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Best Bank Account Interest Rates - Summary for November 29, 2016

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Best Bank Account Interest Rates - Summary for November 29, 2016

The odds keep going up for a Fed rate hike at the December Fed meeting. I don’t remember the last time the odds were this high before a meeting. Last week’s release of the November FOMC meeting minutes offers more signs of a rate increase as seen in the following excerpt from the minutes:

Most participants expressed a view that it could well become appropriate to raise the target range for the federal funds rate relatively soon

The latest sign pointing to a December rate hike came from a Tuesday speech by Fed Governor Jerome Powell. In the speech he said “In my view, the case for an increase in the federal funds rate has clearly strengthened since our previous meeting earlier this month.”

The last important economic news that will ensure a December rate hike may come this Friday with the release of the Employment Report for November. According to the Calculated Risk blog, the “consensus is for an increase of 170,000 non-farm payroll jobs added in November, up from the 161,000 non-farm payroll jobs added in October.” If the jobs report doesn’t disappoint, the December rate hike should be a slam dunk (at least we can hope).

The odds of a December Fed rate hike are close to a sure thing according to the Fed funds future contracts which now indicate a 96.3% chance of a rate hike. Last year at this time, the futures showed only a 75% of a December rate hike. Another thing to look at from the Fed funds futures is the chance of a second rate hike next year. They’re indicating a 48% chance of a second rate hike by next June (down from 51% last week). Changes in Treasury yields from last week were mixed. The 30-year experienced the largest change declining by 5 bps to 2.95%. The following Treasury yields and Fed funds future probabilities are based on Daily Treasury Yield Curve Rates and the CME Group FedWatch.

Treasury Yields:

  • 1-month: 0.34% same as last week
  • 6-month: 0.60% down from 0.61% last week
  • 2--year: 1.09% up from 1.07% last week
  • 5--year: 1.78% up from 1.77% last week
  • 10-year: 2.30% down from 2.31% last week
  • 30-year: 2.95% down from 3.00% last week

Fed funds futures' probability of at least one additional rate hike by:

  • Dec 2016: 96.3% up from 93.5% last week
  • Mar 2017: 97% up from 95% last week
  • Jun 2017: 98% up from 97% last week

Savings & Checking Account Rates

For the most part, banks continue to hold steady on their savings and money market account rates. There was just one change to my list of nationally available savings and money market accounts.

MyCBB, the internet division of California Business Bank, lowered the rate of its money market account by 5 basis points to 0.60%. When MyCBB was launched in April 2015, the money market rate was 0.83%. This downward rate trend isn’t a good sign for a new internet bank. This latest rate cut places the money market near the bottom of my list of top nationally available savings and money market accounts.

The number of accounts in the 1% club remains at 20. The 1% club is the group of nationally available checking, savings and money market accounts that have rates of at least 1% APY. I exclude accounts that have promotional rates that are scheduled to fall after a certain amount of time. Also, I exclude accounts in which the 1%+ rate is available only for new customers. The ones on the promotional category include HSBC, EverBank, The Palladian PrivateBank, Northeast Bank, iGObanking.com’s MMA and Salem Five Direct.

Reward Checking Accounts

Banks and credit unions are also in a holding pattern with their reward checking accounts. There were no changes in the nationally available reward checking list.

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 & 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 will focus on banking news of the week and liquid accounts.

