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

Bank Deals Blog: Fed / Banking News

National Online Bank Day - Do Branches Lower Savings Account Rates?

In addition to Columbus Day, today is National Online Bank Day. Ally Bank established National Online Bank Day in 2015 to “emphasize the value, ease and convenience of banking with online-only institutions on Columbus Day, a day when most traditional banks are closed.”

In 2018 on National Online Bank Day, Ally emphasized the interest rate advantage of online banks. With all-time low deposit rates at Ally Bank and other online banks, I thought it was a good time to revisit the question I posed during last year’s National Online Bank Day:

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One-Year Anniversary of Reg D Change - Impact to Savings Accounts

Last Saturday was the one-year anniversary of a little-known change in a Federal Reserve regulation that impacts savers. On April 24, 2020, the Fed announced a change to Regulation D that permits banks and credit unions to allow their customers to make more than six payments or withdrawals per month from their savings and money market accounts.

One thing that wasn’t apparent when the Fed first announced this change was if this change would be permanent or just temporary. A couple months after the announcement, the Fed updated its FAQs by...

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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

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

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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The Fed Amends Reg D to Remove 6-Per-Month Limit on Savings Accounts

The Federal Reserve Board announced today that it has amended Regulation D (Reg D) to permit banks and credit unions to allow their customers to make more than six payments or withdrawals per month from their savings and money market accounts. This was done in part to give customers easier access to their funds during the COVID-19 pandemic. It is one of the many actions the Fed has taken in the last two months to combat the economic effects of the pandemic.

The first thing to note about this Reg...

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Banks and Credit Unions Offering Help to Coronavirus-Hit Customers

The coronavirus (COVID-19) pandemic is already resulting in mass unemployment, and those with loans, mortgages and credit card debt will be the ones most in need of help from banks. Savers may not be worried about making loan payments, but there are other potential problems they may face as the pandemic continues. In addition to offering help on the loan and credit side, many banks and credit unions are offering help on the deposit side. This post provides a listing of the banks and credit unions that have announced specific...

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Coronavirus Stimulus Package Includes Limited FDIC Coverage Expansion

The Coronavirus Aid, Relief, and Economic Security (CARES) Act that unanimously passed the Senate has a few little-known provisions that will likely be of interest to savers. The well-known provisions have been discussed at length by the media. These include the $1,200 tax rebates to most individuals, expanded unemployment benefits, billions of dollars for state and local governments and hospitals, and billions of dollars in loans for small and large businesses. The total cost of this package is close to $2 trillion. The bill is expected to pass the House...

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Safety of Your Deposits in the COVID-19 Pandemic

It was apparent last Sunday when the Fed held an emergency FOMC meeting and announced drastic policy actions, the COVID-19 (coronavirus) pandemic has the potential of seriously impacting the financial system. Also, as we learned from the 2008 financial crisis, when the financial system is under stress, bank failures rise dramatically. Thus, it’s reasonable that savers would be concerned about the safety of their deposits. To help ease those concerns, the FDIC published this March 18th press release for bank customers, and the NCUA published a similar March 19th press...

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New Fintech, HMBradley, Announces Unique High-Yield Bank Account

The new fintech, HMBradley, has launched a website describing a new digital banking platform that offers a deposit account with a 3% APY. As is typical with new fintech companies, there’s only a waitlist. Also, there are many details to qualify for the 3% APY. Just like last December when Robinhood received media attention for an announced 3% bank account, HMBradley has started to receive media attention. This Money.com article was published yesterday.

The unique thing about HMBradley’s proposed deposit account is the Savings Tiers which are based on how...

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