Latest Liquid Bank Account Rates

The odds of additional Fed rate hikes continue to be low. The Thursday release of the Fed’s preferred inflation gauge, PCE price index, may impact the odds. If it continues the inflation trend seen in the October CPI and PPI reports, the odds of additional Fed rate hikes may decline more while the odds of rate cuts in early 2024 may rise.

The odds of a Fed rate hike at the December 12-13 meeting are 4.2%, down slightly from 4.8% last week. The odds of a rate hike at the January 30-31 meeting are 4.0%, down from 8.8% last week.

The odds of Fed rate cuts in 2024 are rising. The odds of a rate cut by the March 19-20 meeting are 48.1%, up from 27.4% last week. The odds of a rate cut by the April 30/May 1 meeting are now way over 50-50 at 80.0%, up from 54.7% last week.

Fed rate hike/cut odds are based on Fed Funds futures via the CME FedWatch Tool.

Changes in Treasury yields also point to higher expectations of lower federal funds rate in 2024. Since October 19th when yields of Treasury notes reached their peak, the yields of the 2-year, 5-year and 10-year notes have fallen 50, 73 and 71 bps, respectively. At today’s market close, their yields were 4.64%, 4.22%, and 4.27%, respectively (see this Treasury page for yield estimates).

The rise of government debt and increased issuance of Treasurys may eventually slow the fall of these yields, but those factors haven’t prevented these yield declines that we’ve seen in the last six weeks.

For savings and money market accounts, fewer online banks are increasing rates. In the last two weeks, only seven online banks increased rates, and only four of these seven had rate increases of at least 15 basis points.

The slowdown of rate increases can also be seen in the Online Savings Account Index, which tracks the average APYs of ten well-established online savings accounts. In October, the Index increased just 3 bps, rising to 4.46%. I expect an even smaller increase for November.

I’ve listed the most noteworthy rate changes that have occurred in the last two weeks. There are now three lists. I’ve created a new list just for the banks and credit unions that are listed on the Raisin platform (formerly SaveBetter). The other two lists remain the same. One includes rate changes from the major online banks. The second one includes rate changes from online banks which are generally not well-known names.

All percentages are APYs.

Rate changes from the major online banks:

• None

Rate changes from banks & CUs on the Raisin.com platform

• StagePoint FCU MMDA via Raisin (5.00% → 5.29%)
• Generations Bank MMDA via Raisin (5.27% → 5.29%)
• American First CU MMDA via Raisin (5.27% → 5.29%)
• Hanover Bank MMDA via Raisin (New: 5.26%)

Rate changes from the less well-known CUs & online banks:

• NASB Interest Savings (New: 5.35%)
• Veritex Bank Max Savings via MaxMyInterest (New: 5.34%)
• Vio Bank Cornerstone MM (5.28% → 5.30%)
• First Foundation Bank Online MM (4.20% → 5.25%)
• UFB Direct UFB Secure Savings & MM (New: 5.25%)
• Langley FCU Platinum MM Savings ($1m+ 4.25% → 5.00%)
• LendingClub Bank HY Savings (4.50% → 4.65%)
• Luana Savings Bank MM ($750k+ 4.85% → 3.40%)

Current rate leaders

There are now 41 savings and money market accounts in the 5.25% club. This is up from 36 two weeks ago.

The account with the highest rate in this club remains the Popular Direct Select Savings account. In mid-October, its rate increased from 5.25% to 5.40% APY on all balances. Minimum opening deposit is $100, and there is no monthly service fee. An important downside with Popular Direct is its history of creating new savings accounts. Existing customers who don’t take action are left with the old lower-rate savings accounts. I have more details of Popular Direct and the Select Savings account in this Popular Direct Select Savings account review.

Popular Direct is one of many online banks that have used the create-a-new-account tactic to save on deposit costs. Three online banks with rate changes in the last two weeks have just used this tactic.

UFB Direct has used the create-a-new-account tactic many times in the last 18 months. Its latest new accounts are the UFB Secure Savings account and the UFB Secure Money Market account. Both have a 5.25% APY, which is the same APY as the previous accounts (UFB High Yield Savings account and UFB High Yield Money Market account). This is the first time the rate of the new accounts is the same as the old accounts. In the last 18 months, each new account had a higher rate. To earn the higher rate, existing customers either had to request that their existing account be upgraded or they had to open a new account.

With the new UFB Secure accounts, it might not seem worth it to upgrade. I wouldn’t be surprised if the old High Yield accounts have rate reductions in the coming weeks. The problem with these old accounts is that DA can’t track the rates since UFB Direct doesn’t publish the rates for these old accounts. Existing customers will need to log into their UFB Direct online accounts to see the rates they’re earning. Existing customers who don’t actively monitor their accounts may not realize they’re earning less than what customers with the latest accounts are earning.

