's ....then perhaps the inversion may not get worse and thus the 10 year treasury should somewhat follow in a parallel upward rate shift. which if the inversion today is approximately -75 BP then the 10 year may follow to 4.25% - 4.5% on its upward bound range. it is my understanding that the 5yr,7 yr and 10 year treasury markets support similarly long dated CD rates. This should give some support back for the 5+ year CD's at a rate spread over Treasuries closer to the 5ish %. Otherwise the yield curve inversion could resemble the early 1980's. an inversion like today, however, might only hold if the Fed convinces everyone that they are anchored at the peak rate for a lengthy amount of time... Just a technical point of view... not sure it holds though... Fed comments at Dec. meeting and into early 2023 will be key on how market reacts. Thoughts?
sams1985
  |     |   Comment #18
Good take and thoughtful analysis. I concur, despite an inversion, the increase in the FFR should raise 2/10 year yields much like a rising tide raises all boats. We may not see 6% CD's but a return to 5% seems reasonable and probable as long as the FED keeps hiking. With persistent and stubborn inflation i cant imagine they wouldnt
lou
  |     |   Comment #20
i just read in full Powell's speech today. He is far more negative about the prospects of controlling inflation than warranted by today's market reaction. He sees it as persistently stubborn and not anywhere close to where it needs to be. Other than slowing the pace of rate increases, he was very clear the Fed is going to increase rates to a level higher than they were predicting in Sept to get the job done. In my view this was a pretty hawkish speech. I bet Powell was very surprised at today's market reaction to it.
lou
  |     |   Comment #22
The last three sentences of Powell's speech:

"Given our progress in tightening policy, the timing of that moderation is far less significant than the questions of how much further we will need to raise rates to control inflation, and the length of time it will be necessary to hold policy at a restrictive level. It is likely that restoring price stability will require holding policy at a restrictive level for some time. History cautions strongly against prematurely loosening policy. We will stay the course until the job is done."

This doesn't sound like we are seeing peak rates anytime soon.
BK77
  |     |   Comment #23
I have read elsewhere a few times that the now underway Feds Quantitative Tightening should result in long term rates going up by multiple percentage points.
Mak
  |     |   Comment #21
Engineering a higher nominal GDP growth through a higher structural level of inflation is a proven way to get rid of high levels of debt. 
P_D
  |     |   Comment #25
The United States is the largest debtor in the world by far. Corrupt politicians know that the more inflation they create the more corrupt spending they can engage in piling on even more debt until the scheme collapses hopefully under the next guy's term (a.k.a. your children's lifetime).

Inflate away the debt, spend taxpayers' money like there's no tomorrow, and eventually there won't be. That's what's been going on for the last 2 years.
Mak
  |     |   Comment #26
That's why I have said I wasn't convinced the fed is going to fight inflation in the same way they talk about it, they still have $8.625 trillion on their balance sheet.... but I'm happy to be proven wrong...;)
sharon907
  |     |   Comment #27
The average duration of outstanding Treasurys is around five years.

https://www.brookings.edu/blog/up-front/2022/07/27/projecting-the-structure-of-us-treasury-debt/

In my state, public employees are gifted a pension based on the last three years' of compensation. So, the higher the compensation, the higher the future pension cost. Our police chief got a nice (estimated) million dollar retirement bonus this way. The public neither understands, or cares.

My point is, a home mortgage borrower, does benefit from inflation, at least as it relates to the mortgage compared to the value of the house. But, the cost of many liabilities will also rise. Inflation is not a clear solution.

Both the Treasury and the Federal Reserve, failed, and will continue to fail. It is hard to comprehend why longer-term Treasurys were not sold in higher volume.

