3.00% 24-Month CD & Other High CD Rates at Signature Bank in New York City - Local Only read and submit comments for this post

Signature Bank is still offering a 2.50% APY 12-month CD. In addition, the bank is offering other competitive rates including a 2.85% APY 18-month CD and a 3.00% APY 24-month CD. Minimum deposit is $5,000. These aren't specials, so you don't have to worry about other requirements like a checking account. The CD rates don't appear to be listed at the bank's website. A reader commented on these today, and I just called for additional details. These rates are available as of today (7/09/09), but the CSR didn't know how much longer they may last. The 2.50% 12-month CD has been available since June 10th.

A branch visit is required to open an account. Branches are located throughout New York City.

The bank has strong ratings for safety and soundness: 4 stars (excellent) at BauerFinancial and 4 stars (sound) at Bankrate.com. Both ratings are based on 3/31/09 financial data. The bank has been a FDIC member since 2001 (FDIC Certificate # 57053).

Thanks to the reader who mentioned this CD and bank in the Daily News & Deals post.

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

3.90% 60-Month CD at RBC Bank in AL, FL, GA, NC, SC & VA - Local Only read and submit comments for this post

RBC Bank is offering a special 3.90% APY CD 60-month CD. Minimum deposit is $5,000, and a checking account is required. The CD is also available in an IRA. There are Jumbo CD versions of these with a 3.90% rate with no compounding. The Jumbo minimum is $100,000. This rate is listed at the bank's rate sheet as of 7/09/09. According to the rate sheet, interest rates are valid through July 14, 209.

I called the bank for additional details. Their free checking account does qualify. It has no minimum balance or monthly fees. I was told if you open the Preferred Checking, they can bump the rate up to 4.00% APY. Monthly fees are waived if your combined balance (which can include the CD) is at least $10K. According to the CSR, they only do a ChexSystem for new deposit accounts with no hard credit inquiry. A hard pull is only done for credit products.

According to the CSR, the early withdrawal penalty is equal to 6 months of interest. With the potential of rising inflation causing higher deposit rates in the future, early withdrawal penalties are important issues to consider. If you open this CD at 4.00% and rates shoot up in 2 years so that you want to break this CD, the effective interest rate for those 2 years after the penalty comes out to about 3%. Having some long-term CDs with small early withdrawal penalties can be a better approach than just keeping all of your money in savings accounts and short-term CDs. That's one reason why many recommend CD ladders.

To open an account I was told that new customers must be within RBC Bank's market area which includes Alabama, Florida, Georgia, North Carolina, South Carolina and Virginia. Refer to their banking center locator to find a branch near you.

Financial/FDIC Overview

RBC is a large regional bank with $29.8 billion in assets and 441 branches in the Southeast. It's part of the bank holding company Royal Bank of Canada which is the largest financial institution in Canada with operations in 53 countries. Like many banks it the Southeast, RBC Bank in the US has been having problems with bad real estate loans. There have been rumors that RBC may decide to exit the US market. However, RBC's international operations chief says that RBC plans to expand in the Southeast.

RBC Bank's ratings for safety and soundness are a little weak: 2 stars (problematic) at BauerFinancial and 2 stars (below peer group) at Bankrate.com. Both ratings are based on 3/31/09 financial data. RBC Bank is a member FDIC (FDIC Certificate # 33184).

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

4.01% Reward Checking Account at First Bank & Trust in SD - Nationally Available read and submit comments for this post

First Bank & Trust is offering a reward checking account called easyGROW Checking. The account has the following rates and features if certain monthly requirements are met:

• 4.01% APY on balances up to $25,000
• 0.75% APY on portion of balance over $25,000
• 0.20% base rate if monthly requirements are not met
• Refunds all ATM fees worldwide without limit

The monthly requirements include:

• 10 Visa check card purchases
• 1 automatic payment or direct deposit
• Receive e-statements

Additional features of the account regardless of the monthly requirements include:

• $100 minimum initial deposit
• No minimum balance requirement
• No monthly service charge
• Requirements for the first statement cycle are waived

There's an online application at the bank's microwebsite. I used the website's chat feature and asked the CSR if people from any state could apply. According to the CSR, they do accept applications nationwide. After you apply, they'll mail you some documents including a signature card that must be filled out and returned. When I asked about a hard credit pull, the CSR said they "do a credit check as part of the application process."

First Bank & Trust is one of five banks that offer this same easyGROW Checking. They are all part of the Fishback Financial Corporation, a bank holding company. The websites of all these banks can be accessed from the Fishback Financial Corporation's home page at BankEasy.com. First Bank & Trust is located in Sioux Falls, South Dakota. Three other of the banks are also located in South Dakota. The fifth bank, The First National Bank and Trust, is located in Pipestone, Minnesota.

First Bank & Trust has been a FDIC member since 1987 (FDIC Certificate # 27078). From the bank's FDIC page, you can get holding company info and the info on the other banks by clicking on the bank holding company link.

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation or to learn more about these accounts, please refer to my High Yield Checking website.

2.50% 24-Month CD & a Checking Account Bonus at BBV Compass in AL, AZ, CO, FL, NM & TX read and submit comments for this post

BBVA Compass is offering a competitive rate of 2.50% APY on its 2-year CD. Minimum deposit is $5,000. This rate is listed at the bank's rate table as of 7/09/09. Note, they have separate CD rate tables for the different regions. I've checked most of these, and they all have the 2.50% APY for the 24-month term. This is the only CD term with a competitive rate.

Compass also has a promotion for opening a new checking account. It's not as good as previous ones. Here's the link to the promotions page. When you open a new checking account by 7/31/09, you'll receive 5% cash back for gas, groceries and utilities when you pay using the BBVA Compass Visa Check Card that comes with the checking account. The maximum cash back is $50, and the signature-based check card purchases must be made before 8/31/09.

I've been happy with my Compass Bank Build-to-Order Free Checking. I don't use it much. I keep it active with monthly debits which qualifies me for yearly $25 bonuses. Refer to my previous Compass Bank post for details of the Build-to-Order checking.

To open an account, you must reside in one of Compass's market areas which include Alabama, Arizona, Colorado, Florida, New Mexico and Texas.

BBVA Compass used to be just Compass Bank. It was rebranded after Compass was acquired by Banco Bilbao Vizcaya Argentaria, the second largest bank in Spain. The bank is still called Compass Bank in the FDIC database with a FDIC certificate # 19048.

Compass Bank has fair ratings for safety and soundness: 3 stars (performing) at Bankrate.com and 3½ stars at BauerFinancial. Both ratings are based on 3/31/09 financial data.

Thanks to the reader who emailed me news of this CD.

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

To find other bonus deals, please refer to my bank bonus page which has all of my recent bank bonus posts.

2.70% 24-Month CD at Eastman Credit Union in TN, VA, TX, SC & AR - Local Only read and submit comments for this post

Eastman Credit Union is offering some competitive certificate rates. The two most competitive are the 24-month term with a 2.70% APY and the 12-month term with a 2.25% APY. The 3-year term also has a competitive APY of 3.10%. The minimum deposit is $1,000. An extra 10 basis points is added for a Jumbo CD with a minimum of $100,000. These rates are listed in the credit union's deposit rates table as of 7/09/09.

Eastman Credit Union has a history of competitive certificate rates. My last post on this credit union was in August 2008 when it was offering a 5% 48-month CD.

Membership is open to those who live, work or attend school in several counties in the northeast part of Tennessee. Counties in southwest Virginia and Harrison and Gregg Counties in northeast Texas are also included. There's also a long list of Select Employer Groups. Please refer to the Who Can Join Page for the full details.

Branches are located in Tennessee, Virginia, Texas, South Carolina and Arkansas.

The credit union's ratings for safety and soundness are a little mixed. Bankrate.com gives the credit union 3 stars (performing). BauerFinancial gives it 5 stars (superior). Both ratings are based on 3/31/09 financial data.

The credit union is federally insured by the NCUA (Charter # 68095). It's a large credit union with $2.1 billion in assets and 109,770 members based on 3/19/09 NCUA data. It has grown quite a bit since 2007 when it had $1.6 billion in assets and only around 81,000 members.

Update on ING Direct's Electric Orange $50 Promotion read and submit comments for this post

ING Direct has another $50 promotion for opening a new Electric Orange Checking account. A reader just forwarded me the promo info that ING Direct had emailed. The promo page is located at www.ingdirect.com/electric50, and the new reference code is EM295. The account must be opened by 7/31/2009.

You're required to use your Electric Orange Debit Card Card to make at least 3 signature-based purchases in the first 45 days after your account has been opened. Signature-based means that you have to use it like a credit card without providing your PIN.

This is very similar to the one ING Direct was offering in May. When I called ING Direct in May, I was told that existing ING Direct customers without an EO account should qualify. Note, in past promotions readers have reported receiving an invalid code response if they didn't qualify.

A Fatwallet member in this FW thread reported that he first opened the savings account using a $25 refer-a-friend bonus and then opened the Electric Orange account from a previous $50 Electric Orange promotion. Both the $25 and $50 bonuses were credited automatically.

There's a $25 bonus for the savings account that still seems to be available. Refer to this post for more details. Some readers have reported problems with that promo code. If you have problems, I can send you a $25 refer-a-friend referral. This requires a minimum $250 deposit. Send me email at bankdeals at gmail dot com. Make sure to include your first and last name and let me know that you want the referral for the savings account.

For more details about ING Direct and the savings and checking accounts, refer to my previous post.

ING Direct's bank deposit products are FDIC insured (FDIC Certificate # 35489)

Thanks to the reader who sent me the info on this new promo.

WTDirect's Online Savings Account Promotion - Nationally Available read and submit comments for this post

WTDirect has started another new-account bonus similar to the promotions it ran last December and last August. As you might expect in this low-interest rate environment, the bonuses are quite a bit lower than what they offered before, but when you combine this new bonus with WTDirect's competitive rates and their online banking features, it's a decent deal in today's environment.

Here's the link to WTDirect's promotion page. The promotion details are below:

• Apply online for WTDirect account
• Make an initial deposit of $10,000 or more by July 31, 2009
• Keep your funds on deposit with WTDirect through 10/31/09
• Earn a cash bonus up to $150 based on the schedule below

Bonus schedule:

• $150 bonus for $50,000 balance
• $100 bonus for $40,000 balance
• $75 bonus for $30,000 balance
• $50 bonus for $20,000 balance
• $25 bonus for $10,000 balance

Some important small print:

• Offer is available to new WTDirect clients only. Primary account holder must not have held a WTDirect account in the past 12 months.
• To receive the bonus, a valid promotion code starting with the letters "WFIT" must be present on the application at the time of account opening
• WTDirect account must be funded via electronic (ACH) transfer received by 7/31/09
• Account must remain open and in good standing through 10/31/09, the end of the promotion period
• Bonus is determined by the account balance at the time of initial funding, which must be a minimum of $10,000 and must remain on deposit through the end of the promotional period.
• Bonus will be credited to client's WTDirect account on or about 11/20/09
• WTDirect reserves the right to cancel or modify this promotion at any time without notice.

In a nutshell, the bonus can allow you to earn up to an extra 1.2% for 3 months on top of their standard rate (currently 1.76% APY as of 7/08/09). Here's how I came up with an extra 1.20%:

• 3 month return: $150 / $50,000 = 0.003 = 0.30%
• Annualized: 0.30% x 4 = 1.20%

Note, the bonuses for deposits under $50,000 only come out to 1.00%. This also assumes you maintain the balance right at the tiers.

As I mentioned, the bonuses are quite a bit less than their December 2008 promo when the bonus could add up to an extra 3% for 2 months and less than their August 2008 promo when the bonus could add up to an extra 6% for 2 months. Nevertheless, this current WTDirect bonus is comparable to other deals such as EverBank's guarantee of 3.01% for 3 months for up to $50K (see review).

WTDirect Account Details:

WTDirect's standard rate of 1.76% APY (as of 7/08/09) is competitive. The only downside is that it only applies to balances of $10K and above. Under $10K, the rate is only 0.15% (except for the first 60 days). If you do plan to keep at least $10K in this account, it may be an account you'll want to keep for the long term. They've kept their rates competitive since my first WTDirect post in November 2006.

In my opinion, WTDirect has better online documentation than many other internet banks. The provide many details on their ACH bank-to-bank transfer service. Here are the links to this documentation along with some relevant details:

• Account Details - No monthly fees regardless of balance
• FAQs - ACH transfer features: allows unlimited linked accounts, high limits on transfers
• Moving Money Documentation - Details on their ACH and wire transfers
• Account funding FAQs - Fund by ACH transfer with trial deposit verification or by mailing in a check

Readers have reported that WTDirect does not do a hard credit inquiry in the application. It has also been reported that the trial deposits are debited from your funding account. A reader who has an account at WTDirect mentioned that the ACH transfers take 3-4 days. One example he gave was a transfer that was set to start on 5/26. Funds were deducted on 5/26 and were credited to the destination account on 5/28.

Financial/FDIC Details:

This online savings account is FDIC insured. WTDirect is a division of Wilmington Trust which has been a FDIC member since 1994 (FDIC Certificate # 33911). The bank's ratings for safety and soundness are fair: 3 stars (performing) at Bankrate.com and 3½ stars (good) at BauerFinancial. Both ratings are based on 3/31/09 financial data.

