CD Rates Summary May 19, 2020
Federal Reserve, the Economy and CD Rate Forecast - May 19, 2020
5-Year CD Rates Fall Below Savings Account Rates at Many Online BanksBest Bank Account Interest Rates - Summary For May 12, 2020
Most online banks had been slowly transitioning to lower rates since March. The transition speed has picked up in the last week as major online banks like Ally, Synchrony, Barclays and Goldman Sachs lowered their online savings account rates by 20 to 25 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 includes rate changes from past rate leaders which are generally not well-known names. The second list includes rate changes from the major online banks. All percentages are APYs:
Rate changes from past rate leaders:
- FitnessBank Savings Top Tier (1.90% → 1.75%)
- BMO Harris Platinum Money Market (1.75% → 1.65%)
- CFG Bank High Yield Money Market (1.73% → 1.62%)
- Popular Direct Ultimate Savings (1.70% → 1.60%)
- HSBC Direct Savings (1.70% → 1.60%)
- Vio Bank High Yield Online Savings (1.70% → 1.60%)
- SFGI Direct Savings (1.71% → 1.56%)
- Prime Alliance Bank Personal Savings (1.71% → 1.55%)
- WebBank Savings (1.66% → 1.51%)
- WauBank High-Yield Savings (1.60% → 1.50%)
- Northern Bank Direct Money Market (1.75% → 1.50%)
- My eBanc eRelationship Savings (1.10% → 1.50%)
- Gateway First Bank Savings (1.75% → 1.50%)
- BrioDirect High-Yield Savings (1.55% → 1.40%)
- Simple Protected Goal (1.55% → 1.40%)
- SmartyPig Savings (1.40% → 1.30%)
- TotalDirectBank Money Market Deposit (1.55% → 1.30%)
- PenFed CU Premium Online Savings (1.40% → 1.25%)
- BankUnitedDirect Online Money Market (1.00% → 0.75%)
Rate changes from the major online banks:
- CIT Bank Money Market (1.65% → 1.55%)
- CIT Bank Savings Builder (1.55% → 1.45%)
- Goldman Sachs Bank Online Savings (1.55% → 1.30%)
- Synchrony Bank Savings (1.50% → 1.30%)
- Barclays Online Savings (1.50% → 1.30%)
- Ally Bank Online Savings (1.50% → 1.25%)
- Sallie Mae Bank Money Market (1.25% → 1.15%)
- Sallie Mae Bank High-Yield Savings (1.20% → 1.10%)
- Ally Bank Money Market (0.75% → 0.50%)
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.
Three banks now share the second spot with a 1.75% APY.
FitnessBank lowered the rates of its Fitness Savings account in May. Its top tier APY fell from 1.90% to 1.75%. 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.
The third bank that offers 1.75% APY is First Foundation Bank. Its Online Savings Account yield has also held at 1.75% since March. However, unlike Patriot Bank, First Foundation Bank isn’t offering any rate guarantee.
Two new accounts were added to the list. The first is Bank of Hope’s Money Market Account which has a 1.65% APY for balances of at least $1k. It’s not available in 8 states. The second is Neighbors Bank’s High Yield Online Savings which has a 1.70% APY for balances of at least $25k.
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 1.30% 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.
There’s a new no-penalty CD, and it’s a rate leader. CFG Bank is offering a 13-month Penalty Free CD with a 1.55% APY. It’s different from the others in that it allows a partial withdrawal in addition to a full withdrawal. The 13-month term makes it an even better deal. Remember, for no-penalty CDs, the longer term is always better.
Unfortunately, three banks cut their no-penalty CD rates. Those include Ally Bank, CIT Bank, and Investors eAccess.
The rates of all others have held steady in the last two weeks.
Below is a list of noteworthy no-penalty CDs.
