6.01% Reward Checking Account at New Mexico Bank & Trust

New Mexico Bank & Trust is offering a reward checking account that pays 6.01% APY on balances up to $20,000 (1.51% for above) and refunds ATM fees (up to $20 per cycle) if the following monthly requirements are met:

• 12 signature-based debit card purchases
• one direct deposit or automatic payment
• receive eStatements

If these are not met, the rate falls to 0.25%. The minimum initial deposit is $25. There are no minimum balance requirements or monthly service fees.

It appears a branch visit is required to open an account. Branches are located in the New Mexico cities of Albuquerque, Clovis, Los Lunas, Melrose, Portales, Rio Rancho and Santa Fe. The bank has been FDIC insured since 1998 (FDIC Certificate # 34726).

Other High Yield Reward Checking Accounts

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

4.00% 4-Month CD at a California CU (Pacific Transportation)

Pacific Transportation FCU is still offering a special 4.00% APY 4-month share certificate of deposit. The minimum is $4,000. New money is required. It's also available in an IRA. There's also a special 4% APY 3-month CD with a minimum deposit of only $1,000.

I last reported on this credit union in February when it was offering a 5% 5-month CD. This changed to the 4% 4-month CD in March.

Membership is open to employees of several businesses and members of a few organizations. One organization is the Pasadena Model Railroad Club in which anyone can join. For full details of credit union membership, please see the Who Can Join page. Membership requires a $10 minimum deposit into the Prime Share savings account.

Branches are located in Pasadena, Colton, Long Beach and Hacienda Heights, CA. The credit union is federally insured by the NCUA (Charter # 3378). It has $80.6 million in assets and 8,485 members.

Agriculture FCU's No-Penalty 3.50% 36-Month CD - Easy Membership

Agriculture FCU has a new share certificate promotion. It's a special 3.50% APY 36-month share certificate with a one-time penalty free withdrawal. The minimum deposit is $1,000.

The special certificate is advertised in the rotating image on the credit union's front page. I couldn't find any additional details on the website, so I called the credit union. The CSR said that the one penalty free withdrawal can be made any time during the term. If you only do a partial withdrawal, you have to leave at least the minimum balance of $1,000 in the CD. You can also do a complete withdrawal which would close the certificate.

To open this special certificate, the CSR said that you can apply online for the 36-month certificate, and the penalty free feature will be included.

To request the withdrawal, the CSR said that they would require a written request. It can be faxed. You could request that it be sent by check or transfered into your share savings account.

Comparing it to other CD rates

A yield of 3.50% APY isn't that great if you compare it to other 36-month CDs. However, if you compare it to 3 or 6-month CDs, it's competitive. As you can see in my last weekly rate summary, there are not many short term CDs with yields above 3.50%. With the one-time no-penalty withdrawal feature, you have the option to close the CD in the short term if rates rise or if you need the money. However, if it turns out that rates fall, you can always let the CD continue.

Easy Membership

Field of membership includes members of CityDance Ensemble. CityDance has open membership to anyone that pays membership dues of $20.00. This membership can be done at the same time that you apply for credit union membership. They have an online membership application in which you can join CityDance for $20, join the credit union for a $5 initial deposit to the Primary Share account, and open the CD. You do not have to renew your CityDance membership to maintain membership at the credit union.

The FOM also includes those who live, work or worship in Washington DC plus other group affiliations. See site for the full details.

I joined AFCU and opened a CD in November 2006. For more information on AFCU and the CDs, please refer to my November 2006 AFCU post. If you already are a member of AFCU and want to open another account online, please see my July 2007 post in which I described my experience opening my second AFCU CD.

Back in 2006 and 2007, AFCU had many great CD specials with rates of 6% or higher. There haven't been too many great CD specials since then, but their CD rates have remained fairly competitive.

Branches are located in Washington DC, Riverdale, Maryland, and Alexandria, Virginia. AFCU is also part of National Shared Branching network in which you can use local credit unions to access your account and conduct many transactions.

AFCU is federally insured by the NCUA (Charter # 16400). It has $205.2 million in assets and 23,774 members.

Thanks to the reader who emailed me info on this new special.

Research into AARP Financial Savings Center

The good news is that AARP Financial Savings Center continues to offer a 4.75% APY Jumbo money market account and a 4.50% APY no-minimum savings account. It has been almost three weeks since my first post on these accounts. During this time many readers have expressed concerns about this banking center and the whether these high rates are just teasers.

I haven't done too much of my own investigations since my last post, but I'll try to highlight some of the research that several readers have done. The main concern is that AARP Finacial Savings Center is not a bank. Here is how it's described at the terms and conditions page:

AARP Financial Inc. makes available the AARP Financial Savings Center brought to you by Waterfield Financial Services Inc. AARP and AARP Financial Inc. receive fees from Waterfield Financial Services Inc. for AARP's license of its intellectual property and AARP Financial Inc.'s oversight of the AARP Financial Savings Center. All Checking and Money Market Savings deposit products available through the Savings Center are offered by and will be opened and processed through The Huntington National Bank.

