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Best Bank Account Interest Rates - Summary For August 4, 2020


A new month has brought a new round of rate cuts. Unfortunately, we’ve had some large rate cuts at the well-established online banks. Online savings account rates have been slashed by 20 to 30 bps at Capital One, Barclays, Synchrony and Marcus by Goldman Sachs. Synchrony’s new rate is 0.75%, and the new rate of the other three is 0.80%. These rates are all-time lows at Barclays, Synchrony and Marcus by Goldman Sachs.

New online banks will often have rates higher than the well-established banks for at least the first year or so. Several of these new online banks have lowered their savings account yields in the last two weeks to around 1%. These include Vio Bank (1.04%), ConnectOne Bank (1.01%) and WauBank (1.00%).

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:

  • Discover Bank Online Savings (1.01% → 0.95%)
  • Marcus by Goldman Sachs AARP Savings (1.15% → 0.90%)
  • Discover Bank Money Market (0.90% → 0.85%)
  • Marcus by Goldman Sachs Savings (1.05% → 0.80%)
  • Capital One 360 Performance Savings (1.00% → 0.80%)
  • Barclays Online Savings (1.00% → 0.80%)
  • Synchrony Bank High Yield Savings (1.05% → 0.75%)

Rate changes from the less well-known online banks:

  • Nationwide by Axos Bank My Savings (1.15% → 1.05%)
  • Citi Accelerate Savings (1.10% → 1.05%)
  • Vio Bank Online Savings (1.11% → 1.04%)
  • Quontic Bank Personal Money Market (1.10% → 1.01%)
  • Bellco CU Premier Money Market (1.25% → 1.00%)
  • WauBank High-Yield Savings (1.10% → 1.00%)
  • ConnectOne Bank Savings - Online (1.10% → 1.00%)
  • BMO Harris Platinum Money Market (1.10% → 0.95%)
  • BrioDirect High-Yield Savings (0.95% → 0.90%)
  • Nationwide by Axos Bank Money Market Plus (1.00% → 0.90%)
  • Axos Bank High Yield Savings (1.10% → 0.90%)
  • ableBanking Money Market Savings (1.05% → 0.90%)
  • PenFed CU Premium Online Savings (1.00% → 0.90%)
  • Amboy Direct Personal Savings (1.05% → 0.85%)
  • DollarSavingsDirect Savings (1.00% → 0.85%)
  • State Bank of India Money Market Deposit (0.95% → 0.80%)
  • Popular Direct Ultimate Savings (1.01% → 0.75%)
  • MySavingsDirect Savings (0.75% → 0.65%)

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.

The second highest rate continues to be 1.30% APY. This is offered by the fintech company Affirm. This isn’t a new fintech company, but it just recently began to offer an app-based savings account. For more than seven years, it has offered customers an app-based alternative to credit cards. The savings account is held by Affirm’s bank partner, Cross River Bank, which gives the account FDIC insurance. The account currently has a 1.30% APY on all balances with no minimum balances or monthly service fees. It’s a new account, and we’ll have to see how long the rate will remain competitive. Most of its customers have been those with small savings. If this top rate attracts many large savers, expect a rate reduction. Few new online savings accounts have remained rate leaders over the long run.

The next highest yield for an online savings account without small balance limitations is 1.25%. However, this requires a minimum balance of $25k. Amounts under $25k earn no interest. This is the Ascent Money Market Savings Account from Customers Bank. Last October Customers Bank was offering 2.25% APY on this account with a rate guarantee until 6/30/20. Several DA readers opened these accounts, and reports are that their rates fell to 1.25% APY in July, and that rate for existing customers is scheduled to hold through at least 8/15/20. Customers Bank has been offering several versions of this promotion for the last two years.

Right behind Customers Bank is another fintech company, called Varo. Varo’s savings account can earn 2.80% APY, but only for balances up to $10k. The 2.80% APY also has monthly activity requirements that are similar to reward checking requirements. However, if you just want the functionality of a basic savings account, you can earn 1.21% APY without balance limits or activity requirements. I reviewed Varo on July 24th. Since that time, Varo has made news as the first fintech to acquire a national bank charter. Currently, the savings accounts are held by The Bancorp Bank. Later this year, accounts should be moved over to Varo Bank.