- 1.55% APY 13-month Penalty Free CD ($500 min) - CFG Bank
- 1.55% APY 7-month No-Penalty CD ($500 min) - Goldman Sachs Bank USA
- 1.45% APY 11-month No-Penalty CD ($500 min) - Goldman Sachs Bank USA
- 1.40% APY 11-month No-Penalty CD ($1k min) - CIT Bank
- 1.35% APY 13-month No-Penalty CD ($500 min) - Goldman Sachs Bank USA
- 1.35% APY 11-month Liquid CD ($5k min) - Citizens Access
- 1.30% APY 11-month No Penalty CD (no min) - Ally Bank
- 1.20% APY 11-month Flex Time Deposit ($100k min) - M.Y. eBanc
- 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 20 bps to 0.47% in the last two weeks. Fidelity Money Market Fund 7-day yield fell 13 bps to 0.25%.
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 six weeks ago when yields were over 3.00%. From two weeks ago, the Vanguard Municipal Money Market Fund 7-day yield fell from 0.40% to 0.36%, and the Fidelity Municipal Money Market Fund 7-year yield fell from 0.16% to 0.14%.
Reward Checking Accounts
In my list of nationally available reward checking accounts, three credit unions lowered their rates in the last two weeks.
Consumers Credit Union lowered three of its Rewards Checking tiers. The top tier now offers 4.09% APY on balances up to $10k (down from 5.09%). The bottom tier now offers 2.09% APY on all balances up to $10k (down from 3.09%).
The second credit union to lower rates is Hanscom Federal Credit Union. Its Kasasa Cash account now has a top APY of 1.00% for balances up to $15k.
The third credit union to lower rates is Dover Federal Credit Union. Its Kasasa Cash account also had a large rate cut when May began. The top tier now offers only 0.25% on balances up to $30k. This new rate is extremely disappointing. It’s so low that it will no longer be listed in this summary. When this Kasasa Cash was launched a year ago, it had a 3.25% APY. The rate started to fall last March. By the end of March, its top tier APY had fallen to 1.00%.
The rate cuts at Hanscom FCU and Dover FCU are worrisome. If others fall to these low levels, reward checking accounts will no longer be a high-yield alternative to online savings accounts.
There continues to be a tie for the rate leader for balances of at least $25k. Both The Bank of Denver and ECCU offer 3.00% APY. ECCU’s balance cap is $10k larger ($35k). However, The Bank of Denver also offers that competitive Kasasa Saver account. I reviewed ECCU and its reward checking account three weeks ago.
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.
Compared to other online banks, Comenity Direct currently has some of the highest CD rates for terms of one year to five years. Minimum deposit is only $1.5k.
Only one bank now has a higher 5-year rate than Comenity Direct. It’s The Federal Savings Bank. This bank has been offering 2.05% APY on its 5-year CD for a while. Minimum deposit is $10k. I reviewed this CD and bank in this April 16th post.
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 12, 2020Checking/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:
| Institution | Rates | Notes | |
|---|---|---|---|
| Affinity Plus Federal Credit Union | 2.02% (up to $25k), 0.75% APY ($25k+) | Superior Money Market (min $500 direct deposit into any account) | |
| FitnessBank | 1.75% ($250k max) (requires using step tracker app and averaging 12.5k steps/daily) | Fitness Savings Account - Account review | |
| Patriot Bank | 1.75% ($100 min, rate guarantee through 5/31/2020) | Online Money Market (not available in CT or NY) - Account review | |
| First Foundation Bank | 1.75% ($1k min) | Online Savings - Account review | |
| Comenity Direct | 1.70% ($100 min) | High-Yield Savings - Account review | |