I did receive the following statement from Huntington Bank: "We do have AARP savings/money market accounts." So there appears to be no false information in these terms and conditions. However, there are still the legitimate questions about who is responsible for what. This was explained well by a commenter, Dianne, who shared some of her research and concerns:

They are all internet "BANKING CENTERS", i.e. not banks and I really don't understand what their legal status is. Until today I was not aware that UFBdirect.com (which is listed in bankrate.com) was not a bank but one of these "banking centers". Moreover, they all utilize Waterfield Financial or Affinity Financial. Here is what I could find about these companies: Waterfield Mortgage Co (which was founded by the grandfather of the guys who started Affinity Financial Corp - affinityfc.com) owned Union Federal Bank which had UFBdirect.com. Waterfield Mortgage (and hence UFBdirect.com) was acquired by Sky Financial in 2006. Sky merged with Huntington Bankshares (HBNC) in 2007. And, Affinity Financial is a Waterfield Family Company, as is Waterfield Financial Services and Waterfield Enterprises. And lo and behold nationalinterbank.com is itself a Waterfield Enterprises company. So, until I can speak to some knowledgable bankers or such I am leaving my money in a Corus 4% money market account. As one of the comments suggested there are too many entities involved here to know who is responsible or liable for what.

I can't provide any more insights into who has the responsibility of ensuring the safety of the deposits, but one thing to note is that this AARP Financial Savings Center is managed by essentially the same company and in the same way as UFB Direct, which has a fairly long history and many satisfied customers. In fact, it turns out that there are many similar banking centers that offer these high yield online accounts.

One of the readers compiled the following list of Waterfield related banking centers and the highest rate you can get as of 5/20/08.

• teamsterbankingcenter.com (3.50% APY)
• www.nationalinterbank.com (2.70% APY)
• www.ufbdirect.com (3.00% APY)
• www.afibankingcenter.com (3.25% APY)
• www.afsabankingcenter.com (3.00% APY)
• www.amabankingcenter.com (3.25% APY)
• www.boatbankingcenter.com (3.00% APY)
• www.caattorneybankingcenter.com (2.75% APY)
• www.iaff-fcbankingcenter.com (3.75% APY)
• www.jnetbankingcenter.com (3.00% APY)
• www.lualumnibankingcenter.com (3.00% APY)
• www.nrabankingcenter.com (3.00% APY)
• www.nualumnibankingcenter.com (3.00% APY)
• www.nursesbankingcenter.com (2.75% APY)
• www.nwfbankingcenter.com (3.25% APY)
• www.realestatebankingcenter.com (2.75% APY)
• www.texasvfwbankingcenter.com (3.00% APY)
• www.veteransbankingcenter.com (3.25% APY)
• www.vtalumnibankingcenter.com (3.25% APY)
• www.nafebankingcenter.com (3.25% APY)
• www.afabankingcenter.com (2.75% APY)

This brings me to the other concern that many have expressed. Why is AARP Financial Savings Center offering such a high yield? As you can see above, all the other rates are much lower. One thing to note is that UFB Direct did offer a very high yield on its Absolute Savings account for much of last year. Relative to accounts from other banks, it wasn't as high as the current AARP rate, but it was still higher than the rate of the savings account offered directly by Huntington. So it seems like certain banking centers have leeway in determining the rates. I'm not sure who pays for the higher rates or their profit strategies.

UFB Direct's Absolute Savings Account yield was at 5.31% APY for much of last year which was near the top for online savings accounts. It was slow to fall, but it did fall, and now it's only 3.01% APY which is in the middle-of-the-pact for online savings accounts. So I think it's likely that we'll see the AARP rate fall to be similar to average online savings account rates. Hopefully, the fall will be slow.

For more details about AARP Financial Savings Centers and the the savings and money market accounts, please refer to the following past posts:

• Update on AARP Financial Savings Center - 4.50% Savings Account, 4.75% MMA
• Overview of the AARP Financial Savings Center

Thanks to all the readers who shared their experiences and research.

6.01% Reward Checking Account at a Washington State CU (Gesa)

Gesa Credit Union is offering a reward checking account called Colossal Checking that pays 6.01% APY for balances up to $10,000 (1.01% for above) and refunds ATM fees (first 8/month) if the following monthly requirements are met:

• 12 debit card purchases
• one direct deposit or ACH debit
• receive eStatements
• access online banking

If these are not met, the rate falls to 0.15%. There are no monthly service charges, and no minimum balance required to open or maintain the account.

The big downside to this account is the low $10,000 cap. Most reward checking accounts still have a $25,000 cap. This low cap definitely hurts this deal, but I thought it was worth reporting at least for how this could be a start of a trend.

Membership is open to anyone who lives, works, worships or attends school in the State of Washington. Also, you can be eligible if a close relative qualifies as a member. Please refer to their Membership page for more details. Membership requires a minimum balance of $5 in the share savings account.

Branches are located in the Washington cities of Richland, Kennewick, Pasco, Walla Walla and Wenatchee. The credit union is federally insured by the NCUA (Charter # 68278). It has $631 million in assets and 74,930 members.

Other High Yield Reward Checking Accounts

To find reward checking accounts in other areas of the nation (many with much higher caps) or to learn more about these accounts, please refer to my High Yield Checking website.

4.05% 24-Month CD at a WA/ID/MT/OR Bank (Golf Savings)

Golf Savings Bank has some competitive rates on its certificates of deposit. Its 2-year CD is the most competitive with a yield of 4.05% APY. The longer term CDs also have decent yields: 4.25% APY 3-year CD, 4.30% APY 4-year CD and 4.50% APY 5-year CD. The minimum deposit is $10,000.

