About Ken Tumin

Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.


Popular Posts

High Inflation and Low Rates - When Bank CDs Make Sense for Savers
High Inflation and Low Rates - When Bank CDs Make Sense for Savers

An important concern with long-term CDs is having your money locked into a low-rate CD when interest rates are increasing rapidly. With the possibility that we are moving into a period of rising inflation, that is a growing concern. DA reader kcfield made several good points in this DA Forum thread for savers to consider in today’s low-rate environment. As kcfield asked: “Should we give up our 0.50% interest savings account to invest in a 1% long term CD?” I think many savers and investors would agree with this opinion...

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One Year of Zero Rates - Deposit Rates of 2009 vs 2020
One Year of Zero Rates - Deposit Rates of 2009 vs 2020

Today marks the one year anniversary of zero rates. At an emergency meeting on Sunday, March 15, 2020, the Fed slashed the target federal funds rate to the effective lower bound of 0.00%-0.25%. This was one of many policies the Fed implemented to help the economy make it through the pandemic.

I thought it would be interesting to compare this first...

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Personal Savings Rate Spikes in April - Effect on Deposit Rates
Personal Savings Rate Spikes in April - Effect on Deposit Rates

The U.S. Bureau of Economic Analysis (BEA) released its monthly Personal Income and Outlays report this morning. What is particularly noteworthy is the massive surge in the personal savings rate. This is a measure of how much Americans are saving, and the rate has surged to an all-time record high of 33.0% in April. The personal savings rate had a large increase in March, rising from 8.2% in February to 12.7%, but the April increase is unprecedented.

History of the personal savings rate

You can see the history of the personal savings...

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Online Bank CD Rates Falling to All-Time Lows
Online Bank CD Rates Falling to All-Time Lows

The Fed’s zero interest rate policy (ZIRP) is just over two months old, and already we’re seeing online banks cutting their CD rates to all-time lows. This doesn’t bode well for future deposit rates, especially if the economy takes a long time to recover from the COVID-19 pandemic. I’ve reviewed the rate history of three online banks that have recently cut their 5-year CD rates to all-time lows. The disturbing thing to note is that the previous lows didn’t occur until several years into the last ZIRP period, which lasted...

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5-Year CD Rates Fall Below Savings Account Rates at Many Online Banks
5-Year CD Rates Fall Below Savings Account Rates at Many Online Banks

As online banks cut their deposit rates, an interesting phenomenon has occurred. Many online banks now have higher interest rates on their savings accounts than their 5-year CD rates. We typically expect long-term CDs to offer the highest rates since you’re locking in your money for the longest period of time. That’s not the case today as banks transition their deposit rates in this new zero interest rate environment.

Here’s a snapshot of the rates at a few online banks with these inverted rates. APYs are accurate as of 5/18/2020:

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Rates in Rapid Decline - Note Regarding DepositAccounts Rate Tables
Rates in Rapid Decline - Note Regarding DepositAccounts Rate Tables

Due to the Fed’s massive rate cut at the Sunday emergency FOMC meeting, banks and credit unions are starting to respond by making their own rate cuts to their deposit accounts. In short, this is overwhelming our rate tracking system at DepositAccounts. We are trying our best to keep our rates updated, but there are just too many rate cuts for us to quickly process. Thus, in the next couple of weeks, please be aware that the rates we list at DepositAccounts may not reflect the latest rates published by...

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1 in 3 Americans Can’t Make a $20 Cash Purchase Without Using an ATM
1 in 3 Americans Can’t Make a $20 Cash Purchase Without Using an ATM
Written by Lauren Perez | Published on 8/20/2019

Do you carry cash? Are you carrying cash right now? If you had to make a cash purchase, would you need to make a quick trip to the ATM? If you answered no to the first two questions and yes to the last, you’re hardly alone.

The rise of fintech start-ups, electronic payment apps and online banking — not to mention the ubiquity of credit cards and debit cards — has made it possible for many Americans to go without carrying cash most of...

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96 Million Americans Have Never Switched Banks — And It’s Costing Them Billions
96 Million Americans Have Never Switched Banks — And It’s Costing Them Billions
Written by James Ellis | Published on 8/5/2019

Millions of Americans have never switched banks, a recent survey commissioned by DepositAccounts found. Even more profess loyalty to their current financial institution.

This reluctance to switch banks — especially to an online-only bank — could collectively cost the country billions of dollars.

Key findings

  • An estimated 96 million Americans have never switched banks, collectively leaving up to $42 billion in interest income on the table each year.
  • Of the millions of Americans who have never switched banks, almost 75% say the reason is because they're satisfied...
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Metro Areas Where Residents Love Certificates of Deposit
Metro Areas Where Residents Love Certificates of Deposit
Written by Lauren Perez | Updated on 7/30/2019

Certificates of deposit (CDs) have long been a great place to stash your savings, especially for conservative investors who want a guaranteed yield. But who are these conservative savers, and where do they live?

In this study, DepositAccounts looked at the percentage of households owning CDs in the 100 largest metros in the U.S. to gauge where this investing product is most — and least — popular.

Until only a few months ago, 1-year CD yields were reaching as high as 3.00%. But CDs as...

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Survey Finds 1 in 3 College Students Have At Least $1,000 Saved
Survey Finds 1 in 3 College Students Have At Least $1,000 Saved
Written by Lauren Perez | Published on 7/23/2019

Young people aren’t typically known being financial savvy. Scan various headlines and you’ll read that millennials and Gen Zers are killing industries or otherwise mismanaging their money.

But in a new DepositAccounts survey, we’ve found that today’s college students may be better at saving their money than we thought. Not only are college students saving their money, but many are funding their own tuition payments, living expenses and emergency funds.

Let’s take a deeper dive into the money management habits of today’s college students and...

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