| Neighbors Bank | 1.70% ($25k), 1.00% ($25) | High Yield Online Savings (*NTS) - Account review | |
| UFB Direct | 1.70% ($25k min) | Premium Money Market - Account review | |
| Bank of Hope | 1.65% ($1k min) | Money Market Account (Not available in AL, CA, IL, NJ, NY, TX, VA, WA) (*NTS) | |
| BMO Harris Bank | 1.65% ($5k) | Platinum Money Market (excludes AZ, FL, IL, IN, KS, MN, MO and WI - Account review | |
| CFG Bank | 1.62% ($25k min), 1.52% ($1k) | High Yield Money Market Account - Account review | |
| Vio Bank | 1.60% | Online High Yield Savings - Account review | |
| HSBC Direct | 1.60% | HSBC Direct Savings | |
| Western State Bank | 1.60% (up to $3m) | High Yield Money Market - Account review | |
| Popular Direct | 1.60% ($5k min opening deposit) | Ultimate Savings - Account review | |
| Quontic Bank | 1.60% ($100k), 1.50% ($5k), 1.40% APY (up to $5k) | Personal Money Market - Account review | |
| SFGI Direct | 1.56% | SGFI Direct Savings Account - Account review | |
| Live Oak Bank | 1.55% ($5 million max) | Savings Account - Account review | |
| Prime Alliance Bank | 1.55% ($10k+) 1.45% ($1+) | Personal Savings - Account review | |
| CIT Bank | 1.55% ($100 min) | Money Market - Account review | |
| Marcus by Goldman Sachs | 1.55% ($500 min) | 7-month No Penalty CD - Account review | |
| CFG Bank | 1.55% ($500 min) | 13-month Penalty Free CD - Account review | |
| Rising Bank | 1.55% ($1k min) | High Yield Savings - Account review | |
| First Internet Bank | 1.51% (no min) | Money Market Savings | |
| WebBank | 1.51% ($1k min) | High Yield Savings - Account review | |
| CommunityWide Federal Credit Union | 1.50% (penalty-free withdrawals first 5 days of each calendar quarter) | High Rate Quarterly Funds Account - Account review | |
| American Express National Bank | 1.50% | High Yield Savings - Account review | |
| DollarSavingsDirect | 1.50% | Dollar Savings Account - Account review | |
| Capital One | 1.50% | 360 Performance Savings - Account review | |
| Gateway First Bank | 1.50% | Savings Account (available in 38 states) - Account review | |
| All America Bank | 1.50% (up to $50k), 0.50% ($50k+) | Mega Money Market Account - Account review | |
| Redneck Bank | 1.50% (up to $50k), 0.50% ($50k+) | Mega Money Market Account | |
| TAB Bank | 1.50% ($1 min) | High Yield Savings - Account review | |
| SkyOne Federal Credit Union | 1.50% ($1k) | High Yield Savings ($1k monthly deposit required) - Account review | |
| Northern Bank Direct | 1.50% ($5k min) | Money Market - Account review | |
| Pacific National Bank | 1.50% ($5k min) | Money Market Deposit Account - Account review | |
| Citizens Access | 1.50% ($5k min) | Online Savings Account - Account review | |
| PurePoint Financial | 1.50 ($10k min) | Online Savings - Account review | |
| Ally Bank | 1.50% ($25k min) | No-Penalty 11-month CD - Account review | |
| My eBanc | 1.50% ($25k min opening deposit) | eRelationship Savings Account - Account review | |
| CIBC USA (formerly The Palladin PrivateBank) | 1.45% | Agility Savings Account - Account review | |
| Marcus by Goldman Sachs | 1.45% ($500 min) | 11-month No Penalty CD - Account review | |
| CIT Bank | 1.45% ($25k min) | Savings Builder - Account review | |
| TIAA Bank | 1.40% (up to $250k), 1yr intro rate; 1.35% ($100k+), 1.25% ($50k+), 1.10% ($25k+) ongoing rates | Yield Pledge Money Market - Account review | |
| Simple | 1.40% | Protected Goal Account | |
| Discover Bank | 1.40% | Online Savings - Account review | |
| BrioDirect | 1.40% ($25 min) | High-Yield Savings - Account review | |
| Bank 7 | 1.40% ($100 min) | High Rate Online Savings Account | |
