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Best Bank Account Interest Rates - Summary For January 12, 2021


For the last three months, online savings account rates haven’t fallen as fast as they had in August and September. You can see this trend in our online savings account index which is the average rate of ten well-established online savings accounts.

The slowing of online savings account rate declines can also be seen at the major online banks. Fewer of the major online savings accounts have had rate cuts. I only list three with rate cuts in the last three weeks, and these three are not the most prominent online banks.

Three past rate leaders had rate cuts in the last three weeks. These are small banks with fairly new online accounts. They include Merchants Bank of Indiana, CFG Bank and First Foundation Bank. Their new rates are still on the high end for online savings accounts.

Banks that don’t have a long track record with online accounts often don’t keep their rates competitive. BankUnitedDirect is the latest example. I first reported on its Online Money Market Account in 2018. From 2018 to March 2020, the Online Money Market yield remained at a competitive 2.00%. As rates fell in 2020, the Online Money Market rate remained fairly competitive until October. In November, December and January, the rate fell considerably, and is now at a very uncompetitive 0.25%.

I’ve listed the most noteworthy rate changes that have occurred in the last three 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:

  • PenFed CU Premium Online Savings (0.60% → 0.55%)
  • Sallie Mae Bank Money Market (0.55% → 0.45%)
  • Citizens Access Online Savings (0.50% → 0.40%)

Rate changes from the less well-known online banks:

  • Merchants Bank of Indiana Money Market (1.00% → 0.75%)
  • Communitywide FCU High Rate - Quarterly (0.90% → 0.70%)
  • CFG Bank High Yield Money Market (0.72% → 0.68%)
  • First Foundation Bank Online Savings (0.75% → 0.60%)
  • INSBANK Online Money Market (0.65% → 0.60%)
  • Vio Bank High Yield Online Savings (0.66% → 0.57%)
  • USALLIANCE Financial CU High Dividend Savings (0.33% → 0.55%)
  • Salem Five Direct eOne Savings (0.61% → 0.50%)
  • Pen Air FCU Money Market (0.35% → 0.45%)
  • Amboy Direct Personal eSavings (0.55% → 0.40%)
  • Pacific National Bank Online Money Market (0.40% → 0.35%)
  • BankUnitedDirect Online Money Market (0.35% → 0.25%)

Current rate leaders

We now list a total of four liquid accounts with yields of at least 1.00% without any small balance limitation. This is down from six in December.

A rate cut removed one account from this 1% group. Merchants Bank of Indiana lowered its Money Market yield from 1.00% to 0.75%.

An addition of an account offset the removal of Merchants Bank of Indiana. The new-to-summary (NTS) account is an IRA savings account from U.S. Postal Federal Credit Union. The IRA savings account has a 1.00% APY. The rate can be boosted to 1.15% APY when the member meets a relationship requirement. Membership to this credit union is open to people from any state through membership in the American Philatelic Society. Thanks to the DA reader for bringing this account to my attention.

The other three in this 1% group remain the same as three weeks ago.

The only fintech to remain in the 1% group is T-Mobile. Its checking account continues to earn 1% APY on all balances without any activity requirements. T-Mobile has partnered with BankMobile, a division of Customers Bank, to hold the FDIC-insured deposits. The Checking Account can actually be considered a reward checking account since you can earn 4% APY on up to $3k if activity requirements are met. The requirements include being enrolled in an active T-Mobile postpaid wireless plan and being enrolled in the perks program with your T-Mobile ID. Lastly, a monthly qualifying deposit of at least $200 is required. The portion of the balance above $3k earns 1.00% APY. Also, the entire balance earns 1.00% APY if the above requirements are not met. Since the 1.00% APY can be earned without meeting any activity requirements, I’ve included the account in the savings/money market category. Thanks to DA reader calwatch for bringing this account to my attention.

The other two institutions in the 1% group are credit unions.

The Premium Money Market from Advancial Credit Union continues to offer 1.01% APY for balances of at least $100k. This isn’t a new account or rate. Advancial hadn’t been listed in past summaries due to uncertainties in its field of membership being open to people in any state. Based on the latest information from Advancial, it appears people from any state can now become a member via an association membership. Please see this blog post for more details.

