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Sunday, December 20, 2009

Competitive 2- and 5-Year CDs at Northwest FCU - Available Nationwide

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Northwest Federal Credit Union continues to offer some competitive CD rates. Rates have actually went up since my November post. The most competitive is currently the 5-year CD with a 3.65% APY for a minimum balance of $25,000. Lower rates are available for smaller balances, and a 3.75% APY is available for a $100,000 minimum. In addition, higher rates (up 0.25%) are available to Premier Checking members and Heritage Club members. These rates are based on the credit union's rate sheet (pdf) as of 12/20/2009. Note, rates typically are changed on Tuesdays.

Another noteworthy CD is the credit union's 2-year Add-On CD which has a 2.39% APY as of 12/20/2009. According to the Add-on Certificate page, you have the "ability to add on deposits over the term with no minimum amounts or limits to the number of deposits." There's also a 1-year Add-On CD, but the rate is not quite as competitive, only 1.53% APY as of 12/20/2009. These Add-On CDs have a $500 minimum deposit, and the bonus rates don't apply.

These Add-On CDs can be very useful to hedge against the risk that this low-interest rate environment will drag on. When future CDs mature, you can fall back on the Add-On CD if rates are not higher.

Additional Credit Union and CD Details

Last month I described a useful IRA CD feature at Northwest for those 59½ and over. I have more details about Northwest FCU and its CDs in my September Northwest FCU review.

Membership

In addition to select employer groups, credit union membership is open to members of the American Consumer Council (ACC). According to the credit union's Who We Serve page:
If you find you are not eligible to join NWFCU via the relationships defined above, we can approve your membership with automatic enrollment in the American Consumer Council, an organization dedicated to consumer education, awareness, and economic growth. This nonprofit advocacy group was established in 1987 to ensure and protect consumers. There is no cost for you to join, nor additional paperwork. Simply select "I work for a member company or an organization" then choose "ACC" from the list of eligibility options on our membership form.

Membership requires a minimum deposit of $5 into your share savings account.

Locations

NWFCU's branches are located in the Virginia cities of Manassas, Chantilly, Herndon and Vienna. You can also use shared branches for making deposits, withdrawals and for other services.

Financial/NCUA Info

The credit union's rating for safety and soundness are strong: 4 stars (sound) at Bankrate.com (based on 6/30/09 data) and 5 stars (superior) at BauerFinancial (based on 9/30/09 data). NWFCU is federally insured by the NCUA (Charter # 5500). It's a large credit union with $1.7 billion in assets and 99,300 members.

Thanks to the reader who noted these latest rates in the comments.

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/20/2009 08:36:00 AM | 0 comments

Saturday, December 19, 2009

Bank Deals Weekly Summary for December 19, 2009

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

The last scheduled FOMC meeting for 2009 was held this week, and as expected there were no Christmas presents for savers. The Fed continues its line on interest rates: "anticipate that economic conditions [...] are likely to warrant exceptionally low levels of the federal funds rate for an extended period."

We probably saw the last bank failures for 2009 yesterday. The FDIC was especially busy with 7 closures. The total number of failures for 2009 is 140. Three of yesterday's closures involved banks that I've listed in my weekly summaries for the last several years. These include UmbrellaBank's parent, New South Federal Savings Bank, Imperial Capital Bank and First Federal Bank of California. The good news is that the FDIC was able to find buyers for all three, and the buyers agreed to assume all deposits even those that exceed the FDIC limit. However, for those who have CDs with these banks, your CD rate may be reduced. Please leave a comment in my bank failure review post when you find out how your CDs were affected.

Savings Account Rates

Flagstar Bank slashed its rates again this week. It appears they now have a strategy to reduce deposits. Their new money market rate of 0.50% should help with this strategy. Flagstar now shares the bottom of the list with ETrade Bank. It's sad to see these two banks which used to be rate leaders fall to the bottom.

If you're looking for a savings account with a history of top rates from strong institution, refer to my short list of top savings accounts that I posted in August. Four savings accounts that made my short list have remained very competitive. Rates have fallen for three of these four accounts, but they still remain near the top.

Rate Hikes:
  1. None
Rate Drops:
  1. American Express Savings - 1.50% (was 1.70%)
  2. WTDirect Savings - 1.41% (was 1.51%)
  3. iGObanking Savings - 1.31% (was 1.41%)
  4. Intervest MMA - 1.30% $2.5K (was 1.32%)
  5. Union Federal Savings - 1.25% (was 1.40%)
  6. Citibank Ultimate Savings - 1.01% (was 1.15%)
  7. Flagstar MMA - 0.50% (was 1.09%)
Certificate of Deposit Rates

I'm happy to see ING Direct continuing to offer 2% APY on its 12-month CD. For longer terms, two New York banks continue to offer good nationwide deals. Emigrant Bank is still offering 2.25% APY for 16 months at Dollar Savings Direct. It's not listed on their website, but I called today and confirmed the rate. The other New York bank is Hudson City Savings which has good deals on terms from 2 to 5-years.

CD rates continue to fall, but there was one bright spot. Northwest FCU raised its CD rates last week. Its 60-month CD is especially competitive with a rate up to 3.75% APY for a $100K minimum. An additional 0.25% is added for certain relations. The credit union also has a 2-year add-on CD with a 2.39% APY. Add-on CDs can be especially helpful to hedge against the risk of rates staying low (see post).

I checked with my PenFed contact again this week, and new higher long-term CD rates are still planned for January. These include a 3.75% APY 5-year CD, 3.50% APY 4-year CD and a 3.25% APY 3-year CD. For those with PenFed CDs that mature in January, you'll be able to get an additional 0.25% as a renewal bonus.

Both PenFed and Northwest FCU have a reasonable early withdrawal penalty of 6-months of interest for their long-term CDs (excluding the 7-year term). Two banks with similar early withdrawal penalties include OneWest Bank and Discover Bank.

Be careful with some banks that offer top long-term CD rates. They can have a much more severe penalty. One example is Capital One Bank which has a convoluted long-term penalty that involves what they call an Economic Replacement Value. Intervest Bank's penalty is clear, but it's severe: half of the interest of the term of the CD. For a 5-year CD, that's 30 months of interest.

As I described in my recent OneWest CD review, a long-term CD with a mild early withdrawal penalty can be better than sticking with short-term CDs. Rates can be higher even if you break the long-term CD early. If the interest rate environment doesn't improve, you benefit from the higher long-term rate.

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

Best Nationwide CD Deals as of 12/19/09: Also listed are savings account promos with rate guarantee periods. The full list of nationwide CD rates is farther down.
  1. 2.51% 3-mo money market/checking promo at EverBank (account review)
  2. 1.50% money market with rate guaranteed to Apr 2010 at Bank of America (account review)
  3. 1.77% 10-mo CD at EBSB Direct (account review)
  4. 2.42% 12-mo CD at Wings Financial CU, Limited Membership (account review)
  5. 2.10% 12-mo CD at Alliant CU (account review)
  6. 2.00% 12-mo CD at ING Direct (account review)
  7. 2.25% 16-mo CD at Dollar Savings Direct (account review)
  8. 2.39% 24-mo Add-On CD at Northwest FCU (account review)
  9. 3.00% 30-mo CD at Indus American Bank (account review)
  10. 3.03% 36-mo CD at Goldwater Bank (account review)
  11. 3.00% 45-mo CD at Reliabank Dokota (account review)
  12. 3.15% 48-mo CD at Hudson City Savings Bank (account review)
  13. 3.75% 60-mo CD ($100K min) at Northwest FCU (account review)
  14. 3.65% 60-mo CD at Melrose CU (account review)
  15. 3.60% 60-mo CD at Apple FCU (account review)
  16. 3.40% 60-mo CD at Hudson City Savings Bank (account review)
  17. 4.16% 84-mo CD (min $175K) at USAA Bank (account review)
  18. 4.00% 84-mo CD at Pentagon FCU (account review)
Best Local CD Deals as of 12/19/09: 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. 1.90% Savings Account (5% for 1st $1K) at OMNIBANK in TX (account review)
  2. 2.12% 6-mo CD & 2.42% 12-mo CD at Wings Financial CU in MN (account review)
  3. 2.00% 6-mo CD at Mutual Federal Bank in Chicago (account review)
  4. 2.00% 6-mo CD at Vision Bank in Dallas (account review)
  5. 3.00% 7-mo CD at NIH FCU in MD & DC - Limited Membership (account review)
  6. 2.00% 9-mo CD & 2.18% 18-mo CD at United Orient Bank in NYC (account review)
  7. 2.00% 11-mo CD at Colonial Bank Branches of BB&T in TX, FL & NV (account review)
  8. 2.45% 12-mo CD at Bank of Granite in NC (account review)
  9. 2.25% 12-mo & under CD at Cecil Bank in MD (account review)
  10. 2.10% 12-mo CD at First Choice Bank in LA Metro Area (account review)
  11. 2.50% 15-mo CD & 2.26% 9-mo CD at The Farmers Bank in TN (account review)
  12. 2.30% 16-mo Jumbo CD at Teachers FCU in NY (account review)
  13. 2.75% 18-mo CD & 4% 60-mo CD at Greylock FCU in MA (account review)
  14. 2.50% 18-mo No-Penalty CD at Darby Direct in GA (account review)
  15. 2.07% 18-mo CD at Signature Bank in NY (account review)
  16. 2.50% 23-mo CD at Regions Bank in Many States (account review)
  17. 4.06% 48-mo CD & 2.50% 24-mo CD at Founders FCU in SC/NC (account review)
  18. 3.50% 48-mo CD at Terrabank in Miami (account review)
  19. 4.07% 60-mo CD at IH Mississippi Valley CU in IL & IA (account review)
  20. 4.00% 60-mo CD at PFFCU in Philadelphia (account review)
  21. 3.80% 60-mo & 3.29% 48-mo CD at PrimeWay FCU in Houston (account review)
  22. 3.60% 60-mo Jumbo CD at CEFCU in CA & IL (account review)
  23. 3.50% 60-mo CD at First Priority CU in MA (account review)
Reward Checking Accounts

I reported on six new reward checking accounts this week with yields ranging from 2.75% to 4.00%. The 2.75% yield is being offered by Pacific Mercantile Bank which has several branches in Southern California. The 2.75% is low for reward checking, but the rate applies to balances up to $100K which is much better better than most reward checking accounts which cap the top rate at $25K.

