Bank Deals Blog: Internet Banks

The Fed moved as expected last week by raising the federal funds rate by 25 basis points. This is the second Fed rate hike of 2017 and the third Fed rate hike in the last six months.

Now the important question is whether we’ll see more Fed rate hikes in 2017. The main issue that could prevent the Fed from hiking again in 2017 is low inflation. The Fed’s new economic projections issued after last week’s meeting lowered the expected inflation for 2017 from a range of 1.8%-2.0% to a...

Deal Summary: 11-month No Penalty CD: 1.50% APY, $25k minimum (increase of 15 bps).

For the second time in the last week, Ally Bank raised the rates of its 11-month No Penalty CD. This is an especially pleasant surprise since last week’s rate hike was such a good deal. You’ll need a minimum deposit of at least $5k to benefit from this rate increase. The top-tiered rate increased 15 basis points to 1.50% APY while the mid-tiered rate increased 20 basis points to 1.25% APY....

After several internet banks have raised their rates to 1.15% and above, the recent rate hike of the High Yield Savings Account (HYSA) at American Express Bank, FSB (1.05% APY) may not sound like an exceptional deal. Nevertheless, I thought it was worth a blog post since the internet bank has several features that give them an advantage over others. In fact, I seem to receive more positive opinions from readers about this bank...

I last wrote about SFGI Direct more than three years ago when the rate on its Savings Account was raised to 1.01% APY. At that time, 1.00% was considered to be competitive, and I even began using the phrase, “the 1% club.” As of today, SGFI Direct’s Savings Account now earns 1.16% APY.

My January 2014 blog post about the SFGI Direct Savings Account details the account’s rate history from its introduction in 2009...

Barclays has just raised the rate on its Online Savings Account (1.15% APY). It was just over a month ago when Barclays increased the savings account APY to 1.05%. Before that change, the previous APY had been 1.00% which had held since December 2014.

Barclays’ Online Savings Account is still not a rate leader, but it’s nice to see yet another savings account rate increase from a major internet bank. The Fed rate...

SallieMae Bank has just raised the rate on its Money Market Account (1.15% APY). In the past six months, the MMA has experienced two rate increases, which have added a total of 25 bps.

SallieMae Bank's MMA is still not a rate leader, but it’s nice to see a money market rate increase from a major internet bank. With the last Fed rate hike just two days old, we will hopefully...

UPDATE 6/16/2017: Only available to New Jersey residents.

UPDATE 6/16/2017: Rate has been increased.

In early April, Amboy Direct raised the rate on its 12-month eSavings CD to 1.35% APY, and one short month later, another 11 bps were added. Another month has passed and Amboy Direct has just added an additional 5 bps, making its 12-month eSavings CD (1.51% APY) the...

In early February, I wrote about My e-BAnC by BAC Florida Bank’s (My e-BAnC) Super Saver account, its new money market account which earned 1.11% APY at the time. That rate was raised slightly to 1.15% APY yesterday.

While any deposit account rate increase - large or small - is always welcomed, my enthusiasm for this week’s 4 bps increase is definitely tempered by new restrictions on the Super Saver. To quote my February...

At the beginning of May, the APY on Nationwide Bank’s Member Checking was increased by 50 bps; that was the first rate increase since the account was introduced in September 2013. Another 15 bps were added yesterday, resulting in a 1.15% APY for balances of $10k+. Balances up to $9,999.99 earn 1.00% APY.

One interesting thing to note is that this checking account rate is currently much higher than the rates...

The Fed has begun its two-day FOMC meeting. The FOMC statement is scheduled to be released at 2:00pm EDT Wednesday. At this same time, the Fed is also scheduled to release its federal funds rate projections and its quarterly economic projections. Then at 2:30pm, Fed Chair Janet Yellen is scheduled to hold a press conference.

A Fed rate hike on Wednesday appears to be almost a sure thing. What’s less certain is the federal funds rate projections. Do most Fed members still anticipate three rate hikes in 2017? Also, do...