It appears a branch visit is required. Branches are located in Washington State, Idaho, Montana and Oregon. The bank has been FDIC insured since 2000 (FDIC Certificate # 35362). It has a 2 out of 5 star rating (below peer group) at Bankrate based on 12/31/07 data.

4.75% 59-Month / 4.25% 43-Month CD at US Bank

US Bank has increased the rate on its CD specials. The new 59-month CD yield is 4.75% APY, and the 43-month CD yield is 4.25% APY. The shorter term yields are much lower: 3.50% APY for a 23-month CD and 2.80% APY for a 11-month CD. I reported on this special 59-month CD last month when the yield was 4.50%.

As I mentioned in that last post, one important detail regarding this CD is a severe early withdrawal penalty. According to the CD disclosure, the penalty for the 59 month CD would be over 29.5 months of interest on the amount withdrawn. Here's how it's described in the disclosure:

If your account has an original maturity greater than one year, the penalty will be the greater of either A or B, plus a $25 early withdrawal fee.

A. One-half of the interest that would have been earned on the funds withdrawn if held for the entire term.

B. 3% of the amount withdrawn.

Early withdrawal penalties for long term CDs are typically only 6 months of interest, so this is much worse. If inflation forces interest rates to shoot up, a small early withdrawal penalty can save you a lot of money, when you want to close the CD and move the money into an account with a higher rate.

US Bank does have an online application. However, I called their toll free number (1-800-US BANKS), and I was told you can only open the CD online if you already have a checking account with them and you use the checking account to fund the CD. Otherwise, you have to come into one of their branches. They do not accept checks by mail to fund a CD.

US Bank has branches in 26 states. Below is the list of states with the number of offices in each:

Arizona      -  60    Arkansas     -  47 
California   - 338    Colorado     - 147
Georgia      -   1    Idaho        -  91
Illinois     - 128    Indiana      -  24
Iowa         - 110    Kansas       -  31
Kentucky     - 125    Minnesota    - 135
Missouri     - 219    Montana      -  25
Nebraska     -  61    Nevada       -  58
North Dakota -  25    South Dakota -  20
Tennessee    -  27    Texas        -   1
Utah         -  45    Washington   - 187
Wisconsin    - 127    Wyoming      -  14

It's a large bank with $232.8 billion in assets. It has been FDIC insured since 1934 (FDIC Certificate # 6548).

Other High Certificate of Deposit Rates

On Sunday I reported on a better long-term CD deal (higher rate and smaller early withdrawal penalty) at M&I Bank (see post). Unfortunately, it's available in fewer states. I have several other high yield long-term CDs available nationwide in my last weekly rates update. Some of the banks offering these CDs include KeyDirect, Wachovia, National City, Capital One and E-LOAN.

4.00% 12-Month / 4.50% 48-Month CD at an Illinois Bank (Wheatland)

Wheatland Bank is offering some very competitive CD rates. A yield of 4.00% APY is being offered on CD terms from 12 months to 36 months, and a yield of 4.50% APY is being offered for the 48 and 60-month terms. The minimum deposit is $2,500. In additional to personal CD's, the rates apply to business and IRA CD's.

It's a small bank so it appears likely they'll limit products to their local market. The bank is located in Naperville, Illinois which is in the suburbs of Chicago. It's a new bank that was just established in 2007 (FDIC Certificate # 58429).

4.00% Savings Account Guaranteed Until Jan 2009 at a Florida Bank (US Century)

US Century Bank has a nice savings account promotion in which they'll guarantee 4.00% APY for any balances through January 1, 2009. The minimum opening balance is $500. You have to open either their Century Gold Savings or a Century Gold Money Market Account.

In the small print it states that the promotional offer is only available to new accounts and new balances opened after May 19th. There is a maintenance fee of $10 per month if the balance falls below $500. The accounts have the typical savings account withdrawal limit of 6 per month (or 3 by check).

This appears likely to require a branch visit. Branches are located in South Florida in the cities of Miami, Aventura, Coral Gables, Hialeah, Key Biscayne and Hollywood. The bank has been FDIC insured since 2002 (Certificate # 57369).

Thanks to the reader who sent me email on this deal.

Free iPod nano Checking Account Bonus at Bank of North Georgia

Bank of North Georgia is offering a free iPod nano with the following requirements:

• opening a personal checking account before June 20, 2008
• enrolling in online banking
• make 3 bill payments by July 31, 2008

They'll ship the iPod nano by October 1, 2008. Some of the important small print includes:

• not available to current personal checking account customers
• limit one per household
• offer while supplies last
• value of iPod nano will be reported on form 1099-INT
• early account closure fee if closed before 90 days
• iPod nano shippped may differ from iPod nano shown

This last detail is important since they're displaying what looks to be a Third Generation iPod nano. On the web I found a 1GB First Generation iPod nano going for as little as $70. I found a 2GB Second Generation one going for $132, and a 4GB Third Generation one going for $140. Hopefully, the bonus will be a Third Generation one, but it looks like there's no guarantee.

It appears their Signature Free Checking qualifies. This has no monthly fees, and Bill Pay is also free.