Reward checking is one of the few options these days where you can still earn a decent rate. However, it's easy to miss the monthly requirements if you're not careful. I described one reader's problem with his debit card purchases that were made near the end of the cycle.

To see all of the high yield reward checking accounts available throughout the nation, please refer to the reward checking section of DepositAccounts.com.
Recap for the Week - Links to This Week's Posts

Banking News

Savings/Checking Accounts - National

CD Deals - National

Checking/Savings Bonuses


Reward Checking Accounts

CD and Money Market Deals - Local

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 under $100,000. 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 December 19, 2009

Checking/Savings/Money Market Accounts:


3-Month Certificates of Deposit:

6-Month Certificates of Deposit:

9-Month Certificates of Deposit:

12-Month Certificates of Deposit:

18-Month Certificates of Deposit:


24-Month Certificates of Deposit:

36-Month Certificate of Deposit:

48-Month Certificate of Deposit:

60-Month Certificate of Deposit:

84-Month Certificate of Deposit:

Various Deposit Account Deals


High Yield Reward Checking Accounts - Open to All


Recent CD Specials at Local Credit Unions and Banks


Bank Account Alternatives


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

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posted by Banking Guy at 12/19/2009 01:59:00 PM | 4 comments

Friday, December 18, 2009

7 Banks Fail Including UmbrellaBank's Parent and Imperial Capital

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It looks like the total number of bank failures for 2009 will be 140. Since today is the last non-holiday Friday for 2009, the FDIC will probably take a break for the rest of 2009. Seven banks failed today, and several were sizable banks. The FDIC wasn't able to find buyers for 3 of these banks. Consequently, only the insured deposits are being covered. The $250K basic coverage limit does seem to be keeping the uninsured deposits down. The FDIC estimates only $3.2 million out of about $960 million in total deposits of those 3 banks were uninsured.

Three of the closed banks were sizable and offered accounts nationwide on the internet. These include:
  • New South Federal Savings Bank, Irondale, AL (parent of UmbrellaBank)
  • Imperial Capital Bank, La Jolla, CA
  • First Federal Bank of California, Santa Monica, CA (operated FirstFedDirect.com)
The FDIC was able to find buyers for all of these three banks. It's interesting to see the buyer of First Federal Bank is OneWest Bank which was formerly IndyMac. For these three banks, all regular deposits are being transferred to the acquiring banks. There are no uninsured deposits that will be lost. The main concern will be what will happen to rates on existing CDs. OneWest Bank and the buyer of New South Federal have not reported their decision. The buyer of Imperial Capital, City National Bank, has already made its decision. It's lowering rates to its existing CD rates. Depositors will be allowed to make a penalty-free early withdrawal if the rates change.

Below is a summary of today's bank failures:

134th Bank Failure of 2009 (25th in GA)
  • FDIC Press Release
  • Closed Bank: RockBridge Commercial Bank, Atlanta, GA
  • Size: 1 branch, $294.0 million in assets, $291.7 million in deposits
  • Possible Uninsured Deposits: $2.1 million
  • Acquiring Bank: None
  • Rate Changes: All accounts being closed. Checks will be mailed.
  • Estimated Cost to Deposit Insurance Fund: $124.2 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
135th Bank Failure of 2009 (14th in FL)
  • FDIC Press Release
  • Closed Bank: Peoples First Community Bank, Panama City, FL
  • Size: 29 branches, $1.8 billion in assets, $1.7 billion in deposits
  • Possible Uninsured Deposits: All deposits transferred except some brokered deposits
  • Acquiring Bank: Hancock Bank, Gulfport, MS
  • Rate Changes: Hancock Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $556.7 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
136th Bank Failure of 2009 (4th in MI)
  • FDIC Press Release
  • Closed Bank: Citizens State Bank, New Baltimore, MI
  • Size: 7 branches, $168.6 million in assets, $157.1 million in deposits
  • Possible Uninsured Deposits: $803,000
  • Acquiring Bank: None (temporary bank formed to transition customers)
  • Rate Changes: CDs being closed. Checks will be mailed.
  • Estimated Cost to Deposit Insurance Fund: $76.6 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
137th Bank Failure of 2009 (3rd in AL)
  • FDIC Press Release
  • Closed Bank: New South Federal Savings Bank, Irondale, AL (parent of UmbrellaBank)
  • Size: 1 branch, $1.5 billion in assets, $1.2 billion in deposits
  • Possible Uninsured Deposits: All deposits transferred
  • Acquiring Bank: Beal Bank, Plano, TX
  • Rate Changes: Beal Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $212.3 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
138th Bank Failure of 2009 (21st in IL)
  • FDIC Press Release
  • Closed Bank: Independent Bankers' Bank, Springfield, IL
  • Size: 1 branch, $585.5 million in assets, $511.5 million in deposits
  • Possible Uninsured Deposits: $269,000
  • Acquiring Bank: bridge bank created by FDIC
  • Rate Changes: Independent Bankers' Bank did not take deposits directly from the general public
  • Estimated Cost to Deposit Insurance Fund: $68.4 million
  • Financial Ratings: 2 star (below peer group) at Bankrate.com, 0 star (lowest) at BauerFinancial
139th Bank Failure of 2009 (16th in CA)
  • FDIC Press Release
  • Closed Bank: Imperial Capital Bank, La Jolla, CA
  • Size: 9 branches, $4.0 billion in assets, $2.8 billion in deposits
  • Possible Uninsured Deposits: All deposits transferred, except some brokered deposits
  • Acquiring Bank: City National Bank, Los Angeles, CA
  • Rate Changes: CD rates changed to the rates that are paid on like term CDs for City National clients (CNB's FAQ)
  • Estimated Cost to Deposit Insurance Fund: $619.2 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
140th Bank Failure of 2009 (17th in CA)
  • FDIC Press Release
  • Closed Bank: First Federal Bank of California, Santa Monica, CA
  • Size: 39 branches, $6.1 billion in assets, $4.5 billion in deposits
  • Possible Uninsured Deposits: All deposits transferred
  • Acquiring Bank: OneWest Bank, FSB, Pasadena, CA
  • Rate Changes: OneWest Bank, FSB will review rates
  • Estimated Cost to Deposit Insurance Fund: $146.3 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
The above BauerFinancial ratings are based on 9/30/09 data and those from Bankrate are based on 6/30/09 data.

References:

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posted by Banking Guy at 12/18/2009 06:46:00 PM | 3 comments

Important Gotcha for Those with Reward Checking Accounts

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The most troublesome reward checking requirement is meeting the number of required debit card purchases for each monthly cycle. If you're late in making those last required debit card purchases, you may not meet the deadline. A reader emailed me about his experience, and it shows the risks of waiting too close to the end of the cycle. Here are excerpts of his email:

I'm currently having a problem with a 'rewards checking account' that relates to the record date of transactions -- i.e., whether these posted during the 'qualification' cycle. Although it seems to me the evidence based on transaction dates shows that I'm clearly 'in the right' so far I am not making any headway with the Bank.
...
even though the 'debit' usage immediately debits the account for the funds in question, it appears that some banks do not always use that date as the posting date. It seems to me that should not be the case, and that in general 'posting dates' should not be left to the arbitrary discretion of banks.

If you're near the end of the cycle, a good tip is to make PIN-based purchases instead of signature-based purchases. This assumes that your bank accepts PIN-based purchases for meeting the requirements. Some banks only allow signature-based purchases since banks make more money on these transactions.

As the reader described, even a PIN-based purchase may not post immediately even if it's made during a business day. The funds may be debited from the checking account, but the posting date could be delayed. So you may find that you will be late in meeting your reward checking requirements.

I've found some information that explains how debit card purchases are processed at this website of the Federal Financial Institutions Examination Council's (FFIEC). Here's an excerpt that summarizes how debit card purchases are processed and when the settlement occurs. Perhaps the settlement time explains the delay.

Both credit and signature-based debit card transactions are processed in batch mode at the POS [Point of Sale], and settlement is delayed until the batches are processed at the end of the day. PIN-based debit card transactions, although processed in real time at the POS, typically settle at the end of the day using the ACH.

If you have more information about the time it takes for the different debit card purchases to post in your account, please leave a comment.

The reader reported that the bank finally relented and gave him the reward interest rate. So this also shows that if you think your bank was wrong for not paying your reward interest rate, make sure you contact your bank and don't give up too early.

For more information about reward checking accounts, please refer to this overview of reward checking.

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posted by Banking Guy at 12/18/2009 07:57:00 AM | 43 comments

2.29% 18-Month CD at BankFirst Financial Services in MS - Local Only

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BankFirst Financial Services is offering two competitive CD rates: 2.29% APY for 18 months and 2.00% APY for 15 months. Minimum deposit for the 18-month CD is $1,000, and $2,500 for the 15-month CD. There's also an online special 6-month CD with a 1.50% APY. Unfortunately, 1.50% is now competitive for 6-month terms. These rates are listed in the bank's CD rates table as of 12/18/09.

The bank also offers a reward checking account with a 3% APY for balances up to $50K as of 12/18/09 (see my review).

A branch visit is required to open an account. Branches are located in the Mississippi cities of Columbus, Macon, Shuqualak, Starkville, West Point and in the Jackson suburbs of Flowood, Madison and Ridgeland.

