Best Bank Account Interest Rates - Summary For January 21, 2020

We are still seeing quite a few online savings and money market rate cuts. Most of the cuts were on accounts with yields of 2% and higher. The well-established online banks (like Ally, Synchrony and Discover) have online savings accounts with yields that have settled into the 1.60% to 1.80% range. Only one of these (Synchrony) had a rate cut in the last two weeks. It appears that we are starting to settle into a yield range of 1.60% to 2.00%, with the new challengers offering yields in the range of 1.80% to 2.00%.

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

• CFG Bank High Yield Money Market (-10 bps to 2.15%)
• BrioDirect High-Yield Savings (-5 bps to 2.05%)
• Affinity Plus FCU Superior Money Market (New, 2.02% up to $25k)
• Patriot Bank Money Market (-26 bps to 2.00%)
• HSBC Direct Savings (-5 bps to 2.00%)
• Vio Bank Direct High Yield Online Savings (-7 bps to 1.95%)
• Comenity Direct High Yield Savings (-10 bps to 1.90%)
• UFB Direct High Yield Savings (-10 bps to 1.90%)
• WebBank High Yield Savings (-9 bps to 1.86%)
• Northpointe Bank Ultimate Savings (-10 bps to 1.85%)
• First Internet Bank Money Market Savings (-11 bps to 1.81%)
• Synchrony Bank High Yield Savings (-10 bps to 1.70%)
• Northfield Bank Platinum Savings Online (-25 bps to 1.65%)

The lone rate leader is now Customers Bank’s Ascent Money Market Savings with a 2.25% APY. This requires a $25k minimum balance. The rate is guaranteed to last through 6/30/2020.

Two weeks ago, Customers Bank shared the top spot with two other banks. CFG Bank lowered the rate of its High Yield Money Market Account to 2.15% APY, and Presidential Bank stopped offering its Money Market Plus Checking.

The highest rate for a low-minimum savings account that is available without activity requirements is BrioDirect. Its High-Yield Savings Account rate did fall by 5 bps, but it still has the highest rate for a low-minimum savings account: 2.05% APY with a $25 minimum balance.

New Additions

Two money market accounts were added to the summary.

Affinity Plus Federal Credit Union has started to offer its Superior Money Market with a 2.02% APY. This has similarities to a reward checking account since the 2.02% APY only applies to balances up to $25k. The portion above $25k only earns 1.00% APY. Also, the 2.02% APY requires direct deposit. Unlike a reward checking account, there are no debit card usage requirements.

The other addition is the Online Money Market Account at Patriot Bank. It has a 2.00% APY with only a $100 minimum opening deposit requirement. Earlier this month, the yield had been 2.26% with the yield guaranteed through June 30, 2020. The rate guarantee is no longer available.

Rate guarantees without withdrawal penalties

When rates are falling, the best savings and money market deals are specials that guarantee a rate for a period of time. There are currently four accounts with rate guarantees that are worth mentioning.

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

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

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

The fourth rate guarantee is the Yield Pledge Money Market Account at TIAA Bank. The new-customer rate is now 1.75% APY for balances up to $250k. This is guaranteed for the first year of account opening. A version of this offer has long been available at TIAA Bank/EverBank. After the 1-year intro period, a tiered-rate structure takes effect. The current ongoing APYs range from 1.01% for under $10k to 1.60% for over $100k.

No-penalty CDs have some of the liquidity of savings and money market accounts, but like CDs, they offer a rate lock which can be useful when rates are falling. No-penalty CDs have become more common at online banks in the last year, and they are something to consider, especially if you already have a savings account at the bank. The main issue now is that their rates have been falling. If their rates are higher than the savings account, these can be good deals in this falling rate environment.

Some banks like Ally make it easy to open and close the No Penalty CDs. You just lose access to the money in the No Penalty CD for the first six days from account funding. After that, you are free to close the CD without penalty. Ally makes it very quick and easy to move the CD funds into your savings or checking account.

Below is a list of noteworthy no-penalty CDs. There have been no rate changes on any of these no-penalty CDs since my last summary two weeks ago. Goldman Sachs Bank USA’s 11-month No-Penalty CD with a 2.00% APY remains the best deal.

• 2.00% APY 11-month No-Penalty CD ($500 min) - Goldman Sachs Bank USA
• 2.00% APY 11-month Flex Time Deposit ($100k min) - M.Y. eBanc
• 1.90% APY 11-month Flex Time Deposit ($10k min) - M.Y. eBanc
• 1.90% APY 13-month No-Penalty CD ($10k min) - PurePoint Financial
• 1.90% APY 7-month No-Penalty CD ($500 min) - Goldman Sachs Bank USA
• 1.85% APY 11-month No Penalty CD ($25k min) - Ally Bank
• 1.85% APY 11-month Liquid CD ($5k min) - Citizens Access
• 1.80% APY 6-month No-Penalty CD ($500 min) - Investors eAccess
• 1.75% APY 14-month No-Penalty CD ($10k min) - PurePoint Financial
• 1.75% APY 11-month No-Penalty CD ($1k min) - CIT Bank
• 1.71% APY 11-month No Penalty CD ($5k min) - Colorado Federal Savings Bank
• 1.70% APY 11-month No Penalty CD ($5k min) - Ally Bank
• 1.65% APY 13-month No-Penalty CD ($500 min) - Goldman Sachs Bank USA
• 1.65% APY 11-month No Penalty CD (no min) - Ally Bank
• 1.65% APY 11-month No-Penalty CD ($10k min) - PurePoint Financial

Remember that when talking about no-penalty CDs (that function like Ally’s No Penalty CD), a longer term is always better. Since you can close these types of no-penalty CDs at anytime after the first six days, I can’t think of a reason to choose a shorter-term no-penalty CD if the rate is the same.