The second bank using this create-a-new-account tactic is NASB. This month, NASB created the new Interest Savings account with a 5.35% APY (minimum opening deposit is $25k). This replaces the Premium Savings account that had the lower rate of 5.02% APY. Existing customers who have the Premium Savings account will have to call and request that NASB to convert their Premium Savings account to the new Interest Savings account.

Note, DA hasn’t been listing this Interest Savings account in the rate tables since by default DA only shows accounts available in the market area of the bank’s headquarters. This Interest Savings account is only available to customers who live in areas outside NASB’s market area. To see if you’re eligible for the Interest Savings account, enter your zip code at NASB’s rates page.

The third bank using this create-a-new-account tactic is First Foundation Bank. In this case, it’s a slightly different tactic. Instead of creating a new account, First Foundation made its Online Money Market account the rate leader instead of its Online Savings Account. Since March 2023, the Online Savings Account has been First Foundation Bank’s rate leader. During this time the Online Savings Account rate has risen from 4.50% APY to 5.00% APY while the Online Money Market rate has remained at 4.20% APY. On November 17th, the Online Money Market rate jumped 105 bps to 5.25% APY. Now its rate leads the Online Savings account rate by 25 bps. Customers with the Online Savings account may not notice the higher Online Money Market rate, and they’ll earn 25 bps less than those customers who notice and take action.

This create-a-new-account tactic has been used by the rate leaders: Popular Direct (5.40% APY), My Banking Direct (5.35% APY), Brilliant Bank (5.35% APY), and BrioDirect (5.35% A PY).

Two near-rate leaders that haven’t used this tactic are Ivy Bank and TAB Bank.

Ivy Bank’s High-Yield Savings account currently has a 5.30% APY for balances of at least $2.5k. The 5.30% APY is currently guaranteed to last through 6/30/2024. This account has remained competitive since August 2021.

TAB Bank’s High Yield Savings account has a 5.27% APY with no minimum balance requirements. The account has remained competitive since January 2019.

To be in the 5.25% club, online savings and money market accounts must have APYs of at least 5.25% for reasonable balances. My definition of reasonable balances is a minimum balance to qualify for 5.25%+ APY of no more than $100k and a maximum balance of at least $250k.

One institution that doesn’t qualify is First Internet Bank since its Money Market Savings account requires a minimum balance of $1 million to earn 5.46% APY.

Rate guarantees without withdrawal penalties

With rising odds that the Fed may start cutting rates in early 2024, no-penalty CDs are becoming more attractive. If interest rates fall, your no-penalty CD rate will remain unchanged until maturity or until you close it. Thus, the longer the term of the no-penalty CD, the better deal it is. No-penalty CDs with shorter terms don’t have any value over longer terms since you are free to close the CD without penalty soon after the CD is funded.

The new no-penalty CD rate leader is the 12-month No-Penalty Certificate at Greenwood Credit that’s available on the Raisin platform. The CD has a 5.37% APY, and penalty-free early withdrawals can be made 30 days after opening. The second and third place no-penalty CDs are also on Raisin, but both are short-term CDs with terms of five and three months.

All In Credit Union has the highest no-penalty CD rate that’s available directly (without going through Raisin). The CD has a 9-month term and a rate of 5.33% APY for balances of at least $100k or a rate of 5.27% APY for balances from $1k to under $100k.

Credit Human Credit Union used to be the rate leader, but recent rate cuts have brought down the APY to 5.30%. It has a 12-month term, and a minimum deposit of $5k. You are allowed to make up to two, no-penalty withdrawals during the term as long as you maintain a minimum balance of $5k. The Liquid CD also allows unlimited deposits during the term. People in any state are eligible to join the credit union, Credit Human, via membership in an association.

Outside the Raisin platform, the best nationally-available no-penalty CD deal from a bank continues to be the 15-month no-penalty CD at MainStreet Bank (5.25% APY). The primary downside is that MainStreet Bank doesn’t make it easy to open and manage this CD online. Being able to quickly close a no-penalty CD and access the funds is an important capability. A few banks, like CIT Bank and Ally Bank, have this capability.

Money Market Funds

If you don’t want to deal with the hassles of the online banks that offer 5%+ yields, a money market fund can make things easier. Money market fund yields have continued to respond quickly to the Fed rate hikes. Another benefit of a money market fund is that you can do your part to put pressure on the banks to raise their deposit rates.

The Vanguard Federal Money Market Fund (VMFXX) 7-day yield is now 5.30%, up 1 bp from two weeks ago. Vanguard reports the compound yield to be 5.43%. This is defined as “the interest earned on the original principal invested and also on the interest earned in previous periods,” which would make it similar to APY for bank accounts.