The bank's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 8870).

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/18/2009 07:55:00 AM | 0 comments

2.25% 15-Month CD & 2.10% 9-Month CD at Commercial Bank in TN & KY - Local Only

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Commercial Bank is offering two very competitive CD rates: 2.10% APY for 9 months and 2.25% APY for 15 months. The 9-month CD is a special. Both have a $500 minimum deposit. These rates are listed in the bank's rates page as of 12/18/09. Note, on the front page they're listing the 15-month CD with a 2.15% APY. I've emailed the bank to find out which rate is correct.

The bank also offers a high-yield reward checking account with a 3.01% APY for balances up to $25K (see my review).

It appears that a branch visit is required to open an account. Branches are located in several cities in Tennessee and Kentucky. Some of the cities include Harrogate, Knoxville, Kingsport, Luttrell, Pineville, Cumberland and Barbourville.

The bank's ratings for safety and soundness are fair: 3½ stars (good) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1976 (FDIC Certificate 22354).

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/18/2009 07:53:00 AM | 0 comments

3.01% Reward Checking Account at Commercial Bank in TN & KY - Local Only

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Commercial Bank is offering a high-yield reward checking account called Hometown Rewards Checking. It has the following rates and features if certain monthly requirements are met:
  • 3.01% APY on balances up to $25,000
  • 0.51% APY for portion of balance over $25,000
  • 0.05% base rate if requirements are not met
  • Reimburses ATM fees nationwide per cycle
The monthly requirements include:
  • 10 debit card purchases
  • 1 Automatic Payment or Direct Deposit
Additional features of the account regardless of the monthly requirements include:
  • $100 minimum initial deposit
  • No minimum balance requirement
  • No monthly service charge
  • Free Bill Pay
It appears that a branch visit is required to open an account. Branches are located in several cities in Tennessee and Kentucky. Some of the cities include Harrogate, Knoxville, Kingsport, Luttrell, Pineville, Cumberland and Barbourville.

The bank's ratings for safety and soundness are fair: 3½ stars (good) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1976 (FDIC Certificate 22354).

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

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posted by Banking Guy at 12/18/2009 07:50:00 AM | 0 comments

2.07% 18-Month CD at Signature Bank in New York City - Local Only

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Signature Bank made substantial cuts to their CD rates, but some of the rates remain fairly competitive. One in particular is the 18-month CD which has a 2.07% APY. They don't list the rates on their website, so I called this morning. Below are the rates as of 12/18/09:
  • 1.51% APY 6 months
  • 1.76% APY 12 months
  • 2.07% APY 18 months
  • 1.98% APY 24 months
  • 2.79% APY 36 months

Minimum deposit is $5,000. These aren't specials, so you don't have to worry about other requirements like a checking account.

My last post was in November when the above rates were much higher. I had been calling each week, and the rates were holding through last week.

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

The bank's ratings for safety and soundness continue to be strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data) The bank has been a FDIC member since 2001 (FDIC Certificate # 57053).

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/18/2009 07:45:00 AM | 0 comments

3.56% 60-Month CD & 3.30% 48-Month CD Continue at Qualtrust Credit Union in Texas - Local Only

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Qualtrust Credit Union continues to offer competitive long-term certificate rates. The following rates are listed at the credit union's rates page as of 12/18/09:
  • 3.56% APY 5 year
  • 3.30% APY 4 year
  • 2.78% APY 3 year
  • 2.52% APY 2.5 year
  • 2.27% APY 2 year
Above the rate table, it states that rates are subject to change every Tuesday. Minimum deposit is $1,000. According to the small print, the early withdrawal penalty is 180 days of dividends. The rates also apply to CDs in Traditional, Roth and SEP IRAs and in an Educational Savings Account.

The above rates are the same as when I last posted on this credit union in early November. At that time I didn't mention the CDs with terms from 2 to 4 years. With interest rates continuing to fall, these CDs are now very competitive.

Membership is open anyone who lives, works, plays or worships within a 10 mile radius of the credit union's Irving and Grapevine locations or in Tom Green County (location of their San Angelo office). Please refer to the credit union's About Us Page for more details. Membership requires a minimum balance of $5 in the share savings account.

The credit union's ratings for safety and soundness continues to be strong: 4 stars (sound) at Bankrate.com (based on 6/30/09 data) and 5 stars (superior) at BauerFinancial (based on 9/30/09 data). The credit union is federally insured by the NCUA (Charter # 68569).

Thanks to the reader who mentioned these CD rates in the Bank Deals hub page.

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/18/2009 07:42:00 AM | 0 comments

Thursday, December 17, 2009

Flagstar Internet Money Market Rate Plummets and Is No Longer Competitive

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Flagstar Bank slashed the rate on its Express Money Market Account yesterday from 1.09% to 0.50%. This is the second major rate cut this month. Last week it slashed the rate from 1.60% to 1.09%. Before December Flagstar had maintained very competitive rates on this account since 2007. This latest change takes Flagstar out of the field of competitive internet savings accounts.

Even Flagstar's own webpage shows how bad this rate is. In the money market page they compare their money market rate with the national average which is listed at 1.03% APY. This used to show how much higher they were compared to the average. Now they're less than half the national average they list in this table.

In addition to the money market rate, Flagstar CD rates have plummeted. All of their current CD rates are under 2% and that even includes the 60-month term.

I had thought that last week's rate cut may have been due the new FDIC rate caps. Last week's rate of 1.09% was just under the FDIC rate cap for money market accounts of 1.10%. The FDIC rate caps will be taking effect in January and are intended for less than well capitalized banks. However, a reader noted the following in the comments:
Flagstar Bancorp said in its 10-Q, filed in 11/2009 for quarter ended 9/30/09: "At September 30, 2009, the Bank exceeded all applicable bank regulatory minimum capital requirements and was considered 'well capitalized.' We are not subject to regulatory capital requirements.

I just noticed this December 14th press release from Flagstar which stated:
additional regulatory restrictions have recently been imposed on the Company and the Bank, including limitations on: asset growth; accepting, renewing or rolling over of any brokered deposits; making capital distributions; ...

This last rate cut is so large that it goes beyond the FDIC rate cap. Flagstar may have decided that it needed to reduce its deposits. ETrade Bank did this earlier this year. Before 2009, ETrade Bank's Complete Savings Account had been very competitive. The rate started plummeting in April and it bottomed at 0.50% in October. I noticed ETrade mentioned its intention to reduce deposits in its quarterly filings. Here are some excerpts:
To accommodate this planned long-term reduction in assets, the Company is also similarly reducing its liabilities.
...
the Company continued to execute its ongoing strategy to reduce bank-related deposits.

Flagstar may have decided to take these same steps. Like ETrade, Flagstar is having financial troubles with high nonperforming loans. This MSNBC article reviews banks with troubled asset ratios. Ratios above 100 indicate that banks had more troubled loans than money to cover them. Here's what the article has on Flagstar:
The 77th largest, Flagstar Bank, Troy, Mich., has had its ups and downs. Its ratio has risen from 32 in December 2007 to a high of 106 in September. The bank's parent company has also received TARP funding.

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posted by Banking Guy at 12/17/2009 05:29:00 AM | 7 comments

OneWest Bank's Competitive 5-Year CD - Benefits and Issues of Long-Term CDs

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Most of OneWest Bank CD rates are no longer that competitive, but it still has one of the best rates for a 5-year CD of 3.30% APY. This is listed in the bank's CD rates page as of 12/17/09.

One nice feature about OneWest Bank's CDs is that its early withdrawal penalty is only 6 months of interest. Many of the banks that offer top rates on 5-year CDs have penalties of one year interest or more. In addition, I can't find any small print in the terms and conditions that gives the bank the right to refuse an early withdrawal. Let me know in the comments if I missed this. As I described last year there have been rare cases when banks have refused early withdrawals based on this small print.

The early withdrawal allowance and low penalty are very important in today's environment when there's a risk that rates could shoot up in the next few years. If rates do shoot up, you can break the CD. The penalty will cost you, but you may come out ahead compared to what you would have earned if you kept the money in a money market account or shorter term CDs. Here are examples of the effective APY if you break this 3.30% 60-month CD early:

Year CD is    Estimate APY
broken        for those years
----------    ---------------
1 year        1.65%
2 year        2.48%
3 year        2.75%
4 year        2.89%

As you can see above, these rates are competitive to CD rates of terms from 1 to 4 years. The benefit of a long-term CD is that if rates don't rise, and the US experiences a condition like Japan experienced during the 90's, you are locked into a yield that's much better than shorter-term CD yields.

For more details about OneWest regular CDs, liquid CDs and IRAs, please see my July OneWest Bank review.

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 Competitive Certificate of Deposit Rates

I've recently posted on some long-term CDs from banks and credit unions with small early withdrawal penalties. These are local deals. One is in Massachusetts and the other is in South Florida.

I've also received another confirmation this week that PenFed will be coming out with a 3.75% APY 5-year CD in January (see post). Like OneWest, PenFed's early withdrawal penalty is only 6 months of interest for the 5-year CD.

For other CD rates, please refer to the following:

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posted by Banking Guy at 12/17/2009 05:26:00 AM | 1 comments

$50 Checking Account Bonus at Thrivent Financial Bank - Available Nationwide

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Thrivent Financial Bank is offering a $50 bonus for opening its rewards checking account. They call it a reward checking, but it's not a high-yield reward checking account. There are no debit card usage requirement, but it does require direct deposit.

According to the promotions page, you have to open the account by 12/31/09 and set up recurring direct deposit of at least $100 within 90 days of opening your account. The instructions state:
Call 800-688-6031 today and have promo code: Checking1109 handy to take advantage of this offer.

The bonus is reported to IRS as interest, and it'll be credited to your account within 3 business days after qualifying for the bonus.