This deal is likely to require a branch visit. Branches are located in Atlanta, Alpharetta, Fayetteville, Marietta, Roswell and several other Georgia cities. The bank has been FDIC insured since 1960 (FDIC Certificate # 31203).

Thanks to the reader who emailed me this deal.

5.01% Reward Checking Account at a Texas Credit Union (Members)

Members CU has a reward checking account called RealInterest Checking that pays 5.01% APY on balances up to $25,000 if the following monthly requirements are met:

• 10 check card purchases
• one ACH debit or credit (a direct deposit or automatic payment)
• enrolled to receive E-statements

There are no monthly fees and no minimum balance requirements.

Membership is open to those who live or work in Hood County, Johnson County, or in the zip codes 76028 and 76036. Please see their Membership Page for more details. Membership requires a minimum balance of $20 in the savings account.

Branches are located in Cleburne and Burleson, Texas which are just south of Fort Worth. The credit union is federally insured by the NCUA (Charter # 67649).

Other High Yield Reward Checking Accounts

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

4.05% 14-Month / 4.30% 24-Month CD at a Florida Bank (First Commercial).

First Commercial Bank of Florida has a CD promotion with some competitive rates. These include a 3.80% APY 7-month CD, a 4.05% APY 14-month CD and a 4.30% APY 24-month CD. The minimum deposit is $1,000, and the maximum deposit is $99K. These are not listed at the bank's website. I just called the bank for this info. This CD promotion is scheduled to end Friday, 5/23/08.

The bank seems to have similar CD promotions every Monday. Often the top rate requires that you already have a checking account. According to the CSR, this one does not have that requirement.

A branch visit is required to open the CD if you don't already have accounts at the bank. The bank has several branches in the Central Florida including the cities of Orlando, Kissimmee, Winter Park, Deltona and Lake Mary. The bank is FDIC insured (Certificate # 34965) and it still has a 4 out of 5 star rating at Bankrate.com (sound) based on 12/31/07 data.

No-Cap Reward Checking Account

The bank is still offering a high yield reward checking account that I first reported on in March 2007. The rate has fallen quite a bit since then. I was told the current yield is 3.49% APY (down from 5.64% APY). Even though the rate is not the best for reward checking accounts, there are no balance caps which limit the balance that can earn the top yield.

4.30% 18-Month CD at a Colorado Bank (New Frontier)

New Frontier Bank has a new CD special with a yield of 4.30% APY and a term of 18 months. The minimum deposit is $1,000, and the maximum is $95,000. This is not quite as good as the CD specials that this bank was offering in April, but the 4.30% yield is still a very competitive rate for an 18-month term.

A reader in a previous post was told by the bank that an office visit is necessary to open an account. Branches are located in the Colorado cities of Greeley, Windsor and Longmont which are located north of Denver. The bank has been FDIC insured since 1998 (FDIC Certificate # 34881). It has a 2 out of 5 star rating (below peer group) at Bankrate.com based on 12/31/07 data.

6.26% Reward Checking Account with $50K Cap is Still Available

New Frontier Bank has one of the best reward checking accounts in the nation. The top yield is still at 6.26% APY for balances up to $50,000. For more details of this account, please see my February post.

3.70% 10-Month CD at a Florida / Alabama CU (Pen Air)

Pen Air Federal Credit Union is offering a special 10-month certificate with a yield of 3.70% APY. The minimum deposit is $500.

My last report on this credit union was in April when it had a 3.65% 6-month CD special. Last year it was offering a 6% 10-month CD. The current 10-month CD is not nearly as good as that one, but it's still competitive in today's interest rate environment.

Field of membership includes active duty or retired military and their immediate families, current or retired federal civil service employees and their immediate families, and certain other select employee groups.

Branches are located in the Florida cities of Pensacoloa, Century, Pace, and Gulf Breeze, and in the Alabama cities of Robertsdale and Orange Beach. The credit union is federally insured by the NCUA (Charter # 1303). It has $858.0 million in assets and 96,820 members.

Other Certificate of Deposit Deals

For other high CD rates with terms around nine months, please refer to my latest rate summary. The ones in this list have nationwide availability. E-LOAN currently has the best 9-month CD deal with a 3.80% APY.

Update on Bank of America's $75 Checking Account Bonus

Bank of America has again extended its $75 checking account promotion (it used to be a $100 bonus). Here's the link to the promotional page. The promo code is AOU260508. The new expiration date is 7/31/08. It's available through the online application or in any BofA branch. I noticed in the online application that you can select the MyAccess Checking, and there's a note that it's a special online only offer in which it'll be free with no direct deposit requirement and no minimum balance required.

Some important details from the offer's small print include: The minimum deposit required to open a new, personal checking account and receive the $75 offer is $100. Offer does not apply to second or multiple checking accounts and/or existing checking customers. Money will be deposited within 90 days of opening your new account. Limit one check per household. Value of the offer will be reported to the IRS on Form 1099.

Hard Credit Pull

There are some things to note regarding BofA. First, many have reported that BofA does a hard credit inquiry on your first checking account. This can ding your credit score a little for a few months.

Receiving the Bonus

It can take patience and persistence to receive the bonuses. The bonuses that I've received only came after reminding them using their online message system. Others have had to make many calls to a banking rep. Not everyone has been successful; however, several readers have reported success with this promo in my October post.