The highest rate for a liquid account continues to be the money market account from Connexus Credit Union which has a 1.15% APY on balances of at least $100k. Lower tiers include 1.00% APY ($50k), 0.75% APY ($20k), 0.60% APY ($10k), and 0.50% APY ($1k). To qualify for these rates, the member must also maintain an active checking account.

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. The only one with a rate guarantee that I’m aware of is the Yield Pledge Money Market account at TIAA Bank.

TIAA Bank Yield Pledge Money Market has a 1-year guaranteed rate for new accounts of 0.45%. 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, an ongoing rate takes effect. The current ongoing rate remains at 0.40% for all balances under $10 million.

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.

Some banks like Marcus by 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

The main issue now is that their rates have been falling. Many now have rates lower than the bank’s savings account. The only reason to open a no-penalty CD with a rate that’s lower than the savings account rate is if you believe the savings account rate will fall below the no-penalty CD rate. Even if that occurs, you may earn more in the savings account if the rate falls slowly.

Due to the rate cut of Rising Bank’s 15-month No Penalty CD, CFG Bank’s 13-month Penalty Free CD (0.62%) takes the top spot for highest no-penalty CD rate.

In addition to Rising Bank’s rate cut (0.65% → 0.60%), two other banks lowered their no-penalty CD rates in the last three weeks. The other two are Investors eAccess 6-month No-Penalty CD (0.40% → 0.25%) and Citizens Access 11-month Liquid CD (0.15% → 0.05%). When rates get this low, there is no reason to open these CDs.

  • 0.62% APY 13-month Penalty Free CD ($500 min) - CFG Bank
  • 0.60% APY 15-month No Penalty CD ($1k min) - Rising Bank
  • 0.60% APY 11-month Flex Time Deposit ($100k min) - My eBanc
  • 0.55% APY 8-mo No-Penalty CD for AARP members ($500 min) - Marcus by Goldman Sachs
  • 0.50% APY 11-month No Penalty CD (no min) - Ally Bank
  • 0.45% APY 7-month No-Penalty CD ($500 min) - Marcus by Goldman Sachs
  • 0.45% APY 11-month No Penalty CD ($5k min) - Colorado Federal Savings Bank
  • 0.45% APY 11-month Flex Time Deposit ($10k min) - My eBanc
  • 0.35% APY 11-month No-Penalty CD ($500 min) - Marcus by Goldman Sachs
  • 0.30% APY 11-month No-Penalty CD ($1k min) - CIT Bank
  • 0.25% APY 13-month No-Penalty CD ($500 min) - Marcus by Goldman Sachs
  • 0.25% APY 6-month No-Penalty CD ($500 min) - Investors eAccess
  • 0.15% APY 11-month No-Penalty CD ($10k min) - PurePoint Financial
  • 0.10% APY 13-month No-Penalty CD ($10k min) - PurePoint Financial
  • 0.10% APY 14-month No-Penalty CD ($10k min) - PurePoint Financial
  • 0.05% APY 11-month Liquid CD ($5k min) - Citizens Access

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.

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 have fallen to or close to 0.01%.

The 7-day yield of both the Fidelity Money Market Fund and the Fidelity Municipal Money Market Fund remains at 0.01%. This has held steady now for the last several months.

The 7-day yield of the Vanguard Federal Money Market Fund is 0.02%. The Vanguard Municipal Money Market Fund yield is 0.01%.

Reward Checking Accounts

Reward checking account rates have been falling but there haven’t been widespread cuts that we’ve seen with online savings accounts.

In the last three weeks, three of the nationally-available reward checking accounts had rate cuts, and there was one new-to-summary reward checking account.

The two accounts that had noteworthy rate cuts are the eCentive Account from Heritage Bank and the Panorama Checking from Western Vista Federal Credit Union. The Heritage Bank eCentive top rate fell from 1.19% to 1.09% APY for balances up to $25k. This account has a long history. We’ve been tracking its rate since 2009. From 2013 to 2017, the top yield held at 1.26%, it then shot up in 2018 to 3.33%. The rate started to fall in December 2019, but the big drop came on April 1, 2020 when the top yield fell from 3.03% to 1.53%. Since April, the rate has slowly been declining.

The other reward checking account that had a rate cut was the Panorama Checking at Western Vista FCU. Its top rate fell from 3.25% to 2.53% APY for balances up to $15k. We first started to track its rate in early 2020. At that time the top rate was 4.00% APY. In June of last year, the yield dropped to 3.25%.