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 specials have dried up. Patriot Bank and CFBank recently ended their rate guarantees. The only one with a rate guarantee that I’m aware of is the Yield Pledge Money Market account at TIAA Bank.

In July TIAA Bank lowered the promo rate of its Yield Pledge Money Market account from 1.01% to 0.75% APY. This applies to balances up to $250k. A version of this offer has long been available at TIAA Bank/EverBank. However, I don’t remember a time when the intro rate was this low. After the 1-year intro period, a tiered-rate structure takes effect. The current ongoing APYs range from 0.50% for under $10k to 0.70% 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.

There has been one nice surprise with these no-penalty CDs. Marcus by Goldman Sachs came out with a new 8-month No-Penalty CD with a 1.10% APY. That’s 20 bps higher than any other no-penalty CD rate. The only caveat is that it’s a promotional account that’s only available to AARP members (see review). Marcus by Goldman Sachs is also offering a promotional rate on its online savings account for AARP members that guarantees for 24 months a rate 10 bps higher than the standard online savings account rate. The appeal of that deal went way down after the recent rate cut that lowered the standard online savings account yield from 1.05% to 0.80%. That took the AARP promo rate down to 0.90%. So now, the AARP No-Penalty CD is clearly the best deal.

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, three banks lowered their no-penalty CD rates in the last two weeks. These include Ally Bank, CIT Bank, and M.Y. eBanc.

Below is a list of noteworthy no-penalty CDs.

  • 1.10% APY 8-mo No-Penalty CD for AARP members ($500 min) - Marcus by Goldman Sachs
  • 0.90% APY 13-month Penalty Free CD ($500 min) - CFG Bank
  • 0.90% APY 11-month No Penalty CD (no min) - Ally Bank
  • 0.90% APY 7-month No-Penalty CD ($500 min) - Marcus by Goldman Sachs
  • 0.80% APY 11-month No-Penalty CD ($500 min) - Marcus by Goldman Sachs
  • 0.80% APY 11-month Flex Time Deposit ($100k min) - M.Y. eBanc
  • 0.75% APY 11-month Liquid CD ($5k min) - Citizens Access
  • 0.70% APY 13-month No-Penalty CD ($500 min) - Marcus by Goldman Sachs
  • 0.70% APY 11-month No Penalty CD ($5k min) - Colorado Federal Savings Bank
  • 0.65% APY 11-month Flex Time Deposit ($10k min) - M.Y. eBanc
  • 0.50% APY 11-month No-Penalty CD ($1k min) - CIT Bank
  • 0.50% APY 11-month No-Penalty CD ($10k min) - PurePoint Financial
  • 0.45% APY 13-month No-Penalty CD ($10k min) - PurePoint Financial
  • 0.40% APY 14-month No-Penalty CD ($10k min) - PurePoint Financial
  • 0.40% 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 has already happened at Fidelity.

The 7-day yield of both the Fidelity Money Market Fund and the Fidelity Municipal Money Market Fund remains at 0.01%.

Vanguard money market fund yields are still well above 0.01%, but their yields keep falling. The Vanguard Prime Money Market Fund 7-day yield fell 3 bps to 0.10% in the last two weeks. Vanguard Municipal Money Market Fund 7-day yield also fell 3 bps. Its yield is now 0.19%.

Reward Checking Accounts

In my list of nationally available reward checking accounts, only two had rate cuts of the top tiers. These are the eCentive Account at Heritage Bank and the Dividend Rewards Checking at First Tech Federal Credit Union. The top rate of the eCentive Account fell from 1.53% to 1.39% APY for balances up to $25k. The top rate of the Dividend Rewards Checking fell from 1.50% to 1.25% APY. This now applies to balances up to $10k. This cap had been $15k before this rate cut.

The unique aspect of these two accounts is that both have long histories, which provide insights about where other reward checking rates are headed. The eCentive Account had its lowest top rate of 1.26% from 2013 to 2017. The Dividend Rewards Checking has reached a new low. Its previous low was 1.58% from 2013 to 2018.

Overall, reward checking accounts have generally been more resistant to Fed rate cuts than online savings accounts. As you can see from above, they’re not immune. 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.

There are no longer any institutions that offer nationally available CDs with yields of at least 2.00%. The highest 5-year CD rate that’s nationally available is now 1.56% APY at Connexus Credit Union. Connexus is considered to have easy membership requirements in which an association can be joined to qualify for credit union membership.