Rates as of November 29, 2016

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
The Palladian PrivateBank1.30% (6mo intro rate) 1.10% blended APYSavings Account - Account review
Popular Direct1.26% ($5k min)Popular Direct Savings - Account review
EBSB Direct1.25% ($10k min/$2m max)Money Market Special 3 - Account review
Redneck Bank1.25% (up to $35k), 0.50% ($35k+)Mega Money Market Account
State Bank of Texas1.25% ($100k min)Jumbo Money Market Deposit Account - Account review
Connexus Credit Union1.15% ($100k) 1.00% ($50k) 0.75% ($20k)MMA - active chk required
Northpointe Bank1.12% ($10k min, 12 month rate guarantee)UltimateSavings - Account review
EverBank1.11% (1yr intro rate) 0.61% ongoing rateMMA/Checking - Account review
Incredible Bank1.11% ($2.5k), 0.05% ($250k+)IncredibleBank Savings - Account review
Northeast Bank1.10%Pearl Money Market Promo, new customers - Account review
Dime Savings Bank1.10% Dime Direct Money Market, new money - Account review
iGObanking.com1.10% ($25k min) MMA, New accounts and new money only, Account review
Salem Five Direct1.10% (rate guarantee through January 1, 2017)eOne Savings, for new customers only Account review
SFGI Direct1.06%Savings account - Account review
McGraw-Hill Federal Credit Union1.05% (rate guarantee through 4/30/17)Holiday Money Market Promo - See review
AloStar Bank of Commerce1.05%Savings account - Account review
GS Bank1.05%Online savings account
Synchrony Bank (formerly GE Capital Retail Bk) 1.05%High Yield Savings
ableBanking1.00%Money Market Savings
iGObanking.com1.00%Savings account - Account review
Barclays1.00%Savings - Account review
Ally Bank1.00%Online Savings
Alliant Credit Union1.00% ($100 min)Savings account - Account review
California First National Bank1.00%Money Market Checking - Account review
Radius Bank1.00% ($2.5k min)Radius High-Yield Savings - Account review
Capital One 3601.00% ($10k+), 0.60% (up to $10k)360 Money Market - Account review
UFB Direct1.00% ($25k min)UFB Savings - Account review
MyBankingDirect1.00% ($25k min), 0.80% ($5k min) Earn >More Money Market
FNBO Direct0.95%Savings account
Discover Bank0.95% ($500 min) Savings account - Account review
Incredible Bank0.95% ($2.5k min) MMA - Account review
CIT Bank0.95%Savings account - Account review
Sallie Mae Bank0.90%MMA
Bank5 Connect0.90% ($100 min) Online savings account (not available for MA and RI residents)
SmartyPig0.90%Savings account - Account review
Capital One 3600.90% ($100k) 0.75% ($50k)360 Checking
TIAA Direct0.90% ($100k)MMA
American Express Bank0.90%Savings account - Account review
Clear Sky Accounts0.90% ($250k max) Savings account - Account review
Ally Bank0.85%MMA
MySavingsDirect0.85%MySavings account - Account review
Colorado Federal Savings Bank0.85% ($2.5k min)Savings account - Account review
Synchrony Bank (formerly GE Capital Retail Bk)0.85%MMA
Sallie Mae Bank0.85%Upromise GoalSaver Account
Discover Bank0.85% ($100k min) 0.80% ($2.5k) MMA - Account review
Quorum Federal Credit Union0.80%HighQ Savings Account
Digital Credit Union0.80% ($100k) 0.65% ($50k)MMA
Bank5 Connect0.76% ($100 min) Checking account (not available for MA and RI residents)
Bank of Internet USA0.75%MMA
Capital One 3600.75%360 Savings account
TIAA Direct0.65%High Yield Savings account
FNBO Direct0.65%Checking account
Alliant Credit Union0.65%Checking (req's elec. dep & e-stmts) Account review
MyCBB0.60%MyCBB Money Market - Account review
Incredible Bank0.59% ($1k min) Checking - Account review
Elements Financial (formerly Eli Lilly Credit Union)0.55% ($10k min) Helium Savings - Account review
Nationwide Bank0.50% ($1k min) MMA
Citizens State Bank (FL)0.50% ($50k) 0.25% ($10k)Internet Savings