Refer to my WTDirect page for my previous reviews and to read comments from those who have opened this account during previous promotions. For other high yield savings accounts, please refer to my weekly rate summary.

How the Big Banks and the Credit Unions Are Handling California's IOUs read and submit comments for this post

Customers of the big banks in California may have problems after July 10th. That's the cutoff date in which many major banks plan to stop accepting California's IOUs (registered warrants). As described by the California State Controller's Office, the registered warrants are being issued due to the California government being unable to enact budgetary solutions to provide enough cash for the State to pay all of its bills. Assuming there is adequate cash in the Treasury, those warrants may be redeemed on October 2, 2009.

As reported by the LA Times, many big banks including Bank of America, Chase, Wells Fargo and Union Bank have said they'll only cash the state IOUs from customers through July 10. On the other hand, many credit unions plan to continue accepting them as described in this Union-Tribune article.

Mish at Global Economic Trend Analysis has this say about the banks:

Every one of those blood sucking banks was bailed out by taxpayers (California taxpayers too) and now will not take an IOU from the State of California for the citizens of California. This is disgusting.

He's careful to make the distinction that the issue of accepting these IOUs is different than supporting California's issurance of these IOUs.

Here's a short list of California credit unions that have stated they'll continue to accept the registered warrants. If you know of others, please leave a comment:

• The Golden 1 Credit Union
• LBS Financial Credit Union
• Patelco Credit Union
• Schools First Federal Credit Union (formerly OCTFCU)
• Southland Credit Union
• Star One Credit Union

Not all credit unions will be accepting them after July 10th. Also, many credit unions are only accepting them from members who joined before July. So keep that in mind if you're looking for an institution to accept these warrants.

Thanks to the reader who emailed me info on this issue.

$120 Checking Account Bonus at Comerica Bank read and submit comments for this post

Comerica Bank is offering a promotion called the Sensible Stimulus Package. The promotion page is at comerica.com/Sensible. It says you can make up to $230, but based on what I've read and what I've been told by a Comerica CSR, only $120 would be doable and worthwhile for most people. The $120 checking bonus isn't too bad, but it will take some time and some work. To qualify for this promotion, you must have an active Comerica personal checking account and register online at the promotions page by September 4, 2009. Here's a summary of what needs to be done for the $120:

• Open Comerica checking account and register for this promotion
• Use your Comerica Check Card for purchases 8 times a month for 12 months
• Pay 8 bills online each month with Comerica Web Bill Pay for 12 months

For the check card purchases and the Bill Pay, $5 monthly payments will be made to your checking account each month so you won't have to wait to the end of the year to collect.

There's also a $50 bonus for establishing a recurring direct deposit. However, I was told by the CSR that the Comerica checking account must have been opened for at least 6 months to qualify.

Finally, up to $60 can be earned by opening a new Comerica savings or money market account. This requires maintaining a $10K balance. Since their savings and money market accounts pay so little interest, you'll be better off opening an online savings account at another bank that earns a decent interest rate.

Here are some details about the checking account and the promotion that I learned from the CSR:

• Available to people in any state. Account can be opened by mail. This is what the CSR told me. You'll have to call (800.292.1300) and initiate the application on the phone. They'll mail you the documentation. I have a feeling your miles may vary on this if you live outside Comerica's market areas in Arizona, Florida, Texas, California and Michigan.
• According to the bank rep, there's no hard credit pull when you open a checking account. They just do a ChexSystem verification and a soft pull for the check card. Note, CSRs are often wrong about hard pulls.
• Their basic Access Checking Account qualifies for this promo, but it does have potential monthly fees. Fees can be waived if you maintain a $800 minimum balance, have direct deposit, own a house or are a full time college student. There's also a quarterly inactivity fee that you have to watch out for.

Comerica is a large bank with most of its branches in Michigan, California and Texas. There are only a few branches in Arizona and Florida. Comerica is a member FDIC (FDIC Certificate # 983).

To find other bonus deals, please refer to my bank bonus page which has all of my recent bank bonus posts.

2.65% 15-Month CD at WashingtonFirst Bank in the DC Metro Area - Local Only read and submit comments for this post

WashingtonFirst Bank is offering a special 15-month CD with a 2.65% APY. Minimum deposit is $10,000. This special is listed at the bottom right of the bank's home page as of 7/07/09. According to the small print, the APY is accurate as of July 6, 2009 so hopefully it'll last for a while. There's also a competitive 18-month IRA CD listed in the bank's deposit rates page as of 7/07/09.

It appears a branch visit is required to open an account. Branches are located in Washington DC, Maryland and Virginia.

The bank has fair ratings for safety and soundness: 3 stars (performing) at Bankrate.com and 3½ stars (good) at BauerFinancial. Both ratings are based on 3/31/09 financial data. The bank has been a FDIC member since 2004 (FDIC Certificate # 57696).

Thanks to the reader who mentioned this special in the daily news and deals post.

Other High Certificate of Deposit Rates

Another good deal in the DC area mentiond by the reader is at Alliance Bank which is still offering a 2.75% APY 18-month CD as of 7/07/09. I last posted on this Alliance CD in June. Refer to the links below for other CD deals around the nation:

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

2.50% 12-Month CD at Lowcountry National Bank in South Carolina - Local Only read and submit comments for this post

Lowcountry National Bank is offering a special 2.50% APY 12-month CD. The bank also has this same rate for an 18-month CD which has a one-time bump-up option. This gives you the chance to request a one-time increase in the rate to the bank's current 12-month CD rate. Minimum deposit for both CDs is $1,000. These specials don't seem to be listed at the bank's website. They were advertised in today's (7/07/09) edition of The Island Packet newspaper. The ad is available online here.

A branch visit appears to be required to open an account. Branches are located in the South Carolina cities of Beaufort, Hilton Head Island and Port Royal.

Lowcountry National Bank is a division of CBC National Bank. CBC's ratings for safety and soundness are a little weak: 2 stars (below peer group) at Bankrate.com and 3 stars (adequate) at BauerFinancial. Both ratings are based on 3/31/09 financial data. CBC National Bank has been a FDIC member since 2000 (FDIC Certificate # 35309).

Thanks to the reader who mentioned these specials in the daily news and deals post.

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

Bank of Internet's New Advantage Savings Account with a 2.50% APY - Nationally Available read and submit comments for this post

Bank of Internet USA has launched a new high yield savings account called Advantage Savings Account. As of 7/07/09 it pays 2.50% APY on all balances. The features are very similar to their High Yield Savings Account except that it also provides limited Bill Payment. It allows you to make up to 3 Bill Payments per month. The limit of 3 is likely due to Bill Payments being considered checks, and money market accounts are limited to no more than 3 checks per month as required by regulation.

Since the account is very similar to the High Yield Savings Account which is currently paying 2.06% APY, it makes this 2.50% APY look like a teaser rate. There doesn't appear to be any guarantee period, so the rate could change at anytime. However, BofI doesn't have a history of quick rate changes. So it's quite possible that this 2.50% APY could last for many months.

Here's a summary of the Advantage Savings Account features:

• 2.50% APY on all balances as of 7/07/09
• $100 min. initial deposit required
• No monthly maintenance fee
• No minimum daily balance required
• Up to 3 Bill Payments per month
• ATM card available
• Interest is compounded daily and credited monthly
• Initial funding can be done by an ACH transfer or by check
• Allows joint accounts, Trust accounts and UTMA accounts (custodial accounts for minors)
• You can include multiple beneficiaries in the application and choose the ownership designation of POD, ITF or ATF
• No ACH transfer service available
• Accepts ACH transfers initiated from another bank

Note the lack of the electronic ACH bank-to-bank transfer feature. The bank has said many times that such a service is planned, but we continue to wait.

One downside of opening an account at BofI is that it's a slow process. Readers have reported that it uses more snail mail than the internet. After you fill out the online application, you still have to mail in a signed application, and it needs to be returned before they do the initial ACH debit to open the account. A reader has reported that past applications have taken 1-2 weeks and involes a lot of USPS mail.

Another downside is BofI's Bill Payment service. Readers have reported that their Bill Pay service is very slow. Here's a comment a reader left:

I have a checking account with them and occasionally use their bill pay system.
It is so slow then it takes about 10 business days to reach the final destination. I could walk 1000 miles to the place to pay the bill then waiting for the bank to pay it for you.

They use the USPS to send checks even if the payee is across the street. They process the bill pay once a week and rely on snail mail for delivery. Once they receive the sent check back from the payee which can be another week, then they will proceed to release the funds. Frustration is mild form of describing the bill pay process.

One positive note about their Bill Pay Service that a reader mentioned is that the money is not debited from your account until it is presented for payment.

It's ironic that one of the oldest pure internet banks (opened on July 4, 2000) lacks an ACH transfer service and still depends so much on snail mail.

On the plus side, readers have reported good customer service:

[S]o far the customer service has been good. They answer their emails. You can reach a live customer rep without a long wait on hold. They place no dollar limits (except for 6 per month) on ACH withdraws. You can make unlimited ACH deposits. Both deposits (except initial) and withdrawals have to be initiate by an external account.

BofI's ratings for soundness have remained the same over the last year: 3 stars (performing) at Bankrate.com (based on 12/31/08 data) and 4 stars (excellent) at BauerFinancial (based on 3/31/09 data). The bank has been a FDIC member since 2000 (FDIC Certificate # 35546).

Thanks to the reader who emailed me news of this new account.

For other high yield savings accounts, please refer to my weekly rate summary.

2.52% 12-Month CD and a Competitive Money Market Account at Metro Phoenix Bank - Local Only read and submit comments for this post

Metro Phoenix Bank is offering some competitive CD and IRA rates. The best deals are a 2.52% APY 12-month CD and a 2.78% APY 24-month CD. Minimum deposit is $5,000 for a regular CD and $2,000 for an IRA CD. They also have a competitive rate on their money market account. It's a tiered rate account with a 2.53% APY for balances of $100K to $1 million. These rates are listed in the bank's rate sheet as of 7/07/09 (rate sheet link on left side of the bank's home page).

It appears that a branch visit is required to open an account. It's a small bank with one office located in Phoenix, Arizona.

The bank has a 4-star rating (sound) at Bankrate.com based on 12/31/08 data. It's still labeled as a start-up with no rating at BauerFinancial. The bank has been a FDIC member since 2007 (FDIC Certificate # 58402).

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

4.50% Reward Checking Account at First United Bank and Trust Co. in Kentucky - Local Only read and submit comments for this post

First United Bank and Trust Co is offering a reward checking account called First Rate Checking. It has the following rates and features if certain monthly requirements are met:

• 4.50% APY on balances up to $25,000
• 0.76% APY on portion of balance over $25,000
• 0.15% base rate if monthly requirements are not met
• Refunds ATM fees nationwide without limit

The monthly requirements include:

• 10 MasterCard check card purchases
• 1 automatic payment or direct deposit
• Receive e-statements

Additional features of the account regardless of the monthly requirements include:

• $50 minimum initial deposit
• No minimum balance requirement
• No monthly service charge

There's an online application at the bank's microwebsite, but it appears a branch visit is required to complete the application process. Branches are located in Madisonville and Earlington, Kentucky.

The bank has been a FDIC member since 1996 (FDIC Certificate # 34150).

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation or to learn more about these accounts, please refer to my High Yield Checking website.

2.50% 15-Month CD at Banco Popular in NY & FL - Local Only read and submit comments for this post

Banco Popular is offering a 2.50% APY 15-month CD special. Minimum deposit is $1,000. This special isn't listed at Banco Popular's website. A reader mentioned seeing these advertised, and I just called for additional details. I was only able to check rates for New York and South Florida. Rates can vary by region. I was also told of a 2.75% APY 24-month CD special in South Florida and a 2.65% APY 36-month CD special in New York.

If you receive a rate quote for your location, please leave a comment. They have a toll-free number at 1-800-377-0800. Press zero to connect to a CSR, and ignore the multiple requests for your account number.

According to the CSR, these rates are scheduled to last through Thursday, 7/09/09. These may change on Friday. No checking account is required, and these should be available for both new and existing customers. New money is required in New York but not in Florida.

Update: Another reader just reported seeing a money market promo advertised in California. Here is her summary of the ad:

Banco Popular has an ad in today's Los Angeles Times (Business section, page B3) about a new Preferred Money Market Account paying 2% APY guaranteed through October 31, 2009. In the tiny print, it says it requires a checking account with a minimum collected amount of $1,000 as well as a minimum collected amount of $10,000 in the MMA. If the balance in the MMA drops below $10,000, you can get 1.2% APY on the MMA if you still have $1,000 in the checking account.

Branches are located in California, Florida, Illinois, New Jersey and New York. Rates vary by state, so make sure to call to verify.

Financial Overview: Banco Popular's parent, Popular Inc, has been trying to recover from heavy losses it has taken in this financial crisis. It was reported in May that Popular is planning to shed 20% of its US branches to improve profitability. In June Popular announced plans to boost its Tier 1 common equity. It also announced that it would suspend dividends.

Banco Popular North America's financial ratings have fallen considerably in the last year. BauerFinancial now rates the bank as zero star based on 3/31/09 data. It had been 3 stars based on 6/30/08 data. Bankrate.com still has 2 stars (below peer group), but this is based on 12/31/08 data. As I recommend with any bank, it's best to stay under the FDIC limits. Banco Popular North America is a member FDIC (FDIC Certificate # 34967).

