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Best Bank Account Interest Rates - Summary For May 26, 2020

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Most online banks had been slowly transitioning to lower rates in March and April. The transition speed has picked up since the start of May as major online banks like Capital One and American Express lowered their online savings account rates by 20 to 30 bps.

During the zero bound years from 2008 to 2015, most online savings account rates bottomed out in a range from 0.70% to 1.00%. I’m hoping that we won’t see new bottoms from the major online banks. However, based on how their CD rates are falling, I am a little worried that the bottom may be lower this time.

I’ve listed the most noteworthy rate changes that have occurred in the last two weeks. I created two lists. The first list includes rate changes from the major online banks. The second includes rate changes from past rate leaders which are generally not well-known names. All percentages are APYs:

Rate changes from the major online banks:

  • Capital One 360 Performance Savings (1.50% → 1.30%)
  • American Express High Yield Savings (1.50% → 1.30%)
  • Citizens Access Online Savings (1.50% → 1.30%)
  • HSBC Direct Savings (1.60% → 1.30%)
  • CIT Bank Money Market (1.55% → 1.30%)
  • CIT Bank Savings Builder (1.45% → 1.25%)
  • PurePoint Financial Online Savings (1.50% → 1.25%)
  • Discover Online Savings (1.40% → 1.15%)
  • Discover Bank Money Market (1.30% → 1.05%)

Rate changes from the less well-known online banks:

  • Nationwide by Axos Bank My Savings (1.70% → 1.61%)
  • First Foundation Bank Online Savings (1.75% → 1.60%)
  • UFB Direct High Yield Savings (1.61% → 1.51%)
  • Vio Bank High Yield Online Savings (1.60% → 1.50%)
  • BMO Harris Bank Platinum MM (1.65% → 1.50%)
  • Quontic Bank Personal Money Market (1.60% → 1.46%)
  • Comenity Direct High-Yield Savings (1.70% → 1.45%)
  • Live Oak Bank High Yield Online Savings (1.55% → 1.35%)
  • All America/Redneck Bank Mega MMA (1.50% → 1.35%)
  • Western State Bank High Yield MM (1.60% → 1.35%)
  • Popular Direct Ultimate Savings (1.60% → 1.35%)
  • Rising Bank High Yield Savings (1.55% → 1.30%)
  • First Internet Bank Money Market Savings (1.51% → 1.26%)
  • BrioDirect High-Yield Savings (1.40% → 1.25%)
  • ableBanking Money Market Savings (1.40% → 1.25%)
  • WebBank Savings (1.51% → 1.11%)
  • TAB Bank High Yield Savings (1.50% → 1.10%)
  • CFBank Platinum MM Promo (1.30% → 1.05%)
  • Investors eAccess Money Market (1.25% → 0.75%)

Current rate leaders

Affinity Plus Federal Credit Union continues to hold the top rate spot with its Superior Money Market account that earns 2.02% APY. There are a couple of important caveats. First, the 2.02% APY only applies to balances up to $25k. The rate falls to 0.75% on balances over $25k. Second, these rates require that you maintain a monthly direct deposit of at least $500.

Two banks now share the second spot with a 1.75% APY. This is down from three after First Foundation Bank lowered its Online Savings Account APY from 1.75% to 1.60%.

FitnessBank Savings account APY remains at 1.75%. This had fallen from 1.90% to 1.75% when May began. I wouldn’t be surprised if we see a similar rate cut when June begins. The Bank appears intent on keeping its top tier a rate leader, however, it doesn’t appear to want to be way out in front. The top tier APY requires that the customer average 12,500 steps per day for the month as measured by a step tracker app. The rate falls to 1.55% APY when the step average is between 10,000 and 12,500, and 1.35% APY when the step average is between 7,500 and 10,000. The rate falls significantly for lower step averages. There are lower step requirements for customers over 64.

The second bank that offers 1.75% APY is Patriot Bank. Its Money Market Account yield has held at 1.75% since March, and new customers will receive a guarantee that this promotional APY will last at least until June 30th.

One noteworthy new account added to the list is the My Savings account at Nationwide by Axos Bank. The APY had been 1.70%, but it fell today to 1.61%.