| ableBanking | 1.40% ($250 min) | Money Market Savings - Account review | |
| CIT Bank | 1.40% ($1k min) | 11-month No-Penalty CD - Account review | |
| Bank 7 | 1.40% ($5k min) | High Rate Online Money Market | |
| Marcus by Goldman Sachs | 1.35% | 13-month No Penalty CD ($500) - Account review | |
| Citizens Access | 1.35% ($5k) | 11-month Liquid CD - Account review | |
| My eBanc | 1.30% | Super Saver Money Market - Account review | |
| Synchrony Bank | 1.30% | High Yield Savings - Account review | |
| Barclays | 1.30% | Online Savings - Account review | |
| Smarty Pig | 1.30% | SmartyPig Savings - Account review | |
| Marcus by Goldman Sachs | 1.30% ($500 min) | High-Yield Online Savings Account - Account review | |
| TotalDirectBank | 1.30% ($5k min) | Direct Money Market Deposit Account (not available in CA or FL) - Account review | |
| Discover Bank | 1.30% ($100k min), 1.25% ($2.5k) | MMA - Account review | |
| CFBank | 1.30% ($25k min deposit) | Platinum Money Market Promo (rate guaranteed for 90 days) - Account review | |
| Mutual of Omaha Bank | 1.26% ($1k min/$1m max) | Online Money Market | |
| Ally Bank | 1.25% | Online Savings - Account review | |
| PenFed Credit Union | 1.25% (up to $250k) | Premium Online Savings | |
| Investors eAccess | 1.25% (up to $2m) | eAccess Money Market - Account review | |
| State Bank of India (IL) | 1.25% (no min) | Savings | |
| State Bank of India (IL) | 1.25% (no min) | Money Market | |
| PNC Bank | 1.25% | Online High Yield Savings (not available in all states) - Account review | |
| Virtual Bank | 1.25% | eMoney Market Special - Account review | |
| CNB Bank Direct | 1.21% ($25k+) | Premium Money Market | |
| Alliant Credit Union | 1.20% ($100 min) | High-Rate Savings - Account review | |
| CFSB (Colorado Federal Savings Bank) | 1.20% ($50k+) | Premier Savings (New customers) - Account review | |
| Sallie Mae Bank | 1.15% | Money Market Account - Account review | |
| UmbrellaBank.com | 1.11% ($25k min), 0.65% ($1k) | Money Market | |
| Sallie Mae Bank | 1.10% | High Yield Savings - Account review | |
| Bank5 Connect | 1.10% ($100 min) | High Interest Savings - Account review | |
| Northfield Bank | 1.05% ($225k max) | Online Platinum Savings - Account review | |
| Northpointe Bank | 1.05% ($25k+), 0.50% ($2m+), 0.25% ($100) | Ultimate Savings - Account review | |
| Salem Five Direct | 1.00% (up to $1m) | eOne Savings, new customers only - Account review | |
| FNBO Direct | 1.00% | Online Savings | |
| CFSB (Colorado Federal Savings Bank) | 1.00% | High Yield Savings - Account review | |
| MySavingsDirect | 1.00% | MySavings Account - Account review | |
| PurePoint Financial | 0.95% ($10k) | 13-month No-Penalty CD Account review | |
| BankUnitedDirect | 0.75% | Online Money Market - Account review | |
| Bay State Savings Bank | 0.75% ($5k min) | Smile Worcester County Consumer Money Market - Account review | |
| BankPurely | 0.75% ($25k min) | PurelyMoneyMarket - Account review | |
| iGObanking.com | 0.75 ($25k min) | MMA, New accounts and new money only - Account review | |
| Quorum Federal Credit Union | 0.75% | HighQ Savings Account | |
| MutualOne Bank | 0.70% ($1m max) | Online Statement Savings - Account review | |
| American Heritage Credit Union | 0.70% ($10k min) | High Yield Savings | |
| EBSB Direct | 0.62% ($10k+), 0.50% ($10+), 0.25% ($2m+) | Money Market Special 3 - Account review | |
| Bethpage Federal Credit Union | 0.50% ($500 min) | Money Market | |
| Quontic Bank | 0.50% ($5k) | High Yield Savings - Account review | |
| DCU | 0.50% ($25k min) | Ltd. Savings - Account review | |
| Investors eAccess | 0.50% ($500 min) | 6-month No Penalty CD - Account review |