Thanks to the reader who emailed me news of these specials.

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

5.05% Reward Checking Account at The Community State Bank in Oklahoma - Local Only read and submit comments for this post

The Community State Bank is offering a reward checking account called Smart Rewards Checking. It has the following rates and features if certain monthly requirements are met:

• 5.05% APY on balances up to $25,000
• 1.01% APY on portion of balance over $25,000
• 0.50% base rate if monthly requirements are not met
• Refunds ATM fees nationwide without limit

The monthly requirements include:

• 10 Visa check card purchases
• 1 automatic payment or direct deposit
• Access online banking
• Receive e-statements

Additional features of the account regardless of the monthly requirements include:

• $150 minimum initial deposit
• No minimum balance requirement
• No monthly service charge
• Multiple accounts can be opened, but requirements must be met on each one to qualify for the top rate

The "Apply Now" button on the bank's micro website takes you an online application at CheckingFinder.com. It appears that only residents of Oklahoma can apply.

It's a small bank with five branches in Latimer and Le Flore County, Oklahoma. The bank has been a FDIC member since 1970 (FDIC Certificate # 20279).

Other Reward Checking Accounts

I just posted on some recent updates and issues with reward checking accounts in this post.

To find reward checking accounts in other areas of the nation or to learn more about these accounts, please refer to my High Yield Checking website.

2.30% 16-Month Internet CD at Hyde Park Savings Bank in MA - Local Only read and submit comments for this post

Hyde Park Savings Bank is offering a 2.30% APY 16-month internet CD. Minimum deposit is $1,000. This rate is listed at the bank's rate table as of 7/06/2009.

The bank provides an online application that allows electronic funding via ACH, but the application specifically restricts accounts to Massachusetts residents. In this previous post a reader commented that the CD rate locks as soon as you submit the online application and fund it by ACH. CDs were opened one day after the funds were pulled form the external account, so only one day of interest was lost. Also, he mentioned that there's no hard credit pull for opening accounts.

Some readers have reported problems closing the internet CDs. Another reader mentioned that he didn't have any problems closing his two internet CDs last year. Here is what he said:

I did two of their internet CDs last year and never once visited a branch. You can just open the checking or a $10 min savings account. Then just before maturity you mail the certificate into them with instructions to close at maturity and put funds into liquid account. I had a savings so pulled it out from a linked account. Better to have the checking then can just write out a check and no lost interest.

The bank does have a free checking account and a free savings account.

Branches are located in the Massachusetts cities of Brookline, Dedham, Hyde Park, Norwood and West Roxbury.

Hyde Park Savings Bank continues to have solid ratings for soundness: 5 stars (superior) at BauerFinancial (based on 3/31/09 data) and 3 stars (performing) at Bankrate.com (based on 12/31/09 data).

The bank has been a FDIC member since 1985 (FDIC certificate # 90160). It also has private DIF insurance to provide protection for deposits over the FDIC limits.

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

2.50% 12-Month & 2.30% 6-Month CD at St. Casimir's Savings Bank in Maryland - Local Only read and submit comments for this post

St. Casimir's Savings Bank is offering several competitive CD and IRA rates. Some of the best include:

• 2.30% APY 182 day
• 2.50% APY 12 month
• 2.75% APY 18 month
• 3.00% APY 30 month

Minimum deposit is $1,000. These rates are listed in the bank's rate table as of the morning of 7/06/09.

It appears a branch visit is required to open an account. Branches are located in Baltimore, Maryland.

The bank has solid ratings for safety and soundness: 5 stars (superior) at BauerFinancial (based on 3/31/09 data) and 4 stars (sound) at Bankrate.com (based on 12/31/08 data). The bank has been a FDIC member since 1985 (FDIC Certificate # 32327).

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

2.52% 12-Month CD at Alpena Alcona Area Credit Union in Michigan - Local Only read and submit comments for this post

Alpena Alcona Area Credit Union is offering some competitive certificate and IRA rates. Some of the best include a 2.07% APY 6-month CD and a 2.52% APY 12-month CD. Minimum deposit is $500. These rates are listed in the credit union's rate table as of 7/06/09.

According to the credit union's eligibility requirements page, all federal, state and local government employees can qualify. Also, any person 55 or over who receives a pension or social security and lives in Alpena County or one if its adjacent counties counties can also qualify. Please refer to the eligibility requirements page for the full details.

Branches are located in Alpena which is in Northeast Michigan. The credit union is federally insured by the NCUA (NCUA Charter # 62035).

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

Reward Checking Updates - New Nationwide Account & Application Issues read and submit comments for this post

I just added a new reward checking account to my list of nationwide accounts. It's offered by Community National Bank and it's paying 4.51% APY on balances up to $25K as of 7/05/09. I first posted on it last month. I just learned that it's available nationwide at CheckingFinder.com. For more details of this account, refer to my account review.

As we've learned this year, small banks that offer competitive reward checking accounts nationwide often don't continue this for too long. The latest example of this is at First Arkansas Bank & Trust. It has been offering 4.44% APY on balances up to $50K since February 2008 (see review). It had been available nationwide, but recently they've started excluding California residents. I'm not sure why they chose California, but I wouldn't be surprised if they add other states.

This California restriction complicates my reward checking tables. I currently can't handle almost-nationwide accounts. I still have it in my nationwide list, but I've added a note of this restriction at the top of the account review.

Rejected Due to ChexSystems Inquiries

Being rejected due to your location isn't the only reason for being rejected these days. More people are being rejected for having too many recent ChexSystems inquiries. When you apply for an account at many banks, they will do a ChexSystems inquiry to ensure that you haven't abused accounts at other banks (such as unpaid fees). However, many not only look for abuses, but they also look at the number of recent ChexSystems inquiries (MyMoneyBlog has a good review of ChexSystems and how you can get your report for free.)

I was told by a FABaT customer service rep that they will reject applicants with more than 4 ChexSystems inquires in the last 6 months.

With banks slashing rates, people are being forced to find new banks if they want to earn a decent rate of return. So this use of ChexSystems is especially tough on savers these days.

Reward Checking Account References:

• List of reward checking accounts available nationwide
• List of reward checking accounts by state (select your state on top)
• Overview of high yield reward checking
• The math behind reward checking accounts
• Reward Checking Accounts with Rate Guarantees
• Media and Consumer Advocates Report on the Value of Reward Checking Accounts
• Fraud liability for debit cards - part 1
• Fraud liability for debit cards - part 2

Competitive CD Rates Continue at Southeast Financial Credit Union - Easy Membership read and submit comments for this post

Southeast Financial Federal Credit Union continues to have very competitive rates on its short-term and mid-term certificates and IRAs. Below are the CD rates as listed in the credit union's rate table as of 7/05/09:

• 2.00% APY 90-day
• 2.25% APY 6-month
• 2.60% APY 1-year
• 2.75% APY 18-month
• 2.75% APY 2-year

Minimum deposit is $500. One nice feature of these certificates is a below-average early withdrawal penalty. This is listed under the rate table. For terms of more than 6 months, the penalty is no more than 60 days of interest on the amount withdrawn. For other institutions, the average early withdrawal penalty is 180 days of interest for long term CDs.

You may notice there's a March date on the rate table. When I posted on this credit union in January, it had the same issue. I called and was told that these rate tables are kept up-to-date. There's no set time when the rates are updated, so they could change at any time. Since my first post on them in February 2008, they've had competitive CD rates.

According to the credit union's Who-Can-Join page, you can call member services at 800-521-9653 and make a $5 donation to the Autism Society of Middle Tennessee to automatically qualify for Southeast Financial membership. You can also be eligible based on Select Employer Groups and where you live. Please check the Who-Can-Join page for more details. Before my February 2008 post I called to see if there would be any complications. According to the CSR, you should be able to do the $5 donation even if you live out of state. The application must be mailed along with the a check for the $5 donation and a minimum $5 for the savings account. Also, they need a copy of your driver's license.

The check for a CD can also be included with the membership application. According the CSR, the rate won't lock until they receive the application. However, she said you could include a note specifying the rate at the time that you mailed the application, and they may honor that rate. At the very least, they can send you back the check if the rates fall.

If you're interested in joining and opening a CD, I recommend calling the credit union for the latest instructions.

Branches are located in the Tennessee cities of Athens, Nashville, Brentwood, Franklin, Cordova, Goodlettsville, Jackson, Knoxville, Chattanooga and Memphis, in the Kentucky city of Bowling Green, and in the Mississippi city of Corinth.

The credit union continues to have solid ratings for soundness, but the Bankrate rating has gone down a bit, from 4 stars based on 9/30/08 data to 3 stars based on 12/31/08 data. It continues to have 4 stars (excellent) at BauerFinancial based on 3/31/09 data. The credit union is federally insured by the NCUA (Charter # 68599).

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

2.17% 9-Month CD at Peoples National Bank in Parts of MO & IL - Local Only read and submit comments for this post

Peoples National Bank has a 9-month CD special with a 2.17% APY. Minimum deposit is $500. This special doesn't seem to be listed at the bank's website. It was advertised in today's (7/05/09) St. Louis Post-Dispatch. The ad is available online here. According to the ad, the special is available at all Peoples National Bank locations through July 8, 2009.

Branches are located in St. Louis and Clayton, Missouri and in several Southern Illinois cities including Belleville, Fairfield, Harrisburg, Mt. Vernon and Salem.

The bank has solid ratings for safety and soundness: 3½ stars (good) at BauerFinancial (based on 3/31/09 data) and 4 stars (excellent) at Bankrate.com (based on 12/31/08 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 3809).

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

2.00% 9-Month CD at Grand Bank & Trust of Florida - Local Only read and submit comments for this post

Grand Bank & Trust is offering a special 9-month CD with an APY of 2.00%. Minimum deposit is $5,000, and new funds are required. This special doesn't seem to be listed at the bank's website. It was advertised in today's (7/05/09) Treasure Coast Newspaper. The ad is available online here.

My last post on this bank was in March 2008 when it was offering a special 4% 6-month CD. It's hard to believe that a rate half that amount is now very competitive.

It appears a branch visit is required to open an account. Branches are located in the southeast Florida cities of West Palm Beach, Lantana, Palm Beach Gardens, Jupiter, Port St. Lucie, Ft. Pierce and Vero Beach. Note, not all of these branches are listed in the ad, so I recommend calling the bank to confirm this special is available at your branch.

Grand Bank & Trust has some fair ratings for safety and soundness which doesn't seem to be too common for Florida banks these days. The ratings include 3½ stars (good) at BauerFinancial (based on 3/31/09 data) and 3 stars (performing) at Bankrate.com (based on 12/31/08 data). The bank has been a FDIC member since 1999 (Certificate # 34776).

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

2.00% Money Market Account Through 2009 at Fidelity Bank in Oklahoma - Local Only read and submit comments for this post

Fidelity Bank is guaranteeing a 2.00% APY through 12/31/09 for balances of at least $50K on its Money Market XTRA account. An additional 25 basis point bump is added when any checking account is opened with the Money Market XTRA. The rate falls considerably for lower balances: 1.00% for $10K to $50K and 0.50% for under $10K. Also, there's a $15/month fee for balances under $10K. This special is listed at the bank's Oklahoma webpage as of 7/05/09. The special is also listed at the bank's Kansas webpage, however, there's no mention of the rate guarantee.

Oklahoma branches are located in Edmond and Oklahoma City. Kansas branches are located in Wichita and Derby.

Fidelity Bank has some decent ratings for safety and soundness: 3½ stars (good) at BauerFinancial (based on 3/31/09 data) and 4 stars (sound) at Bankrate.com (based on 12/31/08 data). The bank has been a FDIC member since 1957 (FDIC Certificate # 30895).

For other high yield savings accounts, please refer to my weekly rate summary.

Bank Deals Weekly Summary for July 4, 2009 read and submit comments for this post

Hot Deals, Quick Link for Rates, Recap of this week's posts

Happy 4th of July! The week ended with a bang with 7 bank closures on Thursday, and six of those were in Illinois. This was the most bank closures in one day since the start of the financial crisis. However, it's not quite as bad as it sounds. Six of the Illinois banks were all controlled by one family (see post).

Savings Accounts

There was some good news this week. EverBank raised the ongoing rate of its money market account from 1.65% to 1.85% APY. The top tier rate of the checking account was also increased from 1.65% to 1.85% APY. The 3-month promo rate remains the same at 3.01% (see post).

Discover Bank launched a new online savings account, and the rate is a competitive 2.00% APY for a minimum balance of $500. They still have the old money market account which offers check writing. Unlike the MMA, the savings account doesn't have check writing or ATM access. However, it has a higher rate without all the tiers and without any monthly fees. I assume the lack of check writing makes the account less costly to Discover which allows them to offer higher rates. Many banks have added savings accounts like this. Recent examples include Capital One, Ally Bank (formerly GMAC Bank) and Bank of Internet.

Unfortunately, there continues to be more bad news with many banks and credit unions cutting rates. The long list of rate cuts is below.