There’s a chance you can still get 2%+ on a CD from a local bank or credit union. Two that I mentioned last week in my bi-weekly CD summary are still offering 2%+ CDs. First is Generations Credit Union which is offering a 5-year CD with a 2.12% APY. Anyone in Washington State is eligible, but CDs can only be opened at a branch. On the East Coast, Asian Bank continues to offer 2.02% APY on 4-year and 5-year CDs. Asian Bank also is offering a very competitive 15-month CD with a 1.68% APY. Asian Bank’s market area includes southeast Pennsylvania, portions of south New Jersey, portions of New York City and Westchester County, and northern Delaware.

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 August 4, 2020

Checking/Savings/Money Market Accounts:

Affinity Plus Federal Credit Union2.02% (up to $25k), 0.75% APY ($25k+)Superior Money Market (min $500 direct deposit into any account)
Affirm1.30%Affirm Savings
Customers Bank1.25% ($25k min)Ascent Money Market Savings
Smarty Pig1.25% (up to $2.5k), 1.15% ($2.5k+), 1.00% ($10k+), 0.95% ($50k+)SmartyPig Savings - Account review
Varo1.21% (2.80% up to $10k w/chk requirements)Varo Savings - Account review
First Foundation Bank1.20% ($1k min)Online Savings - Account review
Connexus Credit Union1.15% ($100k) 1.00% ($50k) 0.75% ($20k) 0.60% ($10k) 0.50% ($1k)Money Market Account (Active checking required)
Pen Air Federal Credit Union1.10% ($500 min)15-month Add-On CD - Account review
CFG Bank1.10% ($25k min), 1.00% ($1k)High Yield Money Market Account - Account review
Citi1.05%Citi Accelerate Savings Account (Not available in all states, chk relationship required)
FitnessBank1.05% ($250k max) (requires using step tracker app and averaging 12.5k steps/daily) Fitness Savings Account - Account review
CIBC USA (formerly The Palladin PrivateBank)1.05%Agility Savings Account - Account review
Nationwide by Axos Bank1.05% ($100 opening)My Savings (requires checking with minimum monthly $1k direct deposit) (*NTS)
TotalDirectBank1.05% ($5k min)Direct Money Market Deposit Account (not available in CA or FL) - Account review
CFBank1.05% ($20k min deposit) Platinum Money Market Promo - Account review
Vio Bank1.04% Online High Yield Savings - Account review
SFGI Direct1.01%SGFI Direct Savings Account - Account review
Quontic Bank1.01 ($150k), 0.90% ($5k), 0.80 (up to $5k)Personal Money Market - Account review
Live Oak Bank1.00% ($5 million max) Savings Account - Account review
Ally Bank1.00%Online Savings - Account review
Virtual Bank1.00% eMoney Market Special - Account review
CommunityWide Federal Credit Union1.00% (penalty-free withdrawals first 5 days of each calendar quarter)High Rate Quarterly Funds Account - Account review
Salem Five Direct1.00% (up to $1m)eOne Savings, new customers only - Account review
American Express National Bank1.00%High Yield Savings - Account review
PNC Bank1.00% Online High Yield Savings (not available in all states) - Account review
Simple1.00%Protected Goal Account
Comenity Direct1.00% ($100 min)High-Yield Savings - Account review
CIT Bank1.00% ($100 min)Money Market - Account review
ConnectOne Bank1.00% ($2.5k min)OneConnection Savings - Account review
Spectrum Credit Union1.00% ($2.5k min)Market Edge Savings - Account review
WauBank1.00% ($5k min) High-Yield Savings (only available in AZ, CT, FL, MA, RI, TN, VA) (*NTS) - Account review
Northern Bank Direct1.00% ($5k min)Money Market - Account review
Citizens Access1.00% ($5k min)Online Savings Account - Account review
Pacific National Bank1.00% ($5k min) Money Market Deposit Account - Account review
My eBanc1.00% ($25k min opening deposit)eRelationship Savings Account - Account review
Bellco Credit Union1.00% ($50k) 0.50% ($10k) 0.10% (up to $10k)Premier Money Market Account
CFSB (Colorado Federal Savings Bank)1.00% ($50k+) Premier Savings (New customers) - Account review
Sallie Mae Bank0.99%Money Market Account - Account review
Discover Bank0.95%Online Savings - Account review
Bank5 Connect0.95% ($100 min)High Interest Savings - Account review