*New To Summary
Reward Checking Accounts:
- Noteworthy Accounts Available Nationwide:
| Institution | Rates | Notes |
|---|---|---|
| La Capitol Federal Credit Union | 4.25% (up to $3k), 2.00% ($3k-10k), 0.10% ($10k+) | Choice Checking |
| Consumers Credit Union | 4.09% (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 Union | 4.00% (up to $20k), 0.05% ($20k+) | High Yield Checking Special (rate guaranteed through 6/31/2020) - Account review |
| Western Vista Federal Credit Union | 4.00% (up to $15k), 0.04% ($15k+) | Panorama Checking - Account review |
| Partner Colorado Credit Union | 3.50% (up to $10k), 0.50% ($10k-$25k), 0.10% ($25k+) | High Interest Checking |
| Evansville Teachers Federal Credit Union | 3.30% (up to $20k), 0.00% ($20k+) | Vertical Checking - Account review |
| Consumers Credit Union | 3.09% (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 Union | 3.01% (up to $15k), 0.05% ($15k+) | VIP Checking Platinum Tier - Account review |
| ECCU | 3.00% (up to $35k), 0.25% ($35k+) | Free Kasasa Cash Checking - Account review |
| The Bank of Denver | 3.00% (up to $25k), 0.25% ($25k+) | Kasasa Cash Checking - Account review |
| Garden Savings Federal Credit Union | 3.00% (up to $15k), 0.15% ($15k+) | Platinum Checking |
| Lake Michigan Credit Union | 3.00% (up to $15k), 0.00% ($15k+) | Max Checking (requirements waived through 4/30/2020) |
| INOVA Federal Credit Union | 3.00% (up to $15k), 0.70% ($15k+) | Shield Checking - Account review |
| Signature Federal Credit Union | 3.00% (up to $20k), 0.10% ($20k+) | Choice Checking |
| Great Lakes Credit Union | 3.00% (up to $10k), 0.05% ($10k+) | Free Checking |
| Industrial Bank | 2.50% (up to $15k), 0.25% ($25k+) | Kasasa Cash |
| Campus Federal | 2.31% (up to $10k), 0.05% ($10k+) | Lagniappe Checking |
| New Buffalo Savings Bank | 2.27% (up to $15k), 0.2497% ($15k+) | Kasasa Cash - Account review |
| Bellco Credit Union | 2.25% (up to $25k), 0.25% ($25k+) | Boost Interest Checking - Account review |
| Consumers Credit Union | 2.09% (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 Union | 2.02% (up to $20k), 0.10% ($20k+) | TruRate Checking - Account review |
| BankFirst | 2.02% (up to $10k), 0.15% ($10k+) | Kasasa Cash |
| Finex | 2.018% (up to $25k), 0.20% ($25k+) | Axcess Rewards Checking, Premier Account (formerly First New England Federal Credit Union) |
| First Security | 2.01% (up to $50k), 0.20% ($25k+) | Kasasa Cash - Account review |
| Bay State Savings Bank | 2.01% (up to $20k), 0.25% ($20k+) | Kasasa Cash - Account review |
| Main Street Bank | 2.00% (up to $30k), 0.25% ($25k+) | Kasasa Cash - Account review |
| Hawaii Pacific Federal Credit Union | 2.00% (up to $25k), 0.25% ($25k+) | Kasasa Cash Checking |
| Northwest Federal Credit Union | 2.00% (up to $25k), 0.25% ($25k+) | Kasasa Cash - Account review |
| GreenState Credit Union | 2.00% (up to $20k), 0.15% ($20k+) | R2 Checking - Account review |
| Elements Financial | 2.00% (up to $20k), 0.10% ($20k+) | High Interest Checking - Account review |
| One American Bank | 2.00% (up to $10k), 0.25% ($10k+) | Kasasa Cash - Account review |
| United Educators Credit Union | 2.00% (up to $10k), 0.25% ($10k+) | High Yield Checking |
| Wings Financial Credit Union | 1.76% (up to $25k), 0.05% ($25k+) | High Yield Checking - Account review |
| Connexus Credit Union | 1.75% (up to $25k), 0.25% ($25k+) | Xtraordinary Checking |
| All America Bank | 1.75% (up to $10k), 0.50% ($10k+) | Ultimate Rewards Checking |
| Redneck Bank | 1.75% (up to $10k), 0.50% ($10k+) | Redneck Rewards Checking |
| Heritage Bank | 1.53% (up to $25k), 0.15% ($25k+) | eCentive Account |