The one new-to-summary reward checking account is the Kasasa Cash account at Virginia-based Select Bank. Its top yield is 2.01% APY for balances up to $50k. You can also link Select Bank’s Kasasa Saver savings account to this checking account. If the Kasasa Cash requirements are met, the Kasasa Saver earns 1.05% APY on up to $250k. The combination of the two allow you to earn up to 1.21% APY on balances up to $300k.

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: The highest nationally-available CD rate is 1.50% APY at Affinity Plus Federal Credit Union. This has a 5-year term.

For short-term CDs with terms under two years, the top rate is 1.02% APY at Advancial Credit Union. This has a minimum deposit requirement of $50k and a term of 18 months.

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 January 12, 2021

Checking/Savings/Money Market Accounts:

Connexus Credit Union1.15% ($100k), 1.00% ($50k), 0.75% ($20k), 0.60% ($10k), 0.50% ($1k)Money Market Account (Active checking required)
Keesler Federal Credit Union1.05% ($25 min deposit, unlimited deposits) 1-year FirstStep CD (easy membership in AL, LA, MS) - Account review
Advancial1.01% ($100k min)Premium Money Market
U.S. Postal Federal Credit Union1.00% (1.15% with relationship rewards) IRA Savings (*NTS) - See review
T-Mobile Money1.00% (4.00% up to $3k w/checking requirements)Checking Account (deposits held by a partner bank) - Account review
Paramount Bank0.85% ($100 min deposit) High-Yield Interest Checking (non-reward checking) - Account review
CFBank0.85% ($20k min deposit) Platinum Money Market Promo - Account review
Blue Federal Credit Union0.85% ($100k), 0.75% ($50k), 0.65% ($2k) (unlimited additional deposits throughout term) 30-month Expandable CD See review
Varo0.81% (2.80% up to $10k w/chk requirements)Varo Savings - Account review
Freedom Northwest Credit Union0.80% ($15k+), 0.65% ($10k+), 0.50% ($5k+), 035% (up to $5k) Rise Money Market (checking account w/$15k min balance required, no online application, small credit union) - Account review
Customers Bank0.80% ($25k min)Ascent Money Market Savings
Merchants Bank of Indiana0.75% (up to $1m)Money Market Account
Latino Community Credit Union0.75% ($500 min)Money Market - Account review
Gold Coast Bank0.75% ($50k), 0.63% ($40k), 0.50% ($30k), 0.38% ($20k), 0.25% (up to $10k)Money Market
CommunityWide Federal Credit Union0.70% (penalty-free withdrawals first 5 days of each calendar quarter)High Rate Quarterly Funds Account - Account review
FitnessBank0.70% ($250k max) (requires using step tracker app and averaging 12.5k steps/daily) Fitness Savings Account - Account review
MutualOne Bank0.70% ($1m max)Online Statement Savings - Account review
Nationwide by Axos Bank0.70% ($100 opening)My Savings (requires checking with minimum monthly $1k direct deposit)
CFG Bank0.68% ($25k min), 0.58% ($1k)High Yield Money Market Account - Account review
SFGI Direct0.67%SGFI Direct Savings Account - Account review
Affirm0.65%Affirm Savings (deposits held by a partner bank)
TAB Bank0.65% ($1 min)High Yield Savings - Account review
Pen Air Federal Credit Union0.65% ($500 min)15-month Add-On CD - Account review
ConnectOne Bank0.65% ($2.5k min)OneConnection Savings - Account review
Quontic Bank0.65% ($5k)High Yield Savings - Account review
BrioDirect0.65% ($25k), 0.25% (less than $25k)Money Market (*NTS) - Account review
CFG Bank0.62% ($500 min)13-month Penalty Free CD - Account review
Axos Bank0.61% ($250 opening)High Yield Savings - Account review
Live Oak Bank0.60% ($5 million max) Savings Account - Account review
Western State Bank0.60% (up to $3m)High Yield Money Market - Account review
Prime Alliance Bank0.60% ($1+)Personal Savings - Account review
Synchrony Bank0.60%High Yield Savings - Account review
PenFed Credit Union0.60% (up to $250k)Premium Online Savings
National Cooperative Bank0.60% ($100 min deposit)Impact Money Market
Comenity Direct0.60% ($100 min)High-Yield Savings - Account review
Marcus by Goldman Sachs0.60% ($500 min)High-Yield Online Savings Account (additional 10 bps for AARP members) - Account review
First Foundation Bank0.60% ($1k min)Online Savings - Account review
Rising Bank0.60% ($1k min)15-month No Penalty CD - Account review
Spectrum Credit Union0.60% ($2.5k min)Market Edge Savings - Account review