Fees

Make sure you keep an eye on your statements to make sure no fees start popping up. You might want to make a copy of the application where it states that the MyAccess Checking will be free. BofA also charges for things that you might expect are free. For example, if you make an outgoing ACH transfer, there's a $3 charge (see BofA page).

Customer Service

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

One other note about Bank of America checking is that if you want online access, make sure you sign up for a debit card. You'll need that to gain online access.

For more discussion on Bank of America accounts and promotions, please see my Bank of America promotion post. It's a little out-of-date, but it still has some links to ongoing promotions like BofA's Keep The Change program.

5.00% 60-Month / 4.00% 20-Month CD at M&I Bank

M&I Bank has new high rates on its Smart Savers CDs. The 60-month CD has a competitive yield of 5.00% APY. The minimum deposit is $2,500. There are two other CD specials which also have competitive rates: a 4.50% APY 40-month CD and a 4.00% APY 20-month CD. These rates are quite a bit higher than the rates when I last reported on these Smart Savers CDs in April.

These special CDs allow you to make a one-time rate change after the account has been open for 6 months. When you make the rate change, you can also make an additional deposit to the CD. Note, these bump-up feature is often not useful since it's easy for the bank to keep future rates low on special terms. It would be better if it only had the additional deposit feature. As it is defined, you can only add to the CD if rates go up.

Update 5/19/08: I just called, and I was told that you must live in a state where they have branches to be able to open the CD. Other things I learned from the CSR include:

• Early withdrawal penalty equals 6-months of interest
• 10 calendar-day grace period when CD matures
• Allows funding CD by ACH transfer or by mailing a check
• At maturity, they can mail you a check or you can call and instruct them to transfer the money into your M&I checking or savings account

Branches are located in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri, Nevada and Wisconsin. It's a large bank with $53.7 billion in assets. The bank has a 3 out of 5 rating (performing) at Bankrate.com based on 12/31/07 data. The bank has been FDIC insured since 1934 (FDIC Certificate 1020).

Other 5-percent CD rates

Five percent CDs are slowly starting to come back. I've listed a few in my weekly rates update from yesterday. Unfortunately, there aren't any short term 5% CDs. All of these 5% ones are long term CDs.

$75 Checking Account Bonus at a Wachovia Branch in Houston - Plus Recap on Wachovia Deals

Wachovia is having a new-branch special at one of its Houston branches. Sign up for any checking account with a minimum deposit of $100 by 5/30/2008, and you'll receive a $75 gift check card in the mail after 45 days of account opening. There is no direct deposit requirement.

The new branch is the Highland Village Financial Center located at 3803 Westheimer Road (713-621-2065). This isn't listed at Wachovia's website. It was advertised in the Houston Chronicle. The ad is available online here.

These new-branch specials seem common at Wachovia. In April I reported on one in Washington DC. So if you see a new Wachovia branch in your area, you might want to check if they have a similar promotion.

Wachovia Checking Account Details

Wachovia's free checking account has the basic components of free checking: no minimum balance requirements, no monthly fees, etc. A reader in the previous post mentioned that Wachovia does a hard credit pull (both Experian and TransUnion have been mentioned). Unless you can get the "at work" checking account, checks are typically not free, but they are optional. Prices vary by state. A reader just mentioned that Wachovia offered 50 duplicate checks for $8. There is a $25 fee if the account is closed before 6 months. In addition to the hard pull, Wachovia also does a ChexSystem verification.

Other Wachovia Deals

I haven't seen any new online Wachovia checking account bonuses lately. They've often had online checking account bonuses for $50. Let me know if you see a new one. Wachovia still does have a $25 refer-a-friend bonus for opening a checking account.

Wachovia currently has a very good deal on its 60-month CD with a 4.75% APY. Please refer to this post for more details.

They have a decent deal with their new Way2Save program with a special 16% rate for 3 months. Unfortunately, it's not easy to get significant amount of money into this account (see post).

5.01% Reward Checking Account at a Texas Bank (Independent)

Independent Bank is offering a reward checking account that pays 5.01% APY on balances up to $25,000 and refunds ATM fees if the following monthly requirements are met:

• 8 debit card purchases
• one direct deposit or ACH debit

The minimum opening deposit is $100. There are no minimum balance requirements or monthly fees. Information about this checking account is listed in their checking comparison table (pdf).

A reader noted this account in the comments and mentioned the 5.01% APY. The bank doesn't seem to list this on the website. Another thing of note is the debit card usage requirement which is a little lower than the average requirement of 10 purchases a month.

The bank requires a branch visit to open accounts. Branches are located in several Texas cities north of Dallas/Fort Worth including Mckinney, Anna, Celina, Prosper and Sherman. The bank has been FDIC insured since 1934 (FDIC Certificate # 3076).

Thanks to the reader who mentioned this reward checking in the comments.

Other High Yield Reward Checking Accounts

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

[Edit 5/19/08: Turns out the bank does not offer the first 50 checks free.]

Survey of High Yield Stimulus CDs

I've seen several credit unions offering certificate of deposit promotions tied to the IRS stimulus tax rebate checks. Instead of having multiple posts on all of these, I thought I would just have this one post. If you've seen others that I've missed, please leave a comment.