Notable features of the checking account that are listed in the checking account comparison page and from my conversation with the CSR include:
  • $50 minimum opening deposit
  • No monthly fees (CSR)
  • 0.51% APY on all balances as of 12/16/09 (see rate table)
  • Requires payroll direct deposit. Without direct deposit, it'll be converted to Simply Free Checking (CSR)
  • Online ACH transfer service
  • Unlimited ATM fee reimbursements
  • Free first order of checks
  • No hard credit pull in the application. Just ChexSystem (CSR)
The CSR said they have a ACH transfer limit of $2K/day, but you can initiate the transfer by phone without this limitation.

This isn't an account for rate chasers, but for someone looking for a regular checking account this is comparable to other online checking accounts like those at ING Direct, Charles Schwab and Salem Five Direct.

Thrivent Financial Bank opens accounts for customers in any state. The bank is headquartered in Wisconsin with branches in both Wisconsin and Minnesota.

The bank's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1998 (FDIC Certificate # 34799).

Other Bank Bonus Deals:

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posted by Banking Guy at 12/17/2009 05:23:00 AM | 2 comments

3.00% Reward Checking Account at First State Bank in New York - Local Only

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First State Bank is offering a high-yield reward checking account called e-z Money Checking. It has the following rates if certain monthly requirements are met:
  • 3.00% APY on balances up to $30,000
  • 1.00% on portion of balance over $30,000
  • 0.20% base rate if requirements are not met
The monthly requirements include:
  • 10 debit card purchases
  • 1 ACH credit or debit
  • Receive e-statements and maintain a valid email address
There's no mention of ATM fee refunds on the bank's website. However, its sister bank which has this same account refunds ATM fees up to $20 per month if the requirements are met (see post).

It appears that a branch visit is required. Branches are located in Canisteo and Hornell, New York.

The bank's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 591). The bank is part of the holding company Citizens and North Corporation. Citizens & Northern Bank in Pennsylvania is also a subsidiary of this holding company.

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

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posted by Banking Guy at 12/17/2009 05:21:00 AM | 0 comments

3.00% Reward Checking Account at Citizens & Northern Bank in PA - Local Only

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Citizens & Northern Bank is offering a high-yield reward checking account called e-z Money Checking. It has the following rates if certain monthly requirements are met:
  • 3.00% APY on balances up to $30,000
  • 1.00% on portion of balance over $30,000
  • 0.20% base rate if requirements are not met
  • ATM fee refunds nationwide of up to $20 per month
The monthly requirements include:
  • 10 Visa check card purchases
  • 1 ACH credit or debit
  • Receive e-statements and maintain a valid email address
Other features of this account include:
  • No minimum balance requirements
  • No monthly service fees
  • Free Bill Payment
There's an online application link at the bank's checking page. However, I was told by the CSR that they require you to come into a branch to open the account. They need two forms of ID with one being a picture ID.

Branches are located in several cities in Central Pennsylvania. Some of the cities include Athens, Emporium, Williamsport, Port Allegany, Coudersport, Laporte and Knoxville.

The bank's ratings for safety and soundness are a little weak: 3 stars (adequate) at BauerFinancial (based on 9/30/09 data) and 2 stars (below peer group) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 7799). The bank is part of the holding company Citizens and North Corporation. First State Bank of New York is also a subsidiary of this holding company.

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

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posted by Banking Guy at 12/17/2009 05:20:00 AM | 0 comments

2.45% 12-Month CD at Bank of Granite in North Carolina - Local Only

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Bank of Granite continues to offer one very competitive CD. It's a 12-month CD with a 2.45% APY. Last month this special had a 12-month term. There's also 1.75% APY 6-month CD. Minimum deposit is $5,000. These specials are listed on the bank's front page as of 12/16/2009.

Bank of Granite continues to offer a reward checking account that pays 4% APY on balances of $25K as of 12/16/09. I have more details on this account in this post.

It appears a branch visit is required to open an account. Branches are located in several North Carolina cities including Winston Salem, Hickory, Granite Falls, Charlotte, and Wilkesboro.

Bank of Granite's ratings for safety and soundness continue to be a little weak: 2 stars (problematic) at BauerFinancial (based on 9/30/09 data) and 1 star (lowest) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 5950).

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/17/2009 05:18:00 AM | 0 comments

Wednesday, December 16, 2009

Fed Still Saying Exceptionally Low Rates for Extended Period

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The last scheduled FOMC meeting of 2009 finished today, and there continues to be no hint of when the Fed will start hiking rates. The Fed continues to say the same thing about keeping the federal funds rate exceptionally low for an extended period:
The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

The FOMC statement did cite a number of areas of the economy that are getting stronger, but that wasn't enough to change the language about keeping the exceptionally low rate for an extended period.

In October when editorials from Barron's and the Washington Post called for the Fed to start executing an "exit strategy", I thought we might soon see a change in the Fed policy. The editorials basically said that with the financial crisis clearly past, rates shouldn't stay at the crisis-level lows. It appears that the editorials didn't have an effect.

Many are fearing that the Fed won't raise rates fast enough to prevent run-away inflation. This Forbes article reviews this concern along with the news of today's release of November's CPI numbers. Here's what the article concludes:
Although pricey energy is reminiscent of the stagflation of the 1970s, the rest of the CPI remains weak with seemingly little prospects for a fresh surge. With the labor market so badly damaged -- unemployment is at 10% and jobs still in negative territory [...] -- workers are in little position to ask for wage increases, one of the key drivers of inflation and unions are not nearly as strong as they were 35 years ago. The CPI is up, but inflation is not yet back.

This is a busy news week for the Fed and Ben Bernanke. Time announced today that Bernanke is Time's Person of the Year. And tomorrow the Senate Banking Committee votes on his nomination for another 4-year term. According to this Bloomberg article a couple of Senators on the committee have announced that they'll be voting against the nomination. However, it's expected that there are enough votes to send the nomination to the full Senate. That vote isn't expected until January.

The next FOMC meeting is scheduled for January 26-27, 2010.

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posted by Banking Guy at 12/16/2009 12:28:00 PM | 11 comments

2.00% 15-Month CD & 2.50% 23-Month CD at Regions Bank in Several States - Local Only

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Regions Bank has adjusted its special CDs, but they remain competitive in many states. All areas appear to have the same long-term CD special rates: 2.50% APY for 23 months and 3.00% APY for 42 months. The 7-month CD special also appears common for all areas, but it's not nearly as competitive with a 1.25% APY. They used to have a 12-month special, but the term is now 15 to 17 months. The APY is 2.00% for many states (I've confirmed this for AL, GA, IL and TX). In some states it's only 1.75% APY (I've confirmed this for FL and IN). The rates vary by area, so you'll have to enter your zip code at Regions CD page to see the rates available for your area. The above rates were checked on 12/16/09.

Minimum deposit for the above specials is $10,000 with a $1 million maximium, and new money is required. Also, the CD page states that you must have or open a Regions checking account. A reader in my last Regions post mentioned that his Texas branch hasn't required him to open a checking account. So you may be able to get out of the checking requirement if you have some nice reps at your local branch.

When I had last checked with Regions on its special CDs, a branch visit was required to open an account. Branches are located in Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee and Texas.

Regions lost $473 million in the third quarter, and it's in the process of cost-cutting which includes closing some branches. According to this Herald Tribune article, it's closing 22 offices in Florida and 121 in its 16-state footprint. Regions was one of the major banks that were required to raise capital based on the government's stress test last spring (see post).

Regions Bank's rating for safety and soundness at Bankrate.com is 1 star (lowest) based on 6/30/09 data. At BauerFinancial it was 3 stars (adequate) when it was based on 6/30/09 data. It remains 3 stars based on 9/30/09 data. Regions Bank has been a FDIC member since 1934 (Regions' FDIC Certificate # 1368).

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/16/2009 06:53:00 AM | 2 comments

3.50% 48-Month CD & 2.00% 12-Month CD at Terrabank in Miami - Local Only

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Terrabank is offering some competitive CD rates. The rates are not listed at the bank's website. A reader emailed me news about them, and I just called for additional details. Below is the list of CD and IRA CD rates that I was told as of 12/16/09:
  • 2.00% APY 12 months (2.17% IRA)
  • 2.30% APY 24 months (2.53% IRA)
  • 3.00% APY 36 months
  • 3.50% APY 48 months
Minimum deposit is $2,500. CD details are listed in the CD disclosure. One thing I noticed was that it allows add-on deposits. However, according to the CSR, the rate earned on add-on deposits is not the original rate but the current rate at the time of the add-on deposit. So that is not too useful.

One notable CD feature is a mild early withdrawal penalty: 90 days of interest for terms of one year or more. Based on this, the 4-year CD becomes very attractive. If you close the CD at 1-year, you would lose about 3 out of 12 months of interest. The result would be an effective rate of about 2.62%. At two years, the effective 2-year rate would be about 3.06% for the 2 years.

A branch visit is required to open an account. Branches are located in Miami and Hialeah, Florida.

The bank's ratings for safety and soundness are a little weak: 2 stars (below peer group) at Bankrate.com (based on 6/30/09 data) and 3 stars (adequate) at BauerFinancial (based on 9/30/09 data). The bank has been a FDIC member since 1985 (FDIC Certificate # 26442).

Other Competitive Certificate of Deposit Rates

posted by Banking Guy at 12/16/2009 06:50:00 AM | 0 comments

2.25% 12-Month CD at Insight Bank in Ohio - Local Only

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Insight Bank is offering competitive short-term CD rates. The most competitive one is the 12-month term with a 2.25% APY. Two other good short-term CD deals include a 1.50% APY 6-month CD and a 1.75% APY 9-month CD. These rates are listed in the bank's rates sheet as of 12/16/09.