Rate Hikes:

1. Discover Bank Savings - 2.00% (new, only had MMA before)
2. EverBank MMA standard rate - 1.85% (was 1.65%)

Rate Drops:

1. Centennial Bank Savings - 2.02% $50K+ (was 2.28%)
2. Alliant CU Savings - 2.00% (was 2.25%)
3. United Central Bank MMA - 1.95% $5K-$75K (was 2.39%)
4. Savings Square Savings - 1.90% (was 2.00%)
5. Nationwide MMA - 1.90% (was 2.00%)
6. Ally Bank MMA - 1.80% (was 1.85%)
7. EBSB Direct Savings - 1.75% $50K+ (was 2.02%)
8. Alliant CU Checking - 1.75% (was 2.00%)
9. AIG Bank MMA - 1.86% $10K+ (was 1.91%)
10. Intervest MMA - 1.70% $2.5K+ (was 1.72%)
11. ING Direct Savings - 1.40% (was 1.50%)

Certificate of Deposit Rates

As I had feared, Pentagon Federal Credit Union made substantial rate cuts on their 3-, 4- and 5-year CDs at the start of July. The 3-year CD rate had the biggest drop falling from 3.50% to 2.78% APY. I'm not sure when was the last time PenFed had a 3-year CD rate this low. On a positive note, NASA Federal Credit Union came out with a July CD special that includes a 4.00% APY 50-month CD. Like PenFed, anyone can join NASA FCU via an association membership (see post).

Two small banks are offering very competitive rates on their new online CDs. Franklin Synergy Bank is offering a 2.78% APY 11-month CD and Broadway Federal Bank is offering a 3.05% APY 24-month CD. As you might expect of small banks launching an internet product, the application process isn't smooth. A reader reported that Franklin Synergy Bank doesn't allow ACH funding, and a couple of readers reported problems with Broadway's ACH funding.

Below are some of the best CD deals that are still active.

Best Nationwide CD Deals as of 7/04/09: Also listed are a few savings accounts with rate guarantee periods. The full list of nationwide CD rates is farther down.

1. 3.01% 3-mo money market/checking promo at EverBank (account review)
2. 2.75% 3-mo savings account promo at ProvidentNJ Direct (account review)
3. 2.25% 3, 6, 9 & 12-mo CDs at TotalBank (account review)
4. 2.50% 4-mo CD at Danvers Bank (account review)
5. 2.78% 11-mo CD at Franklin Synergy Bank (account review)
6. 2.60% 12-mo CD & 2.75% 18-mo CD at Southeast Financial CU (account review)
7. 2.35% 12-mo Add-On CD at Amboy Direct (account review)
8. 2.30% 12-mo & 2.40% 18-mo Flex CD with Liquid Features at Wilshire State Bank (account review)
9. 2.00% 12-mo Liquid CD at OneWest/IndyMac Bank (account review)
10. 3.05% 24-mo CD at Broadway Federal Bank (account review)
11. 4.00% 50-mo CD at NASA FCU (account review)
12. 4.00% 59-mo CD at US Bank (account review)

Best Local CD Deals as of 7/04/09: Some of the best CD deals are from banks and credit unions that don't offer accounts nationwide. Refer to the recap section and the state index section to find all the recent local deals. Here are some of the best deals to note.

1. 2.50% 6-mo CD ($25K max) at STC Capital Bank in Chicago (account review)
2. 2.50% 7-mo CD at Central Bank in Tampa, FL (account review)
3. 2.50% 7-mo CD & 3% 13-mo CD at Members First CU in NH/MA (account review)
4. 3.00% 9-mo CD at Bartow County Bank in GA (account review)
5. 3.00% 9-mo CD at Union Savings Bank in IN (account review)
6. 3.05% 12-mo CD at Self Reliance New York FCU (account review)
7. 2.84% 12-mo CD at Fort Bragg FCU in NC (account review)
8. 2.75% 12-mo CD & 2.50% 9-mo CD at American Momentum Bank in TX & FL (account review)
9. 2.75% 12-mo CD at First Asian Bank in Las Vegas (account review)
10. 3.25% 24-mo CD at Jefferson Financial CU in Louisiana (account review)
11. 3.10% 24-mo CD & 2.65% 6-mo CD at CoreFirst Bank at CO & KS (account review)
12. 3.00% 24-mo & 2.65% 12-mo CD at LOMTO FCU in NY City (account review)
13. 4.25% 60-mo CD & 2.50% 12-mo CD at Urban Trust Bank in FL & MD (account review)
14. 4.07% 60-mo CD at United Community CU in IL & MO (account review)
15. 4.00% 60-mo & 3.25% 24-mo & 2.75% 12-mo CD at Montauk CU in NY (account review)

Reward Checking Accounts

I reported on four new reward checking accounts this week with rates ranging from 4.01% to 4.50% APY (see below). One of these, First Security Bank & Trust, is offering its reward checking nationwide. It's a pretty standard reward checking with a 4.01% APY for balances up to $25K. Nevertheless, it's always nice to have another nationwide reward checking account especially as existing nationwide ones start being restricted. The latest example is at First Arkansas Bank & Trust which is no longer accepting California residents. I'm not sure why they chose California. With a 4.44% APY for balances up to $50K, I'm sure they will continue to see a large influx of deposits. So I wouldn't be surprised if we see other states added to the restricted list in the future.

To see all of the high yield reward checking accounts available throughout the nation, please refer to my High Yield Checking website.

Recap for the Week - Links to This Week's Posts

Banking News

• Brokered Deposits and Hot Money - Factors in Bank Failures?
• Summary of Today's Seven Bank Failures

Savings Accounts - National

• Discover Bank's New Limited-Penalty-Free CD and its New Online Savings Account

CD Deals - National

• Competitive Rates on CDs, IRAs and Liquid CDs at OneWest Bank - Nationally Available
• 2.78% 11-Month Online CD at Franklin Synergy Bank - Nationally Available
• 3.05% 24-Month CD at Broadway Federal Bank in CA - Nationally Available
• 4.00% 50-Month CD at NASA Federal Credit Union - Easy Membership
• Update on Pentagon Federal Credit Union's Certificates

Checking/Savings Bonuses

• Bank of America's $100 Checking Account and Bill Pay Bonus
• Update on Chase Checking Bonuses

Reward Checking Accounts

• 4.50% Reward Checking Account at NorStates Bank in Northern Illinois - Local Only
• 4.01% Reward Checking Account at First Security Bank & Trust in Iowa - Nationally Available
• 4.50% Reward Checking Account at MVB Bank in West Virginia - Local Only
• 4.51% Reward Checking Account at NavyArmy Federal Credit Union in Texas - Local Only

CD and Money Market Deals - Local

• 3.00% 9-Month CD at Bartow County Bank in Georgia - Local Only
• 2.38% 9-Month CD at Eastbank in New York - Local Only
• 2.50% 18-Month CD at South Jersey Federal Credit Union - Local Only
• 2.50% 12-Month CD & 3.00% 24-Month CD Continue at International Bank of Chicago
• Update on Urban Trust Bank in FL & MD - High Rates Continues, New FL Branches
• 2.50% 18-Month CD at Appalachian Community Bank in Georgia - Nationally Available
• 2.75% 14-Month CD at Credit Unions United in Kansas - Local Only
• 2.84% 14-Month CD at AM Community Credit Union in Wisconsin - Local Only
• 2.50% 12-Month CD & 2.10% 6-Month CD at Colonial Bank (FL, TX, ...)
• 2.81% Money Market Account at Vinings Bank in Georgia - Local Only
• 3.00% 9-Month CD at Union Savings Bank in Bloomington Indiana - Local Only
• 4.07% 60-Month CD and Other High CD Rates at United Community Credit Union in IL & MO - Local Only
• 2.50% Savings Account at First Chatham Bank in Southern Georgia - Local Only
• 3.82% 5-Year CD at Bank of Fall River in Massachusetts - Local Only
• 3.00% 48-Month CD at Chase Bank in California

The rates listed below are based on Annual Percentage Yield (APY). No minimum balances are required unless noted. MMA next to the rates indicate a money market account. Most MMAs have check writing and ATM cards. Online savings accounts usually lack both of these. The top lists include banks and credit unions with broad availability and with minimums around $10K or less. Previous weekly summaries are available at this page. Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Reward Checking, Bank alternatives CD Rates: 3 Mo CDs, 6 Mo CDs, 9 Mo CDs, 12 Mo CDs, 18 Mo CDs, 24 Mo CDs, 36 Mo CDs, 48 Mo CDs, 60 Mo CDs, 84 Mo CDs, CDs by state Comments: read and discuss

As of July 4, 2009

Checking/Savings/Money Market Accounts:

• Reward Checking Accounts with Yields up to 6.01%

• EverBank - 3.01% ($5K min), 3 mo promo rate up to $50K (1.85% stnd) account review
• SmartyPig - 2.75% (min $25) withdrawal restrictions, account review
• ProvidentNJ Direct - 2.75% (min $50), 3 mo promo, stnd: 2.25% $10K+, account review
• 1st Constitution Direct - 2.50% (min $100), 3 mo promo, 2.25% $10K+ stnd, account review
• Tennessee Commerce Bank - 2.30% (min $250) withdrawal restrictions, account review
• Wilshire State Bank - 2.25%, chk required (min $500) account review
• Acacia Federal Savings Bank - 2.25% (guaranteed to 9/30/09) account review
• 1st Constitution Direct - 2.25% (min $10K) stnd rate, account review
• First Trade Union Bank - 2.06% ($2.5K min) account review
• Bank of Internet - 2.06% (min $100) account review
• Seacoast Commerce Bank - 2.05% (min $25K) account review
• Danversbank - 2.05% account review
• ShoreBank - 2.05%, account review
• TotalBank - 2.05% (min $1K) account review
• ADB Bank - 2.05% account review
• Centennial Bank - 2.02% ($50K min), 2.28% ($100K min) account review
• Discover Bank - 2.00% Savings (min $500) account review
• UFB Direct - 2.00%, account review
• Heartland Bank Direct - 2.01% ($500 min), account review
• Union Federal Savings - 2.00% account review
• American Express Bank - 2.00%, account review
• CNB Bank Direct - 2.00% account review
• Delta Community CU - 2.00% MMA (min $25K) 2.25% $100K+, account review
• DollarSavingsDirect - 2.00% ($1K min) account review
• Hudson City Savings - 2.00% (min $2.5K) account review
• Redneck/AmericaNet/Evantage Bank - 2.00% (up to $35K, 1% over) rates starting 5/5/09 account review
• Ally/GMAC Bank - 2.00% Savings account review
• Corus Bank - 2.00% MMA (min $10K) account review
• Alliant Credit Union - 2.00% (min $100), account review
• Mutual Bank - 1.97% MMA (min $5K), account review
• Clear Sky Accounts - 1.95% account review
• Bank of American Fork - 1.95% (min $1K) account review
• United Central Bank - 1.95% MMA (min $5K) (2.15% $75K-$300K) account review
• iGObanking - 1.91%, account review
• Flagstar - 1.90% MMA, account review
• Savings Square - 1.90%, account review
• Nationwide Bank - 1.90% MMA (min $1K) account review
• Zions Bank - 1.87% MMA, outside of Utah, (min $2.5K) account review
• AIG Bank - 1.86% MMA (min $10K+) account review
• EverBank - 1.85% MMA ($1.5K min) account review
• CapitalOne/Costco - 1.80% Savings (min $10K, Costco members only, $60 deal for exec. members)
• Newtown Savings Bank - 1.80%, account review
• Ally/GMAC Bank - 1.80% MMA account review
• Choice Financial - 1.76% (min $5K), (2.01% $25K+, 2.26% $100K) account review
• WTDirect - 1.76% ($10K min), account review
• FNCB Bank - 1.75% (min $100) account review
• Presidential Bank - 1.75% (min $5K, 1.25% over $35K), offers 1.5% checking, account review
• BankUnited - 1.75% (min $5K), account review
• Capital One - 1.75% (Savings) (min $10K) account review
• Bank Provident Online - 1.75% (min $10) account review
• Alliant Credit Union - 1.75% Checking, May fall to 2% on Monday, account review
• EBSB Direct - 1.75% (min $50K) account review
• grand yield direct - 1.70% (min $2.5K) account review
• Bank of Internet - 1.70% MMA (min $100) account review
• Intervest National Bank - 1.70% MMA (min $2.5K) account review
• Doral Bank Direct - 1.60% (min $1K) account review
• Bank of America NEA - 1.60% MMA ($500 min) (1.65% for $50K+) account review
• CapitalOne/Costco - 1.60% MMA (min $1K, Costco members only, $60 deal for exec. members)
• UmbrellaBank - 1.55% MMA (min $1K) 1.60% ($50K+) account review
• HSBC Direct - 1.55% account review
• EmigrantDirect - 1.55%, account review
• State Farm Bank - 1.55% Checking (min $2.5K) account review
• OneUnited - 1.51% (min $1K), account review
• Amboy Direct - 1.51% (min $3K) (eSavings) account review ($50 bonus)
• AmboyDirect - 1.51% (Premium Savings) post ($25 bonus)
• FNBO Direct - 1.50%, account review
• Discover Bank - 1.50% MMA (min $2.5K) (1.75% for $25K+) account review
• UnivestDirect - 1.50%, (0.25% checking), account review
• Amegy Bank - 1.50% (min $1K) account review
• Venture Bank Direct - 1.43%, account review
• Citibank - 1.40% (Ultimate Savings) account review
• Salem Five Direct - 1.40% Checking (1.55% $100K+), account review
• Capital One - 1.40% MMA, account review
• BofA/Countrywide - 1.40% (min $10K) (1.50% for $50K+) account review
• ING Direct - 1.40%, (0.25% checking), post ($25 bonus)
• Charles Schwab - 1.35% Savings, account review
• Bank of Internet - 1.30% Checking (min $5K) account review
• AmTrustDirect - 1.25% ($500 min) NEW e-Money Market (2.00% $10K+) account review
• OneWest Bank/Indymac - 1.25% (min $10K) tiered rates up to 2.00% $50K+, account review
• Imperial Capital - 1.17% MMA ($2.5K min) (1.79% for $100K+) account review
• iGObanking - 1.00% Checking, account review
• ETrade Bank - 0.95%, account review
• Imperial Capital - 0.92% Checking (min $1K) account review
• VirtualBank - 0.80% (min $100), (1.51% $25K+, 1.71% $50K+) post ($20 bonus)
• Charles Schwab - 0.75% Checking, account review
• WaMu/Chase - 0.75% (requires checking), account review