BMO Harris Bank0.95% ($5k)Platinum Money Market (excludes AZ, FL, IL, IN, KS, MN, MO and WI - Account review
CIT Bank0.95% ($25k min)Savings Builder - Account review
First Internet Bank0.91% (no min) Money Market Savings
PenFed Credit Union0.90% (up to $250k)Premium Online Savings
Nationwide by Axos Bank0.90%Money Market Plus
My eBanc0.90%Super Saver Money Market - Account review
Sallie Mae Bank0.90%High Yield Savings - Account review
FNBO Direct0.90%Online Savings
TAB Bank0.90% ($1 min)High Yield Savings - Account review
BrioDirect0.90% ($25 min)High-Yield Savings - Account review
Nationwide by Axos Bank0.90% ($100 opening)My Savings
Axos Bank0.90% ($250 opening)High Yield Savings - Account review
ableBanking0.90% ($250 min)Money Market Savings - Account review
Nationwide by Axos Bank0.90% ($300 opening)Regular Savings
Marcus by Goldman Sachs0.90% ($500)8-month No Penalty CD (AARP members only) (*NTS) - Account review
CFG Bank0.90% ($500 min)13-month Penalty Free CD - Account review
Marcus by Goldman Sachs0.90% ($500 min)7-month No Penalty CD - Account review
Ally Bank0.90% ($25k min)No-Penalty 11-month CD - Account review
CNB Bank Direct0.89% ($25k+)Premium Money Market
DollarSavingsDirect0.85%Dollar Savings Account - Account review
Northfield Bank0.85% ($225k max) Online Platinum Savings - Account review
CFSB (Colorado Federal Savings Bank)0.85% High Yield Savings - Account review
All America Bank0.85% (up to $50k), 0.25% ($50k+)Mega Money Market Account - Account review
Redneck Bank0.85% (up to $50k), 0.25% ($50k+)Mega Money Market Account
WebBank0.85% ($1k min)High Yield Savings - Account review
Amboy Direct0.85% ($3k min/$100k max)Personal eSavings - Account review
Discover Bank0.85% ($100k min), 0.80% ($2.5k) MMA - Account review
Capital One0.80%360 Performance Savings - Account review
State Bank of India (IL)0.80% (no min) Money Market
Barclays0.80%Online Savings - Account review
Prime Alliance Bank0.80% ($1+)Personal Savings - Account review
Marcus by Goldman Sachs0.80% ($500 min)11-month No Penalty CD - Account review
Rising Bank0.80% ($1k min)High Yield Savings - Account review
Bank of Hope0.80% ($1k min)Money Market Account (Not available in AL, CA, IL, NJ, NY, TX, VA, WA)
SkyOne Federal Credit Union0.80% ($1k) High Yield Savings ($1k monthly deposit required) - Account review
PurePoint Financial0.80 ($10k min)Online Savings - Account review
Marcus by Goldman Sachs0.80% ($500 min)High-Yield Online Savings Account - Account review
Synchrony Bank0.75%High Yield Savings - Account review
Western State Bank0.75% (up to $3m)High Yield Money Market - Account review
TIAA Bank0.75% (up to $250k), 1yr intro rate; 0.70% ($100k+), 0.65% ($50k+), 0.60% ($25k+), 0.55% ($10k) ongoing ratesYield Pledge Money Market - Account review
Alliant Credit Union0.75% ($100 min)High-Rate Savings - Account review
BankUnitedDirect0.75%Online Money Market - Account review
Quorum Federal Credit Union0.75%HighQ Savings Account
Popular Direct0.75% ($5k min opening deposit) Ultimate Savings - Account review
Citizens Access0.75% ($5k)11-month Liquid CD - Account review
BankPurely0.75% ($25k min) PurelyMoneyMarket - Account review
iGObanking.com0.75 ($25k min) MMA, New accounts and new money only - Account review
HSBC Direct0.70%HSBC Direct Savings
MutualOne Bank0.70% ($1m max)Online Statement Savings - Account review
Marcus by Goldman Sachs0.70%13-month No Penalty CD ($500) - Account review
MySavingsDirect0.65%MySavings Account - Account review
EBSB Direct0.62% ($10k+), 0.50% ($10+), 0.25% ($2m+)Money Market Special 3 - Account review
UmbrellaBank.com0.61% ($25k min), 0.25% ($1k)Money Market
State Bank of India (IL)0.60% (no min) Savings
Bay State Savings Bank0.55% ($5k min)Smile Worcester County Consumer Money Market - Account review
Northpointe Bank0.55% ($5k+), 0.50% ($2m+), 0.25% ($100) Ultimate Savings - Account review
Bethpage Federal Credit Union0.50% ($500 min)Money Market
CIT Bank0.50% ($1k min)11-month No-Penalty CD - Account review
Quontic Bank0.50% ($5k)High Yield Savings - Account review
American Heritage Credit Union0.50% ($10k min)High Yield Savings