Popular Direct0.60% ($5k min opening deposit) Select Savings - Account review
CFSB (Colorado Federal Savings Bank)0.60% ($50k+) Premier Savings (New customers) - Account review
My eBanc0.60% ($100k), 0.45% ($10k)11-month Online Flex Time Deposit - Account review
Vio Bank0.57% Online High Yield Savings - Account review
Alliant Credit Union0.55% ($100 min)High-Rate Savings - Account review
Marcus by Goldman Sachs0.55% ($500)8-month No Penalty CD (AARP members only) - Account review
BankPurely0.55% ($25k min) PurelyMoneyMarket - Account review
iGObanking.com0.55 ($25k min) MMA, New accounts and new money only - Account review
CIBC USA (formerly The Palladin PrivateBank)0.52%Agility Savings Account - Account review
Salem Five Direct0.50% (up to $1m)eOne Savings, new customers only - Account review
Chime0.50% (no min/max, active checking required)Chime Savings Account (deposits held by a partner bank) - Account review
American Express National Bank0.50%High Yield Savings - Account review
Ally Bank0.50%Online Savings - Account review
Ally Bank0.50% (no min)No-Penalty 11-month CD - Account review
First Internet Bank0.50% (no min) Money Market Savings
CFSB (Colorado Federal Savings Bank)0.50% High Yield Savings - Account review
Citi0.50%Citi Accelerate Savings Account (Not available in all states, chk relationship required)
Discover Bank0.50%Online Savings - Account review
Nationwide by Axos Bank0.50%Money Market Plus
CIT Bank0.50% ($100 min)Money Market - Account review
ableBanking0.50% ($250 min)Money Market Savings - Account review
Rising Bank0.50% ($1k min)High Yield Savings - Account review
WauBank0.50% ($5k min) High-Yield Savings (only available in AZ, CT, FL, MA, RI, TN, VA) - Account review
TotalDirectBank0.50% ($5k min)Direct Money Market Deposit Account (not available in CA or FL) - Account review
BMO Harris Bank0.50% ($5k-$999,999.99), 0.30% ($1m+)Platinum Money Market (excludes AZ, FL, IL, IN, KS, MN, MO and WI - Account review
Nationwide by Axos Bank0.50% ($300 opening)Regular Savings
Northern Bank Direct0.50% ($5k min)Money Market - Account review
State Bank of India (IL)0.50% ($5k min) Money Market
American Heritage Credit Union0.50% ($10k min)High Yield Savings
Bellco Credit Union0.50% ($50k) 0.35% ($10k) 0.10% (up to $10k)Premier Money Market Account
Sallie Mae Bank0.45%Money Market Account - Account review
TIAA Bank0.45% (up to $250k), 1yr intro rate; 0.40% (up to $10m) ongoing ratesYield Pledge Money Market - Account review
Barclays0.45%Online Savings - Account review
DollarSavingsDirect0.45%Dollar Savings Account - Account review
MySavingsDirect0.45%MySavings Account - Account review
Virtual Bank0.45% eMoney Market Special - Account review
Marcus by Goldman Sachs0.45% ($500 min)7-month No Penalty CD - Account review
Northpointe Bank0.45% ($5k+), 0.40% ($2m+), 0.25% ($100) Ultimate Savings - Account review
CIT Bank0.45% ($25k min)Savings Builder - Account review
UmbrellaBank.com0.41% ($25k min), 0.25% ($1k)Money Market
Sallie Mae Bank0.40%High Yield Savings - Account review
FNBO Direct0.40%Online Savings
Capital One0.40%360 Performance Savings - Account review
Quorum Federal Credit Union0.40%HighQ Savings Account
Bank5 Connect0.40% ($100 min)High Interest Savings - Account review
Nationwide by Axos Bank0.40% ($100 opening)My Savings w/o checking
Bethpage Federal Credit Union0.40% ($500 min)Money Market
Bank of Hope0.40% ($1k min)Money Market Account (Not available in AL, CA, IL, NJ, NY, TX, VA, WA)
Amboy Direct0.40% ($3k min/$100k max)Personal eSavings - Account review
Citizens Access0.40% ($5k min)Online Savings Account - Account review
EBSB Direct0.40% ($10k+), 0.25% ($10+), 0.20% ($2m+)Money Market Special 3 - Account review
PurePoint Financial0.40 ($10k min)Online Savings - Account review
Discover Bank0.40% ($100k min), 0.35% ($2.5k) Money Market - Account review
Quontic Bank0.40% ($150k), 0.35% ($5k), 0.30% (up to $5k)Personal Money Market - Account review
Marcus by Goldman Sachs0.35% ($500 min)11-month No Penalty CD - Account review
State Bank of India (IL)0.30% ($500 min) Savings
BankUnitedDirect0.25%Online Money Market - Account review
Marcus by Goldman Sachs0.25% ($500)13-month No Penalty CD - Account review
Northfield Bank0.25% ($225k max) Online Platinum Savings - Account review
HSBC Direct0.15%HSBC Direct Savings
Citizens Access0.05% ($5k)11-month Liquid CD - Account review