It appears a branch visit is requird. It's a small bank with one branch located in Columbus, Ohio.

The bank's ratings for safety and soundness are fair: 3 stars (performing) at Bankrate.com (based on 6/30/09 data) and 3½ stars (good) at BauerFinancial (based on 9/30/09 data). The bank has been a FDIC member since 2006 (FDIC Certificate # 58215).

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/16/2009 06:49:00 AM | 0 comments

2.20% CDs with Terms from 6 to 18 Months at Communitywide FCU in Indiana - Local Only

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Communitywide Federal Credit Union has a certificate special with a 2.20% APY for terms of 6 to 18 months. It also has competitive rates on its regular CDs including a 3.20% APY 48-month CD and a 3.50% APY 60-month CD. These rates are listed at the credit union's dividends page as of 12/16/09.

Eligibility for membership is primarily based on employee groups. However, donor members of two organizations also appear to allow a person to be eligible. Please refer to the credit union's membership page for the full details.

Branches are located in the Indiana cities of South Bend, Mishawaka, Granger, Elkhart and Plymouth.

The credit union's ratings for safety and soundness are fair: 3 stars (adequate) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The credit union is federally insured by the NCUA (Charter # 18336).

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/16/2009 06:45:00 AM | 0 comments

2.00% 9-Month CD at United Orient Bank in New York City - Local Only

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United Orient Bank has two competitive CD rates: a 2.00% APY 9-month CD and a 2.18% APY 18-month CD. Minimum deposit is $5,000. Lower rates are available for a $500 minimum. These rates are listed at the bank's CD rates page as of 12/16/09.

It appears that a branch visit is required to open an account. The bank has two branches in New York City.

The bank's ratings for safety and soundness are mixed: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 2 stars (below peer group) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1981 (FDIC Certificate # 23373).

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/16/2009 06:43:00 AM | 1 comments

1.76% 9-Month CD at Miami Postal Service Credit Union - Local Only

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Miami Postal Service Credit Union has a competitive 9-month certificate APY of 1.76%. Minimum deposit is $5,000. This rate is listed at the credit union's deposit rates page as of 12/16/09. It's interesting that the credit union labels this $5,000-minimum CD as a Jumbo CD.

In addition to postal employees and retirees, membership is open to everyone who lives, works or worships within a 15 mile radius of the three credit union branches. Membership is also open to Federal Government employees and their families. Please refer to the credit union's eligibility page for the full details. Membership requires a minimum $5 balance in the share savings account.

Branches are located in Miami, Hialeah and Pinecrest.

The credit union's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The credit union is federally insured by the NCUA (Charter # 67330">Charter # 67330.

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/16/2009 06:41:00 AM | 0 comments

2.55% 24-Month CD & 2.10% 12-Month CD at Navy Army FCU in Texas - Local Only

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Navy Army Federal Credit Union continues to list competitive certificate rates for terms of 2 years and under. The top rate is a 2.70% APY for a 2-year term. Below is the full list of CD rates as shown on the credit union's rates page as of 12/16/09:

Term      APY $1K Min   APY $100K Min
3 month      1.60%         1.70%
6 month      1.90%         1.95%
9 month      1.95%         2.00%
12 month     2.10%         2.20%
24 month     2.55%         2.70%

The credit union also offers a competitive reward checking account with a 4.51% APY for balances up to $25,000 as of 12/16/09 (see post).

Membership is open to those who live, work, worship or attend school in one of the following Texas counties: Aransas, Bee, Jim Wells, Kleberg, Nueces and San Patricio. Refer to the credit union's Who-Can-Join page for more details. Membership requires a $15 membership fee and a minimum deposit of $25 in the savings account. Most credit unions don't have a membership fee so this may be something you can negotiate. The credit union does have a history of competitive CD rates so the upfront cost may still be worth it.

Branches are located in the Texas cities of Corpus Christi, Kingsville, Beeville, Portland and Rockport.

Navy Army FCU's ratings for safety and soundness are strong: 4 stars (sound) at Bankrate.com (based on 6/30/09 data) and 4 stars (excellent) at BauerFinancial (based on 9/30/09 data). The credit union is federally insured by the NCUA (Charter # 9998).

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/16/2009 06:37:00 AM | 0 comments

Tuesday, December 15, 2009

3.00% 36-Month CD & 3.50% 60-Month CD at First Priority Credit Union in MA - Local Only

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First Priority Credit Union continues to offer competitive long-term CD rates. These include a 3.00% APY 3-year CD and a 3.50% APY 5-year CD. Minimum deposit is $1,000. These are also available as IRA certificates. These rates are listed in the credit union's rates page as of 12/15/09.

A reader mentioned one nice feature of First Priority's certificates. They have a mild early withdrawal penalty. It's only 90 days of interest for terms of more than one year. If you enter "early withdrawal penalty" into the "just ask" box, you can see the full details:
If member's account has an original maturity of more than one year: the penalty we may impose will equal 3 months dividends on the amount withdrawn subject to penalty.

Let's say you need to redeem the CD early at only one year into the term (perhaps because interest rates have shot up). You would lose 3 of the 12 months of interest. For that year, you would have still earned 2.25% for the 3-year CD and a 2.62% for the 5-year CD. These are excellent 1-year rates. If interest rates stay low, you just keep the CDs.

First Priority has a history of offering top rates on its regular and special certificates.

Membership is open to those who live and work in Massachusetts' Essex County or Suffolk County. Also eligible are employees, retirees and family members of the Postal Community. Please refer to the credit union's Membership page for more details. Membership requires a minimum deposit of $25 into your share savings account.

Branches are located in Boston, East Boston, Lowell and Waltham, MA.

The credit union has some strong ratings for soundness: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 5 stars (superior) at Bankrate (based on 3/31/09 data). The credit union is federally insured by the NCUA (Charter # 66593).

Thanks to the reader Scott who mentioned these CD rates and mild early withdrawal penalty in the comments.

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/15/2009 05:48:00 AM | 0 comments

3.09% Reward Checking Account at Bank of Agriculture & Commerce in California - Local Only

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Bank of Agriculture & Commerce is offering a high-yield reward checking account called Ultimate Checking. It has the following rates and features if certain monthly requirements are met:
  • 3.09% APY on balances up to $25,000
  • Regular interest checking rate for portion of balance over $25,000
  • Regular interest checking rate on entire balance if requirements are not met
  • ATM fee refunds of up to $2 per transaction
The monthly requirements include:
  • 10 debit card purchases
  • 1 direct deposit
  • 1 online bill pay
  • Sign on to internet banking
  • 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
  • First order of 60 checks is free
The bank has an online application. However, the first page of the application states that they only accept online applications from residents of San Joaquin County, Stanislaus County and Contra Costa County.

Branches are located in the California cities of Stockton, Antioch, Brentwood, Concord, Oakley, Discovery Bay, Lodi and Modesto.

The bank's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1965 (FDIC Certificate # 19434).

Other Reward Checking Accounts

On the downside, BAC's reward checking rate is a little low and it has the additional requirement of online bill pay in addition to debit card usage and direct deposit. On the plus side, this is another reward checking option for those in parts of California. Compared to other states, California doesn't have many banks and credit unions offering reward checking accounts.

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

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posted by Banking Guy at 12/15/2009 05:44:00 AM | 0 comments

2.00% 6-Month Jumbo CD at Mutual Federal Bank in Chicago - Local Only

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Mutual Federal Bank is offering very competitive 6-month CD rates. Its Jumbo 6-month CD has a 2.00% APY. This requires a $100,000 minimum deposit. Its 6-month CD rate for a $1,000 minimum is also competitive with a 1.75% APY. Other notable non-Jumbo rates include a 2.00% APY for 12 months, 1.85% APY for 9 months and 1.50% APY for 3 months. These rates are listed at the bank's CD rate tables as of 12/15/09. Since there was an old date at the bottom of the rate table, I emailed the bank to make sure the rates were up-to-date. I just received a reply, and according to the CSR, these are up-to-date.

It appears that a branch visit is required to open an account. It's a small bank with one office located at 2212 West Cermak Road, Chicago, IL.

The bank's ratings for safety and soundness are fair: 3 stars (performing) at Bankrate.com (based on 6/30/09 data) and 3½ stars (good) at BauerFinancial (based on 9/30/09 data). The bank has been a FDIC member since 1935 (FDIC Certificate # 28302).

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/15/2009 05:38:00 AM | 0 comments

2.70% 24-Month CD at Communication FCU in OK - Local Only

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Communication Federal Credit Union is offering some competitive share certificate and IRA rates. The most competitive ones include a 1.70% APY 6-month CD, a 2.05% APY 12-month CD and a 2.70% APY 24-month CD. Minimum deposit is $1,000. These rates are listed at the credit union's rates page as of 12/15/09.

The credit union also offers a reward checking account that currently pays 4.25% APY on balances up to $50K (see post).

Membership is open to those who live or work in the city of Broken Arrow or in the counties of Carter and Pottawatamie. You can also be eligible via a long list of select employee groups or via family (which can include cousins). Please see their Membership page for more details. Membership requires a minimum balance of $5 in a share account.

Branches are located in the Oklahoma cities of Tulsa, Oklahoma City, Norman, Broken Arrow, Lawton, Enid, Muskogee, Ardmore, Shawnee, and in Topeka, Kansas.

The credit union's ratings for safety and soundness are strong: 5 stars (superior) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The credit union is federally insured by the NCUA (Charter # 3454). It has $562 million in assets and 46,408 members.

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/15/2009 05:36:00 AM | 0 comments

2.25% CD for Terms of 3 to 11 Months at MidCoast Community Bank - Local Only

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MidCoast Community Bank is offering a very competitive rate on its short-term CDs. For terms from 3 months to 11 months the CD yield is 2.25% APY. Minimum deposit is $500. CDs are available as both personal and business accounts. These CDs are listed at the bank's rates page as of 12/15/09.