The Fidelity Money Market Fund (SPRXX) has a 7-day yield of 5.09%, up 1 bp from two weeks ago. Its compound yield is 5.22%. As usual, it lags Vanguard’s yield by 20 to 25 bps.

Municipal money market fund yields have been up and down, even as the Fed keeps hiking or keeps rates unchanged. Two weeks ago, the yields had significant declines from the previous two weeks. Today, yields are up by a large amount from two weeks ago. The Vanguard Municipal Money Market Fund (VMSXX) 7-day yield is now 3.47%, up from 3.07% two weeks ago. The 7-day yield of the Fidelity Municipal Money Market Fund (FTEXX) is now 3.32%, up from 2.96% two weeks ago.

Money market funds from brokerages are another option for your cash. They don’t have FDIC coverage, but they can be reasonable alternatives to deposit accounts. To maximize safety, choose only those that invest in Treasurys or federal government debt. Also, stay with the major brokerage firms like Fidelity, Vanguard or Schwab.

Money market fund yields tend to be close to zero when the Fed sets the target federal funds rate to 0%, and they tend to follow the target federal funds rate during a rate-hiking cycle (unlike the major online savings accounts which have let us down in this cycle.)

Reward Checking Accounts

For the nationally-available reward checking accounts (RCAs), there was just one noteworthy change in the last two weeks.

Superior Choice Credit Union has started a unique RCA called Superior Checking. Members can earn up to 7.00% APY on balances from $5k to $25k. To qualify for the 7.00% APY, the member must maintain a minimum daily average balance of $5,000, enroll in e-statements, and meet at least one of the following requirements: have an active loan, a business relationship, or $500+ monthly direct deposit. Members who do not meet these requirements will earn no interest. Unlike the vast majority of RCAs, Superior Checking has no debit card usage requirements.

Reward checking accounts have a history of being slow to respond to rising rates, especially when compared to online savings accounts. It’s hard to find reward checking attractive when their top rates are below online savings account rates. The only reason you might consider an RCA is if the bank also offers a competitive online savings or money market account. Two examples include All America Bank and Evergreen Bank Group. In these cases, you might want both the RCA and the online savings/money market account. Keep most of your savings in the savings/money market account, and use the RCA as your primary checking account.

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 Deals

I publish my CD survey as a separate post. Please refer to my survey of the best CD rates. This recap focuses on liquid accounts, but I’ll include a few of the best CD deals.

You still have time to lock in a 5%+ 5-year direct CD. BMO Alto began offering 5.25% APY on its 5-year Online CD in early November, and this is still available. Its rates on shorter terms are also quite competitive. That makes it a good place to start a CD ladder.

Even a higher 5-year CD rate is available at Advancial Credit Union. This requires a larger deposit ($50k for a 5.40% APY and $25k for a 5.29% APY). Note, Advancial often changes CD rates at the start of the month. So these rates are likely to fall on Friday when December begins.

Workers Credit Union is also offering 5.25% APY on a 5-year CD ($500 minimum). It also has a top 3-year CD rate (5.50% APY).

One more bank just started to offer 5%+ long-term CDs. The Federal Savings Bank has a 5-year CD with a 5.12% APY and a 3-year CD with a 5.17% APY. Both can be opened online with a $5k minimum deposit.

For the 2-year category, Luana Savings Bank is on top with a 5.63% APY 24-month CD ($100k minimum). The rate is 5.47% APY for a $2k minimum. These rates are down 5 bps from last week.

The rate leader for small deposits continues to be Newtek Bank (5.60% APY, 24-month CD, $2.5k minimum).

Seattle Bank has the highest 18-month CD rate (5.80% APY, $1k minimum).

Bayer Heritage Federal Credit Union holds the top spot for the 1-year category (6.18% APY, 12-month CD, $100 min/$100k max deposit). This is a special CD that’s scheduled to last through November. However, it has been reported that this might be extended to December 15th. It’s currently the only nationally available 6%+ CD that I’m aware of.

For large deposits, the highest CD rate is 5.85% APY. This is available as a 12-month Jumbo CD ($100k minimum) at All In Credit Union and at State Bank of Texas.

Comments

Please keep discussions of politics, the Fed and the economy to a minimum in the comments of this post. The focus of the comments should be deposit accounts and rates. Comments in this post that include politics may be removed. Also, comments with any rudeness towards others will be removed.

Political discussion that relates to the economy should be kept in my Fed meeting review post.

Rates as of November 29, 2023

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)

*New to Summary

No-Penalty CDs

*New to Summary

Reverse Tier Savings/Money Market Accounts/Checking:

Reward Checking Accounts:

• Best Reward Checking Account Rates

• Noteworthy Accounts Available Nationwide:

*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

• Investment Discussion Forum

• Series I Savings Bond Purchased after November 1, 2023

Accounts Removed, No Longer Available