*New To Summary as of January 12, 2021

Reverse Tier Checking/Savings/Money Market Accounts:

Patelco Credit Union2.00% (up to $2k), 1.00% ($2k-$5k), 0.50% ($5k-$10k), 0.35% ($10k-$50k), 0.25% ($50k-$100k), 0.20% ($100k-$100m)Money Market Select Account - Account review
Affinity Plus Federal Credit Union1.00% (up to $25k), 0.50% ($25k+)Superior Money Market (min $500 direct deposit into any account)
Smarty Pig0.80% (up to $2.5k), 0.55% ($2.5k+), 0.75% ($10k+), 0.65% ($50k+)SmartyPig Savings - Account review
All America Bank0.50% (up to $50k), 0.25% ($50k+)Mega Money Market Account) - Account review
Redneck Bank0.50% (up to $50k), 0.25% ($50k+)Mega Money Market Account

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)
Devon Bank3.50% (up to $10k), 0.50% ($10k+)Kasasa Cash - Account review
Evansville Teachers Federal Credit Union3.30% (up to $20k), 0.00% ($20k+)Vertical Checking - Account review
Consumers Credit Union3.09% (up to $10k), 0.20% ($10k-$25k), 0.10% ($25k+)Rewards Checking Tier B- debit card and $500 credit card requirements (Changes effective May 2020)
Market USA Federal Credit Union3.01% (up to $15k), 0.05% ($15k+)VIP Checking Platinum Tier - Account review
Sullivan Bank3.00% (up to $10k), 0.30% ($10k+) (2 accounts per SS#)Kasasa Cash - Account review
ECCU3.00% (up to $10k), 0.25% ($10k+) (Cap fell from $35k to $10k on Sept 1st)Free Kasasa Cash Checking - Account review
Lake Michigan Credit Union3.00% (up to $15k), 0.00% ($15k+)Max Checking
INOVA Federal Credit Union3.00% (up to $15k), 0.07% ($15k+)Shield Checking - Account review
Western Vista Federal Credit Union2.53% (up to $15k), 0.01% ($15k+)Panorama Checking - Account review
Great Lakes Credit Union2.50% (up to $10k), 0.05% ($10k+)Free Checking
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
Presidential Bank2.25% (up to $25k), 0.65% ($25k+)Advantage Checking - Account review
Garden Savings Federal Credit Union2.25% (up to $15k), 0.15% ($15k+)Platinum Checking
Hiway Federal Credit Union2.22% ($1k-$25k), 0.10% ($25k+)Hi Yield 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
Select Bank2.01% (up to $50k), 0.25% ($25k+)Kasasa Cash (*NTS) - Account review
First Security2.01% (up to $50k), 0.20% ($25k+)Kasasa Cash - Account review
GreenState Credit Union2.00% (up to $20k), 0.15% ($20k+)RewardsPlus 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
Southwest National Bank2.00% (up to $15k), 0.25% ($15k+)Kasasa Cash - Account review
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
Partner Colorado Credit Union1.75% (up to $10k), 0.25% ($10k-$25k), 0.05% ($25k+)High Interest Checking
United Educators Credit Union1.65% (up to $10k), 0.25% ($10k+)High Yield Checking
Finex1.50% (up to $25k), 0.10% ($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
One American Bank1.50% (up to $10k), 0.25% ($10k+)Kasasa Cash - Account review
Industrial Bank1.47% (up to $15k), 0.20% ($15k+)Kasasa Cash
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
Heritage Bank1.09% (up to $25k), 0.19% ($25k+)eCentive Account
Quontic Bank1.01% (up to $1m)High Interest Checking - Account review
Bay State Savings Bank1.00% (up to $20k), 0.25% ($20k+)Kasasa Cash - Account review
Northwest Federal Credit Union1.00% (up to $25k), 0.25% ($25k+)Kasasa Cash - Account review
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
All America Bank0.70% (up to $10k), 0.25% ($10k+)Ultimate Rewards Checking
Redneck Bank0.70% (up to $10k), 0.25% ($10k+)Redneck Rewards Checking
MainStreet Bank0.25% (up to $15k), 0.25% ($15k+)Kasasa Cash - Account review