It appears that a branch visit is required to open an account. Remember to call before driving a long distance to make sure they accept non-local deposits. Branches are located in Wilmington and Dover, Delaware.

The bank has a history of competitive deposit rates. My last post on this bank was in July when they were offering a 2.05% 7-month CD. One interesting thing to note is that MidCoast is located in the same city where ING Direct has its headquarters. One would think that the giant internet bank could offer more competitive CD rates than a small brick-and-mortar bank (ING Direct does have a decent 1-year CD rate).

The bank's ratings for safety and soundness are above average: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 2007 (FDIC Certificate # 58498).

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/15/2009 05:28:00 AM | 0 comments

Monday, December 14, 2009

Competitive Short-Term Internet CD at EBSB Direct - Available Nationwide

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EBSB Direct has started offering online CDs, and it's offering a competitive 10-month CD with a 1.77% APY. Minimum deposit is $1,000. This is listed at the bank's website as of 12/14/09. The site also lists a 36-month CD, but the rate is much less competitive at 2.35% APY.

I first reported on EBSB Direct in May when it launched its internet savings account. The savings account rate has remained fairly competitive, but it requires a $50,000 balance to qualify for the top rate, which is currently 1.67% APY.

The website doesn't include many of the CD details so I called the bank this morning at its toll-free number (800-657-3272). Here are some of the details I received from the CSR:
  • Available nationwide
  • Funded via ACH transfer from an external account
  • CD rate locks when you submit your application
  • Rates are typically changed on Wednesdays
  • Beneficiaries can be added in the application
  • At maturity, there's a 10-day grace period
  • Receiving the CD funds via ACH is an option
EBSB Direct is part of East Boston Savings Bank which operates 13 branch offices in the greater Boston area. The bank has $1.15 billion in assets and $931 million in deposits based on 9/30/09 FDIC data.

The bank's ratings for safety and soundness are a little above average: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1991 (FDIC Certificate # 33510).

Other Competitive Certificate of Deposit Rates

If you don't mind a little longer term, you can still get 2% APY at a few banks. One bank is ING Direct which started offering a 2% APY 12-month CD on Friday (see post).

For other CDs, please refer to the following:

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posted by Banking Guy at 12/14/2009 07:39:00 AM | 0 comments

4.00% Reward Checking Account at Adams Bank & Trust in NE & CO - Local Only

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Adams Bank & Trust is offering a high-yield reward checking account called SuperSmart e-Checking. It has the following rates and features if you meet certain monthly requirements:
  • 4.00% APY on balances up to $35,000 (guaranteed until 2/27/2010)
  • 2.00% on portion of balance over $35,000
  • 0.20% base rate if requirements are not met
  • ATM fee refunds up to $10 per month
The monthly requirements include:
  • 25 debit card purchases (PIN or signature based)
  • 1 direct deposit or direct payment (ACH)
  • Receive e-statements
Additional account features include:
  • $100 minimum initial deposit
  • $7 monthly membership fee if requirements are not met
For those who don't want to do 25 monthly debit card purchases, the bank offers the Smart e-Checking which has easier requirements but the rates are lower:
  • 2.00% APY on balances up to $25,000
  • 1.00% on portion of balance over $25,000
  • 0.15% base rate if requirements are not met
  • ATM fee refunds up to $10 per month
The monthly requirements include:
  • 15 debit card purchases (PIN or signature based)
  • 1 direct deposit or direct payment (ACH)
  • Receive e-statements
Another reason to choose this account over the SuperSmart e-Checking is that it lacks the monthly fee if you fail to meet the monthly requirements.

It appears that a branch visit is required to open an account. Branches are located in Nebraska and Colorado.

The bank's ratings for safety and soundness are strong: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 4 stars (sound) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1962 (FDIC Certificate # 18489).

Other Reward Checking Accounts

The high debit card usage requirement and the monthly fee when requirements are not met are rare for reward checking accounts. Most only require 10 purchases a month and have no monthly fees regardless of meeting the requirements. The only good thing about these requirements is that it should encourage people to use the account as their primary checking account which should make it easier for the bank to maintain the high rates.

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

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posted by Banking Guy at 12/14/2009 07:36:00 AM | 2 comments

Update on National City's $300 Bonus and PNC's $100 Bonus - Limited to Certain States

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National City continues to offer its $300 checking account promotion. I first reported on this promo in November. They're advertising it again, and it's now scheduled to end on 12/19/09. Refer to my November post for the details. The latest ad for this promo was in the Sunday edition of the St. Louis Post-Dispatch. The ad is available online here.

A branch visit is required, and this promo appears to only be available in areas where National City has branches that have not yet been converted to PNC branches. So this would exclude Florida. Other states with National City branches include IL, IN, KY, MI, MO, OH, PA and WI. All markets are scheduled to be converted by the end of June. More details about the conversions are provided at the PNC transition website.

For those with nearby PNC branches, PNC is offering another $100 checking account bonus. This was advertised in the Sunday edition of the Treasure Coast Newspaper. The ad is available online here. This is in Southeast Florida, so the promo may not be available in all markets. According to the ad:
Open a select new PNC Personal Checking Account with qualifying direct deposit and get more than you expected, like $100 deposited in your account

The offer is scheduled to end on 12/19/09.

PNC continues to offer a $100 bonus for opening its Virtual Wallet account. Refer to my September post for more details. One thing that has changed is that the small print now states that the offer is limited to residents of: DC, DE, IN, KY, MD, NJ, OH, PA, VA.

Other Bank Bonus Deals:

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posted by Banking Guy at 12/14/2009 07:34:00 AM | 0 comments

Sunday, December 13, 2009

IndyMac Depositors Are Still Out of Luck - Review of Deposit Insurance Changes Since IndyMac's Closure

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The last major bank failure in which many depositors lost their uninsured deposits was when IndyMac was closed in July 2008. Not all uninsured deposits were lost. The FDIC immediately paid out 50 cents on the dollar of uninsured deposits. Even with this payout, uninsured depositors lost a substantial amount. Many found out the hard way that they had uninsured deposits. They thought their accounts were structured to qualify for the higher coverage. As I described, using POD and joint accounts to increase your coverage has complications.

Uninsured IndyMac depositors organized and created the IndyMac Depositors website. There was some recent hope that they would get back that 50% of their uninsured money. A California Congresswoman introduced legislation that would retroactively increase the FDIC insurance limit to $250,000 beginning July 11, 2008, the date that IndyMac failed. But this didn't pass. According to the San Bernardino County Sun,
The House of Representatives Rules Committee voted 8 to 4, with one abstention, to reject the amendment that would have been part of a massive financial reform bill.

So IndyMac depositors won't be getting any help from Congress. Would you have voted for the amendment?

In addition to the increase of the basic deposit insurance limit to $250,000 (that's scheduled to go back to $100K at the end of 2013), there has been one other change that makes it easier to increase your coverage. This is related to POD accounts. You can increase the basic coverage with revocable trust accounts. An example of these accounts is a Payable-on-Death (POD) Account. According to the FDIC, the owner of a POD account is insured up to $250,000 for each beneficiary if certain requirements are met. One of the requirements used to be that the beneficiary had to be an immediate family member. Now a beneficiary must be a person, charity or another non-profit organization. There is no more family requirement. However, it's important to note that if the beneficiary dies, you immediately lose the additional coverage. Also, the bank must properly document the POD designation (in the account title) and the beneficiaries must be in the bank's deposit account records.

As you can see, there remains many potential gotchas of relying on PODs to increase your deposit insurance. Fortunately, the vast majority of bank failures since IndyMac have been all-deposit transfers in which the buyers of the failed banks agree to assume all deposits, even those above the FDIC limit. There have been a few cases in which the FDIC wasn't able to find a buyer, so the coverage limits came into play.

Most credit union accounts are insured by the NCUA with coverage very similar to what the FDIC provides. The same complications of joint and POD accounts exist, and as this article shows, don't rely on the word of the institution's representative:
At least one credit union member who lost money beyond the $100,000 insurance limit at the time of the institution's failure filed an appeal looking for restitution of more money. The NCUA denied the claim.

The female credit union member had four joint accounts with her husband and two children, and had requested $54,458.47 in extra insurance payouts. The claimant, who was unidentified, argued credit union personnel had assured her that the joint-account arrangement would fully protect her assets, but the NCUA said "statements made by credit union personnel are not binding."

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

For more info on deposit insurance coverage, refer to:

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posted by Banking Guy at 12/13/2009 04:33:00 PM | 4 comments

2.75% Reward Checking Account with a $100K Balance Cap at Pacific Mercantile Bank in CA - Local Only

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Pacific Mercantile Bank is offering a high-yield reward checking account called Premium Interest Checking. It has the following rates and features if certain monthly requirements are met:
  • 2.75% for balances of $1,500 to $100,000
  • 0.40% for under $1,500 and balance over $100,000
  • Up to 8 ATM fees of up to $25 are waived per month
One thing to note is that it's a blended APY which ranges from 0.40% for a $1,500 balance to 2.75% APY for a $100,000 balance.

If certain transaction requirements are not met, the CSR said the account would be converted to their regular interest checking account which has a 0.10% interest rate. The monthly requirements include:
  • 5 debits of any type or amount except one has to be done through online bill pay of least $25 to a third party
  • 1 deposit of any type
Additional features of this account include:
  • $100 minimum opening deposit
  • $10 monthly fee if balance drops below $1,500 (according to CSR)
The above rates and some of the above features are described at the bank's home page. However, the transaction requirements are not listed. I had to call the bank for these. According to the CSR, the rate has been 2.75% APY since the end of the third quarter of 2008. Before that it was 2.85% APY. The next time the rate may change is the start of 2010.