Reward Checking Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
Consumers Credit Union4.59% (up to $20k) Rewards Checking - debit card and $1k credit card requirements
Consumers Credit Union3.59% (up to $15k)Rewards Checking - debit card and credit card requirements
One American Bank3.50% (up to $10k), 0.25% ($10k+)Kasasa Cash - Account review
Consumers Credit Union3.09% (up to $10k)Rewards Checking - debit card with NO credit card requirements
Lake Michigan Credit Union3.00% (up to $15k), 0.00% ($15k+)Max Checking
Great Lakes Credit Union3.00% (up to $10k), 0.10% ($10k+)Ultimate Checking
American Bank & Trust2.51% (up to $10k), 0.25% ($10k+)Kasasa Cash
Mid-Illini Credit Union2.50% (up to $25k), 0.15% ($25k+)Cash Rewards High Interest Checking - Account review
Capital Educators Federal Credit Union2.50% (up to $10k), 0.20% ($10k+)High Yield Checking
Bellco Credit Union2.25% (up to $25k), 0.25% ($25k+)Boost Interest Checking - Account review
Main Street Bank2.25% (up to $25k), 0.25% ($25k+)Kasasa Cash - Account review
Altra Federal Credit Union2.25% (up to $15k), 0.50% ($15k+)A+ Checking
Coastal Federal Credit Union2.25% (up to $10k), 0.10% ($10k+) Go Green Checking - Account review that includes companion Go Green MMA
TruStone Financial Credit Union2.02% (up to $20k), 0.10% ($20k+)TruRate Checking - Account review
BankFirst2.02% (up to $10k), 0.15% ($10k+)Kasasa Cash
Finex2.018% (up to $25k), 0.20% ($25k+)Axcess Rewards Checking, Premier Account (formerly First New England Federal Credit Union)
XCEL Federal Credit Union2.01% (up to $25k), 0.30% ($25k+)Kasasa Cash Checking
Legence Bank2.01% (up to $10k), 0.25% ($10k+)Kasasa Cash
Bay State Savings Bank2.01% (up to $20k), 0.25% ($20k+)Kasasa Cash - Account review
Elements Financial2.00% (up to $20k), 0.10% ($20k+)High Interest Checking - Account review
MainStreet Bank2.00% (up to $15k), 0.25% ($15k+)Kasasa Cash - Account review
Blue Federal Credit Union2.00% (up to $15k), 0.25% ($15k+)Extreme Checking (up to 4% w/account relationships) - Account review
KS StateBank1.95% (up to $25k), 0.50% ($25k+)Check PLUS - Account review
Connexus Credit Union1.75% (up to $25k), 0.25% ($25k+)Xtraordinary Checking
First Tech Federal Credit Union1.58% (up to $10k), 0.16% ($10k+)Dividend Rewards Checking
ABCO Federal Credit Union1.26% (up to $25k), 0.20% ($25k+)Premiere Checking
Aspire Federal Credit Union1.51% (up to $10k), 0.25% ($10k+)Kasasa Cash
All America Bank1.50% (up to $10k), 0.50% ($10k+)Ultimate Rewards Checking
Heritage Bank1.26% (up to $25k), 0.10% ($25k+)eCentive Account
Bank of Internet USA1.25% (up to $150k), 0.00% ($150k+)Rewards Checking
Avidia Bank1.06% (up to $25k), 0.05% ($25k+)eChecking
Community Bank of Raymore1.01% (up to $10k), 0.20% ($10k+)Kasasa Cash
Community Bank of Pleasant Hill1.01% (up to $10k), 0.20% ($10k+)Kasasa Cash
First American Bank1.00% (up to $15k), 0.13% ($15k+)Everyday Rewards Checking
Bank of Blue Valley1.00% (up to $10k), 0.10% ($10k+)$1k/month debit card req (formerly Ultimate Checking)

Certificates of Deposit:

Bank Account Alternatives - NOT FDIC Insured

InstitutionRatesNotes
Ally Financial Demand Notes1.15% rate for $50k+
Duke Energy PremierNotes1.05% rate for $50K+Duke Energy PremierNotes review
Ford Interest Advantage1.05% rate for $50k+Ford Interest Advantage review
Vanguard Prime Money Market Fund0.62% 7-day yield
Fidelity Money Market Fund0.54% 7-day yieldreviews on Fatwallet
Vanguard Tax-Exempt Money Market Fund0.48% 7-day yield
Fidelity Municipal Money Market Fund0.25% 7-day yield

Post Publication Edits

12/1/16: Vanguard Prime Money Market Fund rate increased.