3-Month Certificates of Deposit:

• Danversbank - 2.50% (4 mo) (min $500) account review
• TotalBank - 2.25% (min $1K) account review
• Hudson City Savings - 2.00% (4 mo) (min $5K) account review
• Wilshire State Bank - 1.86% (min $1K) account review
• Imperial Capital - 1.54%, ($2K min), account review
• UFB Direct - 1.50% (min $8K)
• eBank - 1.35% (min $1K)
• UmbrellaBank - 1.20% (min $1K) account review
• Ally/GMAC Bank - 1.20% (min $0) account review

6-Month Certificates of Deposit:

• Christian Community CU - 2.50% (7-mo) (min $1K) not NCUA insured (ASI only) account review
• TotalBank - 2.25% (min $1K) account review
• FirstFedDirect - 2.05% (min $10K), account review
• Consumers CU - 2.00% (7-mo) (min $250) (2.25% $100K+) account review
• Connexus CU - 2.00% (min $500) account review
• Hudson City Savings - 2.00% (min $5K) account review
• La Jolla Bank - 2.00% (min $10K), account review
• Wilshire State Bank - 1.96% (min $1K) account review
• Ascencia Bank - 1.86% (min $500), account review
• Corus Bank - 1.85% (min $10K) account review
• Ally/GMAC Bank - 1.80% (min $0) account review
• Imperial Capital - 1.78% ($2K min), account review
• eBank - 1.75% (min $1K)
• Excel National Bank - 1.75% (min $10K) account review
• AmTrustDirect - 1.60% (min $1K) account review
• UmbrellaBank - 1.50% (min $1K) account review
• Zions Bank - 1.11% (min $1K) account review

9-Month Certificates of Deposit:

• TotalBank - 2.25% (min $1K) account review
• FirstFedDirect - 2.15% (min $10K) account review
• Ally/GMAC Bank - 2.05% (min $0) No-Penalty, account review
• eBank - 2.00% (min $1K)
• NewDominion Bank - 1.85% (min $3K) account review
• Navy FCU - 1.85% ($10K min) restrictions to membership, account review
• Imperial Capital - 1.80% ($2K min), account review
• Ally/GMAC Bank - 1.75% (min $0) account review
• UmbrellaBank - 1.50% (min $1K) account review
• Doral Bank Direct - 1.40% (min $1K) account review
• Bank of America - 1.00% (min $5K), risk-free, rates vary by state (account review)

12-Month Certificates of Deposit:

• Franklin Synergy Bank - 2.78% (11-mo) account review
• Southeast Financial FCU - 2.60% (min $500) account review
• Melrose CU - 2.52% (min $5K) account review
• Choice Financial - 2.51% (13 mo) (min $5K) add-on feature, account review
• Connexus CU - 2.50% (min $500) account review
• Christian Community CU - 2.50% (min $1K) not NCUA insured (ASI only) account review
• United Central Bank - 2.40% (min $1K) account review
• Northpointe Bank - 2.35% (13-mo) (min $5K) account review
• Amboy Direct - 2.35% Add-On (min $10K) account review
• Delta Community CU - 2.35% (min $1K) account review
• Mutual Bank - 2.32% (min $2.5K) account review
• Wilshire State Bank - 2.30% (min $10K), liquid features, account review
• Crane FCU - 2.30% (13-mo) (min $500) account review
• Seacoast Commerce Bank - 2.28% (min $10K) account review
• State Bank of India - 2.27% (min $5K) account review
• NewDominion Bank - 2.26% (min $3K) account review
• TotalBank - 2.25% (min $1K) account review
• Acacia Federal Savings Bank - 2.25% (15 mo) (min $500) account review
• Hudson City Savings - 2.25% (min $5K) account review
• OneWest Bank/IndyMac - 2.25% (min $5K) account review
• Ally/GMAC Bank - 2.25% (min $0) account review
• Ascencia Bank - 2.20% (min $500), account review
• Corus Bank - 2.20% (min $10K) account review
• eBank - 2.20% (min $1K)
• UmbrellaBank - 2.20% (min $1K) account review
• Discover Bank - 2.20% (min $2.5K) account review ($50 bonus)
• ISN Bank - 2.17% (min $1K) account review
• AIG Bank - 2.16% (min $2.5K) account review
• Alliant Credit Union - 2.15% (min $25K) account review
• Wilshire State Bank - 2.15% (min $1K) account review
• La Jolla Bank - 2.10% (min $10K), account review
• Imperial Capital - 2.08% ($2K min), account review
• HSBC Direct - 2.00% (min $10) account review
• BankUnited - 2.00% (min $5K) account review
• Fifth Third - 2.00% (15 mo) (min $5K) not all states, account review
• Tennessee Commerce Bank - 2.00% (min $5K) account review
• OneWest Bank/IndyMac - 2.00% (min $5K) liquid CD, account review
• Pacific Mercantile Bank - 1.92% (min $10K) account review
• KeyDirect - 1.90% (15 mo) (min $5K), 2.15% w/chk, Not all states, account review
• Northwest FCU - 1.82% (min $500) add-on, account review
• State Farm Bank - 1.80% (min $500) account review
• Geauga Savings Bank - 1.75% (min $1K) account review
• UFB Direct - 1.70% (min $8K)
• Bank of America DOW - 1.60% (min $1K) account review
• Citibank - 1.60% (min $500)
• ING Direct - 1.50% account review
• Bank of America - 1.40% (min $5K) rates vary by state, account review

18-Month Certificates of Deposit:

• Southeast Financial FCU - 2.75% (min $500) account review
• Pacific Mercantile Bank - 2.53% IRA-only (min $7.5K) account review
• Christian Community CU - 2.50% (min $1K) not NCUA insured (ASI only) account review
• Mutual Bank - 2.46% (16 mo) (min $2.5K) account review
• Wilshire State Bank - 2.40% (min $10K), liquid features, account review
• Navy FCU - 2.35% ($10K min) restrictions to membership, account review
• NewDominion Bank - 2.32% (min $3K) account review
• eBank - 2.30% (min $1K)
• Discover Bank - 2.30% (min $2.5K), account review
• AIG Bank - 2.26% (min $2.5K) account review
• Dollar Savings Direct - 2.25% (16-mo) (min $1K) account review
• Ally/GMAC Bank - 2.25% (min $0) account review
• Alliant Credit Union - 2.15% (min $25K) account review
• Consumers CU - 2.15% (16-mo) (min $250) (2.40% $100K+) account review
• UmbrellaBank - 2.10% (min $1K), account review
• NorthEast Community Bank - 2.02% (min $500) account review
• VirtualBank - 1.77% (min $10K), account review
• HSBC Direct - 1.60% (min $10) account review
• Greystone Bank - 1.44% (min $50K) account review
• Advanta Bank - 1.15% (min $10K), account review

24-Month Certificates of Deposit:

• Broadway Federal Bank - 3.05% (min $1K) account review
• Melrose CU - 2.83% (min $5K) account review
• BankUnited - 2.75% (min $5K) account review
• Southeast Financial FCU - 2.75% (min $500) account review
• State Farm Bank - 2.75% (28-mo) (min $500) account review
• Tennessee Commerce Bank - 2.65% (min $5K) account review
• State Bank of India - 2.63% (min $5K) account review
• Seacoast Commerce Bank - 2.58% (min $10K) account review
• Discover Bank - 2.50% (min $2.5K) account review
• Gateway Regional CU - 2.46% (min $1K) restrictions to membership, account review
• OneWest Bank/IndyMac - 2.45% (min $5K) account review
• AIG Bank - 2.41% (min $2.5K) account review
• NewDominion Bank - 2.40% (min $3K) account review
• Consumers CU - 2.40% (22-mo) (min $250) (2.65% $100K+) account review
• American Express Bank - 2.40% (min $0) account review
• Ally/GMAC Bank - 2.40% (min $0) account review
• KeyDirect - 2.40% (28 mo) (min $5K), 2.65% w/chk, Not all states, account review
• eBank - 2.35% (min $1K)
• Alliant Credit Union - 2.30% (min $25K) account review
• Fifth Third - 2.26% (min $5K) not all states, account review
• WaMu/Chase - 2.25% (min $1K) account review
• Bank of America DOW - 2.25% (min $1K) account review
• EverBank - 2.25% ($1.5K min) account review
• Flagstar - 2.20% (min $500), account review
• Crane FCU - 2.12% (min $500) account review
• iGobanking - 2.12% (min $500), account review
• Northwest FCU - 2.03% (min $500) add-on, account review
• UFB Direct - 1.70% (min $8K)
• MetLife Bank - 1.40% (min $50K) account review
• Advanta Bank - 1.35% (min $10K), account review

36-Month Certificate of Deposit:

• Acacia Federal Savings Bank - 3.15% (min $500) account review
• Discover Bank - 3.10% (min $2.5K) account review
• Tennessee Commerce Bank - 3.10% (min $5K) account review
• Intervest - 3.10% (min $2.5K), account review
• Melrose CU - 3.03% (min $5K) account review
• State Bank of India - 3.03% (min $5K) account review
• AIG Bank - 2.91% (min $2.5K) account review
• Ally/GMAC Bank - 2.85% (min $0) account review
• Agriculture FCU - 2.80% (min $1K) account review
• Gateway Regional CU - 2.79% (min $1K) restrictions to membership, account review
• Pentagon Federal CU - 2.78% (min $1K), account review
• Alliant Credit Union - 2.75% (min $25K) account review
• American Express Bank - 2.75% (min $0) account review
• Air Force FCU - 2.70% (min $25K) membership restrictions account review
• Nationwide Bank - 2.55% (min $500) account review
• H&R Block Bank - 2.50% (min $250) account review
• eBank - 2.50% (min $1K)
• Northrop Grumman FCU - 2.45% (min $40K), account review
• NewDominion Bank - 2.40% (min $3K) account review
• KeyDirect - 2.40% (min $5K), 2.65% w/chk, Not all states, account review
• Bank of Internet - 2.25% (min $1K) account review
• UFB Direct - 1.70% (min $8K)
• Advanta Bank - 1.50% (min $10K), account review

48-Month Certificate of Deposit:

• NASA FCU - 4.00% (50-mo) (min $10K) account review
• Intervest - 3.55% (min $2.5K), account review
• Melrose CU - 3.49% (min $5K) account review
• Tennessee Commerce Bank - 3.45% (min $5K) account review
• Acacia Federal Savings Bank - 3.40% (min $500) account review
• Discover Bank - 3.20% (min $2.5K) account review
• Pentagon Federal CU - 3.14% (min $1K), account review
• Bank of America DOW - 3.11% (min $1K) account review
• Gateway Regional CU - 3.10% (min $1K) restrictions to membership, account review
• Alliant Credit Union - 3.00% (min $25K) account review
• Countrywide/BofA - 3.00% (min $10K), account review
• Third Federal - 3.00% (min $500) account review
• Ally/GMAC Bank - 3.00% (min $0) account review
• American Express Bank - 3.00% (min $0) account review
• National Bank of KC - 2.90% (min $10K) account review
• KeyDirect - 2.90% (min $5K), 3.15% w/chk, Not all states, account review
• Nationwide Bank - 2.85% (min $500) account review
• FNBO Direct - 2.75% (min $500) account review
• Flagstar - 2.55% (min $500), account review
• Advanta Bank - 1.75% (min $10K), account review

60-Month Certificate of Deposit:

