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Best Bank Account Interest Rates - Summary for August 23, 2016


Best Bank Account Interest Rates - Summary for August 23, 2016

Last week’s release of the minutes from the Fed’s July meeting failed to make it clearer on whether the Fed will hike rates at its September 20-21 meeting. The next big potential clue will be Fed Chair Janet Yellen’s speech on Friday at the Jackson Hole Symposium. It’s doubtful she’ll provide any clear signs of the Fed’s direction. Some Fed officials have hinted in speeches that September is on the table for a rate hike. As mentioned in this Wall Street Journal article, if the Fed chair sounds hawkish at Jackson Hole, the chance of a September rate hike increases:

To our mind, if the Fed is going to raise rates in September, it would already be prepping the market for that. The comments from William Dudley and Dennis Lockhart did that, offset by the comments from John Williams. The minutes did nothing to break the logjam, so the next things to look for is Janet Yellen‘s Jackson Hole speech next week. If she goes hawkish, the runway is being foamed. So to speak.

From the market’s perception, the chance of a September Fed rate hike did go up from last week, but the chance is still low. The Fed funds futures show a 24% chance of a September rate hike (up from 18% last week). However, the futures show rate hike probabilities for December and February that went down slightly from last week. Treasury yields also went down for most maturities. 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: 0.28% up from 0.27% last week
  • 6-month: 0.45% same as last week
  • 2--year: 0.74% down from 0.76% last week
  • 5--year: 1.15% down from 1.16% last week
  • 10-year: 1.55% down from 1.57% last week
  • 30-year: 2.24% down from 2.29% last week

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

  • Sep 2016: 24% up from 18% last week
  • Dec 2016: 54% down from 55% last week
  • Feb 2017: 55% down from 57% last week

Savings & Checking Account Rates

For the most part, banks continue to hold steady on their savings and money market account rates. As long as the Fed delays the next rate hike, this pattern will likely continue.

There were two exceptions. California First National Bank lowered the top rate of its money market account by 25 basis points to 0.75% APY. This top rate now applies to balances over $15K. Previously, the top rate of 1.00% APY applied to balances over $50K.

The other bank that made a rate change was Mutual of Omaha Bank. Its online money market account rate plummeted from 0.85% to 0.35%.

Finally, there was a subtle change at Silvergate Bank. It’s no longer offering the Premier Online Savings account. However, there’s now a new account which is called the High Yield Online Savings. This new account has the same top rate as the Premier account (1.11% APY). The bank is still in the process of updating their website to reflect this change. If you had opened the Premier account, make sure to monitor your statements. It’s possible your rate may drop while this new High Yield Online Savings account rate remains the same.

With the rate cut at California First National Bank, the number of accounts in the 1% club falls to 21. This 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 to my list of top nationally available reward checking accounts.

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, 10 Common Traits of High-Yield Reward Checking.

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 August 23, 2016

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:
The Palladian PrivateBank1.30% (6mo intro rate) 1.10% blended APYSavings Account - Account review
Popular Direct1.26% ($5k min)Popular Direct Savings - Account review
Redneck Bank1.25% (up to $35k), 0.50% ($35k+)Mega Money Market Account
Connexus Credit Union1.15% ($100k) 1.00% ($50k) 0.75% ($20k)MMA - active chk required
EverBank1.11% (1yr intro rate) 0.61% ongoing rateMMA/Checking - Account review
Incredible Bank1.11% ($2.5k), 0.05% ($250k+)IncredibleBank Savings - Account review
Silvergate Bank1.11% ($10k min)High Yield Online Savings - $50K min to avoid $50 monthly fee, 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
EBSB Direct1.08% ($10k min/$2m max)Money Market Special 2 - Account review
SFGI Direct1.06%Savings account - Account 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
PenFed Credit Union1.01% ($20k-$50k), 0.50% (up to $20k)Access America Checking
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
Quorum Federal Credit Union1.00%HighQ Savings Account
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
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)
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
MyBankingDirect0.80% ($5k min) MMA
Digital Credit Union0.80% ($100k) 0.65% ($50k)MMA
Bank5 Connect0.76% ($100 min) Checking account (not available for MA and RI residents)
SmartyPig0.75%Savings account - Account review
Bank of Internet USA0.75%MMA
Capital One 3600.75%360 Savings account
California First National Bank0.75% ($15k min)Money Market Checking
TIAA Direct0.70%High yield savings account
MyCBB0.65%MyCBB Money Market - Account review
FNBO Direct0.65%Checking account
Alliant Credit Union0.65%Checking (req's elec. dep & e-stmts) Account review
Elements Financial (formerly Eli Lilly Credit Union)0.65% ($10k min) Helium Savings - Account review
Incredible Bank0.59% ($1k min) Checking - 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:
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
Destinations Credit Union3.01% (up to $10k), 0.25% ($10k+)Kasasa Cash - Account review
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), 0.26% ($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
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
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
Provident Credit Union2.01% (up to $25k), 0.08% ($25k+)Super Reward Checking
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
BankFirst2.00% (up to $10k), 0.15% ($10k+)Kasasa Cash
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 Union1.51% (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
North Country Savings Bank1.25% (up to $25k), 0.35% ($25k+)Kasasa Cash
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