12/1/16: Fidelity Money Market Fund rate increased.

12/1/16: Vanguard Tax-Exempt Money Market Fund rate increased.

12/1/16: Fidelity Municipal Money Market Fund rate lowered.

Comments
Anonymous
Anonymous   |     |   Comment #1
Thanks, Ken. You do a wonderful job with this website.
Anonymous
Anonymous   |     |   Comment #2
Enough already.  We all agree, and I'm sure Ken appreciates it, - but are you going to post this on every new topic ad infinitum?

It's getting almost as irksome and annoying as the character (perhaps you) who did the same with "The Fed will never raise interest rates" for months on end.

Repeated so compulsively the sentiment quickly loses its meaning and becomes no more than an affectation. 
Gaelicwench
Gaelicwench   |     |   Comment #3
And do you have to sound so "Bah humbug?" You're not making it any better. Cheers!
Anonymous
Anonymous   |     |   Comment #4
I don't think anonymous comment #2 was inappropriate.  It was long over due. 

 I believe Ken got the message loud and clear of how much we all appreciate him a while back.  To keep repeating it, just trivializes it. 

Merry Christmas!
Anonymous
Anonymous   |     |   Comment #5
Thumbs up just for writing "Merry Christmas" instead of the despicable and PC "Happy Holidays" so hated by the overwhelming majority of Americans.

A big Merry Christmas back atcha from a very proud and victorious deplorable.

You might enjoy this story which is true so help me God:

On a Boston radio station last evening I actually heard a commercial where the presenter first apologized for what he was about to say, and then went on to wish everyone a Merry Christmas!!!  Can you imagine a place where one feels the need first to apologize before saying "Merry Christmas"!!  That kind of stuff is absolutely NUTS!!
Gaelicwench
Gaelicwench   |     |   Comment #7
A big Merry Christmas back atcha from a very proud and victorious deplorable.

Got news for ya! I may not be a "victorious deplorable"; but I and many other so-called left-leaning people also say "Merry Christmas." I grew up saying this, and will continue doing so, and I know I can speak for others who do the same as well. Don't turn this into something it isn't. You're only making it worse than it has to be. No! I didn't vote for Hillary.
Anonymous
Anonymous   |     |   Comment #23
G is a deplorable liberal and if he didn't vote for Hillary that means he didn't even bother to vote.
Gaelicwench
Gaelicwench   |     |   Comment #6
I know and never said it was "inappropriate." It was more about the tone. Yeah, and goodonya for saying "Merry Christmas."
Anonymous
Anonymous   |     |   Comment #8
Who cares?
Anonymous
Anonymous   |     |   Comment #12
I also think Ken does a great job with this website.
RJM
RJM   |     |   Comment #13
Anonymous   Comment #2

This is worth repeating.

Enough already.  We all agree, and I'm sure Ken appreciates it, - but are you going to post this on every new topic ad infinitum?

It's getting almost as irksome and annoying as the character (perhaps you) who did the same with "The Fed will never raise interest rates" for months on end.

Repeated so compulsively the sentiment quickly loses its meaning and becomes no more than an affectation. 
#20 - This comment has been removed for violating our comment policy.
Anonymous
Anonymous   |     |   Comment #25
I'm a conservative who voted for Trump. 
h_meister
h_meister   |     |   Comment #26
I was brought up to say thank you when some one helped you or did something you appreciated or were "thankful" for. to me, it is better to err on the side of offering more thanks then less.  It's amazing to me how the degree of thankfulness transitions to a liberal versus conservative issue!
Gaelicwench
Gaelicwench   |     |   Comment #27
To comment #20......Obviously, you didn't hear about the Orange Whackjob calling the president of Pakistan, salivating over how fantastic he was, in a fantastic country, full of fantastic people. Really? HIS words all in the same sentence! Stop pointing a finger at "liberals" when three are pointing back to you. Those who live in glass houses and all that.
Anonymous
Anonymous   |     |   Comment #29
And obama (small 'o') gave Iran a nuke.
Bozo
Bozo   |     |   Comment #9
Rather than focusing on politically incorrect (or politically correct) holiday greetings, folks might be laser-focused on the 10-year Treasury. It nudged 2.41% today. Does that give anyone (other than me) pause?