• US Bank - 4.00% (59 mo) (min $1K) account review
• Melrose CU - 3.91% (min $5K) account review
• Acacia Federal Savings Bank - 3.80% (min $500) account review
• State Bank of India - 3.65% (min $5K) account review
• OneWest Bank/IndyMac - 3.65% (min $5K) account review
• Intervest - 3.62% (min $2.5K), account review
• Discover Bank - 3.60% (min $2.5K) account review
• Apple FCU - 3.60% (min $50K) account review
• Gateway Regional CU - 3.51% (min $1K) restrictions to membership, account review
• Pentagon Federal CU - 3.51% (min $1K), account review
• E-LOAN - 3.50% ($10K min) account review
• Connexus CU - 3.50% (min $1K) account review
• iGobanking - 3.50% (min $500), account review
• Agriculture FCU - 3.50% (min $1K), account review
• Ally/GMAC Bank - 3.50% (min $0) account review
• Dime Savings Bank - 3.50% (min $500) account review
• AIG Bank - 3.41% (min $2.5K) account review
• KeyDirect - 3.40% (min $5K), 3.65% w/chk, Not all states, account review
• American Express Bank - 3.40% (min $0) account review
• Third Federal - 3.40% (min $500) account review
• Mutual Bank - 3.26% (min $2.5K) account review
• Navy FCU - 3.20% ($20K min) (3.35% for $100K+) restrictions to membership, account review
• Nationwide Bank - 3.15% (min $500) account review
• EverBank - 3.10% ($1.5K min) account review
• Northwest FCU - 3.06% (min $25K) account review
• Credit Union of Georgia - 3.04% (min $50K), account review
• FNBO Direct - 3.01% (min $500) account review
• Alliant Credit Union - 3.00% (min $25K) account review
• Mountain America CU - 3.00% (min $1K) account review
• Dollar Savings Direct - 3.00% (min $1K) account review
• Telcom Credit Union - 3.00% (min $500) account review
• Consumers CU - 3.00% (59-mo) (min $250) (3.25% $100K+) account review
• WaMu/Chase - 3.00% (min $1K) account review
• Delta Community CU - 3.00% (min $1K) account review
• Firstmark CU - 2.95% (min $50K) account review
• University FCU - 2.60% (min $2.5K), account review
• Patelco CU - 2.58% ($1K min), account review
• USA FCU - 2.53% (min $1K) account review
• Western FCU - 2.31% (min $40K) account review
• 1st Source Bank - 2.20% (min $500) account review
• Advanta Bank - 2.00% (min $10K), account review
• UFB Direct - 1.70% (min $8K)

84-Month Certificate of Deposit:

• Pentagon Federal CU - 4.00% (min $1K), account review
• Navy FCU - 3.75% ($20K min) restrictions to membership, account review
• Third Federal - 3.75% (6-yr) (min $500) account review
• Discover Bank - 3.65% (min $2.5K) account review
• Intervest - 3.64% (min $2.5K), account review
• KeyDirect - 3.40% (min $5K) 3.65% w/chk, Not all states, account review
• Countrywide/BofA - 2.10% (min $10K), account review
• Capital One/Costco - 2.05% (min $5K) account review
• Capital One - 1.50% (min $5K) account review
• WaMu/Chase - 1.50% (min $1K), account review

Various Deposit Account Deals

• Checking/Savings Account Bonuses
• Latest CD and Savings Account Deals with No Major Deposit Limitiations

High Yield Reward Checking Accounts - Open to All

• Reward Checking Accounts Available Nationwide

Recent CD Specials at Local Credit Unions and Banks

• Alabama deals and CD rates
• Alaska deals and CD rates
• Arizona deals and CD rates
• Arkansas deals and CD rates
• California deals and CD rates
• Colorado deals and CD rates
• Connecticut deals and CD rates
• Delaware deals and CD rates
• District of Columbia deals and CD rates
• Florida deals and CD rates
• Georgia deals and CD rates
• Hawaii deals and CD rates
• Idaho deals and CD rates
• Illinois deals and CD rates
• Indiana deals and CD rates
• Iowa deals and CD rates
• Kansas deals and CD rates
• Kentucky deals and CD rates
• Louisiana deals and CD rates
• Maine deals and CD rates
• Maryland deals and CD rates
• Massachusetts deals and CD rates
• Michigan deals and CD rates
• Minnesota deals and CD rates
• Mississippi deals and CD rates
• Missouri deals and CD rates
• Montana deals and CD rates
• Nebraska deals and CD rates
• Nevada deals and CD rates
• New Hampshire deals and CD rates
• New Jersey deals and CD rates
• New Mexico deals and CD rates
• New York deals and CD rates
• North Carolina deals and CD rates
• North Dakota deals and CD rates
• Ohio deals and CD rates
• Oklahoma deals and CD rates
• Oregon deals and CD rates
• Pennsylvania deals and CD rates
• Rhode Island deals and CD rates
• South Carolina deals and CD rates
• South Dakota deals and CD rates
• Tennessee deals and CD rates
• Texas deals and CD rates
• Utah deals and CD rates
• Vermont deals and CD rates
• Virginia deals and CD rates
• Washington State deals and CD rates
• West Virginia deals and CD rates
• Wisconsin deals and CD rates
• Wyoming deals and CD rates

Bank Account Alternatives

• GE Interest Plus - 2.65% rate for $50k+
• Fidelity Money Market Fund - 0.60% 7-day yield (reviews on Fatwallet)
• Vanguard Tax-Exempt Money Market Fund - 0.31% 7-day yield
• Vanguard Prime Money Market Fund - 0.28% 7-day yield
• TIAA-CREF Money Market Fund - 0.24% 7-day yeild
• Fidelity Municipal Money Market Fund - 0.13% 7-day yield
• Paypal Money Market Fund - 0.11% 7-day yield (1% cashback debit MasterCard)
• FW Thread on Treasury Bills
• I Bonds for 2009, I Bond Article, I Bonds as CD Alternatives

Historical Rates from the Federal Reserve (Federal funds, Treasury bills, CD's)

Brokered Deposits and Hot Money - Factors in Bank Failures? read and submit comments for this post

This New York Times article looks at how hot money is being considered as an important factor in accelerating the wave of bank failures. With 52 bank failures so far in 2009, the causes for these failures are being examined. Unfortunately, regulators seem to be focusing more on deposit rates than the real problem of risky loans.

The article focuses mostly on brokered deposits. Brokered deposits are typically CDs that are sold to customers by brokerage companies like Charles Schwab. The brokerage acts as an intermediary with the bank which actually holds the deposits. The article has a good description of why brokered deposits are blamed:

Rather than simply wooing local customers, they have turned to out-of-state brokers who deliver billions of dollars in bulk deposits, widely known as "hot money," from investors nationwide.
...
But the hot money also came with a high cost. To lure the money from brokers, banks typically had to offer unusually high rates. That, in turn, often led them to make ever riskier loans, leaving them vulnerable when the economy collapsed.

When a bank fails, brokered deposits make it more difficult for the FDIC to find a buyer for the bank. Even if the FDIC finds a buyer, they may still refuse to assume brokered deposits. Looking over my posts on this year's bank closures, I've counted 12 banks that didn't assume brokered deposits in their agreements to take over the failed banks.

For a bank who's taking over the deposits of a failed bank, the issue with brokered deposits is that they can be easily moved from one bank to another as brokers seek the highest rates. The only thing that keeps those deposits is the high interest rates. To me this sounds a little like internet savings accounts. With electronic transfers it's easy to move money from one account to another. Also, when accounts have little or no minimum balance requirements, you can move most of the money without the hassles of closing and opening accounts.

With the FDIC reviewing Ally Bank rates, it's apparent that the regulators have noticed internet accounts can be another source of hot money. It's likely that we'll see more regulations on internet accounts. The article ends with the following:

Ms. Bair said she planned to ask Congress for greater powers to limit the role of hot money in banking - be it brokered deposits, listing services or simply Internet sales by banks offering unusually high interest rates.

In my opinion, the focus of regulators should be on risky loans and not high deposit rates. The problem with focusing on deposit rates is that it may punish banks which are not depending on risky loans. A good example is a bank offering a high interest rate on a reward checking account. Without understanding reward checking, regulators may see a 4% rate on a checking account to be hot money. In reality, the bank is able to pay 4% for a number of reasons unique to reward checking accounts. It's not necessarily through the use of risky loans.

Thanks to the reader who mentioned this article in the comments.

Related Posts:

• Recent Bank Failures
• Brokered CDs and Bank Failures
• Brokered CDs and their Downsides
• FDIC's Crack Down on Ally Bank
• FDIC's National Rate Caps

3.00% 9-Month CD at Bartow County Bank in Georgia - Local Only read and submit comments for this post

Bartow County Bank is offering a special 3.00% APY 9-month CD. Minimum deposit is $1,000, and it doesn't have any other requirements like other CD specials. Rate is listed at the bank's rate table as of 7/3/09.

The bank also has a reward checking account that pays 5.01% APY on balances up to $25,000 (see post).

I called this afternoon and asked if they allow people outside their market area to open accounts. No luck. New customers must be residents or work in their market area (Bartow and Cobb County in Georgia). Branches are located in Cartersville and Acworth.

The bank's ratings for safety and soundness are a little weak: 2 stars (problematic) at BauerFinancial (based on 3/31/09 data) and 2 stars (below peer group) at Bankrate.com (based on 12/31/08 data). The bank has been a FDIC member since 1974 (FDIC Certificate # 21495).

Thanks to Atlanta Wolf who mentioned this special in the daily news and deals post.

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

Competitive Rates on CDs, IRAs and Liquid CDs at OneWest Bank - Nationally Available read and submit comments for this post

OneWest Bank continues to offer some competitive rates on its CDs, and I just noticed some interesting liquid CDs that it's offering. OneWest Bank used to be IndyMac Bank. The FDIC completed the sale of IndyMac in March to new owners who renamed it OneWest.

Liquid Certificates of Deposit

In addition to competitive rates on the regular CD and IRA CDs, I noticed a liquid CD called Online Keep Your Options Open CD. It has two nice liquid features:

• Additional deposits allowed any time during the term and must be a minimum of $1,000, with a maximum principal balance of $100,000
• Two penalty free withdrawals allowed during term

It's a fixed-rate 1-year CD with a minimum initial deposit of $5,000. The rate is not the best for a 1-year term, but it's not bad at 2.00% APY. This rate is listed at the bottom of the bank's rate table as of 7/03/09.

There are a few other liquid online CDs, but they're not quite as flexible. One is the Online 2 Year Flexible CD and the other is the Online Raise Your Rate CD. The Flexible CD is a fixed rate 2-year CD that allows one rate increase 365 days into the term if the 1 year CD rate is higher than the 2 year CD rate. The original maturity date will remain unchanged. All other features are like the regular CDs with no additional deposits and no penalty-free early withdrawals. The Online Raise Your Rate CD is very similar to the Flexible CD except it has a 1-year term, and there's no restriction when the rate can be increased. Unlike the Flexible CD, it appears this one allows the rate to be bumped up to the current 1-year CD. The bump-up limitation is one example of the issues of the rate-bump feature. It's often easy for the bank to keep the current rates low so that there would be little or no benefit to use the bump feature. However, for the Flexible CD, there's no reason not to choose this over the regular 2-year CD since both have the same rate, 2.45% APY as of 7/03/09. The Raise Your Rate CD has a rate a little below that of the regular 1-year CD, 2.10% APY vs 2.25% APY as of 7/03/09.

Regular Certificates of Deposit

The regular online CD rates are competitive. The most competitive include the 12-month term with a 2.25% APY and the 60-month term with a 3.65% APY. Minimum deposit is $5,000. Below is the full list of the online fixed rate CDs as listed at the bank's rate table as of 7/03/09:

• 3.65% APY 5 year
• 3.05% APY 4 year
• 2.80% APY 3 year
• 2.45% APY 2 year
• 2.25% APY 1 year
• 1.75% APY 9 month
• 1.90% APY 6 month
• 1.15% APY 3 month

Some important features of the CDs are described in the Terms and Conditions document (pdf):

• Early withdrawal penalties: 1 month interest for terms under 180 days, 3 months interest for terms of 180 days to under 1 year, 6 months interest for terms of 1 year and over
• Grace period at maturity is 7 days
• Interest may be paid to your liquid OneWest account, reinvested into the CD, transferred via ACH to another bank or paid by check
• Payment of interest can be deferred until the following year on accounts with terms of one year or less

OneWest Bank was closed today for the 4th of July holiday, so I wasn't able to get more details. I have some more details about the CD application process in this post from last year when they were still IndyMac. I don't know how much has changed since then.

Higher Branch Rates

For those who live in California near a branch, you can get some CD rates even higher than the online rates. These include a 2.00% APY 6-month CD, a 2.50% APY 2-year CD and a 3.75% APY 5-year CD. These rates are listed in the bank's branch rate table as of 7/03/09.

IRA Certificates of Deposit

OneWest Bank also offers IRA CDs and money market accounts. Some of the competitive rates include a 2.50% APY 2-year CD and a 3.25% APY 4-year CD. These rates are listed in the bank's retirement account page as of 7/03/09. One feature that's not well described is mentioned on the Online Fixed Term CDs page regarding additional deposits:

Allowed during grace period and retirement account terms of 2 years or less

So it appears IRA CDs with terms of 2-years and under allow additional deposits. I can't find any other details of this so I can't say for sure this is correct. If you get confirmation of this, please leave a comment.

E-Money Market Account

OneWest Bank had been offering competitive rates on its online savings account, the E-Money Market account. Before April, it was offering 2.25% APY on balances of $1,000 and above. But in April the rates on the low tiers went way down. As of 7/03/09, it pays only 0.75% APY on balances of $1K to $10K and 1.25% APY $10K to $25K. You need at least $50K to earn the top rate of 2.00% APY.

Financial/FDIC Overview

With OneWest Bank being a new bank it doesn't have the bad loan baggage of IndyMac. OneWest Bank now has an entry in the FDIC database. The established date is listed as 3/19/2009.

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

2.78% 11-Month Online CD at Franklin Synergy Bank - Nationally Available read and submit comments for this post

Franklin Synergy Bank is offering an online certificate of deposit called the eCD. It has a 2.78% APY and an 11-month term. This rate is listed at the bank's Online Products page as of 7/03/09. There's also an E-Savings account listed, but the rates aren't that great and it requires a checking account.

