Best Bank Account Interest Rates - Summary For November 26, 2019

Rate cuts on savings and money market accounts are still widespread. Even if the Fed decides to hold rates steady at its next meeting in two weeks, we probably still have a month or two of further rate cuts. Online banks have generally been responding to each Fed rate cut with two to three small rate cuts over a period of one to two months. So we probably will continue to see widespread rate cuts through at least December.

Below are the noteworthy savings and money market account rate changes that have occurred in the last two weeks (All percentages are APYs):

• CFG Bank High Yield Money Market (-5 bps to 2.30%, $25k+)
• TotalDirectBank Money Market Savings (-10 bps to 2.25%, $5k+)
• BrioDirect High-Yield Savings (-10 bps to 2.20%)
• My eBanc eRelationship Savings (-25 bps to 2.05%, $100k+)
• Virtual Bank eMoney Market Special (-14 bps to 2.01%)
• Western State Bank High Yield Money Market (-10 bps to 2.00%)
• All America Bank Mega Money Market (-25 bps to 2.00%, up to $50k)
• Redneck Bank Mega Money Market (-25 bps to 2.00%, up to $50k)
• Comenity Direct High-Yield Savings (-15 bps to 2.00%)
• First Foundation Online Savings (-40 bps to 2.00%)
• Customers Bank High-Yield Savings (-25 bps to 1.95%, $25k+)
• Bank 7 High Rate Online Savings (-10 bps to 1.91%)
• Bank 7 High Rate Online Money Market (-10 bps to 1.91%)
• My eBanc Super Saver Money Market (-25 bps to 1.90%)
• Live Oak Bank Savings (-15 bps to 1.85%, effective 11/27)
• Capital One 360 Performance Savings (-10 bps to 1.80%)
• Barclays Online Savings (-10 bps to 1.80%)
• Synchrony Bank High Yield Savings (-10 bps to 1.80%)
• FNBO Direct Online Savings (-10 bps to 1.80%)
• Bay State Savings Bank Money Market (-25 bps to 1.75%)
• Discover Bank Online Savings (-10 bps to 1.70%)
• Marcus by Goldman Sachs Online Savings (-20 bps to 1.70%)
• Radius Bank High-Yield Savings (-35 bps to 1.65%, $25k+)
• Discover Bank Money Market (-10 bps to 1.60%, $100k+)

The rate leader continues to be FitnessBank’s Savings Account with a 2.60% APY. This 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 2.34% APY when the step average is between 10,000 and 12,500. The rate falls significantly for lower step averages. Since only some of the customers receive these high rates, the average interest yield that FitnessBank pays out is much less than 2.60%. That may increase the odds of FitnessBank maintaining the rate lead status. The bank typically changes rates at the start of a month. So we’ll see if this holds into December.

The rate leader without activity requirement now goes to the High Yield Money Market Account at CFG Community Bank. It currently offers a 2.30% APY for balances of at least $25k. This is a new online account that started out with a 2.50% APY in early October. I’ll be surprised if it continues to retain the top spot.

The previous rate leader (without activity requirements) was First Foundation Bank which had an Online Savings Account that earned 2.40% APY. This rate plummeted to 2.00% APY on November 20th for new customers. The bank was nice enough to grandfather in existing customers, who will continue to receive the 2.40% APY. There’s no guarantee on how long this will last, but the bank has said that they have no plans to lower this rate in the near future.

The rate leader without activity requirements and without any large balance requirements is now SFGI Direct. Its savings account has maintained a 2.27% APY since January. SFGI Direct has a long history of keeping this account competitive. I wrote about the account’s 10-year history in January. The rate will likely fall, but based on its history, it will likely remain competitive.

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. There are currently four accounts with rate guarantees that are worth mentioning. None are new to this week.

First, Customers Bank continues to offer a promotion on its Ascent Money Market Savings Account with a 2.25% APY guaranteed until 6/30/2020. A minimum balance of $25k is required.

In September, I reported on the MAX-Yield Money Market Account promotion at Sun East Federal Credit Union. This is still available. The account offers 2.20% APY on balances from $5k to $250k, and the rate is guaranteed for 13 months from account opening. Withdrawals are much more limited than the average money market account. Fee-free withdrawals are restricted to only one per calendar quarter.

The third rate guarantee is being offered by Elements Financial Credit Union. It’s a new promotion of its Helium Savings Account. For new account holders, the account earns 2.10% APY on balances of $2.5k and above. That rate is guaranteed for one year. After that one year, there will likely be a large rate drop. The current rate on its standard Helium Savings Account is only 1.30% APY.

The fourth rate guarantee is the Yield Pledge Money Market Account at TIAA Bank. This account offers new customers 2.00% APY on balances up to $250k that’s guaranteed for the first year of account opening. 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 1.00% for under $10k to 1.80% 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 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.

Below is a list of noteworthy no-penalty CDs. Recent rate cuts have occurred at Goldman Sachs Bank. On the plus side, Citizens Access came out with a new 11-month no-penalty CD that they call their Liquid CD.

