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.
Deal Summary: Online Savings Account, 1.01% APY, No minimum balance
Availability: Internet Bank
Today Discover Bank increased the rate of its Savings Account from 0.95% to 1.01% APY. While this isn’t an exceptional rate for an online savings account, it’s another sign that banks are slowly starting to respond to the Fed rate hikes. Discover Bank is one of the big internet banks, and it’s always nice to see rate hikes at these banks.
The 1.01% APY applies to all balances. In March, Discover Bank removed the $500 minimum deposit...
Next week there will be another Fed meeting, but it should be uneventful. There’s no press conference after the meeting (which is scheduled to end on May 3), and no one is expecting a rate hike. The June Fed meeting is a different story. The odds of a rate hike at that meeting (scheduled for June 13-14) have increased since last week. According to this Reuters article:
The Fed will probably be in a wait-and-see mode regarding fiscal stimulus. For the short term, economic news will be a more important driver...
SmartyPig is ending the week by not only raising the rate on its SmartyPig Savings account (1.12% APY, $50k+), but by also restructuring its rate tiers.
For those not familiar with SmartyPig, it’s not your typical savings account. SmartyPig Savings is built around a savings goal concept: you set the amount of a savings goal you want to reach at some...
Deal Summary: Online Savings Account, 1.05% APY, No minimum balance
Availability: Internet Bank
This morning, Ally Bank increased the rate of its Online Savings Account by 5 bps. The new rate is now 1.05% APY. This also applies to the IRA Online Savings Account. The 1.05% APY applies to all balances. The account has no monthly maintenance fees and no minimum balance requirement.
Last month’s Fed rate hike appears to be having some effect. On Monday, Ally increased its 5-year CD rate to a level not seen since 2011,...
UPDATE 4/20/2017: Offer has been extended through May 31, 2017, and has a new coupon code (SAVE417E1).
Deal Summary: $100 bonus on new Online Savings account.
Availability: Nationwide (internet bank)
Discover Bank is offering a $100 bonus when opening a new Online Savings account with a minimum deposit of $15k. This promotion is for customers who have never had a Discover Bank Online Savings or Money Market account.
$100 Bonus Requirements
Open an Online Savings account by March 3 May 31, 2017.
The chance of another Fed rate hike in June has diminished some. Recent economic data could give the Fed a reason to delay its next rate hike. As we have seen many times, it doesn’t take much to convince the Fed that it should delay a rate hike. Here’s what was said about the Fed in this BloombergView article:
That summer vacation could be the Fed holding off the next rate hike until its September meeting. However, economist Tim Duy thinks the Fed will “dismiss recent data as unrepresentative of underlying...
The news in the last week hasn’t changed the expectation of a June Fed rate hike. A quarter-point rate hike at every other Fed meeting appears to be consistent with the gradual pace of tightening that has been suggested many times by Fed Chair Janet Yellen. The latest case was on Monday during a public discussion at the University of Michigan. In the discussion, Fed Chair Yellen said:
Last Friday’s jobs report also gave support to a gradual rate hike. Economist Tim Duy explained his opinion about the jobs report and...
Massachusetts-based Northern Bank has launched a new online division called Northern Bank Direct. The new internet bank is offering a competitive money market account and a couple very competitive CDs. The best deal is currently a 3-year CD with a 2.00% APY. Other CD terms include a 5-year (2.15% APY), 4-year (2.05% APY), 2-year (1.65% APY) and...