*New To Summary

Reward Checking Accounts:

  • Noteworthy Accounts Available Nationwide:
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)
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
Western Vista Federal Credit Union3.25% (up to $15k), 0.01% ($15k+)Panorama 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
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
Industrial Bank2.50% (up to $15k), 0.25% ($25k+)Kasasa Cash
Campus Federal2.31% (up to $10k), 0.05% ($10k+)Lagniappe Checking
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
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
Signature Federal Credit Union2.00% (up to $20k), 0.10% ($20k+)High-Yield Checking
Ideal Credit Union2.00% (up to $20k), 0.05% ($20k+)High Yield 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
Quontic Bank1.50% (up to $1m)High Interest Checking (*NTS) - Account review
KS StateBank1.50% (up to $25k), 0.25% ($25k+)Check PLUS - Account review
Finex1.50% (up to $25k), 0.20% ($25k+)Axcess Rewards Checking, Premier Account (formerly First New England Federal Credit Union)
Blue Federal Credit Union1.50% (up to $15k), 0.10% ($15k+)Extreme Checking (up to 3.50% w/account relationships) - Account review
Great Lakes Credit Union1.50% (up to $10k), 0.05% ($10k+)Free Checking
Heritage Bank1.39% (up to $25k), 0.39% ($25k+)eCentive Account
Axos Bank1.25% (up to $150k), 0.00% ($150k+)Rewards Checking
First Tech Federal Credit Union1.25% (up to $10k), 0.01% ($10k+)Dividend Rewards Checking
BankFirst1.25% (up to $10k), 0.15% ($10k+)Kasasa Cash
All America Bank1.10% (up to $10k), 0.25% ($10k+)Ultimate Rewards Checking
Redneck Bank1.10% (up to $10k), 0.25% ($10k+)Redneck 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

Certificates of Deposit:

Bank Account Alternatives - May Not Be FDIC Insured

GM Financial Right Notes2.00% ($500+)
Ford Interest Advantage1.40% ($50k+), 1.25% ($15k+), 1.20% (less than $15k)Ford Interest Advantage review
Duke Energy PremierNotes1.40% ($50k+), 1.25% ($10k+), 1.20% (less than $10k)Duke Energy PremierNotes review
Ally Financial Demand Notes1.10% ($50k+), 0.95% ($15k+), 0.75% (less than $15k)
Aspiration1.00% ($10k max) Spend and Save Account Cash Management Account
Wealthfront0.35% Cash Account Cash Management Account
SoFi0.25% SoFi Money Cash Management Account
Vanguard Municipal Money Market Fund0.19% 7-day yield
Vanguard Prime Money Market Fund0.10% 7-day yield
Fidelity Municipal Money Market Fund0.01% 7-day yield
Fidelity Money Market Fund0.01% 7-day yield

Related Pages: savings accounts, money market accounts, reward checking accounts, 1-year CD rates, nationwide deals, Internet banks
  |     |   Comment #1
Believe the time has come as everything else nowadays seems to be on the table these banks really need to rename their accounts aka "Hi Yield" "Ultimate" "Mega Money" "High-Rate" and any other I might of missed as I wipe the tears from my eyes. For now on let's just call a "Pig a Pig" and a "Dog a Dog" they are the same as other offering or so called "Savings" accounts pretty pathetic. Have a nice day
  |     |   Comment #2
Banks are flush with cash and too much cash (that cant be loaned out) is a liability, a drag on profits, thus rates drop encouraging less savings and hopefully, more loaning! The cycle...meanwhile the Fed looking LONG term has stated that 2.5-4.0 % inflation is now the "target" vice the ol' hardly achieved, sometimes not, 2% inflator target. So eventually, we will see higher rates across the board. In 2021 probably not, maybe not even 2022, a LOT depends on the Covid drag on the world economy. So hard assets, metals, real estate and even growth stock (pending reasonable profit forecasts) will surge ahead, at least until election day I'd think.....
  |     |   Comment #7
FI need new loan policies and personnel! Anyone can make loans in easy times but now? What can be easier than making SBA guaranteed loans (80+% is guaranteed by SBA)? FIs can’t!
  |     |   Comment #6
Suggested new name: NotNegativeRate Account. That's the only positive thing left as collectively they all go for how low can we go and still be considered savings accounts.