Rate guarantees without withdrawal penalties

When rates are falling, the best savings and money market deals are specials that guarantee a rate for a period of time. As you would expect in our current rate environment, these rates have been falling and the guarantee periods have been shortening.

Patriot Bank restarted a new version of its money market promotion in March. The promo rate is now only 1.75% APY. The rate guarantee period did increase slightly, moving from May 31st to June 30th. Earlier this year, the promo offered 2% guaranteed through July.

The second rate guarantee is the Platinum Money Market promotion offered by CFBank which is guaranteeing only 1.05% APY on balances of at least $25k. This had been 1.50% APY last month. There’s a short guarantee period of 90 days. This used to be 120 days. The ongoing interest rates are low (0.50% APY for $25k and above, 0.25% for $5k to under $25k).

Last month TIAA Bank lowered the promo rate of its Yield Pledge Money Market account from 1.75% to 1.40% APY. This applies to balances up to $250k. A version of this offer has long been available at TIAA Bank/EverBank. After the 1-year intro period, a tiered-rate structure takes effect. The current ongoing APYs range from 0.90% for under $10k to 1.35% for over $100k.

No-penalty CDs have some of the liquidity of savings and money market accounts, but like CDs, they offer a rate lock which can be useful when rates are falling. No-penalty CDs have become more common at online banks in the last year, and they are something to consider, especially if you already have a savings account at the bank. The main issue now is that their rates have been falling. If their rates are higher than the savings account, these can be good deals in this falling rate environment.

Some banks like Ally and Goldman Sachs 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. Ally makes it very quick and easy to move the CD funds into your savings or checking account.

Unfortunately, five banks cut their no-penalty CD rates. CFG Bank, Goldman Sachs Bank USA, Citizens Access and CIT Bank made large cuts. Only Ally Bank made a small cut that lowered the rate by only 5 bps.

The rates of all others have held steady in the last two weeks.

Below is a list of noteworthy no-penalty CDs.

  • 1.35% APY 13-month Penalty Free CD ($500 min) - CFG Bank
  • 1.30% APY 7-month No-Penalty CD ($500 min) - Goldman Sachs Bank USA
  • 1.20% APY 11-month No-Penalty CD ($500 min) - Goldman Sachs Bank USA
  • 1.20% APY 11-month No-Penalty CD ($1k min) - CIT Bank
  • 1.25% APY 11-month No Penalty CD (no min) - Ally Bank
  • 1.20% APY 11-month Flex Time Deposit ($100k min) - M.Y. eBanc
  • 1.15% APY 11-month Liquid CD ($5k min) - Citizens Access
  • 1.10% APY 13-month No-Penalty CD ($500 min) - Goldman Sachs Bank USA
  • 1.10% APY 11-month Flex Time Deposit ($10k min) - M.Y. eBanc
  • 1.01% APY 11-month No-Penalty CD ($10k min) - PurePoint Financial
  • 0.95% APY 13-month No-Penalty CD ($10k min) - PurePoint Financial
  • 0.90% APY 14-month No-Penalty CD ($10k min) - PurePoint Financial
  • 0.70% APY 11-month No Penalty CD ($5k min) - Colorado Federal Savings Bank
  • 0.50% APY 6-month No-Penalty CD ($500 min) - Investors eAccess

Remember that when talking about no-penalty CDs (that function like Ally’s No Penalty CD), a longer term is always better. Since you can close these types of no-penalty CDs at any time after the first six days, I can’t think of a reason to choose a shorter-term no-penalty CD if the rate is the same.

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 from 2008 to 2015, money market funds had yields of around 0.01%. Now that the Fed has cut rates back to zero, money market fund yields will likely fall back to near 0.01%. This might take a few months.

The large yield reductions continue. Vanguard Prime Money Market Fund 7-day yield fell 10 bps to 0.37% in the last two weeks. Fidelity Money Market Fund 7-day yield had a large drop, falling from 0.25% to 0.09%.