PCE is reported tomorrow.  CPI next week, I think.
Mak
  |     |   Comment #28
Jobs report is Friday also.
Mak
  |     |   Comment #24
On the negative side for the SPX, the gap at 4076 was filled today at the close and now just about to touch the top of the channel, above that at about 4125 is the upper Bollinger band, market approaching overbought but not there yet, sentiment in greed level but not extreme, vix at 20 ... now on the positive side, market usually rallies into the end of the year another gap at 4225 and the last high we stopped at is 4325, imo a lot depends on the PCE inflation number that the fed follows, I believe it comes out tomorrow.
Mak
  |     |   Comment #29
How many times have we recovered SPX4000.....as I said earlier in the year, in my view the mkt would not drop below 3600(it did for a day)for most of the year, and recover 4000 but near the end of the year and into 2023 it is very possible depending on what the fed does with rates and if that causes a recession or not, if they cause a recession the SPX could drop quite a bit lower, maybe 30% from here and not recover 4000 as fast as these last few times.
Robb
  |     |   Comment #50
Mak have the SP hitting our Channel top downtrend line at the 4,100 area this AM. Throwing a tail so far.
Mak
  |     |   Comment #51
Robb... so far it has only backed up to the 200day so nothing is broken yet.
lou
  |     |   Comment #32
The way I look at this is there has been progress in slowing down inflation. The easiest part has been accomplished but what lies ahead is by far the hardest part to conquer. Powell keeps trying to explain this but nobody seems to be listening.

The labor market is way too tight, causing too much wage inflation which permeates much of the economy. The services component of inflation is by far the most important component and also the stickiest because of wage price inflation which is the biggest cost most companies have. What is not being discussed is that there was a release of labor data today and it was showing the labor market has far to go before the Fed can stop increasing rates.

Will see in the next few months if inflation data is coming down across the board, but it is clear the Fed thinks there is still quite a bit work left to do.

The two Obama economists who were right in 2021 when everyone else was wrong (Summers and Furman) still think the Fed has to keep increasing rates until there is much greater slack in the labor market. Furman put it very well today when he said the following:

"Based on my macro outlook, I expect that process to take the Fed Funds rate to something more like the 5-5.25 range but we'll see.  And the odds of a FFR  peak less than 4.75% or greater than 6% are reasonably high too.

If Furman is right, it seems to me the most sensible thing to do based on the probabilities is too wait until next year before pulling the trigger on CDs. Of course, inflation data in the interim may change this scenario, but from what I know today this seem to be the best course of action.
Mak
  |     |   Comment #34
You should do what's right for you you know your financial situation but what's right for you isn't what's right for everyone.... it's not a one size fits all thing, imo.
lou
  |     |   Comment #35
I agree with you. Everyone needs to do what feels right for them. The problem is when some people start panicking and telling everyone else that rates have peaked when they have no idea what they are talking about. If I listened to these people (and they know who they are) I would have been buying CDs last June when they were 3%.
Mak
  |     |   Comment #37
Lou... I agree, now you can see how it's the same thing when people 4 or 5 years ago said not to buy because rates were going to 5% and they were wrong, you have to listen to yourself, after all you're the only one it costs if you're wrong.
I thought the 10 year would go higher also but not looking that good right now, tomorrow and Friday will give me a better idea .......hindsight is always 20/20
deplorable_1
  |     |   Comment #62
Dang Mak let it go already. There is a difference between being off by .05% and being off by 2-3%.
Mak
  |     |   Comment #67
I didn't mention your name so it's not about you, I was using that as an example because I view it as the same situation that Lou was talking about only vice a versa. I listen to myself because in the end it's my money and if I'm going to **** up I want it to be on me.

Btw, just because a couple credit unions offered 4% rates back then that was the top, the rates stopped closer to 3.5% because the other ones were pretty much outliers and might not have been around long enough for people to get them.
deplorable_1
  |     |   Comment #72
I did better than that Mak but you do know that I was talking about CD specials back then and not actual FED rates right? I mean if the FED rate actually got to 5% you would see tons of 5%+ CD's which is exactly why I'm not locked in long term now other than some add-ons just in case which I was also advocating back then as well for rate insurance.
Mak
  |     |   Comment #77
sure you were...blah blah blah
hillw
  |     |   Comment #36
I lost my password as well as my recovery phrase so I was afraid my 4BTC and 9Eth that I have in my wallet is gone into the teen air, michealmurphy at repairman dot com was able to unlock it for me within 24hours. He didn't stop there. He also recovered my lost funds of about $129k USDT I invested in a fake binary option website. This is a huge relief for me! I've recommended Michael to all my friends that have a need for a reliable hacker.
P_D
  |     |   Comment #44
cuckoo for Cocoa Puffs
deplorable_1
  |     |   Comment #74
Woop woop Spam alert this user is spamming all over DA with the same post over and over.
QuickSilver
  |     |   Comment #38
Seems a bit odd that Powell would leave markets believing that they will go 50 and not 75 at the next meeting in two weeks. He knows we're getting two key numbers Thursday and Friday. PCE Deflator is the Fed's favorite inflation indicator, plus we get Non-Farm Payrolls Friday.

