Bank Deals Blog: Internet Banks

Capital One has raised the rate on its 360 Money Market to 1.60% APY on balances of $10k+. The APY for balances below $10k remains at 0.85%. In the past ten months, a total of 60 bps has been added in six rate increases.

The 360 Money Market has no monthly service charge, no-minimum opening deposit, or minimum balance requirement. It can be opened in your name...

On Monday President Trump announced his intention to nominate officials to fill two vacancies at the Fed. Richard Clarida will be nominated for the position of Vice Chairman of the Board of Governors, and Michelle Bowman will be nominated for the position of Member of the Board of Governors. Will they be hawks or doves? This Bloomberg article describes Clarida as a “Pragmatic Centrist.” This MarketWatch article describes both nominees as “mainstream central bankers.” According to the article:

Don’t expect the Fed to change much. If the nominees are more hawks...

MidFirst Direct ended the week by raising the rates on all its High Yield Online CDs, adding between 15-20 bps. Of the ten High Yield Online CDs, the 12-month (2.15% APY), 24-month (2.50% APY), and 36-month (2.60% APY) are the most competitive. The minimum deposit is...

In the past 18 months, Colorado Federal Savings Bank’s (CFSB) 12-month CD has been a contender in the race to be the top-rated nationally available one-year CD. In the seven years DA has been tracking CFSB CDs, the 12-month has offered a top APY seven times, with the rate lasting only a few weeks.

In early March, the 12-month CD held the top spot (albeit by 1 basis point) with its 2.11% APY for about three...

Capital One increased the rates by 5 to 10 bps on six of its 360 CDs and 360 IRA CDs this morning. Both the 1-year and 5-year CD rates increased by 10 bps. The rates on four terms between these went up by 5 bps. The new APYs are shown below in bold and are effective as of 4/12/2018. The previous APYs are noted inside...

As I was reading up on Banesco USA last month, I saw the following on the CD promotion page:

I didn’t put too much stock into that announcement, because “coming soon” doesn’t always happen. Banesco USA proved me wrong yesterday, by adding a new 36-month CD (2.70% APY). Mea culpa. The announcement is still on the CD page; I think I’ll keep checking it.

Friday’s weak jobs report wasn’t good news for those hoping the Fed will hike rates at least three more times in 2018. The number of jobs added in March was 103,000 which was below the consensus expectations of 175,000 jobs. Even though the report was disappointing, it shouldn’t deter the Fed from a June rate hike. According to this USA Today article, the “weather was the main reason for March's poor performance. And payroll gains for the first three months of the year still averaged a very healthy 202,000, up...

This morning Synchrony Bank increased rates on six of its CDs. The most competitive is now its 1-year CD; the rate increased 10 bps to 2.15% APY. This is the second round of CD rate hikes at Synchrony since last month’s Fed rate hike. Synchrony’s High Yield Savings Account rate is unchanged; its rate continues to be 1.55% APY for all balances. All six of the new CD APYs are shown below in bold and...

Goldman Sachs Bank USA (now operating under the brand Marcus by Goldman Sachs) increased the rate of its Online Savings Account by 10 bps to 1.60% APY. GS Bank was renamed to Marcus by Goldman Sachs in December.

The new rate doesn’t make the savings account a rate leader, but it does position the savings account on the high end for the large internet banks, and it should put pressure on the other large internet banks to...