• 2.00% APY 11-month Flex Time Deposit ($100k min) - M.Y. eBanc
• 1.90% APY 13-month No-Penalty CD ($10k min) - PurePoint Financial
• 1.90% APY 11-month No Penalty CD ($25k min) - Ally Bank
• 1.90% APY 7-month No-Penalty CD ($500 min) - Goldman Sachs Bank USA
• 1.85% APY 11-month Liquid CD ($5k min) - Citizens Access
• 1.80% APY 11-month No-Penalty CD ($1k min) - CIT Bank
• 1.80% APY 6-month No-Penalty CD ($500 min) - Investors eAccess
• 1.70% APY 11-month No-Penalty CD ($500 min) - Goldman Sachs Bank USA
• 1.65% APY 13-month No-Penalty CD ($500 min) - Goldman Sachs Bank USA

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 anytime 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, money market funds had yields of around 0.01%. Keeping your cash at internet banks made a lot more sense back then. Now, it’s not so clear. Money market fund yields have risen substantially as the Fed hiked rates. However, their yields have been falling in this current environment. After three Fed rate cuts, we have seen large yield cuts on money market funds.

Vanguard Prime Money Market Fund 7-day yield fell 5 bps in the last two weeks, falling from 1.80% to 1.75%. Fidelity Money Market Fund 7-day yield fell 4 bps in the last two weeks, falling from 1.55% to 1.51%.

Municipal money market funds have the advantage of being exempt from federal income tax, but their yields continue to be quite a bit lower than the other money market funds. In the last two weeks, the Vanguard Municipal Money Market Fund 7-day yield fell 1 bp to 1.05%. Fidelity’s 7-day yield also fell 1 bp. Its yield is now 0.80%.

Reward Checking Accounts

In the last two weeks, three nationally-available reward checking accounts had rate cuts.

Orion Federal Credit Union announced that its Premium Checking Account will no longer have a top-tier rate of 4.00% APY for up to $30k. Effective December 1st, the qualifying rates will be as follows: 3.00% APY (up to $15k), 2.05% APY ($15k-$100k), 1.50% APY ($100k-$250k), and 1.00% ($250k+). It’s unique that they decided to offer higher qualifying rates for large balances.

The other two accounts that had rate cuts were the Rewards Checking Accounts at All America Bank and at its online division, Redneck Bank. The top rate on these accounts fell from 2.75% to 2.50% APY for balances up to $10k.

Overall, reward checking accounts continue to buck the trend of falling rates. If rates keep falling, I expect we’ll see more rate and balance cap cuts on reward checking accounts. However, history has shown that reward checking accounts can sustain rates significantly higher than online savings account rates, even during a zero interest rate environment.

TAB Bank’s Kasasa Cash account remains the best deal with a 4.00% APY for balances up to $50k. This account has been offering 4.00% APY on up to $50k since we began tracking this account in April.

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

3%+ CDs are becoming rare. Those who joined PSECU still have a few days to take advantage of a 3-year CD with a 3.25% APY and a 2-year CD with a 3.00% APY (see post).

Other than PSECU, I only see three credit unions offering 3%+ CDs that are nationally available.

The first one is Andrews Federal Credit Union, and it just started to offer a 3-month special CD with a 3.01% APY. This 3-month special is scheduled to last through December 6th. On the opposite side of the maturity spectrum, Andrews Federal continues to offer a 3.05% APY on its special 7-year CD. People in any state can join this credit union via the American Consumer Council.

The second 3%+ CD is the 5-year CD at from Justice Federal Credit Union. It’s offering 5-year rates up to 3.21% APY. This requires a $100k minimum deposit and a checking relationship. The rates are about 10 bps lower without a checking relationship, and 10 bps lower for a $500 minimum deposit.

The third 3%+ CD is the mid-term CD that is still being offered by Wyoming-based Western Vista Federal Credit Union. In early September it introduced a 29-month CD special that earns 3.00% APY. There’s also a 17-month CD special that earns 2.50% APY. Minimum deposit for both CDs is only $500. This credit union currently offers a way for people in any state to join. It just requires a $5 contribution to a foundation. A reader commented that he was able to join and open the 29-month CD, but this required some work. Paperwork had to be notarized and mailed. Please refer to my review of the credit union and this CD special for more details.

The bank with the highest nationally available CD rate continues to be DollarSavingsDirect which has long been offering 2.80% APY on its 5-year CD. Minimum deposit is $1k, and a DollarSavingsDirect savings account is required. The early withdrawal penalty is only 180 days of interest. However, early withdrawals require the “consent of the Bank.” I have more details in this DollarSavingsDirect CD review.

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.

Checking/Savings/Money Market Accounts:

• Best Savings Account Rates (Nationwide and by State)
• Best Money Market Rates (Nationwide and by State)
• Best Checking Account Rates (Nationwide and by State)

• Noteworthy Accounts Available Nationwide:

Reward Checking Accounts:

• Best Reward Checking Account Rates

• Noteworthy Accounts Available Nationwide:

Certificates of Deposit:

• Best CD Rates (Nationwide and by State)
• Best IRA CD Rates (Nationwide and by State)
• Survey of the Best CD Rates (Nationwide and Local)

Bank Account Alternatives - May Not Be FDIC Insured

• Investment Discussion Forum

• Series I Savings Bond Purchased from November 1, 2019 to April 30, 2020

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