*New To Summary as of January 12, 2021

Certificates of Deposit:

Bank Account Alternatives - May Not Be FDIC Insured

GM Financial Right Notes1.50% ($500+)
Aspiration1.00% ($10k max) Save Account Cash Management Account
Ford Interest Advantage1.00% ($50k+), 0.85% ($15k+), 0.80% (less than $15k)Ford Interest Advantage review
Duke Energy PremierNotes1.00% ($50k+), 0.85% ($10k+), 0.80% (less than $10k)Duke Energy PremierNotes review
Wealthfront0.35% Cash Account Cash Management Account
Ally Financial Demand Notes*0.30% ($50k+), 0.20% ($15k+), 0.05% (less than $15k)
SoFi0.25% SoFi Money Cash Management Account
Vanguard Federal Money Market Fund 0.02% 7-day yield
Vanguard Municipal Money Market Fund0.01% 7-day yield
Fidelity Municipal Money Market Fund0.01% 7-day yield
Fidelity Money Market Fund0.01% 7-day yield

*On November 16, 2020, Ally announced that it intends to terminate the Demand Notes program and redeem, in full, all outstanding Demand Notes as of February 26, 2021. Demand Notes account holders will be contacted prior to any redemption date, with additional details.

Accounts Removed, No Longer Available

Simple0.50%Protected Goal Account
Bay State Savings Bank0.40% ($5k min)Smile Worcester County Consumer Money Market - Account review
BrioDirect0.40% ($25 min)High-Yield Savings - Account review

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  |     |   Comment #2
For reference, Connexus' high bar "Active Checking" account requirements -- which need to be fulfilled in order to obtain their higher yielding [e.g.,1.15% APY] Money Market rates:

Active checking is defined as a single checking account with Connexus under the same membership with at least one (1) Direct Deposit of net pay, including salary, wages, government benefits, or pension made to the account each month; having ten (10) checks, ACH withdrawals, and/or debit card transactions clear the account by the last business day of each month; and electing to receive eStatements. ATM transactions not included.
  |     |   Comment #6
Does anyone here have experience meeting these requirements? Will simply setting up one recurring ACH deposit and 10 recurring ACH withdrawals (e.g. for $25 each) qualify or do they have more specific requirements that aren't listed?
  |     |   Comment #7
No experience with this bank, but just going by the description, you should be good with the 10 recurring ACH withdraws - especially if you do them from another bank (though I'd space them out over the course of a couple weeks, doing 10 in one day is something banks with requirements like this sometimes take issue with as "gaming the system". varying the amounts would also be a good idea)

If the one recurring ACH deposit is to replenish the money you've withdrawn, that should be fine (I've done similar at other banks without issue) but if it's to cover the Direct Deposit requirement, it probably won't. Usually with bank requirements like this, they want an actual direct deposit from an employer, government entity, or the like
  |     |   Comment #8
Thank you. How do they know the source of the direct deposit? And is this typically implemented in a manual way or automatically? Also I guess my last question is, why do they even care about the source?
  |     |   Comment #9
ACH transfers are coded to indicate their type. A Direct Deposit ACH transfer has a different code than an interFI transfer you initiate yourself. The receiving FI will be able to distinguish between the two types of ACH transfers.