| KS StateBank | 1.50% (up to $25k), 0.50% ($25k+) | Check PLUS - Account review |
| First Tech Federal Credit Union | 1.50% (up to $15k), 0.20% ($15k+) | Dividend Rewards Checking |
| Blue Federal Credit Union | 1.50% (up to $15k), 0.10% ($15k+) | Extreme Checking (up to 3.50% w/account relationships) - Account review |
| Legence Bank | 1.26% (up to $10k), 0.25% ($10k+) | Kasasa Cash |
| Axos Bank | 1.25% (up to $150k), 0.00% ($150k+) | Rewards Checking |
| XCEL Federal Credit Union | 1.00% (up to $25k), 0.25% ($25k+) | Kasasa Cash Checking |
| Hanscom Federal Credit Union | 1.00% (up to $15k), 0.10% ($15k+) | Kasasa Cash Checking - Account review |
| Orion Federal Credit Union | 1.00% (up to $10k), 0.25% ($10k-$100k), 0.05% ($100k-$250k), 0.01% ($250k+) | Premium Checking - Account review |
| MainStreet Bank | 0.75% (up to $15k), 0.25% ($15k+) | Kasasa Cash - Account review |
*New To Summary
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
| Institution | Rates | Notes |
|---|---|---|
| GM Financial Right Notes | 2.00% ($500+) | |
| Ford Interest Advantage | 1.65% ($50k+), 1.50% ($15k+), 1.45% (less than $15k) | Ford Interest Advantage review |
| Duke Energy PremierNotes | 1.65% ($50k+), 1.50% ($10k+), 1.45% (less than $10k) | Duke Energy PremierNotes review |
| Ally Financial Demand Notes | 1.50% ($50k+), 1.35% ($15k+), 1.15% (less than $15k) | |
| Aspiration | 1.00% ($10k max) Spend and Save Account | Cash Management Account |
| Vanguard Prime Money Market Fund | 0.47% 7-day yield | |
| Vanguard Municipal Money Market Fund | 0.36% 7-day yield | |
| Wealthfront | 0.35% Cash Account | Cash Management Account |
| Fidelity Money Market Fund | 0.25% 7-day yield | |
| SoFi | 0.20% SoFi Money | Cash Management Account |
| Fidelity Municipal Money Market Fund | 0.14% 7-day yield |
Removed, Rate Too Low
| Dover Federal Credit Union | 0.25% (up to $30k), 0.05% ($30k+) | Kasasa Cash - Account review |
The FIs currently holding the funds, moved so slowly on transferring them that I missed some of the last of the good options. I only managed to get one good deal, and it's capped. Stuck with a very substantial amount of funds and no good options, at least at banks. At these returns, it doesn't make sense not to explore non-bank options.
For all...
What kind of cd FDIC/ncua guaranteed interest rate “is required” for retirement purposes on your funds? 5% or more? 3% or more? Or?
The current dividend yield on AT&T stock is 7.41%, with a maximum 15% federal income tax cap. And there is a chance of capital appreciation. In fact over the next five years there is a likelihood of it.
Compare that to the return on a 5-year CD at a bank, even at the highest available rate.
I think the "conservative" approach is also analogous to the best approach for the virus recovery. It's not either or. The conservative approach for most people in most situations is to have some of both, i.e. diversification.
Can you name a company that doesn't have business challenges?
https://www.hmbradley.com/
Who is Hatch Bank and what is their relationship to HMBradley?
Hatch Bank is a California industrial bank, Member FDIC. All deposit accounts opened through HMBradley are provided by Hatch Bank.
https://faq.hmbradley.com/hc/en-us/articles/360038742092-Who-is-Hatch-Bank-and-what-is-their-relatio...
I haven't thoroughly examined the HMBradley website. They seem to be somewhat reluctant to state what HMBradley is, but I may have overlooked stuff. They also do not have information re Hatch Bank on their homepage -- I had to look for it elsewhere on the site (though maybe I missed something on the homepage).