We got one better-than-expected CPI number and, as Powell stressed in his speech, two of the three major components of inflation remain problematic. Why not wait to see the data before giving the markets even a hint that they are going to slow down the increases?

If either of those sets of number come in much above expectations, today's message ends up unnecessarily adding to market uncertainty.
lou
  |     |   Comment #39
Unless he knows what's in those reports tomorrow and the next day. LOL
GreenDream
  |     |   Comment #48
Even if he doesn't know what the exact numbers will be in those reports, I'm sure he's aware and familiar enough with most of the data that those reports use to calculate those numbers. In other words, barring any Earth shattering changes in the data over the last couple days of the reporting period, he's already got a pretty good idea of what those reports will look like this close to the reports coming out.
trader531002
  |     |   Comment #41
Nationwide ins. paying 5.45 deferred annuity 7yr. tax deferred up to 10 percent no penalty withdraw a year. Call direct and ask for skyler or ian...put 1.3 mil. to sleep for 7 yrs on Monday. That is 70k a year. Tired of playing games with jp and his band of gypsy's
Good luck to all
donnie d
lou
  |     |   Comment #42
Most states will only insure up to $250,000 for annuities if the insurance company goes belly up. Probably not a concern for Nationwide but still................
CDsuckers
  |     |   Comment #53
The states don't insure annuities they only oversee state guarantee funds that are private non-profit organizations funded by the insurance companies that do business in the state. The state government doesn't backstop them.
sharon907
  |     |   Comment #55
#53

Neat, right!?!?

If Joe's Annuities goes bankrupt, "non-profit" Nationwide, is there to cover the loss.

Unlike state governments, even non-profit insurance companies, have to make a profit.

Of course none of this is entirely accurate, because each state operates their guaranty, independently.
trader531002
  |     |   Comment #63
Great point Lou. Guess you have to be comfortable being uncomfortable in short. I am 69 and decided back in 07 to be done with the stock market and the shenanigans of wall street. Start to look for yield and live off the interest of my savings and not touch the principal as I approached my 60s. Problem was they went to zero and stayed there till 2018. I was ****ed that the fed only cared about wall street and I would not cave into the bull**** they were selling. Stuck to my plan and caught an add on cd thanks to this blog at gte financial for 5 yrs. at 3.25. Thank you GTE.
And Lou if Nationwide folds everything else is probably going with it. I refuse to ride this thing back to zero. A man with the edge knows that being comfortable is the enemy of greatness.

Donnie D
Mals
  |     |   Comment #46
Thank for sharing......so what is the exit plan, just let sit for 7 years and take all at end and have all 7 years income become taxable at end of year 7? Trying to find downside. The risk Lou mentions is one, lack of liquidity is another. anything else?
sharon907
  |     |   Comment #54
# 46

Nationwide (at least the one sold through brokers) at 5.35% for 7 years, allows for withdrawal of 10% per year, with no penalty.

And apparently, buying direct pays an extra 0.10%.
trader531002
  |     |   Comment #68
That is correct on the extra 0.10%. Just found out about another one today Guaranty Life and that one is paying 5.60 for 5 years. They increased to that 5.60 on Nov. 11. You need an advisor on that one. I am working with one as we speak. Let me know if you want his info.

Donnie d
trader531002
  |     |   Comment #69
You bet Mals that is just the way it works in the US. Unless they have another product I can roll into at the end of the term. Wasn't it Ben Bernanke who said in 2012 that in our lifetime we would never see 4% again. I have sat on the sidelines waiting for this moment to pounce. Just sick and tired of being a victim of circumstances....I won.