Direct Deposits are a more reliable source of deposits than depositor initiated ACH transfers since it is more difficult for depositors to cancel or change them than it is for them to change ACH transfers they initiate themselves. People tend to not change DDs often. A more reliable source of regular deposits is more valuable to a FI and tends to lead to a more reliable customer. It also tells the FI that the depositor has a regular source of income and therefore may be a better prospect for the products it sells such as loans.  So FIs prefer depositors who have DDs and may offer incentives to attract them.
  |     |   Comment #10
PD...With your great banking experience (this is a positive reference) I’ve heard that if an entity tries to make an ACH transfer from a FI from an account that is closed that FI will let the requested ACH goes through if there is another account (same name?) at that same FI. True? If that FI has a no overpayment order from customer on file from the customer, would that stop that attempt AND if allowed by FI, wouldn’t that be potential theft by the FI? No legal opinions here alan1 just left the room...what do you think? Thanks
  |     |   Comment #11
I worked in finance, not so much in operations, so although I absorbed a bit about back office operations over my career, this is not my area of expertise. But my guess is that if an account is closed, the FI would not honor the ACH request since the ACH protocol is account specific and limited to a single account. I suppose it is possible for the funds to be sent from another account provided the FI has that prearrangement with the depositor. Otherwise I don't think that would be the normal practice. I think it's a certainty that they would not pull the funds from another account unless the ownership on that other account was the same.
  |     |   Comment #12
“I think it's a certainty that they would not pull the funds from another account unless the ownership on that other account was the same:”. What?

ACH is not aimed/transmitted to a specific person...only numbers. What if no overdraft in effect for closed acct and one that is open?
  |     |   Comment #13
I took your example to mean that the request is asking a FI to push an ACH transfer from a closed account to another FI. In that case, I don't think it likely that they would pull the funds from another account with either the same or different ownership unless maybe there is a prearranged agreement which I don't think is typical. I don't think a standard overdraft arrangement would be valid on a closed account. I think it most likely the ACH request would be denied.
  |     |   Comment #14
To be honest, I have no clue what Choice is tying to ask, no matter how many times I read the question.
  |     |   Comment #15
The situation comes up (according to another bog) is where a debtor has a car loan, files for BK, creditor does not file claim (for? reason) , waits for discharge of debtor in BK and submits through FI an ACH for a bank acct that is closed, yet (purportedly) the debtor has another acct at same bank...the bank then lets the funds be withdrawn from active account but not the closed acct. I submit that that is especially improper if no overdraft protection on closed account, ie it’s theft

I use a similar device for wire transfer from overseas client to an account that usually has a low balance, funds are wired into that acct by client, clear in a couple of days and then move that dollar amount to another acct at the same bank...why? B/c I don’t want the client to reverse the transaction and get funds “back,”. I have no overdraft protection for either acct...thus, it would be theft in my view if my bank allowed client to recall funds! Only other alternative is to move $ to another bank and different acct
  |     |   Comment #16
I don't know if it is "theft," but I have never heard of this happening with either a wire or an ACH transfer. The entity requesting the transfer is specifying a specific account from which the funds are to be drawn. I think an FI would be very strict in adhering to that request as specifically agreed. If they cannot honor the terms as agreed they would just deny the request.  The account is part of the terms of the request.
  |     |   Comment #17
The person that posted the original scenario stated that she was told by banker that that unknown bank management said they always allow it!

I say that’s it theft since bank had absolutely no right to cover the claim for/on a closed acct from another acct even if same name. It’s also not an offset situation for benefit of bank
  |     |   Comment #18
Sounds to me like it may involve bankruptcy and a court order to release the funds. That would be a whole different matter. If a court orders it, the FI would have to comply. I really can't comment because I don't know all the details. So I am just guessing.
  |     |   Comment #19
True about court in first scenario but not second!
  |     |   Comment #4
Since the article includes an IRA savings account at U.S. Postal Federal Credit Union, yielding 1.00%, it should also include the IRA savings account at Freedom Northwest Credit Union, which has been yielding 1.00% for quite a while.

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