And it's not clear to me whether funds deposited at (or maybe "with", or perhaps "through") HMBradley are immediately insured, or whether there's a period where the funds are on deposit at HMBradley and are being transmitted by them to Hatch Bank, and will only be FDIC-insured when they arrive at Hatch Bank. Perhaps there's more info on the HMBradley website; perhaps not.
Also, I don't know what ideplorable1 means by a "checking/savings hybrid account". The HMBradley product seems to be an interest-bearing checking account (not a rewards-type checking account) with what struck me as a complicated tier structure (though I didn't really pay much attention to that).
But I don't think it's any type of savings account. Just because a checking account pays interest (even decent interest) doesn't transform it into some sort of savings account (at least not to me and, more important, not to government regulators).
checking accounts aren't meant for saving (not even rewards ones), they're designed around spending (rewards ones doublely so as the rewards are usually tied to so many spend transactions a month). This account is designed around spending (checking) and saving (savings) - that the interest rate is tied to how much you save (rather then how much you spend, like a rewards checking account would) is why the description of it being a hybrid checking/savings account - it's literally a checking account that's also a savings account (or a savings account that's also a checking account).
Of course it's also from a fintech and not a bank, so all the caveats about fintech accounts apply.
This "checking/savings hybrid account" terminology sounds like something cooked up by fintech types (SoFi/Robin Hood-type crooks and clowns) that has no definable meaning.
But maybe I'm wrong. Does the NCUA or the FDIC or any other government regulator recognize "checking/savings hybrid accounts" as a category of bank (or credit union) accounts? I'm genuinely asking this question -- any help, with citations to relevant government sources, would be much appreciated. Thanks.
It's not a bank, banking regulations don't actually apply.
"This "checking/savings hybrid account" terminology sounds like something cooked up by fintech types"
Um, you do realize HMBradley *is* a fintech and *not* a bank? This account literally is something cooked up by fintech types.
Rates are reset each quarter depending on how much you save out of your employer/external source deposits. Seems like they are pretty clear that ACH transfers in etc. will not count as deposits, so you need a real paycheck or SS income. Apparently you earn only 1.00% on your money for the first quarter until the rate changes. You get the 3% higher rate if you spend less than 75% (aka save at least 25%) of your total deposits over a quarter. Not clear if an ACH transfer of funds out or just debit card transactions count as "spending."
Thanks to D1 for mentioning this. Looks interesting, but the paint is not yet dry on this product, and I would wait a while to see how this sorts out.
What I wonder about is say you max it out after the first quarter with $100,000 earning 3% everything over that amount earns 0% so you would need to keep all your interest in the account earning 0% or that would count as a withdrawal and drop your rate. Not sure If I'm understanding that correctly or not. All these fintech startups are full of unanswered questions. The Q&A section doesn't address this either.
Do accounts that require DDs use different definitions of what constitutes a DD?
I assume it would always include a paycheck, pension or a social security deposit. But does it ever include periodic deposits from another FI or some other kind of "DD"?
Also, do you know the definition this FI uses?
Thanks.
They shut them down 5 years ago, but Synchrony Bank which is related was offering GE Capital refugees a special 5 beep bonus on any accounts they opened. You had to have come from the GE Capital world.
There were times when Synchrony was competitive so I kept some money there anyway not just because of the bonus, but still it was nice to have. I still have quite a bit of funds there for other reasons and it's paying the bonus on every account I have or new ones that I open to this day. Unfortunately there isn't much else I can recommend them for except to say there's some nice people there for what that's worth.
I think the banking industry in general is not fond of having IRA money deposited in liquid accounts and they have various ways of discouraging it.
One of the ways some FIs do that is to prohibit IRA savings accounts and only allow liquid IRA money to be in lower paying money market accounts. Unfortunately Synchrony is one of them. 0.75% anyone?
https://faq.hmbradley.com/hc/en-us/articles/360035198252-How-is-my-bonus-calculated-
You have to have verified income by them, before they pay you a penny and that direct deposit must go on on regular bases for a year, from your employer or government agency, any other deposit is excluded form any interest paid. You may deposit $250K and at the end of the year you still have the $250K and not a penny more. Your idea is lousy without reading the fine print before you suggest such adventures.