Municipal money market funds have been volatile in the last year. The volatility went way up in March due to liquidity issues. The Fed’s actions have helped with these issues, and the result is that the yields have fallen considerably from two months ago when yields were over 3.00%. From two weeks ago, the Vanguard Municipal Money Market Fund 7-day yield fell from 0.36% to 0.31%, and the Fidelity Municipal Money Market Fund 7-day yield fell from 0.14% to 0.04%.

Reward Checking Accounts

In my list of nationally available reward checking accounts, only one bank lowered its rates in the last two weeks.

All America Bank and its online division Redneck Bank lowered its Rewards Checking top-tier rate from 1.75% to 1.60% APY on balances up to $10k.

On a positive note, a new reward checking was added. Quoin Financial Bank is now offering a nationally-available Kasasa Cash checking account with a 3.00% APY on balances up to $25k if monthly requirements are met. Update 5/28: The account is no longer nationally available.

There’s now a 3-way tie for the rate leader for balances of at least $25k. Quoin Financial Bank, The Bank of Denver, and ECCU all offer a top-tier APY of 3.00%. Quoin Financial Bank and The Bank of Denver both have a $25k balance cap. ECCU has a $35k cap.

Overall, reward checking accounts have generally been more resistant to Fed rate cuts than online savings accounts. We’ll see if this continues now that the Fed has moved us back to the zero bound. History during the last zero bound period (2008 to 2015) has shown that reward checking accounts can sustain rates significantly higher than online savings account rates during a zero interest rate environment.

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 focuses on liquid accounts.

CD Deals: Unfortunately, there aren’t many CD deals. Those that pop up rarely last long. I’ll just mention a couple of ones here.

Only four institutions now offer CD yields of at least 2.00%. All four are credit unions. Advancial offers the highest 5-year rate with a 2.16% APY for balances of at least $50k. Second place goes to Lafayette Federal Credit Union with a 5-year CD that earns 2.02% APY. The other two have 2.00% APYs. These are the 5-year CD at American 1 Credit Union and the 5-year Jumbo CD at Financial Partners Credit Union.

When June begins, it’s likely that most credit unions will be lowering their rates. We shall see if any of the above will remain in the 2% group.