Many of these special CDs have high yields, but they all have a small maximum deposit. The typical limit seems to be $1,200. This low maximum is the reason why I haven't reported on too many of these. But if you have a small balance, and the bank or credit union is conveniently located, the deal may be worthwhile.

To measure the value of one of these CDs, I compare it against a comparable online savings account. For today's rate environment, I'll use 3% APY as a respectable yield. I then compute how much extra someone would earn in one of these CDs compared to the savings account. Here's an example.

Assume a 5% special 3-mo CD with a maximum deposit of $1,000. Here's how I compute its value:

Interest rate advantage = 0.05 - 0.03
                        = 0.02
Extra earnings for 1yr  = $1,000 * 0.02
                        = $20
Extra earning for the
specific CD term        = (3mo/12mo) * $20
                        = $5

In the above example, you'll only earn $5 over what you would have earned if you had just kept the money in a 3% account for those 3 months. As you can see with a low maximum deposit and a short term, this kind of special CD could be more trouble than it's worth. With this in mind, below is a list of some promotional stimulus CDs that I've been able to find. All yields are based on APY. The extra amount is based on what I described above. If you've seen others, please leave a comment.

• 20% 6-Month Max $600 (extra $51) at Meridian Trust FCU. Membership open to those who live in parts of Wyoming.
• 9.00% 9-Month $2K Max (extra $90) at Elevations CU. Scheduled to end on 5/30. Located in Colorado. See my post regarding eligibility.
• 5% 12-mo $3K Max (extra $60) at Mission FCU. Membership available to those who live or work in San Diego.
• 5.09% 10-month $1.2K Max (extra $21) at Wings Financial CU. Membership limited to those involved in airline industry.
• 5.70% 7-Month $1.2K max (extra $19) at SecurityPlus FCU. Membership open to those who live in Baltimore. Credit to this FW thread
• 4.00% 7-Month ? Max (extra ?) at North Star Community CU. Membership open to those who live in parts of North Dakota
• 4.25% 18-Month $1.2 Max (extra $22.5) at Erie FCU. Contact credit union for membership info.
• 10.00% 12-Month $600 Max (extra $42) at Keys FCU. Membership open to those who live in the Florida Keys.
• 5.00% 5-Month $1.5 Max (extra $12.5) at Tucson Old Pueblo CU. Membership open to those who live in parts of Tucson.
• 5.50% 5-Month $1.2K Max (extra $12.5) at Partners 1st FCU. Membership open to those who live in parts of IN, VA, KY and MD.
• 7.00% 12-Month $1K Max (extra $40) at Patelco CU. It's a long offered new-member special rather than a stimulus CD, but it's better than many of the offers above and it allows easy membership (see post).
• 7.50% 12-Month $1K Max (extra $45) at Meriwest CU. This is also a new-member special rather than a stimulus CD (see post)

Thanks to the readers who mentioned some of these special CDs in the comments.

Updated 5/20/08: Added Meridian Trust FCU and Elevations CU to the list.

Bank Deals Weekly Summary for May 17, 2008

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

In the last few weeks there were signs that deposit rates may have bottomed. A few savings account rates had inched up, and CD rates, especially long term CD rates, were going up at several banks. There was a little bit of a pull-back this week.

Countrywide Bank reduced rates on its Savingslink account and on many CD terms. The new savingslink yield is 3.80% APY for balances over $10K (was 4.00%). Countrywide had yields over 4 percent on many of its CD terms from 12 months to 60 months. Now, the only ones above 4% are the 48 and 60-month terms which have a yield of 4.20% APY. GMAC Bank also reduced its CD rates. Most of its rate cuts were on its shorter term CDs. The largest drop was the 12-month CD rate which fell from 4.10% to 3.65% APY.

Other online banks which cut its savings account rates include Citibank, WTDirect and AmTrustDirect. Some of the banks that cut CD rates include IndyMac, Discover, and UFB Direct.

Savings Accounts Recap

The top savings account by far continues to be at AARP Financial Savings Center (see post). Its Jumbo money market account rate is still at 4.75% APY and its no-minimum savings account rate is still at 4.50% APY. AARP membership is required.

After AARP, 4% is the next highest non-promo savings account rate. The 3 institutions offering this include Alliant Credit Union, Corus Bank and Indymac Bank. My preference goes to Alliant Credit Union's savings account which has the smallest minimum balance requirement, a long history of competitive rates, and an ACH transfer system (see post).

The rate is not quite 4%, but Capital One's Online Savings Account is close at 3.75% APY. I did my first review of this account yesterday.

Certificate of Deposit Rates Recap

Even though a few banks cut their CD rates this week, several increased rates. Imperial Capital Bank did a large rate hike on its 6, 9 and 12-month terms. Its 9-month CD almost made it to the top of my 9-month CD list until I saw E-LOAN had added new CD terms. E-LOAN's new 9-month CD has a yield of 3.80% APY. E-LOAN also added 1-month and 2-month terms, but I'm not sure why anyone would choose these over E-LOAN's savings account which has a higher yield.

IndyMac reduced the rate of its 12-month internet special CD to 4.10% APY, so now Alliant Credit Union is alone on top with its 4.15% APY CD with a minimum deposit of $25,000.