Seeing today online my AXOS money market rate dropped from 1.05% June statement to new .75%
  |     |   Comment #18
MoneyMoves: Good idea. I am thinking that since banks are so frugal these days and, their advertising budgets are also likely slashed, they will need to go with a shorter name than you have suggested. How about "Mattress Savings Account"? That would accurately reflect the similarities in interest rates between the money in their account, and the money under our Serta Posturepedic.
  |     |   Comment #24
Agree kcfield ... "Mattress Savings Account" offered by Serta Savings and Loan. Whole new spin on those "sleep number" mattress ads ... what's your number? Sink into .25%? Or our super supportive .75%??
  |     |   Comment #9
Everything is relative. Just completed moving a mountain of trust account cash out of the Vanguard Federal MMF that is currently paying about 0.10%. Even with tax advantages that's only a fraction of the after tax return in one of the top tier banks.

Not long ago, this Vanguard fund was competitive with and sometimes beat the banks especially on an after tax basis (as did other similar tax advantaged mutual funds). The spread took a nosedive a few months ago as I expected it would. These funds don't return much in low rate environments since they are tied more closely to Fed rates. So it was time to rotate out. One month project in my case. Now happily complete with a nice bump in return. Everything is relative.
  |     |   Comment #10
"The spread took a nosedive a few months ago as I expected it would."

Correction... meant to say the rates on the Vanguard fund took a nosedive. The spread versus liquid bank deposits increased substantially.
  |     |   Comment #19
PD: Indeed, everything is relative. About a month ago I was irritated with American Express Savings for having joined the crowd in frequent and precipitous savings account rate cuts. At the time they had slashed their rate further to 1.00%. Since then they have finally had the sense to leave their rates alone; so now they are back in the top 10 available rates (tied for 8th when I run the screen for Michigan and national rates). Not only are their rates once again competitive, they are also once again seeming more stable and less elastic than other savings institutions, who are cutting their rates at a faster clip than American Express.
  |     |   Comment #3
Well I just got even more bad news. My Insight card 5% savings accounts just got lowered to 1%. Well it was a good 5 year run. I had 8 accounts with $50,000 total earning 5% in these. The accumulated interest above the $5,000 cap also earned 5%. I'm keeping them open though because I believe that 1% on liquid cash will be looking good by the time this is over. The Netspend and clones is still paying 5% on $1,000. I think I will put this into my add-on CD's now.
  |     |   Comment #4
Dropped like a rock as i the kasasa cash accounts will drop like a rock, and they will all follow suit at the same time.
  |     |   Comment #5
The article states, under "CD Deals":
On the East Coast, Asian Bank continues to offer 2.02% APY on 4-year and 5-year CDs. Asian Bank also is offering a very competitive 15-month CD with a 1.68% APY.

According to Asian Bank's rate sheet, as of August 5:

48-59 months 1.00% APY; 60 months 1.25% APY
15 months 1.00% APY
  |     |   Comment #8
Worse Savings account I have .
$1 to Open
$1+ 0.05% APY
Never tells you they don't pay the interest,
until a certain threshold and couldn't say what it is.
What about the Truth in Savings Regulation?
  |     |   Comment #11
So things and times have changed for me as well now.

My wife died the 4th, and now I have other issues to deal with than rates, and at 73+ with no debt,no family on her side, and little on mine, I have run out of reasons for worrying any longer about accumulation, really don't much care anymore. Never owned stocks, no 401K's, no IRAs, no metals, only saved and CD;s But managed to get close to 2m anyway, my way.