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 26, 2020

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
Affinity Plus Federal Credit Union2.02% (up to $25k), 0.75% APY ($25k+)Superior Money Market (min $500 direct deposit into any account)
FitnessBank1.75% ($250k max) (requires using step tracker app and averaging 12.5k steps/daily) Fitness Savings Account - Account review
Patriot Bank1.75% ($100 min, rate guarantee through 6/30/2020)Online Money Market (not available in CT or NY) - Account review
Neighbors Bank1.70% ($25k), 1.00% ($25)High Yield Online Savings - Account review Update 5/27 They have temporarily stopped accepting new savings accounts
Bank of Hope1.65% ($1k min)Money Market Account (Not available in AL, CA, IL, NJ, NY, TX, VA, WA)
CFG Bank1.62% ($25k min), 1.52% ($1k)High Yield Money Market Account - Account review
Nationwide by Axos Bank1.61% ($100 opening)My Savings (*NTS)
First Foundation Bank1.60% ($1k min)Online Savings - Account review
SFGI Direct1.56%SGFI Direct Savings Account - Account review
Nationwide by Axos Bank1.55% ($10k+), 1.15% (up to $10k)Money Market Plus (*NTS)
Prime Alliance Bank1.55% ($10k+) 1.45% ($1+)Personal Savings - Account review
UFB Direct1.51% ($25k min)Premium Money Market - Account review
CommunityWide Federal Credit Union1.50% (penalty-free withdrawals first 5 days of each calendar quarter)High Rate Quarterly Funds Account - Account review
Vio Bank1.50% Online High Yield Savings - Account review
DollarSavingsDirect1.50%Dollar Savings Account - Account review
Gateway First Bank1.50% Savings Account (available in 38 states) - Account review
SkyOne Federal Credit Union1.50% ($1k) High Yield Savings ($1k monthly deposit required) - Account review
Northern Bank Direct1.50% ($5k min)Money Market - Account review
Pacific National Bank1.50% ($5k min) Money Market Deposit Account - Account review
BMO Harris Bank1.50% ($5k)Platinum Money Market (excludes AZ, FL, IL, IN, KS, MN, MO and WI - Account review
My eBanc1.50% ($25k min opening deposit)eRelationship Savings Account - Account review
Quontic Bank1.46% ($100k), 1.36% ($5k), 1.01% APY (up to $5k)Personal Money Market - Account review
CIBC USA (formerly The Palladin PrivateBank)1.45%Agility Savings Account - Account review
Comenity Direct1.45% ($100 min)High-Yield Savings - Account review
TIAA Bank1.40% (up to $250k), 1yr intro rate; 1.35% ($100k+), 1.25% ($50k+), 1.10% ($25k+) ongoing ratesYield Pledge Money Market - Account review
Simple1.40%Protected Goal Account
Bank 71.40% ($100 min)High Rate Online Savings Account
Bank 71.40% ($5k min)High Rate Online Money Market
Live Oak Bank1.35% ($5 million max) Savings Account - Account review
Western State Bank1.35% (up to $3m)High Yield Money Market - Account review
All America Bank1.35% (up to $50k), 0.25% ($50k+)Mega Money Market Account - Account review
Redneck Bank1.35% (up to $50k), 0.25% ($50k+)Mega Money Market Account
CFG Bank1.35% ($500 min)13-month Penalty Free CD - Account review
Popular Direct1.35% ($5k min opening deposit) Ultimate Savings - Account review
Capital One1.30%360 Performance Savings - Account review
HSBC Direct1.30%HSBC Direct Savings
American Express National Bank1.30%High Yield Savings - Account review
My eBanc1.30%Super Saver Money Market - Account review
Synchrony Bank1.30%High Yield Savings - Account review
Barclays1.30%Online Savings - Account review
Axos Bank1.30% ($250 opening)High Yield Savings (*NTS) - Account review
CIT Bank1.30% ($100 min)Money Market - Account review
Marcus by Goldman Sachs1.30% ($500 min)High-Yield Online Savings Account - Account review
Marcus by Goldman Sachs1.30% ($500 min)7-month No Penalty CD - Account review
Rising Bank1.30% ($1k min)High Yield Savings - Account review