National City has again extended its CD promotion. Plus, they added shorter terms to the promo. From their online website, they're now offering 5% APY on a 36-month term when you also have a checking account (4.75% without a checking). In some states the minimum term was advertised as only 30 months (see post).

Several banks continue to offer decent long term yields. With high inflation, banks are probably anticipating higher rates in the next year or two. KeyDirect is offering a 5% APY 60-month CD. Wachovia, E-LOAN and Capital One are offering 4.75% APY on their 60-month CDs.

Reward Checking Recap

I added 7 more local reward checking accounts this week (see recap below). Only one has a 6% yield. New 6% reward checking accounts are getting harder to find, but many banks and credit unions continue to maintain their 6% reward checking yield.

I added one more bank to my list of reward checking accounts available nationwide. It's Capital Bank, and its reward checking pays 5.01% APY for balances up to $25K. I first reported on this over a year ago in April 2007 (see post). So they have a fairly long history of maintaining this rate.

For a list of all reward checking accounts (including ones available nationwide), please see my new High Yield Checking website.

Banking News Recap

I first reported on the bank failure at ANB Financial on May 9th. One this blog's readers happened to be a customer of ANB Financial, and was generous to give his report of his experience and some lessons learned (see post). If you have over $100K at any one bank, make sure you review the lessons learned.

A reader just noted this recent Wall Street Journal article on ANB Financial. The article describes how brokered deposits allowed the bank to fund rapid real-estate lending which created a lot of risk.

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

Banking News

• $400,000 of Deposits at a Failed Bank, First-Hand Experience at ANB Financial

Savings and Money Market Accounts - National

• Review of Capital One's Online Savings Account
• More Nationwide Reward Checking Accounts
• iGObanking.com Launches High Interest Checking

CD Deals - National

• Update on National City's 5% CD Special - New Shorter Terms

Checking/Savings Account Bonuses

• New $200 Citibank Checking Account Promotion
• $175 New Checking Account and Credit Card Offer at NASA FCU (Easy Membership)

Reward Checking Accounts

• 5.00% Reward Checking Account at an Iowa CU (Linn Area)
• 5.25% Reward Checking Account at a Texas Bank (Alliance)
• 6.01% Reward Checking Account at an Illinois Bank (First Clover Leaf)
• 5.00% Reward Checking Account at a Pennsylvania CU (Erie General Electric)
• 5.25% Reward Checking Account at an Oklahoma CU (Communications)
• 5.13% Reward Checking Account at a Texas Bank (Legend Bank)
• 4.00% Reward Checking Account at Bancorp South

CD and Money Market Deals - Local

• 4.25% 36-Month CD at a Texas Bank (Highlands)
• 3.70% 6-Month CD at a Tampa Florida Bank (Pilot)
• 4.01% 13-Month CD at a Florida Panhandle Bank (First City).
• 3.70% 7-Month CD at a CA/NY Credit Union - plus a Savings Account Promo (First Entertainment)
• 4.06% 24-Month / 3.80% 12-Month CD at a Maryland CU (Oldham Family Alliance)
• 4.00% 24-Month CD at a Florida Bank (Riverside)
• 4.10% 18-Month CD at a North Carolina CU (NewBridge)
• 4.00% 6-Month / 4.00% 12-Month CD at a Missouri Bank (St. Louis)

The rates listed below are based on Annual Percentage Yield (APY). No minimum balances are required unless noted. MMA next to the rates indicate a money market account. Most MMAs have check writing and ATM cards. Online savings accounts usually lack both of these. The top lists include banks and credit unions with broad availability and with minimums around $10K or less. Previous weekly summaries are available for May 10th, May 3rd, Apr 26th, Apr 19th, Apr 12th, Apr 5th, Mar 29th, Mar 22nd and Mar 15th.

Quick Links: Refer to the following links for the savings accounts and CDs that interest you: Liquid Account Rates: Savings Accounts, Reward Checking, Local checking/savings, 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 May 17, 2008

Checking/Savings/Money Market Accounts:

• High Yield Reward Checking Accounts Around the Nation
• Checking/Savings Account Bonuses
• Latest CD and Savings Account Deals with No Major Deposit Limitiations