Its been a long running movie, but its coming to the end. Being Army retired and on SS, with my expenses and living standard, that income alone would sustain me. Being now single and paying single taxes starting 2021 I need to drop my income anyway.

So good luck to all you "actual" CD'ers and savers, the only advice I can give, is "live within your means"
  |     |   Comment #12
Good Luck, Hoody. Sorry about passing
  |     |   Comment #13
I'm so sorry about your wife's passing Hoody. It's unbearable losses like that that make us reevaluate what's really important in life.

And I second your advice about living within your means as the cornerstone of financial independence.

I too am fortunate enough to expect that I have enough wherewithal to sustain me for the duration of my retirement and I credit it in large part to have consciously lived within my means since I first became an adult. I am fortunate enough to be able to play the money game as an academic hobby now rather than a necessity thanks to that ethic.

What troubles me greatly is seeing many around me who did not follow that rule as I did who are now without sufficient means and expect to fund their retirements by taxing me more to pay for it.
  |     |   Comment #14
Hoody very sorry to hear about your wife's passing. Have appreciated your contributions to the blog over the years. Take care of yourself and hang in there.
  |     |   Comment #15
Sorry to hear of your loss, Hoody.
  |     |   Comment #16
Hoody, sorry for your loss and what a great example you have set for many to follow. Yes, living within your means is the best advice to give!
  |     |   Comment #17
My condolences Hoody. Well that sure puts things in perspective. Maybe it's time to spend a bit and have some fun while we are still able to.
Living withing your means seems like such a simple concept yet it's one that a great many are still unable to grasp. I have family that has their money spent even before they earn it.
  |     |   Comment #20
Thank you all for your response.

I will add this point, seems the 2 CU's I had 1 each CD at that was in her name only for ins and tax purposes, have actually let me close them and reopen a new one with the remaining time of the original CD at the same 3+ %. in my name.

so far so good,

but holy o, because I left them there I am now way over the 250K ins limit since I no longer have anyone other than myself .So yes I'm still going to keep getting that 3+% interest, but boy now I not only will be paying more taxes, but also will have to hope the economic system doesn't explode with all this debt.

I have 3 CD's coming due at one of those CU's (Navy) this coming Feb, so I'll be able to move that. But even moving that will only be half of what I have there.

amazing how growing up and living poor, that now I have to worry about being rich, funny how things work sometimes. But I don't plan to be opening up any more of these :)

Thanks again, and the best to you all, and hopefully we'll all survive these insane times.
  |     |   Comment #21
Go talk to the CU...this happens all the time and they should know the rules like I suspect having over limit for rest of term may be okay (if the Cu merged with another where you had accounts you can be over for a period of time), or penalty free distributions verses taking that excess money for a lower rate elsewhere
  |     |   Comment #23
Or add a few beneficiaries: $250k protection per each
  |     |   Comment #25
Hoody - Very sorry for your loss, especially at this crazy time.

A couple of things you might consider - the NCUA rules say that when a joint owner of a deposit account (including a CD) dies, the NCUA insurance coverage does not change for 6 months after the death. So, it sounds like you have until Feb. 4 of next year before the coverage lessens. As mentioned by someone above, adding “Payable on Death” (POD) beneficiaries might be a way to go. One error people sometimes make, is that 2 POD beneficiaries equals $500,000 of insurance (not $750,000), 3 equals $750,000, etc. In other words, the single owner himself is not counted in this calculation, only the POD beneficiaries. Also, the NCUA allows NO grace period if a POD beneficiary dies (unlike the 6-month grace period when a joint owner dies).

The following NCUA on-line pamphlet can be useful -

Now, the people at your credit unions should know this stuff and more, and probably do, but these days I'm seeing some situations where some new employees maybe haven't been well-trained, or are working from locations where they don't have access to as much information, as they used to. Good luck!
  |     |   Comment #26
thanks for the reply, however as I said, there was only us 2, we have no family here, and I don't need to just pick someone off the street to add to my life savings. I have been doing CD's all along and am well aware of the requirements for FDIC/NCUA coverage, I had it all done right, but now I'm one person.

I will deal with it as I have with everything else in life so far, 3 CD's will be coming due in Feb at Navy, I will see how things are than, If the country is still stable I may open a short 3 to 6 mo CD, don't care about the rate .