Donnie D
midas89
  |     |   Comment #43
CFG Bank increased to 4.00% APY today. The simple interest rate is 3.92%.
P_D
  |     |   Comment #45
On any given day you'll find 50% of "experts" are predicting this market or that market to increase and the other 50% predicting it will decrease.

There are different ways you can interpret this: either as proof that the markets are indeed free and it's a random walk so therefore no one can predict it and picking any random person on the street to get their prediction will result in as accurate a prediction as listening to the experts.

But why then are expert predictions so prolific?

Well first of all they make money making predictions. So that's understandable. There's a big demand for it and lots of buyers.

But you can't rule out that the whole thing is just a charade designed to make you think that the markets are in fact free when they are actually manipulated by the little man behind the curtain.

If that's not the case, then why do so many people hang on the experts' every word? It's either random or it's manipulated. If it's random expert advice with respect to the direction of the market would be meaningless. So if you care about expert advice on that you are implicitly believing that the market is manipulated and that some people have a better insight into the scam than others.

Just because you're paranoid doesn't mean they're not out to get you.
GreenDream
  |     |   Comment #47
False dichotomies like that are what lead people into believing conspiracy theories. There are many reasons people listen to "experts" that have nothing to do with market manipulation (though some "experts" would certainly like to be able to manipulate the market). For one, a lot of people are sheep looking to experts/authority figures to give them guidance. What sheep aren't good at is knowing if the expert/authority figure they're following is any good at the job - just because someone claims to be an expert does not guarantee that they have any real actual expertise. There are a lot of charlatans claiming to be experts who have shown little in the way of actual expertise even if they might have impeccable credentials from "respected" institutions to back their claims of being an expert.
111
  |     |   Comment #49
It turns out that most of the pundits you see as guests on CNBC or similar outlets have lucrative contracts with money management firms, pension funds, endowments, hedge funds, etc. (I'm not talking so much about the C-suite people there from various companies - they are present to talk up their firm's stock, explain why it tanked, subliminally encourage viewers to buy more, etc.) Usually neither the guest pundits nor the C-suiters are paid to be on the shows. So why are the pundits there? The huge exposure they get helps drive up the prices for what they can charge their clients.

So the little guy thinks, hey, what a deal - got this genius pundit on CNBC who's well-paid by all these big guys, and I can listen to him for the price of a cable subscription! But, give that another thought - if the pundit's paid by the big guys, do you really think he hasn't already given his best advice to his clients, and given them ample opportunity to act on it? Before saying anything to the millions of little guys watching CNBC, who don't pay him? Yes, that's right - the purpose of the CNBC appearance is to get that price pumped up by thousands of little guys who buy in after the clients are already invested.
P_D
  |     |   Comment #52
If the majority of government can be corrupt, in spite of being inspired and ostensibly regulated by a constitution as noble as ours, what are the chances that any of the financial media outlets are not?
Mak
  |     |   Comment #56
Looks like the 10 year is heading to that 3.45% I had mentioned, needs to find support there imo
sams1985
  |     |   Comment #58
not a great sign
Mak
  |     |   Comment #60
It looks like we're setting up for a reversal, we're getting close to support in the 10 year yield and getting into oversold territory so I would expect the 10 year yield to move up, how much I don't know yet... first it has to find support...;) Jobs number tomorrow.
Listedguru
  |     |   Comment #64
Getting a little nervous here myself about rates. Hopefully we can a strong job's report tomorrow and a strong wage component to go along with that job's number. If not rates will probably keep going down?
Mak
  |     |   Comment #66
I just look at a chart but I can't post a chart on this site so I'll put it like this.... 3.45% is what I would call the next major support, if it breaks below that 3.20% is the trend line that I'm following so that is the line in the sand for me.
trader531002
  |     |   Comment #70
Relax Listedguru. I just posted another annuity I found by Guaranty Income Life paying 5.60 for 5 years. Tax deferred

Donnie D
lou
  |     |   Comment #73
Is there a website you're going to find these annuities?