I have Elements paying me 2.10% until November so no need.
Thanks D1 for bringing this up.
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I gather from surfing the internet, that Ally doesn’t take kindly to withdrawals and has a lot of fine print verbiage to cover themselves in case customers object, so I would recommend them only to people who live no more than 30 minutes from their Salt Lake City headquarters.
If the SSDI is indeed the "public record" they speak of, then why have they refused to say so when asked precisely what public record?
If they're cutting off deposits early, and others catch on with it,
maybe we should be thinking to start funding those add on CDs.
They're getting long in the tooth now that we've had them awhile.
Lucky I will be burdened with CD maturity cash this couple of months.
And when the rates become positive again, just pay the loan(s) at once. It was easy solution.
If anyone can leverage NEGATIVE RATES into massive profit it is Doctor Deplorable!
MORL anyone??
So yes, in theory, your saving rate could be negative while your loan rate is positive. And banks would not give out negative rate loans (except, maybe, as part of a larger deal with a big business, certainly not as a straight up loan to a little guy like you or me) as they'd be losing money on the deal. When have you known any bank to intentionally lose money?
Just look at any bank. Show me one that offers you a normal savings accounts at a higher rate than then the rate on the loans they'll offer you? Currently the average30-year fixed mortgage rate is 3.56% and the average 15-year fixed mortgage is 2.91%. The top savings rates listed here at DA is 1.75% (savings) 2.02% (MMA), and 2.02% (4-year CD) and this with the Fed at 0% - drop all those numbers by 2.5% and what do you get? negative savings across the board with positive loans rates. So sorry Matt, but it's you who doesn't understand how banks work rates.
Now there are reasons why banks would try to avoid negative rates for both savings and loans, so even if the fed went slightly negative, you'd still be able to find a bank that won't charge you a negative rate to hold your money (and they certainly won't pay you to take money from them IE negative loan rate). Remember, the Fed rate is not the rate banks give it's customers. It's the rate banks use for each other. Loans rate typically start near the Prime rate, which is usually 3% higher than the Fed funds rate. (so with fed at 0%, prime is 3% notice those average home loan numbers I quoted early? they range from slightly below to well above the prime 3% rate, notice all those saving numbers quoted above? they're all well below the prime 3% rate - and those are the top savings rate numbers.)
After all, look around, the Fed is at 0% now yet how many banks have dropped their savings rates to zero? can you even name one? I doubt it, as most every bank is offering savings rates that are somewhere above zero (ranging from the next to nothing 0.01% at some brick and mortar banks to the 1.75% that is the current top rate for online savings listed here at DA).
In other words even if the Fed dropped their rates to -0.25% tomorrow, banks, even after cutting their rates as much as possible to follow suit, would still offer not-negative rates (there would be more in the 0 to 0.01% range for certain, but you'd still find banks offering more than that)
This is a very dangerous market. Its much more likely to crap 5000 points than go up 5000. In a month second quarter numbers will roll out and no way has the market priced in those results. Remember the first quarter had 2 and a half months normal and 2 weeks Covid. The second quarter will be all Covid.
My school taxes come out this week. They are projected to go up 25%. Project that all across New York State and you can easily see how bearish that is. If Mr. Sam is that excited about going up $500 in one day, I doubt he can stomach it going down $1000 the next.
As for the CD guy Choice? Yes right there with you. I locked a considerable sum into Ally's 13 month select paying 2.1% awhile ago. If I can earn that sum this year, I'm happy for sure.
Just be careful and don't do anything silly. And good luck.
One final thought on CDs, etc. Retirement? You only have “enough” if you have enough for a surviving spouse. Mentioned that concept last year to a May-December couple in Miami area...they crunched their numbers and figured they needed to move to another part of Florida...they are now seemingly comfortable without hurricane ins, less traffic, lower property taxes, etc. Same for another couple in the Keys...they moved too
Stay safe