I plan to spend but having lived the way I have its hard to find anything of interest at this point. I traveled around the world twice during my long military time, so travel isn't on the top of my list, My next plan is most likely to apply for the old soldiers home in MS.

A friend has said to buy a new car, the ones I have now are 05 and 09, with the 05 only having 60K and the 09 under 30K, I drive maybe 100 miles a year, so buying a 30K car to drive around her seems pretty nutty, but who knows.

Its a strange place to be at this point. As I said I never had any stocks, 401K's or own any metals, I joined the military at 17 and never had any unemployment or welfare, I just lived low and saved, but always had what i/we needed, bought my small home at 30, and paid it off in 27 yrs. Now I don't even need that but it is a place to live and the real estate tax is only 1100 a year, a lot less than 100 a month small apartment.

Anyway, I'm still in the process of finding my way as a single person again after 43 years, and will at some point figure out what to do. There's a lot of things I find that have to be done even at death, I just hope the country can get itself together again soon.

all the best to everyone......
  |     |   Comment #27
that's 1000 miles per year :) not 100 :)
  |     |   Comment #30
Saving nearly 2 million with no stocks, IRA's, 401K's etc. is quite the accomplishment Hoody! You are the perfect example of the American dream where hard work and saving can lead to success no matter how you started out. I know the service paid next to nothing back then! lol
Back when I was a kid interest rates were 5-7% in savings and CD's 24/7 I had no stocks and planned on saving a million to live off the interest. Then as the government started to pile on the debt interest rates crashed to the floor and I figured I would need 2 million and stocks, bonds, IRA's etc. Now with rates dropping this low even 2 million is only $20,000/yr. income at 1%.
This kind of reminds me of chasing home prices back during the housing boom. No matter how much you saved you couldn't catch up to the increased prices.
Well hopefully the economy recovers, this virus and associated fears go away and the country gets back to normal so we can all enjoy our lives again.
  |     |   Comment #33
Condolences on your loss and thank you for your dedication and service to our country. I think you should give yourself a little time to sort your future options related to living out the rest of your life. It appears that you are a sound thinker with a good grasp of reality. Unfortunately, that may not always be the case due to health or cognitive issues later in life.

Setting up a comfortable late life living arrangement for yourself should not be overlooked. Depending on how you choose to live out your senior years, be it retirement home, assisted living, on your own, etc. outliving your finances should not be a problem for you and it sounds like you may eventually have an estate to pass along. If there is to be no beneficiary as you are suggesting, you will need to come to terms with the fact that your estate will still be going somewhere. Perhaps a financial advisor and/or a spiritual advisor would be helpful to you in coming to terms with options you are comfortable with. It could be a charity, distant relatives, old friends, etc. but nonetheless the reality is it will be going somewhere and could do a lot of positive things for others.

In the meantime, you have a lot of living to do and what and how you do it is up to you. Managing your financial resources has been something you have done well in the past but I still think it may be a good time to consider some outside assistance with your future living plans.

Wishing you the best of outcomes in all your future endeavors.
  |     |   Comment #22
Hoody: Thank you very much for sharing your wise counsel with us. I am very sorry to hear of your loss.
  |     |   Comment #28
Hoody: Sorry for your loss. Am afraid our discussions here typically do not strike as close to home as this, but it is a good reminder that carpe diem is real. Thank you for sharing, thank you for setting such a good example for your fellow Savers, and of course good luck to you as well.
  |     |   Comment #29
First Foundation Bank has lowered its savings account rate from 1.20% APY to 1.00% APY as of 8/7/20.
  |     |   Comment #31
Hoody sorry for your have close to 2 million and no debt are sitting in the cat birds seat. You have a military pension and S.S. most likely throwing off somewhere close to $30k a year or more, close to 2 million cash, no debt. You are 73. Draw down 4% on your saving per year, throw back the additional 1 to 3% interest you are getting now to your saving and you should be averaging somewhere close to 75 / 100k a year for the next 25 years which puts you at 98 yrs of age. Of course going forward in the next 25 years as interest rates move up you will add more to your cash position. Enjoy your retirement and spend now.
  |     |   Comment #32
Silver inflated another +13.7% last week and has inflated +47.3% in the last month alone.
Lumber inflated another +10.6% last week and has inflated +42.3% in the last month as well. This tells me CD investing is not the best place to be and that inflation is coming so don't lock into those 1 percent 5-7 yr. CDs.

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