Citizens Access1.30% ($5k min)Online Savings Account - Account review
TotalDirectBank1.30% ($5k min)Direct Money Market Deposit Account (not available in CA or FL) - Account review
First Internet Bank1.26% (no min) Money Market Savings
Mutual of Omaha Bank1.26% ($1k min/$1m max)Online Money Market
Ally Bank1.25%Online Savings - Account review
PenFed Credit Union1.25% (up to $250k)Premium Online Savings
Northfield Bank1.25% ($225k max) Online Platinum Savings - Account review
PNC Bank1.25% Online High Yield Savings (not available in all states) - Account review
Virtual Bank1.25% eMoney Market Special - Account review
BrioDirect1.25% ($25 min)High-Yield Savings - Account review
ableBanking1.25% ($250 min)Money Market Savings - Account review
ConnectOne Bank1.25% ($2.5k min)OneConnection Savings (*NTS) - Account review
PurePoint Financial1.25 ($10k min)Online Savings - Account review
Ally Bank1.25% ($25k min)No-Penalty 11-month CD - Account review
CIT Bank1.25% ($25k min)Savings Builder - Account review
CNB Bank Direct1.21% ($25k+)Premium Money Market
Smarty Pig1.20%SmartyPig Savings - Account review
Alliant Credit Union1.20% ($100 min)High-Rate Savings - Account review
Marcus by Goldman Sachs1.20% ($500 min)11-month No Penalty CD - Account review
CIT Bank1.20% ($1k min)11-month No-Penalty CD - Account review
CFSB (Colorado Federal Savings Bank)1.20% ($50k+) Premier Savings (New customers) - Account review
Discover Bank1.15%Online Savings - Account review
Sallie Mae Bank1.15%Money Market Account - Account review
Amboy Direct1.15% ($3k min/$100k max)Personal eSavings (*NTS) - Account review
Citizens Access1.15% ($5k)11-month Liquid CD - Account review
WebBank1.11% ($1k min)High Yield Savings - Account review
TAB Bank1.10% ($1 min)High Yield Savings - Account review
Sallie Mae Bank1.10%High Yield Savings - Account review
Bank5 Connect1.10% ($100 min)High Interest Savings - Account review
Marcus by Goldman Sachs1.10%13-month No Penalty CD ($500) - Account review
Spectrum Credit Union1.10% ($2.5k min)Market Edge Savings (*NTS) - Account review
CFBank1.05% ($25k min deposit) Platinum Money Market Promo (rate guaranteed for 90 days) - Account review
Northpointe Bank1.05% ($25k+), 0.50% ($2m+), 0.25% ($100) Ultimate Savings - Account review
Discover Bank1.05% ($100k min), 0.99% ($2.5k) MMA - Account review
State Bank of India (IL)1.00% (no min) Savings
State Bank of India (IL)1.00% (no min) Money Market
Salem Five Direct1.00% (up to $1m)eOne Savings, new customers only - Account review
FNBO Direct1.00%Online Savings
CFSB (Colorado Federal Savings Bank)1.00% High Yield Savings - Account review
MySavingsDirect1.00%MySavings Account - Account review
PurePoint Financial0.95% ($10k) 13-month No-Penalty CD Account review
Investors eAccess0.75% (up to $2m)eAccess Money Market - Account review
BankUnitedDirect0.75%Online Money Market - Account review
Bay State Savings Bank0.75% ($5k min)Smile Worcester County Consumer Money Market - Account review
UmbrellaBank.com0.75% ($25k min), 0.25% ($1k)Money Market
BankPurely0.75% ($25k min) PurelyMoneyMarket - Account review
iGObanking.com0.75 ($25k min) MMA, New accounts and new money only - Account review
Quorum Federal Credit Union0.75%HighQ Savings Account
MutualOne Bank0.70% ($1m max)Online Statement Savings - Account review
American Heritage Credit Union0.70% ($10k min)High Yield Savings
EBSB Direct0.62% ($10k+), 0.50% ($10+), 0.25% ($2m+)Money Market Special 3 - Account review
Bethpage Federal Credit Union0.50% ($500 min)Money Market
Quontic Bank0.50% ($5k)High Yield Savings - Account review
DCU0.50% ($25k min)Ltd. Savings - Account review
Investors eAccess0.50% ($500 min)6-month No Penalty CD - Account review