I last posted on this bank in May when this eCD had a 5-month term. When I called the bank in May, I was told that the account can be opened online by people from any state. The application link is at the bottom of the eProducts Page. I wasn't able to get many details from the CSR. I recommend calling for more details if you're interested in this CD. The bank's phone number is listed on the right hand side of this application page (615-236-2265). The online application allows for two POD beneficiaries

The bank is a fairly new bank that was established in 2007 with headquarters in Franklin, Tennessee. It's a small bank with $221 million in assets and $173 million in deposits. Since it's new, BauerFinancial doesn't have a rating for it. Bankrate.com gives the bank 3 stars (performing) based on 12/31/08 financial data. The bank is a member FDIC (FDIC Certificate # 58714).

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

4.50% Reward Checking Account at NorStates Bank in Northern Illinois - Local Only read and submit comments for this post

NorStates Bank is offering a reward checking account called High Yield Checking. The account offers the following rates and features if certain monthly requirements are met:

• 4.50% APY on balances up to $25,000
• 1.01% APY on the portion of the balance over $25,000
• 0.15% base rate if qualifications are not met
• ATM fee refunds up to $25 per cycle

The monthly requirements include:

• 10 signature-based debit card purchases
• 1 direct deposit or automatic payment
• Receive e-Statements

Additional features of the account regardless of the monthly requirements include:

• $50 minimum initial deposit
• No minimum balance requirement
• No monthly service charge
• Free online bill pay

It appears a branch visit is required to open an account. Branches are located in the northern Chicago metro area in the Illinois cities of Waukegan, Gurnee, Round Lake Beach, Round Lake, Winthrop Harbor and Antioch.

NorStates Bank has been a FDIC member since 1962 (FDIC Certificate # 18626).

Financial Health

Illinois has been hit hard by bank failures. Although you don't have to worry about your insured deposits, it is possible that a new bank that takes over a failed bank may end the reward checking program. So the financial strength of a bank is a consideration for picking a reward checking account.

Unfortunately, NorStates Bank's ratings for safety and soundness are a little weak: 2 stars (problematic) at BauerFinancial (based on 3/31/09 data) and 1 star (lowest) at Bankrate.com (based on 12/31/08 data).

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation or to learn more about these accounts, please refer to my High Yield Checking website.

2.38% 9-Month CD at Eastbank in New York - Local Only read and submit comments for this post

Eastbank continues to offer a very competitive 9-month special CD. The rate is down a bit since my May post, but it's still very competitive with a 2.38% APY. Minimum deposit is $2,500. The regular CD rates are also competitive with a 2.25% APY for 12 months and 2.50% APY for 24 months. The rates are listed at the bank's rate table as of 7/03/09.

It appears a branch visit is required to open an account. Branches are located in New York City and in Flushing.

Based on the look of their website, they appear to do a good job at keeping expenses low. Perhaps that's why they have such strong financial ratings for safety and soundness: 5 stars (superior) at BauerFinancial (based on 3/31/09 data) and 4 stars (sound) at Bankrate.com (based on 12/31/08 data). The bank has been a FDIC member since 1984 (FDIC Certificate # 25749).

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

Summary of Today's Seven Bank Failures read and submit comments for this post

Since Friday is a holiday at many banks, the FDIC did its closures on Thursday instead of Friday, and it was busy. A total of seven banks closed: six in Illinois and one in Texas. However, the failed Illinois banks are related. According to the FDIC:

The six failed Illinois banks are all controlled by one family and followed a similar business model that created concentrated exposure in each institution. The failure of these banks resulted primarily from losses related to the banks' investment in collateralized debt obligations and other loan losses.

It appears the family controlled several bank holding companies. Three of the failed Illinois banks were part of Peotone Bancorp, Inc. (Founders Bank, Rock River Bank and The First National Bank of Danville). There was one bank under this holding company that wasn't closed, Peotone Bank and Trust Company. The other three failed Illinois banks were part of three different bank holding companies.

For each of the seven failures, the FDIC was able to find another bank to assume all deposits of the failed bank, including deposits above the FDIC limits. This even included brokered deposits. So no depositors lost any money.

Even though depositors won't have to worry about losing any money, they may lose a rate lock on their CDs. Six of the banks that are assuming the deposits will "be reviewing rates and will notify" depositors. However, one of the banks, State Bank of Lincoln, will honor existing rates of the failed John Warner Bank. For all cases, depositors will have the right to make an early withdrawal without penalties.

In addition to CD account holders, reward checking customers may be nervous. At least two of the closed banks had been offering reward checking accounts with attractive rates and caps. The failed banks, Founders Bank and Rock River Bank, have been offering a reward checking rate of 4.19% APY on balances up to $50K. It'll be interesting to see what the new banks do with these accounts. I'm not optimistic that they'll continue them.

If you're a customer of any of these banks, please leave a comment as you learn what the new banks decide.

Below is a summary of today's bank closures:

46th Bank Failure of 2009 (7th in IL)

• FDIC Press Release
• Closed Bank: John Warner Bank
• Location: Clinton, IL
• Size: 3 offices, $70 million in assets, $64 million deposits
• Possible Uninsured Deposits: All deposits transferred
• Acquiring Bank: State Bank of Lincoln, Lincoln, IL
• Estimated Cost to Deposit Insurance Fund: $10 million
• Financial Ratings: 0 star (lowest) at BauerFinancial, 2 stars (below peer group) at Bankrate.com

47th Bank Failure of 2009 (8th in IL)

• FDIC Press Release
• Closed Bank: First State Bank of Winchester
• Location: Winchester, IL
• Size: 2 offices, $36 million assets, $34 million deposits
• Possible Uninsured Deposits: All deposits transferred
• Acquiring Bank: First National Bank of Beardstown, Beardstown, IL
• Estimated Cost to Deposit Insurance Fund: $6 million
• Financial Ratings: 0 star (lowest) at BauerFinancial, 2 stars (below peer group) at Bankrate.com

48th Bank Failure of 2009 (9th in IL)

• FDIC Press Release
• Closed Bank: Rock River Bank
• Location: Oregon, IL
• Size: 4 offices, $77 million assets, $75.8 million deposits
• Possible Uninsured Deposits: All deposits transferred
• Acquiring Bank: The Harvard State Bank, Harvard, IL
• Estimated Cost to Deposit Insurance Fund: $27.6 million
• Financial Ratings: 0 star (lowest) at BauerFinancial, 2 stars (below peer group) at Bankrate.com

49th Bank Failure of 2009 (10th in IL)

• FDIC Press Release
• Closed Bank: The Elizabeth State Bank
• Location: Elizabeth, IL
• Size: 2 offices, $55.5 million assets, $50.4 million deposits
• Possible Uninsured Deposits: All deposits transferred
• Acquiring Bank: Galena State Bank and Trust, Galena, IL
• Estimated Cost to Deposit Insurance Fund: $11.2 million
• Financial Ratings: 0 star (lowest) at BauerFinancial, 1 star (lowest) at Bankrate.com

50th Bank Failure of 2009 (11th in IL)

• FDIC Press Release
• Closed Bank: First National Bank of Danville
• Location: Danville, IL
• Size: 7 offices, $166 million assets, $147 million deposits
• Possible Uninsured Deposits: All deposits transferred
• Acquiring Bank: First Financial Bank, N.A., Terre Haute, IN
• Estimated Cost to Deposit Insurance Fund: $24 million
• Financial Ratings: 0 star (lowest) at BauerFinancial, 1 star (lowest) at Bankrate.com

51st Bank Failure of 2009 (1st in TX)

• FDIC Press Release
• Closed Bank: Millennium State Bank of Texas
• Location: Dallas, TX
• Size: 1 office, $118 million assets, $115 million deposits
• Possible Uninsured Deposits: All deposits transferred
• Acquiring Bank: State Bank of Texas, Irving, TX
• Estimated Cost to Deposit Insurance Fund: $47 million
• Financial Ratings: 0 star (lowest) at BauerFinancial, 1 star (lowest) at Bankrate.com

52nd Bank Failure of 2009 (12th in IL)

• FDIC Press Release
• Closed Bank: Founders Bank
• Location: Worth, IL
• Size: 11 offices, $962.5 million assets, $848.9 million deposits
• Possible Uninsured Deposits: All deposits transferred
• Acquiring Bank: PrivateBank and Trust Company, Chicago, IL
• Estimated Cost to Deposit Insurance Fund: $188.5 million
• Financial Ratings: 0 star (lowest) at BauerFinancial, 1 star (lowest) at Bankrate.com

Note, the ratings at BauerFinancial are based on 3/31/09 data and those at Bankrate.com are based on 12/31/08 data.

References:

• FDIC list of failed banks
• Latest FDIC info on deposit insurance
• Last 20 of my bank failure posts
• 10 Lessons from the 2008 bank failures
• Review of the 2008 credit union liquidations

Thanks to the readers who commented and emailed me news of these closures.

Bank of America's $100 Checking Account and Bill Pay Bonus read and submit comments for this post

Bank of America has a new promotion for new checking customers. You can get $75 when you open a new qualifying personal or business checking account with a $250 deposit and make a purchase with your debit card. An additional $25 is available when you make 2 online bill payments within 30 days. This $25 bill pay bonus is also available to existing checking account customers who have not made a bill payment from BofA within the last 6 months.

Here's the $100 promotion page for new checking customers: promo.bankofamerica.com/getmore100. Enter offer code WIWGASINT for personal account or SBECASH for business account.

And here's the $25 promotion page for bill pay: billpayoffer.bankofamerica.com.

Some of the important small print to qualify for the $75 includes:

• You get $75 when you open (1) qualifying new checking account with an opening balance of $250 during the eligibility period and (2) use your debit card for the new checking account to pay for a purchase from a merchant within 30 days after opening the new account.
• This is a special limited time offer available to new customers who open an eligible new personal or business checking account online or in one of our banking centers.
• Offer does not apply to second or multiple accounts.
• A new customer is a person who is not currently a signer and who was not a signer within the last 6 months on a Bank of America checking account.

Important small print for the $25 bonus includes:

• For new customers: To get the additional $25, use the online bill payment service to pay two bills from your new checking account within 30 days after opening the account.
• For existing customers who have not made a bill payment with Bank of America Online Banking within the last 6 months: Customers will get $25 if they use the Online bill payment service to pay two bills from their checking account within 30 days.

Credit for this find goes to SlickDeals member Iqleon who mentioned this promo in this SD thread.

Hard Credit Pull

There are some things to note regarding BofA. First, many have reported that BofA does a hard credit inquiry on your first checking account. A reader noted in a previous BofA post that he received two pulls when he did this promo in early 2008. A hard credit inquiry can ding your credit score a little for a few months.

Receiving the Bonus

It can take patience and persistence to receive the bonuses. The bonuses that I've received only came after reminding them using their online message system. Others have had to make many calls to a banking rep. Not everyone has been successful.

Old and New Fees

According to the online application page, MyAccess Checking is "free with no direct deposit requirement. No minimum balance required." Make sure you keep an eye on your statements to make sure no fees start popping up. You might want to make a copy of the application where it states that the MyAccess Checking will be free.

BofA charges for things that you might expect are free. For example, if you make an outgoing ACH transfer, there's a $3 charge (see BofA page).

BofA recently notified customers of account changes which include new fees. Here's their information page on this. MyAccess Checking monthly fee is going up to $8.95 per month starting June 5th if you don't maintain a $1,500 balance or if you don't have direct deposit. However, here are the exclusions listed:

Fee changes do not apply to customers who opened a free MyAccess Checking account during specific time periods at Bankofamerica.com: Customers in GA and TX after 11/1/2006; and customers in any state after 4/20/2007.

Customer Service

There have been many reports of bad customer service at BofA. Here's an interesting one that was was posted at the Consumerist last year.

Other Bank Bonuses

Other Bank of America bonuses can be viewed in my Bank of America deals page. The last BofA bonus that I posted on was another $75 checking bonus. Unlike this new one, it required an initial deposit of $500 in a checking account rather than $250.

To find other bonus deals, please refer to my bank bonus page which has all of my recent bank bonus posts.

2.50% 18-Month CD at South Jersey Federal Credit Union - Local Only read and submit comments for this post

South Jersey Federal Credit Union has an 18-month CD special with a 2.50% APY. It's available as both a regular and IRA share certificate. Minimum deposit is $10,000. This rate is listed at the credit union's rate table as of 7/02/09.

My last post on this credit union was in May when they were offering a 4.07% 60-month CD. The CD rates have fallen, but they remain competitive especially for a minimum deposit of $50K. They continue to offer a competitive rate on their SUPER Money Market account. As of 7/02/09, the rate is 2.02% APY with a $25K minimum deposit.

Membership is open to anyone who lives, works, worships or attends school in any of the following New Jersey communities: Atlantic City, Bridgeton, Camden, Millville, Pleasantville, Salem and Vineland. You can also be eligible via select employers or via family. Please see their membership eligibility page for more details. Membership requires a one-time $10 fee and a minimum deposit of $25 into the Statement Savings account.

Branches are located in the New Jersey cities of Deptford, Camden, Pleasantville, Egg Harbor Township, Vineland and Voorhees. There's also a new branch at Moorestown.