When Ken posted his comments to this thread, the closing yield was 2.30%.

As I noted to my wife today, the trajectory is horrid for bond funds, and excellent for folks in CD ladders. For many years, those of us who advocated laddered CDs were met with derision from bond fund advocates.
Anonymous
Anonymous   |     |   Comment #11
No.  Wake me when the 10-year Treasuries hit 5%. 

In the mean time, have a MERRY CHRISTMAS!
Anonymous
Anonymous   |     |   Comment #10
In 2011 and 2013 long rates increased quickly and significantly within a few months. Both increases were in fear the Fed was going to end the fiscal stimulus. Both times were false flags as the Fed announced further QE. Despite the talking head financial media, attributing the rise in rates to Trump, the current rate increase should be associated with the statement Janet Yellen made recently about running a high pressure economy. A sharp and significant rise in long rates causes reluctant home buyers to get off the fence. And money brokers to spring from their easy chair of arbitraging the long bond, and temporarily look for other investments. If this rally follows suit, then long rates should get close to 3 percent within a few months. The problem with this correlation is these past rate rallies had Ben Bernanke as Fed Chair. Bernanke was a supporter of big brokers, while Yellen has shown herself to be a political activist, taking long rates down to record lows ahead of the elections. She tanked rates to avoid the usual October market decline. Giving the liberal party every advantage during the election. The record low rates generated the record high prices the housing market is experiencing now, negatively effecting the financially disadvantaged, invigorating the "fight for $15 per hour" protests. Given Obama's legacy is whittled away by Trump, the rally in the stock market may be the only thing that remains. Will Yellen risk a taper tantrum, by increasing long or short rates, endangering Obama's exit on a market high.
Anonymous
Anonymous   |     |   Comment #14
Thank you President Trump for finally getting interest rates to rise. Something Obama couldn't do for 8 years! Oh and thanks for saving thousands of American jobs even though you are not even in office yet.
Gaelicwench
Gaelicwench   |     |   Comment #15
Right! Or so you might think. Just remember the leopard cannot change its spots.
Anonymous
Anonymous   |     |   Comment #16
Obama did not have a goal of rising rates.  Wait and see about Trump...what do you think Trump promised to Carrier/UTC?
Gaelicwench
Gaelicwench   |     |   Comment #17
Both Bernanke and Yellen were in charge of raising and lowering rates. Not the President. It was one excuse after another - less unemployment; more loans But it wasn't happening. 'And that kept inflation frm flyin off the handle. I'm still pondering that....
Anonymous
Anonymous   |     |   Comment #18
However, the criteria from which they derive their inflation of deflation numbers sure are suspect to manipulation to skew the outcome to suit their own agenda.
Anonymous
Anonymous   |     |   Comment #19
The methodology is the same notwithstanding who the president is.  Any facts to support a suspect opinion?
Anonymous
Anonymous   |     |   Comment #21
Plenty.  Do your own research.  It's not that difficult.  Well, maybe some people it may be. 
Anonymous
Anonymous   |     |   Comment #22
Yeah G the FED isn't political, unemployment is really under 5% and we have no inflation. Oh and everything is still Bush's fault 8 years later........got it. Whatever Trump promised Carrier will be much less that what Obama gave Solyndra for going bankrupt. Anyway rates are going back to normal folks just look at the 10 year bond for proof of that. This is a good thing as it means that we will be able to beat inflation with interest again and the economy will get rolling again. Sorry liberals you will be proven wrong time and time again. 
Bozo
Bozo   |     |   Comment #24
To: Anonymous (Comment #14).