*New To Summary

Reward Checking Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
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 A- debit card and $1k credit card requirements (Changes effective May 2020)
Ideal Credit Union4.00% (up to $20k), 0.05% ($20k+)High Yield Checking Special (rate guaranteed through 6/31/2020) - Account review
Western Vista Federal Credit Union4.00% (up to $15k), 0.04% ($15k+)Panorama Checking - Account review
Partner Colorado Credit Union3.50% (up to $10k), 0.50% ($10k-$25k), 0.10% ($25k+)High Interest Checking
Evansville Teachers Federal Credit Union3.30% (up to $20k), 0.00% ($20k+)Vertical Checking - Account review
Consumers Credit Union3.09% (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)
Market USA Federal Credit Union3.01% (up to $15k), 0.05% ($15k+)VIP Checking Platinum Tier - Account review
ECCU3.00% (up to $35k), 0.25% ($35k+)Free Kasasa Cash Checking - Account review
Quoin Financial Bank3.00% (up to $25k), 0.15% ($25k+)Free Kasasa Cash (*NTS) - Account review Update 5/28: No longer nationally available.
The Bank of Denver3.00% (up to $25k), 0.25% ($25k+)Kasasa Cash Checking - Account review
Garden Savings Federal Credit Union3.00% (up to $15k), 0.15% ($15k+)Platinum Checking
Lake Michigan Credit Union3.00% (up to $15k), 0.00% ($15k+)Max Checking (requirements waived through 4/30/2020)
INOVA Federal Credit Union3.00% (up to $15k), 0.70% ($15k+)Shield Checking - Account review
Signature Federal Credit Union3.00% (up to $20k), 0.10% ($20k+)Choice Checking
Great Lakes Credit Union3.00% (up to $10k), 0.05% ($10k+)Free Checking
Industrial Bank2.50% (up to $15k), 0.25% ($25k+)Kasasa Cash
Campus Federal2.31% (up to $10k), 0.05% ($10k+)Lagniappe Checking
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
Consumers Credit Union2.09% (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)
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)
First Security2.01% (up to $50k), 0.20% ($25k+)Kasasa Cash - Account review
Bay State Savings Bank2.01% (up to $20k), 0.25% ($20k+)Kasasa Cash - Account review
Main Street Bank2.00% (up to $30k), 0.25% ($25k+)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
GreenState Credit Union2.00% (up to $20k), 0.15% ($20k+)R2 Checking - Account review
Elements Financial2.00% (up to $20k), 0.10% ($20k+)High Interest Checking - Account review
One American Bank2.00% (up to $10k), 0.25% ($10k+)Kasasa Cash - Account review
United Educators Credit Union2.00% (up to $10k), 0.25% ($10k+)High Yield Checking
Wings Financial Credit Union1.76% (up to $25k), 0.05% ($25k+)High Yield Checking - Account review
Connexus Credit Union1.75% (up to $25k), 0.25% ($25k+)Xtraordinary Checking
All America Bank1.60% (up to $10k), 0.25% ($10k+)Ultimate Rewards Checking
Redneck Bank1.60% (up to $10k), 0.25% ($10k+)Redneck Rewards Checking
Heritage Bank1.53% (up to $25k), 0.15% ($25k+)eCentive Account
Quontic Bank1.50% (up to $1m)High Interest Checking (*NTS) - Account review
KS StateBank1.50% (up to $25k), 0.30% ($25k+)Check PLUS - Account review
First Tech Federal Credit Union1.50% (up to $15k), 0.20% ($15k+)Dividend Rewards Checking
Blue Federal Credit Union1.50% (up to $15k), 0.10% ($15k+)Extreme Checking (up to 3.50% w/account relationships) - Account review
Legence Bank1.26% (up to $10k), 0.25% ($10k+)Kasasa Cash
Axos Bank1.25% (up to $150k), 0.00% ($150k+)Rewards Checking
XCEL Federal Credit Union1.00% (up to $25k), 0.25% ($25k+)Kasasa Cash Checking
Hanscom Federal Credit Union1.00% (up to $15k), 0.10% ($15k+)Kasasa Cash Checking - Account review
Orion Federal Credit Union1.00% (up to $10k), 0.25% ($10k-$100k), 0.05% ($100k-$250k), 0.01% ($250k+)Premium Checking - Account review
MainStreet Bank0.75% (up to $15k), 0.25% ($15k+)Kasasa Cash - Account review

*New To Summary

Certificates of Deposit:

Bank Account Alternatives - May Not Be FDIC Insured

InstitutionRatesNotes
GM Financial Right Notes2.00% ($500+)
Ford Interest Advantage1.65% ($50k+), 1.50% ($15k+), 1.45% (less than $15k)Ford Interest Advantage review
Duke Energy PremierNotes1.65% ($50k+), 1.50% ($10k+), 1.45% (less than $10k)Duke Energy PremierNotes review
Ally Financial Demand Notes1.50% ($50k+), 1.35% ($15k+), 1.15% (less than $15k)
Aspiration1.00% ($10k max) Spend and Save Account Cash Management Account
Vanguard Prime Money Market Fund0.37% 7-day yield
Wealthfront0.35% Cash Account Cash Management Account
Vanguard Municipal Money Market Fund0.31% 7-day yield
SoFi0.20% SoFi Money Cash Management Account
Fidelity Money Market Fund0.09% 7-day yield
Fidelity Municipal Money Market Fund0.04% 7-day yield

Post Publication Edits

5/27/2020: Added update regarding Neighbors Bank temporarily not accepting new savings accounts.
5/28/2020: Updated Quoin Financial Bank info due to change in availability.

Related Pages: savings accounts, money market accounts, reward checking accounts, nationwide deals, Internet banks
Comments
Kaight
  |     |   Comment #1
Anybody remember Everbank? I did the Everbank yield pledge deal way back in 2014. Subsequently Everbank got swallowed whole by TIAA.

This is 2020. So I figure: good deal, that TIAA deal. I call 'em and try for the deal.