Competition from Money Market Funds

Another option for your cash instead of savings accounts and money market accounts are money market funds from brokerages. These don’t have FDIC coverage, but they can be reasonable alternatives to deposit accounts. Back when the Fed was holding rates near zero, money market funds had yields of around 0.01%. Keeping your cash at internet banks made a lot more sense back then. Now, it’s not so clear. Money market fund yields have risen substantially as the Fed hiked rates. However, their yields have been falling in this current environment. After three Fed rate cuts, we have seen large yield cuts on money market funds.

Vanguard Prime Money Market Fund 7-day yield fell by only 1 bp in the last two weeks, falling from 1.70% to 1.69%. Fidelity Money Market Fund 7-day yield fell by 3 bps, falling from 1.49% to 1.46%.

Municipal money market funds have the advantage of being exempt from federal income tax, but their yields continue to be quite a bit lower than the other money market funds. In the last two weeks, yields have fallen significantly. The Vanguard Municipal Money Market Fund 7-day yield declined 45 bps to 0.88%. Fidelity’s 7-day yield declined 46 bps to 0.60%. Note, these funds have had a history of yield volatility in the last year.

Reward Checking Accounts

In the last two weeks, there was only one change to the list of nationally-available reward checking accounts. TAB Bank is no longer offering its Kasasa Cash Checking account. With a 4.00% APY, this account had been the rate leader for nationally-available reward checking accounts since it was launched around April 2019. Not only was it a rate leader, it had a top balance cap of $50k. Balances of up to $50k could qualify for the 4.00% APY if monthly requirements were met. Most reward checking accounts have much lower caps that range from $5k to $25k. TAB Bank’s rewards checking page now says that they “are getting ready to launch something big.” Hopefully, it’ll be a reward checking account with a rate and cap that will match what their Kasasa Cash offered.

The new reward checking rate leader with a cap of at least $25k is now Dover Federal Credit Union’s Kasasa Cash account. This account offers 3.25% APY on balances up to $30k when monthly requirements are met. This rate and cap have held since we began tracking this account in May 2019.

Overall, reward checking accounts continue to buck the trend of falling rates. I wouldn’t be surprised if we keep seeing a few rate cuts and balance cap cuts as banks and credit unions slowly respond to the last three Fed rate cuts. However, history has shown that reward checking accounts can sustain rates significantly higher than online savings account rates, even during a zero interest rate environment.

To find the highest reward checking rates and balance caps in your state or nationwide, please refer to our reward checking rate table. If you're new to reward checking, please refer to my blog post, Overview of Reward Checking and Our Reward Checking Table.

Certificate of Deposit Rates

I’m now publishing my CD survey as a separate post. Please refer to my survey of the best CD rates. This recap focuses on liquid accounts.

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

Navy Federal Credit Union continues to offer a 37-month IRA CD special with a 3.00% APY. This only applies to IRA and ESA CDs. There’s a $50 minimum balance and a $150,000 maximum balance. Additional deposits are allowed at any time, subject to the maximum balance.

For non-IRA CDs that are nationally available, there is now only one credit union that is offering a CD with a yield of at least 3%. That is Andrews Federal Credit Union, which continues to offer a 3.05% APY on its special 7-year CD. People in any state can join this credit union via the American Consumer Council.

UPDATE: I almost forgot Keesler Federal Credit Union’s 30-month Step Certificates which have blended APYs of 3.10% ($1k minimum) and 3.20% ($100k minimum). People in any state can join Keesler FCU via an association membership. However, readers have reported some issues in joining. More details are in this recent review of these Step Certificates.

The bank with the highest nationally available CD rate continues to be Home Loan Investment Bank. It offers a 5-year e-CD with a 2.60% APY. Minimum deposit is $2.5k. DollarSavingsDirect had the top spot for several weeks, but its 5-year rate has recently fallen to 2.30% APY.

This is my new weekly summary with the Fed review split off on a separate blog post. My weekly summaries will now be focused entirely on deposit rates and deals. Please keep all discussion about the Fed, the economy and politics to my Fed/Economy review blog post.

Checking/Savings/Money Market Accounts:

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

• Noteworthy Accounts Available Nationwide:

Reward Checking Accounts:

• Best Reward Checking Account Rates

• Noteworthy Accounts Available Nationwide:

Certificates of Deposit:

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

Bank Account Alternatives - May Not Be FDIC Insured

• Investment Discussion Forum

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

Removed, No Longer Available

Removed, Rate Too Low