Increases in "interest rates" are really quite complicated. Needless to say, the yield curve has steepened. But is this a result of OPEC, inflation expectations, or just some mysterious bursting of a bond bubble awaiting a catalyst? Assigning credit to a specific person (in your case, Trump) for a specific outcome (higher interest rates) is a slippery slope. Will Trump now take the credit (or blame) for all the micro-economic ripples in the economy over which he has, most assuredly, no control?

He ostensibly "saved" 1000 jobs at Carrier. What about the others he was unable to save? Might they be irritated? Yup, you betcha.
Gaelicwench
Gaelicwench   |     |   Comment #28
Bozo, it ended up being only 700 jobs saved, and in the meantime, there are other employees out by the street holding signs that say (paraphrasing) "What about us at the Huntington plant?" Penny wise; pound foolish. And the Orange Whackjob doesn't care about using taxpayers' money. He'll be coming back to this little "save" ad nauseum to save his rear when he gets his feet held to the fire. You (generalizing) can't keep throwing our tax dollars at corporations without getting something back in return. By lowering business rates for corporations, they'll be paying hardly anything, forcing US to continue footing the bill. So, who's that going to leave to be able to buy American-made goods? No one, really. The lower- and middle-class are the biggest consumers for buying everyday needs. If we're stripped of a minimum wage, having to pay out of pocket for medical expenses, which is one step from bankruptcy, we aren't going to survive. This brings back the calamity known as the Crash of 1929, which led to the Great Depression. The country was run by very rich, very fat corporate RATS playing all kinds of shenanigans on Wall Street......
Anonymous
Anonymous   |     |   Comment #30
Poor liberals.......so cranky that Trump is saving American jobs. Funny how angry and bitter liberals like Gaelicwench are......Nothing more funny than angry liberals foaming at the mouth.      Get over it.......You liberals lost.......America won.
Anonymous
Anonymous   |     |   Comment #31
And if Obama did it...Republicans would have yelled, "interfering with free enterprise and the right to s....your employee...'we' have the fiduciary duty to our shareholders"....even if Carrier is a sub of multi-billion dollar UTC.  Integrity is nice on both sides of the streets.
Gaelicwench
Gaelicwench   |     |   Comment #35
And when the crap hits the fan, YOU own him. I so look forward to that. I'm long over the fact that he won, illegally or otherwise. Now, I'm rather excited to see what he accomplishes. Except that I'm a critical thinker, believing beyond what long-term investments will  take place. With the rich in the administration having insider access to Wall Street, the Republican Congress wanting to dismantle the Dodd-Frank Act, you will be seeing another Crash like that of 1929, possibly even worse. Bank on it! <pun intended!?
Bozo
Bozo   |     |   Comment #32
To: Gaelicwench (comment # 28).

As a die-hard Republican (with a libertarian bent), I was merely trying to temper the enthusiasm over the Carrier "deal" a bit. If the President-elect has the enthusiasm and energy (or is able to delegate) so as to preserve jobs, kudos to him. Frankly, these types of interventions (picking "winners and losers") smells too much like Solyndra.

Those of us who read Ken's blog regularly (and I count myself as one) appreciate the free-market system. I might object strenuously to a President (or President-elect) proposing preferential treatment to one credit union or another, or one bank or another, based on CD rates on offer. For example, we all love our veterans. I count myself as one. Should credit unions (or banks) serving the military community (e.g., USAA, PenFed, NavyFederal, etc.) get special treatment? I think not.

Special treatment is a slippery slope.
Anonymous
Anonymous   |     |   Comment #33
Trump should get bold and propose a ZERO corporate federal tax. Of course, they pay local impact taxes but a zero federal rate actually makes economic sense. It may sound "unfair" but many economists view corporate taxes as a losing proposition. In the end, earners, investors and consumers pay all taxes. A lot of taxation is smoke and mirrors designed to satisfy nothing more than an ideaology.  
Anonymous
Anonymous   |     |   Comment #34
While you're at it why not have another unfunded war.  Luv those deficits near/far term