No dice. TIAA still had all my Everbank information from six years ago. There was nowhere to run; nowhere to hide. I was denied the TIAA deal because I had done the Everbank yield pledge thing six years back! And on top of Ken's gloomy report here, we savers have Monday staring us in our faces. Monday is June first. Only God knows how much lower rates will descend on Monday.

These are not happy days for savers.
P_D
  |     |   Comment #2
Some reconnaissance:

I have been told that MECU is not open to anyone through membership in the American Consumer Council as listed on DA. It is only available to those who live or work in neighboring states.
Robb
  |     |   Comment #3
At least the stock market has been running the past 2 months given few alternatives. With regards to the RCA's I see 16 FI's paying 3% or greater I would think people are moving into those and will eventually cause those rates to pull in some over time barring a dramatic change from the Fed.
P_D
  |     |   Comment #4
I think rates on variable rate accounts are pretty meaningless right now in light of the rapid rate declining environment. I think the few stragglers that are above the pack will soon fall back into the weeds, possibly even by the time your funds reach them.

As bank deposit rates fall, you get a kind of what I call rate compression (not sure if that term is commonly used) because they can no longer fall as far as they already have and still maintain a positive rate. So if in the last month or two they fell from 2% to 1%, they are not going to fall to 0% over the next couple of months, if they fall further, it will be a smaller decline (if you assume they will always be positive which I do).

So we are already seeing that there is very little difference between rates among say the top 10 or 20 rate paying banks and I think that compression is likely to get even more pronounced as they settle in react to the Fed's latest strategy.

So I think the game has shifted from one of seeking the best bank deposit returns to seeking the best type of investment in this environment including those not involving bank deposits and also to preservation of capital as opposed to maximization of capital. There isn't as much value in playing the game that made sense even a few months ago of seeking the highest rate banks and in fact, that now may be a counterproductive strategy with respect to capital preservation as higher rate banks in this environment might be more likely to fail.
chasinrates
  |     |   Comment #5
With interest rates so low, we decided to move some funds to Bask Bank to earn American Airlines miles. Are there other bank accounts out there where you can earn something that is potentially more "valuable" than the paltry interest being paid?
Robb
  |     |   Comment #6
@ #5   You may want to start looking at some of the bank bonuses. I've done a couple that worked out well. The Discover and Capital One bonuses paid out to expectation. I am sure others have other ideas as well. Here is a link to some on this site:

https://www.depositaccounts.com/blog/bank-bonuses/
chasinrates
  |     |   Comment #7
Thanks Robb. Great suggestion. Unfortunately, we've run through all of the bank bonuses that we qualify for except for a couple banks that we don't want to deal with based on bad experiences in the past. It's definitely getting tougher out there for savers.
111
  |     |   Comment #12
Not to be Debbie Downer, but if an airline faces bankruptcy, its frequent flyer miles could be devalued or even eliminated.
Choice
  |     |   Comment #13
Not necessarily so b/c that customer base has value which is usually tied to FF accounts but at risk of devaluation after the dust settles
chasinrates
  |     |   Comment #14
@111 You're not being a Debbie Downer. We already considered that possibility and decided to "take the risk." Thanks.
deplorable_1
  |     |   Comment #8
It's been a while since I have seen any decent bank gift offers. I got a ipod nano and a Tigers and Red Wings jersey at one time from Citibank and Bank of America. Like Robb said the bonuses are where it's at now. Here is a couple links with a large list of bank bonuses:
https://www.doctorofcredit.com/best-bank-account-bonuses/
https://www.hustlermoneyblog.com/best-bank-promotions/
P_D
  |     |   Comment #9
I think I still have the three toasters I got in the 70s somewhere in the basement. :) My cousin got a refrigerator back then that lasted until a few years ago. I think he had to deposit something like $2,500.

Now if they only gave out Taco Bell gift cards....I'd be willing to deposit my life's savings for 10 years (as long as I can do no contact pick up!)
Choice
  |     |   Comment #10
Don’t take Hertz gift cards (either)
deplorable_1
  |     |   Comment #11
Not since they got rid of the grilled steak stuffed burrito! That was almost as bad as McDonald's getting rid of the only decent burger they had the Angus burger.

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