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 Fund0.48% 7-day yield
Fidelity Money Market Fund0.33% 7-day yieldreviews on Fatwallet
Vanguard Tax-Exempt Money Market Fund0.32% 7-day yield
Fidelity Municipal Money Market Fund0.12% 7-day yield

Accounts Removed Due To Low Rates Or Expired Specials

Removed, Rate Too Low

Mutual of Omaha Bank0.35% ($1k min) Online MMA - Account review


#1 - This comment has been removed for violating our comment policy.
Anonymous   |     |   Comment #2
More fake talk about a possible rate increase, but nobody believes it.
DCGuy (anonymous)   |     |   Comment #3
The Vanguard Tax Exempt Money Market Fund listed a 7 day yield of 0.39% and 0.37% on August 22 and 24, respectively on two other financial websites.  Where did the 0.32% value above come from?
DCGuy (anonymous)   |     |   Comment #4
Today, even Vanguard's own website lists the yield at 0.39%
Anonymous   |     |   Comment #5
I think we all know that the FED's moves are all political by now so there will be no rate hikes until Obama side steps it out of the white house. If Hillary gets elected you can expect no interest rate hikes and negative interest rates due to the increasing of the debt. If Trump gets in the Yellen FED will hike rates just to make him look bad and then Trump will replace the old bag with some new blood.
Anonymous   |     |   Comment #6
Anonymous   |     |   Comment #7
I don't believe rates are going to rise, if they do at all, more than a quarter point or two no matter who wins the election.  We are already in debt so deep we are Way over our heads!  Shall I say: Upside Down.

Politics as usual and just tinkering with the tax structure by both parties isn't going to stem the red ink.  Only by simplifying the tax code, closing all the loop holes and significantly raising the Federal income tax while dedicating the increase to reducing the federal debt, not spending more, is going to solve the national debt disaster.  And that is going to really hurt the average wage earner. 
Anonymous   |     |   Comment #8
But would "a quarter point or two" make 3% 5 year CD's a good bet?  It's a modest hope.
Anonymous   |     |   Comment #9
You'd be lucky to see 2.5%.
Anonymous   |     |   Comment #10
I would be happy to see 3%, but I don't think it's going to happen in the foreseeable future. 

I never thought I would ever say that :  "happy to see 3%" again.
Anonymous   |     |   Comment #11
I just made a large commitment of funds to a 5 year CD with Northwest FCU yielding 2.47%APY.  Probably the most painful deposit account investment I've ever done (and with the greatest doubt) given the lousy rate in combination with a long term, - and the fact I'd vowed for some time never to go 5 years for less than 3.00%.  I can easily see myself regretting it within 6 months time if rate trends finally seem to be changing course, - but without being a cynic about that like some here, I'm just not a believer anymore either, and in fact wished to protect myself on the DOWNSIDE.  A rather pathetic capitulation on my part, I feel, and done (as I say) not with any certainty of what's to come, but with just a recognition that significant rate increases may be still quite far away, so get the best I can now and deal with any negative fallout should a different reality actually happen, - but no longer expect that happening and face the more immediate fallout of earning next to nothing while one waits.