Guaranty is not rated as high as Nationwide and is a smaller company, so the lack of insurance coverage could be an issue for them. Is the interest on these annuities compounded and reinvested every month?
Scotsaver
  |     |   Comment #59
I've been tracking the saily changes in rates for the year - 1 month T Bill vs major online savings vs Vanguard Money Mkt. If I could post this trend chart as a comment folks might find it interesting!

2 observations

1. Major online savings accounts (Barclays in my example) rate hikes timing has fallen a full hike cycle behind the Fed moves (approx 6 weeks). Their next rate move up from 3.0% will likely be around when Fed next moves up. Not sure if /when they will ever catch up as Ken has noted.

2. Vanguard and Fidelity Money market rates (now 3.7%) lag the 30 day T-bill by a lot less and will jump up to follow the Fed hikes almost immediately. As long as Fed overnight Repo market keep paying MMkt funds the current funds Fed rate, MMKt funds still look like a low risk way for individuals to track rising rates.
lou
  |     |   Comment #76
I just wrote this and posted it in the forum but I thought it might be a good idea to post it here as well:

I just spent an hour with a fine tooth comb scrutinizing the Oct PCE report. I can honestly say this is not a good report, in fact it is quite alarming.

The headline number for PCE and Core PCE did moderate some because non-durable consumer goods prices are falling. However, the all-important services component which makes up half of the index is still very troublesome. It rose .4% month to month and 7.2% over the preceding 12 months. This is a very bad number. After increasing the Fed Fund Rate by 400 basis points, the Fed has made no progress at all in taming inflation in this category. The reason is because the labor market is still very tight with job vacancies at an all-time high. Wages are going up at an unsustainable clip putting great deal of upward pressure on services inflation. I have no idea why the market thinks this is a good report. What it shows is that inflation has become imbedded in our economy and it is going to be very difficult to root it out.

For all intents and purposes, the Fed should do 75 basis points in Dec and continue with similar size increases until this number comes down. I will be amazed if the Fed decides we are close to peak rates with the numbers that were released today. It should be interesting to see what they do.
deplorable_1
  |     |   Comment #78
.....Breaking news....hold the presses!....Jobs data coming in hot....; )
https://www.youtube.com/watch?v=fv_Zy9qz4j8
https://finance.yahoo.com/news/november-jobs-report-labor-department-december-2-225203710.html
Non-farm payrolls: +263,000 vs. +200,000 expected
Unemployment rate: 3.7% vs. 3.7% expected
Average hourly earnings, month-over-month: +0.6% vs. +0.3% expected
Average hourly earnings, year-over-year: +5.1% vs. +4.6% expected
P_D
  |     |   Comment #79
"The labor force participation rate (t)icked down to 62.1% last month, 1.3% below its value in February 2020 before the COVID pandemic began."

The REAL unemployment rate is much higher then the fake unemployment number that is plastered all over the news shows. That number only includes people who are looking for work. It's dumb on its face.

Millions of people aren't working anymore, even though there is a record number of job openings, hence it is driving up competition for employees, wages and therefore inflation.

The story is pretty simple.
deplorable_1
  |     |   Comment #81
Shhh quiet PD were not supposed to think about things like that.....everything is too good the FED needs to hike another .75%. ; )
P_D
  |     |   Comment #82
Haha...Yes that's true dp1, but net net we would all be better off if they used the real unemployment figures instead of the fake ones. Then they could work from there to adjust it and give an adjusted participation rate that would much more accurately reflect the real employment picture.

Again I refer to what really matters to people here, which is their real return after inflation. When inflation is rising faster than rate increases in deposit rates you are losing money all the way to the bank. And real returns have been falling precipitously since 2021 when the engines of inflation were lit and it took off like a rocket.
QuickSilver
  |     |   Comment #80
Looks like stocks and bonds have gotten whipsawed by their interpretation of Powell's speech on Wednesday.

Wage inflation came in much hotter than expected. Treasury yields have given up about half their gains since the speech and Dow futures are down ~ 350 at the moment.

While goods inflation appears to be less of a problem, services inflation and wage inflation remain persistently well above the Fed's target.

We get CPI data Dec 13, the day the Fed's next two day meeting starts.

IMO, it is too soon to take a hike of 75bp off the table.

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