• AARP Financial Savings Center - 4.50%, AARP membership req, account review
• EverBank - 4.01% ($1.5K min), 3mo promo, account review
• Indymac Bank - 4.00% (E-Money Market) (min $1K) account review
• Corus Bank - 4.00% MMA (min $10K) account review
• Alliant Credit Union - 4.00% (min $100) account review
• SmartyPig - 3.90% (min $25) access restrictions, account review
• Countrywide - 3.80% (min $10K), account review
• Capital One - 3.75% (Savings) (min $10K) account review
• Provident Direct - 3.75%, account review
• E-LOAN - 3.75%, new account promo, ($5K min), account review
• Flagstar - 3.65% MMA, account review
• OneUnited - 3.60% (min $1K), account review ($50 bonus)
• Century Bank Direct - 3.57% MMA (min $1K) account review
• OnBank - 3.49%, account review
• Bank of Internet - 3.46% MMA (min $100) account review
• Century Bank Direct - 3.41% (min $100) account review
• UmbrellaBank - 3.40% MMA (min $1K), account review
• Bank of Internet - 3.40% Checking, for those 50+, account review
• Nationwide Bank - 3.40% MMA (min $1K) account review
• Amegy Bank - 3.35% (min $10K) account review
• Century Bank Direct - 3.35% Checking (min $100) account review
• GCF Bank - 3.34% (min $100), 3-mo promo, account review
• ShoreBank - 3.30%, account review
• Washington Mutual - 3.30% (requires checking), account review
• iGObanking - 3.28%, account review
• Doral Bank Direct - 3.25% (min $1K) account review
• M&T Bank - 3.25%, account review
• FNBO Direct - 3.25%, account review
• Amboy Direct - 3.25% (min $3K) (eSavings) account review
• Beverly National Bank - 3.25% (min $5K) account review
• CapitalOne/Costco - 3.20% MMA (min $1K, Costco members only, $50 deal for exec. members)
• WTDirect - 3.16% ($10K min), account review
• ETrade Bank - 3.15%, post ($25 bonus)
• Savings Square - 3.05%, account review
• AmboyDirect - 3.05% (Premium Savings) post ($25 bonus)
• Heartland Bank Direct - 3.05%, ($500 min), account review
• HSBC Direct - 3.05%, account review
• Discover Bank - 3.04% MMA (min $2.5K) (3.14% for $50K+) account & bonus review
• BankUnited - 3.00% (min $5K), account review
• E-LOAN - 3.01% ($5K min), account review
• FirstFedDirect - 3.01% (min $1K) (closed to CA residents), account review
• UFB Direct - 3.01%, account review
• KeyDirect - 3.00% MMA (min $50), Not all states, account review
• Capital One - 3.00% MMA, account review
• Imperial Capital - 3.00% MMA ($2.5K min) (3.65% for $100K+) account review
• Salem Five Direct - 3.00% Checking (3.50% $100K+), account review
• GMAC Bank - 3.00% MMA (min $500), account review
• Transportation Alliance Bank - 3.00%, ($25 min), account review
• Indymac Bank - 3.00% MMA (min $25K) (4.00% $75K+) account review
• ING Direct - 3.00%, (1.75% checking), post ($25 bonus)
• UnivestDirect - 3.00%, (1.75% checking), account review
• AmTrustDirect - 3.00% (e-Savings) account review
• MetLife Bank - 2.85% MMA (min $10K), post ($50 bonus)
• PFF Bank and Trust - 2.85% (min $1K), account review
• EverBank - 2.76% MMA ($1.5K min) account review
• Mutual Bank - 2.75% MMA (min $5K), account review
• EmigrantDirect - 2.75%, account review
• BancoFortuna.com - 2.75%, account review
• grand yield direct - 2.75% (min $2.5K) account review
• Direct Huntington - 2.70% ($10K min) (3.00% $100K+), account review
• Citibank - 2.65% (Ultimate Money) requires chking & bill pay, account review
• Self-Help Credit Union - 2.61% MMA (min $500), account review
• Presidential Bank - 2.60% (min $5K, only first $35K receives this rate), offers 2.00% checking, account review
• Zions Bank - 2.53% MMA, outside of Utah, (min $2.5K) (3.05% $50K+, 3.25% $100K+), account review
• Melrose CU - 2.52% (min $25) account review
• Rainier Pacific - 2.50% MMA account review
• MyBankingDirect - 2.50% MMA (min $5K), account review
• Bank of America DoW - 2.45% MMA (min $5K) (2.55% for $100K+), account review
• Bank of America NEA - 2.22% MMA ($500 min) (2.48% for $50K+) account review
• Charles Schwab - 2.01% Checking, account review
• AmTrustDirect - 2.00% (e-Money Market) (2.25% $25K+, 2.50% $50K+) account review
• Tennessee Commerce Bank - 1.88% (min $10K), account review
• VirtualBank - 1.77% (min $100), (2.53% $50K+/ 2.79% $100K+) post ($20 bonus)
• ebank - 1.75% MMA ($10K min) (2.50% for $100K+), account review

3-Month Certificates of Deposit:

• E-LOAN - 3.51% ($10K min), account review
• GMAC Bank - 3.35% (min $500), account review
• Imperial Capital - 3.30%, ($2K min), account review
• ebank - 3.25% (min $1K), 3.50% for ePremium checking customers
• Countrywide - 3.25% (min $10K), account review
• UmbrellaBank - 3.25% (min $1K)
• FirstFedDirect - 3.01% (min $10K), account review
• VirtualBank - 2.99% (min $10K), account review
• EverBank - 2.78% ($1.5K min)
• Self-Help Credit Union - 2.76% (min $500), account review
• ETrade Bank - 2.70% (min $1K), account review
• Element Financial - 2.70% (min $10K), account review
• UFB Direct - 2.70% (min $8K)
• National Bank of KC - 2.50% (min $10K), account review
• IndyMac Bank - 2.50% (min $5K), account review

6-Month Certificates of Deposit:

• Christian Community CU - 4.00% (7-mo) (min $500) not NCUA insured (ASI only) account review
• Corus Bank - 3.75% (min $10K) account review
• Ascencia Bank - 3.66% (min $500), account review
• E-LOAN - 3.66% ($10K min), account review
• Countrywide - 3.65% (min $10K), account review
• Imperial Capital - 3.50% ($2K min), account review
• Tennessee Commerce Bank - 3.50% (min $5K)
• Doral Bank Direct - 3.50% (min $1K) account review