A branch visit is required to open this account. Branches are located in the California cities of Beverly Hills, Costa Mesa, La Habra, La Jolla, Long Beach, Newport Beach, San Juan Capistrano and Ontario.

The bank's ratings for safety and soundness are a little weak: 2 stars (below peer group) at Bankrate.com (based on 6/30/09 data) and 2 stars (problematic) at BauerFinancial (based on 9/30/09 data). The bank is a FDIC member (Certificate # 34940).

Other Reward Checking Accounts

To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.

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posted by Banking Guy at 12/13/2009 04:29:00 PM | 3 comments

$150 Checking Account Bonus Continues at NuVision Credit Union in CA - Local Only

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NuVision FCU has again extended the $150 checking account promotion. The offer is now scheduled to last until 3/30/2010. To receive the full $150 requires the following:
  • $50 bonus for opening the free checking account with a minimum deposit of $100. Also required is either direct deposit of $200/month OR 5 signature debit card purchases per month for the first 90 days.
  • $50 bonus for keeping the checking account active for 90 days (at least 3 transactions each month)
  • $50 bonus for using online bill pay (at least 3 per month)
Refer to the promotion page (pdf) for the full details.

According to the small print of the promo page, "Promotion offer available at select locations only." In the past, some readers have been able to receive this bonus by opening the account by mail. However, readers informed me when I last posted on this promo that the credit union now requires a branch visit.

Another reader mentioned in my January post on this promotion that his application was rejected, possibly due to a ChexSystem flag for opening more than 3 accounts in the last 90 days.

If you have tried this promotion in the past, please leave a comment.

The credit union still offers a refer-a-friend program which rewards a member $50 for each referral.

Field of membership includes members of the American Consumer Council. Anyone can join this organization with a $6 membership fee. In the online credit union application, it allows you to select this council for eligibility, and it states: "If you are interested in joining the Council and the credit union, click this option and continue applying for membership." See the site for other ways to be eligible to join the credit union without joining this council. You can be eligible via select employer groups and via immediate family.

Branches are located in the California cities of Huntington Beach, Laguna Hills, Lakewood and Seal Beach. There's also a branch in Mesa, Arizona, but it's only accessible to Boeing employees. The credit union is federally insured by the NCUA (Charter # 566).

Thanks to the reader who mentioned this new promotion in the comments.

Other Bank Bonuses

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

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posted by Banking Guy at 12/13/2009 04:26:00 PM | 1 comments

2.50% 2-Year CD & 3.00% 3-Year CD at Washington Federal Savings in Several States - Local Only

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Washington Federal Savings is offering some competitive mid-term CD rates. These include a 24-month CD with a 2.50% APY and a 36-month CD with a 3.00% APY. Minimum deposit is $1,000. Jumbo CDs with a $90K minimum receive an extra 5 basis points. These rates are not listed at the bank's website. A reader mentioned these rates, and I called two of the bank's branches in Redmond, Washington and in Las Vegas on Friday. The CSR at Redmond said rates are usually updated on Fridays so she expected these CD rates to last through next week.

A branch visit is required to open an account. Branches are located in Texas, New Mexico, Arizona, Utah, Nevada, Idaho, Oregon and Washington State. Rates may vary by area, so make sure you confirm the CD rates with your local branch.

The bank's ratings for safety and soundness are a little above average: 3½ stars (good) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1935 (FDIC Certificate # 28088). It's a sizable bank with $12.6 billion in assets and $7.9 billion in deposits.

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/13/2009 10:41:00 AM | 0 comments

2.50% 25-Month CD at First Financial Bank in OH, IN & Other States - Local Only

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First Financial Bank has a few competitive CD specials. The best ones include a 2.50% APY 25-month CD and a 3.00% APY 42-month Flex CD. The 25-month special requires a $10,000 minimum deposit. The Flex CD has a $500 minimum deposit. It has the option during the term to convert the CD to a 12-month CD with the 12-month CD rate. Other CD specials include a 2.00% APY 19-month CD and a 1.50% APY 13-month CD. Both have a $10,000 minimum deposit. These specials are not listed at the bank's website. A reader mentioned these to me, and I called the bank on Friday. According to the CSR, these specials are available at all branches. The CSR didn't know how much longer these would last, but they usually update rates on Tuesdays.

A branch visit is required to open an account. Most of the branches are located in Ohio and Indiana. The FDIC also shows branches in several other states including California and Arizona. These may be the branches that First Financial acquired when Irwin Union Bank failed in September.

First Financial Bank's ratings for safety and soundness are a little above average: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data). The bank has been a FDIC member since 1934 (FDIC Certificate # 6600).

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/13/2009 10:38:00 AM | 0 comments

2.00% 6-to-13 Month CD & 2% Savings Account with Rate Guarantees at CrossFirst Bank in Kansas City Metro - Local Only

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CrossFirst Bank is offering two very competitive deposit specials. The first is a 2.00% APY CD that allows you to choose a term from 6 to 13 months. Minimum deposit is $1,000. The second special is a savings account with a 2.00% APY. It's guaranteed not to drop below 1.75% through 12/31/2010. Minimum balance is $25,000. Balances under $25,000 only earn 0.50%. Another downside is that you're limited to only two withdrawals per month ($50 fee for each additional withdrawal). These specials are listed at the bank's promotional page as of 12/13/09.

It appears that a branch visit is required to open an account. It's a small one-office bank located in Overland Park, Kansas which is a suburb of Kansas City.

The bank was established in October 2007, so BauerFinancial labels the bank as a start-up without a rating for safety and soundness. Bankrate gives the bank 2 stars (below peer group) based on 6/30/09 financial data. The bank is a FDIC member (FDIC Certificate # 58648).

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/13/2009 10:36:00 AM | 0 comments

1.97% 12-Month CD with Some Liquid Features at FirsTier Bank in CO - Local Only

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FirsTier Bank is advertising a competitive 12-month CD special with a 1.97% APY. It has some liquid features that make it a little better deal. It allows unlimited add-on deposits and penalty-free withdrawals of up to $2,500 per 30 days. Minimum initial deposit is $25,000 which offsets some of the usefulness of the unlimited add-on deposits. Add-on CDs can be useful to hedge against future low rates, and they're most useful when they have low minimum initial deposit requirements.

This CD special doesn't seem to be listed on the bank's website. It was advertised in today's (12/13/09) edition of the Boulder Daily Camera. The ad is available online here.

It appears that a branch visit is required to open an account. Branches are located in the Colorado cities of Denver, Parker, Loveland, Louisville, Englewood and Westminster.

The bank's ratings for safety and soundness are weak: 1 star (troubled) at BauerFinancial (based on 9/30/09 data) and 1 star (lowest) at Bankrate.com (based on 6/30/09 data). According to the Boulder County Business Report, FirsTier experienced third-quarter losses as it was "forced to increase loan/loss reserves to protect against the possible default of those bad loans." The bank has been a FDIC member since 2003 (FDIC Certificate # 57646).

Other Competitive Certificate of Deposit Rates

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posted by Banking Guy at 12/13/2009 10:32:00 AM | 0 comments

Saturday, December 12, 2009

Bank Deals Weekly Summary for December 12, 2009

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

The Fed will be holding its last scheduled meeting for 2009 next Tuesday and Wednesday (Dec 15 & 16). I'm afraid savers shouldn't expect any Christmas present. The expectations are for the FOMC to maintain its current interest-rate policy of "exceptionally low levels of the federal funds rate for an extended period." There have been signs that the economy is starting to improve, and if this continues in 2010, we may finally see higher rates. However, with very high unemployment, the Fed may resist tightening its monetary policy for quite some time.

Three more banks failed yesterday which brings the total number of 2009 bank failures to 133. With only one more non-holiday Friday remaining in 2009, we probably won't top 140 for the year. All three banks that failed yesterday were small, and the FDIC arranged for other banks to assume all deposits. The main concern for depositors of these failed banks will be if the assuming banks honor existing CD rates to maturity. Arvest Bank which took over SolutionsBank in Kansas has already announced that CD rates were changed on the day of the closure (see post).

Savings Account Rates

One surprising rate cut this week occurred at Flagstar Bank which slashed its online Express Money Market rate from 1.60% to 1.09% APY. For the last two years this account had been very competitive. One thing interesting to note is that the current FDIC rate cap for money market accounts is 1.10%. The FDIC rate caps will be taking effect in January and are intended for less than well capitalized banks. I don't know if Flagstar has this designation, but it's well known that Flagstar has been losing money. Bloomberg reported in August that it was the largest bank in the US to have nonperforming loans of over 10%.

Rate Hikes:
  1. None
Rate Drops:
  1. Farmers & Merchants Bank Reward Checking - 3.51% eff 12/17 (was 4.01%)
  2. EBSB Direct MMA - 1.67% $50K+ (was 1.77%)
  3. 1st Constitution Direct Super Savings - 1.50% (was 1.75%)
  4. First Trade Union Bank Savings - 1.50% (was 1.65%)
  5. Ally Bank Savings & MMA - 1.50% (was 1.59% & 1.55%)
  6. Union Federal Savings Bank MMA - 1.40% (was 1.50%)
  7. E-LOAN Savings Plus - 1.35% (was 1.45%)
  8. Zions MMA - 1.30% (was 1.35%)
  9. Intervest MMA - 1.32% $2.5K (was 1.35%)
  10. UmbrellaBank MMA - 1.25% $50K+ (was 1.35%)
  11. Flagstar MMA - 1.09% (was 1.60%)
  12. Citibank Ultimate Savings - 1.01% (was 1.15%)
  13. Seacoast Commerce MMA - 0.50% (was 1.00%)
Certificate of Deposit Rates

One pleasant surprise that popped up on Friday was the 12-month CD rate increase at ING Direct. Its regular 12-month CD is now 2.00% APY which is the same rate as its Black Friday CD special, but unlike that Black Friday CD, this current one doesn't have a new money requirement. This means you can fund the CD with money from your ING Direct savings account or Electric Orange account. A 2% APY for a 12-month CD may not sound good, but unfortunately, it's very competitive in today's low-rate environment.