The credit union is federally insured by the NCUA (Charter # 3951).

Thanks to the readers who emailed me news of the special and the new branch.

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

2.50% 12-Month CD & 3.00% 24-Month CD Continue at International Bank of Chicago read and submit comments for this post

International Bank of Chicago continues to list four competitive CD rates: a 2.25% APY 6-month CD, a 2.50% APY 12-month CD, a 2.75% APY 18-month CD and a 3.00% APY 24-month CD. Minimum deposit is $10,000. These rates are listed at the bank's rate table as of 7/02/09.

I posted on these rates in this May post. As I mentioned in that post, this bank tends to change their CD rates very infrequently. So as rates at other banks drop, these rates get more and more competitive. These current CD rates have been availabe since 4/07/09, so they may not last much longer.

The bank has an deposit application form with instructions for opening an account by mail. The application allows for the account to be opened with multiple beneficiaries, and it appears to allow for both formal and informal revocable trusts. There's also an initial deposit form in which you must specify that the deposit will be done by either personal check or by wire transfer. A wire transfer is a better option since they state below the rate table that "the rate you receive is determined by the date we receive your deposit." I haven't been able to get an answer from the bank about if they accept out-of-state deposits.

Branches are located in Chicago and its suburbs of Stone Park and Bellwood.

The bank has solid ratings for safety and soundness: 4 stars (excellent) at BauerFinancial (based on 3/31/09 data) and 4 stars (sound) at Bankrate.com (based on 12/31/08 data). The bank has been a FDIC member since 1992 (FDIC Certificate # 33708).

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

Update on Chase Checking Bonuses read and submit comments for this post

Chase extended the $100 bonus that's available at coupon.chaseinformation.com to 7/24/09. This is for personal checking accounts, and it requires a branch visit. It also requires either direct deposit or five debit card purchases. Refer to my May post for more details. Every once in a while Chase offers $125 bonus for their personal checking accounts so keep an eye out for those.

Chase also has a new $200 business checking promotion which is good through 7/31/09. The promo page is available here. Credit for this find goes to SlickDeals member m124 who posted on it in this SD thread. The bonus requires a $500 minimum deposit in a qualifying Chase business checking account. Refer to my 2008 post which covered the details of this promotion. Some on the SD thread reported that they tried applying online, and they received a note about invalid or already used coupon code. It appears this is due to not having a Chase branch within 30 miles from your address. And a WaMu office may not qualify if it hasn't been converted yet into a Chase office.

Beware of Fees

Readers in my last Chase post mentioned some fees to watch out for. One is a $3 fee for initiating an ACH transfer from Chase to an external account. Transfers initiated from outside Chase are not subject to a Chase fee. This is how I transfer out of my Chase account. This $3 fee and other fees are described in Chase's account disclosures which are available at this page. According to the disclosure, this $3 fee may be waived with certain account types.

Other potential Chase Checking fees include a $6/month fee. To have this waived, you must have direct deposit or if you have 5 or more debit card purchases. There's also a $2 fee for using non-Chase ATMs ($3 for outside the U.S.) This Chase Checking page has more details on these fees.

Chase Branch Locations

Chase has branches in many states but not all. There are no branches in California, but they're in the process of converting WaMu branches into Chase branches. You may not be able to use WaMu branches for these Chase promos yet. States with Chase branches include Arizona, Colorado, Connecticut, Florida (Southwest), Illinois, Indiana, Kentucky, Louisiana, Michigan, New Jersey, New York, Ohio, Oklahoma, Texas, Utah, West Virginia and Wisconsin.

Chase is FDIC insured under JPMorgan Chase Bank, N.A. (FDIC Certificate # 628).

3.05% 24-Month CD at Broadway Federal Bank in CA - Nationally Available read and submit comments for this post

Broadway Federal Bank has just started offering a very competitive 24-month online CD with a 3.05% APY. Minimum deposit is $1,000. This rate is listed on the bank's home page as of 7/01/09.

Last month I posted on their 12-month online CD which had a rate of 2.53% APY. It appears this 12-month CD is no longer an option. On their Open An Account Page, they now only list a 3-month, 6-month and this 24-month online CD. For some reason they only list the rate for the 24-month CD. I called for more info, but I wasn't able to reach customer service before they closed for the day (4:00pm PDT).

The online application has an option for ACH funding, but a reader in the previous post mentioned that they were having problems with ACH funding. He was told by the bank to mail a check instead, along with a copy of his driver's license. The account would open when they receive the check.

I first mentioned Broadway Federal in November 2008 when they were offering a very competitive savings account. They stopped offering this special savings account in April and began offering these online CDs. A few readers who had opened the savings account reported poor customer service and a hard credit inquiry.

The Open An Account page has the link to the online application. The first page of the application lists some important requirements and features:

• You must be a U.S. Citizen or resident alien, have a U.S. address and be 18 years or older
• Required that you send a copy of your driver's license or ID
• You can fund the CD by check or by an ACH transfer(assuming they fixed the ACH problems)
• You will receive the rate in effect on the date the application is submitted

The bank continues to have strong financial ratings for soundness: 4 stars (excellent) at BauerFinancial (based on 3/31/09 data) and 4 stars (sound) at Bankrate.com (based on 12/31/08 data).

It's a small bank with 5 offices in Los Angeles and Inglewood, California. It has been a FDIC member since 1947 (FDIC Certificate # 30306).

Thanks to the reader CinFlorida who mentioned this new CD in the comments.

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

Update on Urban Trust Bank in FL & MD - High Rates Continues, New FL Branches read and submit comments for this post

Update 7/03/09: Rates were cut by 25 basis points on all CDs, on the Urban Select Money Market Account and on the Urban Select Money Market Account. Even with these cuts, the rates remain very competitive.

Urban Trust Bank continues to offer very competitive rates on its checking account, money market account, CDs and IRA CDs. They also added some new branches in Southwest Florida. These new branches were acquired from SunTrust Bank, and like most of Urban Trust Bank branches, these new branches are inside Walmart stores. This Orlando Sentinel article has more on this acquisition. The article also mentions an interesting note regarding Urban Trust's deposit growth. It has grown more than sevenfold during the last 12 months that ended March 31. With their very competitive rates, I can see why deposits have grown.

Here are some of the current rates as listed in the bank's rate table as of 7/01/09. The long-term CD rates are especially competitive.

• Select Checking - 2.50% APY $1K+
• Select Money Market - 2.50% APY $2.5K-$25K, 2.75% APY $25K+

Certificates of Deposit Rates (including IRAs)

• 2.00% APY 3 month
• 2.15% APY 6 month
• 2.30% APY 9 month
• 2.75% APY 12 month
• 2.80% APY 18 month
• 2.85% APY 24 month
• 4.00% APY 39 month
• 4.25% APY 48 month
• 4.50% APY 60 month

The rate table has an effective date of April 16, 2009. But according to the bank CSR, the rates on their website are always current, and they are offered at all of their branches. Rates are reviewed weekly and can change at anytime. I noticed April 16th was a Thursday so I hope we don't get a Thursday rate change tomorrow.

At the top of the rate table it states that they cannot open accounts online or by mail. A branch visit is required. One commenter in my previous post mentioned being allowed to open the 5-year CD by phone via a branch manager. Others haven't reported success with this so I'm considering this a local deal.

A few readers reported good customer service at the bank's Jacksonville branch. However, a couple of other readers reported long delays with IRA CD transfers at their Landover, Maryland branch.

Branches are located in several North, Central and Southwest Florida cities including Orlando, Winter Haven, Jacksonville, Bradenton and Naples. There are also branches in the Washington DC suburbs of Bethesda and Landover Hills, Maryland. Most branches are inside Walmart stores.

The bank's ratings for safety and soundness are a little weak: 2 stars (problematic) at BauerFinancial (based on 3/31/09 data) and 3 stars (performing) at Bankrate.com (based on 12/31/08 data). Urban Trust Bank has been a FDIC member since 1963 (FDIC Certificate # 31390).

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

4.00% 50-Month CD at NASA Federal Credit Union - Easy Membership read and submit comments for this post

NASA Federal Credit Union introduced a July certificate special with a very competitive long-term certificate. It has a rate of 4.00% APY and a term of 50 months. The shorter term specials are not quite as competitive: 2.00% APY 18-months and 2.50% APY 30-months. Minimum deposit is $10,000. The same rates apply to IRA certificates (Traditional, Roth and SEP). These rates are listed in the certificate specials page as of 7/01/09.

In addition to many select employee groups, the credit union's field of membership includes several associations in which anyone can join. A reader in my previous post noted that they've added a new association (American Consumer Council). This is free to join, and you can join at this credit union page. A $5 minimum balance to your savings account is required for credit union membership. Readers have mentioned in this July 2007 post that the online application requires a minimum $25 deposit to fund electronically.

Commenters in past NASA Federal posts have mentioned that NASA Federal has done hard credit pulls via Equifax (which will slightly ding your credit score) during account opening.

Branches are located in Maryland, Washington, DC and Virginia.

NASA Federal continues to have a solid rating for safety and soundness at BauerFinancial: 5 stars (superior). However, at Bankrate.com the rating went down from 4 stars (sound) based on 9/30/08 data to 3 stars (performing) based on 12/31/08 data. The credit union is federally insured by the NCUA (Charter # 6328).

Other High Certificate of Deposit Rates

• My weekly list of hot nationwide and local CD deals
• My weekly list of all nationwide CD deals
• Index of state CD and bank deals

Discover Bank's New Limited-Penalty-Free CD and its New Online Savings Account read and submit comments for this post

Discover Bank just introduced a new feature on its 1-year CD today which allows account holders who open or renew a 12-month CD to make an early withdrawal without a penalty. However, it only applies if the account holder involuntarily loses his or her job during the term of the CD. The 12-month CD rate is fairly competitive at 2.20% APY as of 7/01/09.

Discover Bank also introduced a new Online Savings Account with a 2.00% APY as of 7/01/09. Minimum initial deposit is $500, but there is no minimum balance requirement after it's opened. However, it appears the 2.00% APY only applies to balances of at least $500.

Discover Bank has long offered a Money Market Account with limited check writing and with ATM access. You can only access your money in the savings account via ACH electronic fund transfers (wire transfers are also an option). The downside with the MMA as compared to the savings is that it has lower rates and the rates are tiered. Also, with the MMA there's a $10/month fee when your average daily balance falls below $2,500.

The Discover savings account can be useful if you open a Discover Bank CD. When the CD matures, it's typically easy to instruct a bank to transfer the money from the closed CD into a savings account at the same bank. Once it's in the savings account, it's easy to transfer it. And with the savings account having no minimum balance requirements, you don't have to worry about leaving a large amount earning little or no interest.

The Penalty-Free CD Feature:

Details of this CD promotion are available at www.discoverbank.com/12monthcd. It's also described in this press release. Here are some of the details:

Certificate of Deposit Requirement:

• 12-month term
• Minimum deposit of $2,500
• Opened or renewed between 7/01/09 and 12/31/09

Account holder Requirements:

• Account holder be employed full time when the CD was opened or renewed
• And for 30 days thereafter, involuntarily lose his/her full-time job
• Also, he/she must provide proof of unemployment to Discover Bank
• Proof includes a signed and notarized document proving unemployment
• Also applies to self-employed under certain conditions

If Discover Bank approves, both the principal and the credited interest can be withdrawn without penalty.

In theory this is good for those who want to use a CD as an emergency savings fund. However, my question is how long will it take to go through this paperwork. Based on reports from many readers, there have been many issues with Discover Bank's customer service. Here are two comments that readers left in my previous Discover Bank posts:

Having had Discover CD's in the past, I would agree that phone customer service as well as website responsiveness is lax & unreliable at best.
I would say the operation is unprofessional, and a headache best avoided.

Discover Bank is very poor when closing out maturing CD's. They lost my close out letter ... and I received their auto-renewal letter on the last day of the grace period. Took another 20 days to receive my check. So ... figure that you'll forfeit at least 21 days of interest at the end of the CD....

In my opinion, Ally Bank's 9-month no-penalty CD (APY is 2.15% as of 7/01/09) is still a better deal (see post).

General Discover Bank CD Info:

AAA members who live in certain areas can receive a 5 basis-point rate bump on all Discover CDs. To find the AAA rates at Discover's website, start at AAA's financial services page and enter your zip code. You should then see a Discover Bank link on the right. Note, this Discover Bank AAA accounts don't seem to be available for all zip codes.

The details about Discover's CDs are listed at their CD overview page and the CD FAQs. Some of the details include:

• Fund CD with an ACH electronic funds transfer or check
• Early withdrawal penalty of 6 months interest on amount withdrawan for terms of 1 to 5 years
• Grace period is 9 calendar days after the CD matures
• Same rates available in IRAs

Discover Bank's Financial Overview:

I was going to say that one advantage of Discover Bank over Ally Bank is that it hasn't received any TARP funds. But this isn't the case. According to the NY Times database, Discover Financial Services, the parent of Discover Bank, received $1.2 billion of TARP funds on March 13, 2009. Nevertheless, Discover Bank has decent ratings for safety and soundness: 3½ stars (good) at BauerFinancial (based on 3/31/09 data) and 4 stars (sound) at Bankrate.com (based on 12/31/08 data). Discover Bank is a member FDIC (Certificate # 5649).