For longer term CDs Hudson City Savings Bank continues to offer competitive rates including a 3.15% APY 48-month CD and a 3.40% APY 60-month CD. Unlike many banks offering top rates, Hudson is financially strong. The CDs are available nationwide on the internet or from their branches in NY, NJ and CT (see post).

For those in Texas, Florida, Alabama, Georgia and Nevada, the BB&T branches of the former Colonial Bank continue to offer a special 11-month CD with a 2.25% APY. Colonial Bank failed in August, and now the accounts are held by BB&T, one of the largest banks in the US. These rates are not listed at the bank's website. I called branches in Florida, Texas and Alabama yesterday to confirm they're still available. The special may not be available at all branches so be sure to call your local branch to confirm availability. BB&T recently sold its former Colonial branches in Nevada to US Bank. According to this Lahontan Valley News article the transaction should be completed in early 2010. Note, I didn't check with Nevada branches yesterday to see if they still had this CD special.

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

Best Nationwide CD Deals as of 12/12/09: Also listed are savings account promos with rate guarantee periods. The full list of nationwide CD rates is farther down.
  1. 2.51% 3-mo money market/checking promo at EverBank (account review)
  2. 1.50% money market with rate guaranteed to Apr 2010 at Bank of America (account review)
  3. 1.77% 10-mo CD at EBSB Direct (account review)
  4. 2.42% 12-mo CD at Wings Financial CU, Limited Membership (account review)
  5. 2.10% 12-mo CD at Alliant CU (account review)
  6. 2.00% 12-mo CD at ING Direct (account review)
  7. 2.25% 16-mo CD at Dollar Savings Direct (account review)
  8. 2.45% 23-mo CD at Security Savings Bank (account review)
  9. 3.00% 30-mo CD at Indus American Bank (account review)
  10. 3.03% 36-mo CD at Goldwater Bank (account review)
  11. 3.00% 45-mo CD at Reliabank Dokota (account review)
  12. 3.15% 48-mo CD at Hudson City Savings Bank (account review)
  13. 3.65% 60-mo CD at Melrose CU (account review)
  14. 3.60% 60-mo CD at Apple FCU (account review)
  15. 3.40% 60-mo CD at Hudson City Savings Bank (account review)
  16. 4.16% 84-mo CD (min $175K) at USAA Bank (account review)
  17. 4.00% 84-mo CD at Pentagon FCU (account review)
Best Local CD Deals as of 12/12/09: 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. 1.90% Savings Account (5% for 1st $1K) at OMNIBANK in TX (account review)
  2. 2.12% 6-mo CD & 2.42% 12-mo CD at Wings Financial CU in MN (account review)
  3. 2.00% 6-mo CD at Vision Bank in Dallas (account review)
  4. 3.00% 7-mo CD at NIH FCU in MD & DC - Limited Membership (account review)
  5. 2.25% 11-mo CD at Colonial Bank Branches of BB&T in TX, FL & NV (account review)
  6. 2.25% 12-mo & under CD at Cecil Bank in MD (account review)
  7. 2.10% 12-mo CD at First Choice Bank in LA Metro Area (account review)
  8. 2.50% 15-mo CD & 2.26% 9-mo CD at The Farmers Bank in TN (account review)
  9. 2.30% 16-mo Jumbo CD at Teachers FCU in NY (account review)
  10. 2.40% 17-mo CD at Royal Asian Bank in PA, NJ & NY (account review)
  11. 2.75% 18-mo CD & 4% 60-mo CD at Greylock FCU in MA (account review)
  12. 2.50% 18-mo No-Penalty CD at Darby Direct in GA (account review)
  13. 2.50% 23-mo CD at Regions Bank in Many States (account review)
  14. 2.78% 24-mo & 2.18% 12-mo CD at First National Bank in TX (account review)
  15. 3.00% 27-mo CD & 2.25% 15-mo CD at Enterprise Bank of SC (account review)
  16. 3.00% 36-mo, 2.65% 24-mo & 2.20% 12-mo CD at Signature Bank in NYC (account review)
  17. 4.06% 48-mo CD & 2.50% 24-mo CD at Founders FCU in SC/NC (account review)
  18. 4.07% 60-mo CD at IH Mississippi Valley CU in IL & IA (account review)
  19. 4.00% 60-mo CD at PFFCU in Philadelphia (account review)
  20. 3.80% 60-mo & 3.29% 48-mo CD at PrimeWay FCU in Houston (account review)
  21. 3.60% 60-mo Jumbo CD at CEFCU in CA & IL (account review)
Reward Checking Accounts

I reported on nine new reward checking accounts this week with yields ranging from 2.60% to 5.55%. Out of those nine, one is available nationwide. It's at Cross Key Bank in Louisiana. Its reward checking is paying 4.05% APY for balances up to $25K (see post).

One disappointment this week was the soon-to-be loss of a nationwide 4% $50K-cap reward checking account. Farmers & Merchants Bank notified its customers that it will be cutting the top yield on its reward checking account from 4.01% to 3.51% APY effective December 17th (see post). At least it's retaining the $50K cap. Compared to the best nationwide online savings account which has a 2% APY, you'll make about $750 more in this reward checking account over a year with a $50K balance. Of course this assumes the rates won't change. Update: There's another disappointment about this account. Readers have reported that Farmers & Merchants Bank has stopped offering this account to out-of-state customers.

To see all of the high yield reward checking accounts available throughout the nation, please refer to the reward checking section of DepositAccounts.com.

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

Banking News

Savings/Checking Accounts - National

CD Deals - National

Reward Checking Accounts

CD and Money Market Deals - Local

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 under $100,000. 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 December 12, 2009

Checking/Savings/Money Market Accounts:


3-Month Certificates of Deposit:

6-Month Certificates of Deposit:

9-Month Certificates of Deposit:

12-Month Certificates of Deposit:

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36-Month Certificate of Deposit:

48-Month Certificate of Deposit:

60-Month Certificate of Deposit:

84-Month Certificate of Deposit:

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posted by Banking Guy at 12/12/2009 04:45:00 PM | 3 comments

Friday, December 11, 2009

Three Banks Closed by Regulators in FL, AZ and KS

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The number of bank failures has reached 133 for 2009. It looks like we may not reach 140 since next Friday would be the last non-holiday Friday of 2009. All three of today's failed banks were small with the largest one having assets of $511 million. The FDIC was able to find buyers for all three of these banks, and all deposits were assumed by the buyers including deposits above the FDIC limit.

The main concern for depositors is how this will change their CD rates. The assuming banks will be allowed to change the CD rates. Depositors will have the option for a penalty-free early withdrawal, but that's not much comfort in today's low-rate environment.

One of the banks has already announced their decision on CD rates. Arvest Bank which took over SolutionsBank in Kansas stated in their FAQ for SolutionsBank customers that "Your rates on your Certificates of Deposit have changed to the current competitive rates for Arvest Bank as of Friday, December 11, 2009."

I reported on SolutionsBank a couple times in the last year. Last March they were offering a 3% 18-month CD. Arvest Bank's CD rates are much lower so anyone with this 18-month CD will likely be disappointed.

SolutionsBank had been offering a reward checking account. It started out with a 5.03% APY for balances up to $50K. At first the rate dropped gradually until May 2009 when the rate plummeted from 4.13% to 1.71%. It's interesting that this was a couple of months after the bank received a public enforcement action.

Another interesting note regarding SolutionsBank is that it had decent ratings for safety and soundness when I posted on the bank in March 2009 with 3 stars at both BauerFinancial and Bankrate. At the time of the bank's closure, the bank had the lowest ratings at both BauerFinacial and Bankrate.

Below is a summary of today's bank failures:

131st Bank Failure of 2009 (13th in FL)
  • FDIC Press Release
  • Closed Bank: Republic Federal Bank, N.A.
  • Size: 4 branches, $433.0 million in assets, $352.7 million in deposits
  • Possible Uninsured Deposits: All deposits transferred, except some brokered deposits
  • Acquiring Bank: 1st United Bank, Boca Raton, FL
  • Rate Changes: 1st United Bank will review rates
  • Estimated Cost to Deposit Insurance Fund: $122.6 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
132nd Bank Failure of 2009 (4th in AZ)
  • FDIC Press Release
  • Closed Bank: Valley Capital Bank, N.A., Mesa, AZ
  • Size: 1 branch, $40.3 million in assets, $41.3 million in deposits
  • Possible Uninsured Deposits: All deposits transferred
  • Acquiring Bank: Enterprise Bank & Trust, Clayton, MO
  • Rate Changes: Enterprise Bank & Trust will review rates
  • Estimated Cost to Deposit Insurance Fund: $7.4 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
133rd Bank Failure of 2009 (3rd in KS)
  • FDIC Press Release
  • Closed Bank: SolutionsBank, Overland Park, KS
  • Size: 6 branches, $511.1 million in assets, $421.3 million in deposits
  • Possible Uninsured Deposits: All deposits transferred, excluding some brokered deposits
  • Acquiring Bank: Arvest Bank, Fayetteville, AR
  • Rate Changes: CD rates have changed to the current rates for Arvest Bank as of December 11, 2009 (Arvest's FAQ)
  • Estimated Cost to Deposit Insurance Fund: $122.1 million
  • Financial Ratings: 1 star (lowest) at Bankrate.com, 0 star (lowest) at BauerFinancial
The above BauerFinancial ratings are based on 9/30/09 data and those from Bankrate are based on 6/30/09 data.

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posted by Banking Guy at 12/11/2009 08:23:00 PM | 0 comments