UFB Direct No-Min Savings Account: 4.50%, Jumbo: 4.73% read and submit comments for this post

UFB Direct has raised rates on both its no-minimum High Yield Money Market Savings account and its Jumbo Money Market Account. The no-min savings account increased from 4.30% to 4.50% APY. The Jumbo MMA increased from 4.65% to 4.73% APY.

UFB Direct has been busy this month in raising rates. In early February the Jumbo MMA rate was increased from 4.50% to 4.60% APY, and it went up to 4.65% last Thursday. On February 15th, the no-min Savings account increased from 4.00% to 4.30% APY.

The last quarter of last year UFB Direct's no-min savings account had been stuck at 3.80% APY. It was finally raised to 4.00% APY at the start of this year.

A few positives about UFB Direct include:

• An ATM card comes with both of these money market accounts and UFB Direct will reimburse you up to $4.50 per statement for ATM charges by other banks.
• UFB Direct offers a Free Checking account.

Some negatives include:

• No ACH transfer system for bank-to-bank transfers (see ways to make deposits).
• Bankrate.com rating of only 2 out of 5 stars (below industry average in financial condition).

Last year UFB Direct even offered a $25 signup bonus. Perhaps it'll offer a new sign-up bonus sometime this year. So if it's not quite good enough to join now, you may want to keep an eye on it.

5.25% 24-Month / 5.05% 12-Month CD at a New York Bank read and submit comments for this post

The State Bank of Long Island is offering some nice yields on its long term CDs which includes a 5.25% APY 24-month CD and a 5.05% APY 12-month CD. Below is the full list:

Term               Rate       APY
12 to 23 Months    4.93%      5.05%
24 to 59 Months    5.12%      5.25%
60 Months          5.16%      5.30%

These certificates of deposit all have a minimum deposit requirement of $2.5K. They are also available in an IRA account with only a $500 minimum.

State Bank of Long Island has 16 branches in Queens, Nassau and Suffolk, New York.

Are CDs Worthwhile Now? read and submit comments for this post

With savings accounts paying up to 4.80% now and rates likely to increase at least for the next few months, should one consider a CD? At what rate and term would a CD make sense? The main disadvantage of a CD is locking your money for a specific time. One has to be willing to sacrifice liquidity for better rates. But with long-term rates so low, will you be better off with a high yield savings accounts even without considering liquidity?

Here's a quick rule of thumb to see if a certificate of deposit is worthwhile. Take the average of the current interest rate of your savings account and the predicted rate of the savings account when the CD would mature. If the current CD rate isn't above this, you would be better off keeping your money in the savings account.

The problem is that you have to take a guess what the savings account rate is going to be when the CD matures. For terms of over one year, this can be difficult. Refer to my chart comparing saving account rates with the Fed funds rate over the last year. You can see that the savings account rates have followed Fed funds rate fairly consistently. This website has the history of the Fed funds rate since 1990. It looks very likely that we'll see the Fed funds rate increase to 4.75% in the March 28th meeting, and it's starting to look more likely that the rate will increase to 5.00% in the Fed's May 10th meeting.

Here's an example of applying this CD rule of thumb:

Last April I opened a 11-month CD paying 3.75% APY. That may look like a mistake now, but compare this to what would have happened if I had kept the money in EmigrantDirect:

EmigrantDirect rate changes over the last 11 months:
April rate = 3.25%
July 20th  = 3.50%
Sept 20th  = 4.00%
Jan  26th  = 4.25%
Assume rate remains the same into March

The average APY can be computed as follows:
3 months at 3.25%
2 months at 3.50%
4 months at 4.00%
2 months at 4.25%
Average =   3.75%

So in this example, the 3.75% APY 11-month CD that started last April approximately equaled the money earned from an EmigrantDirect savings account. Also note that the actual EmigrantDirect average equals the average of the initial and ending APY (3.75%).

Future Example

So in the previous post, I noted a 5.50% 18-month CD from a credit union in Washington State. Is this term too long? First assume you don't care about liquidity. Next, try to estimate what the interest rates of savings accounts will be 18 months from now. I would take a guess at 6.00%. Assume you keep your money in HSBC's online savings account and the rate doesn't drop in May. Then the average rate by keeping your money in HSBC would be 5.40% over the next 18-months. So in this case a 5.50% 18-month CD may make you more money.

5% 3-Month CD (and other terms) at a Texas Bank read and submit comments for this post

First National Bank Southwest is offering a special called Pick-Your-Term CDs. A CD APY of 5.00% can be applied to any of their CD terms which includes 3 months, 6 months, 9 months and all the way up to 60 months. The minimum deposit is $500. Offer expires 3/31/06.

This certificate special is not listed at the bank's website, but was advertised in the February 26, 2006 edition of the Dallas Morning News. The ad is also available online here.

The bank has three branches in the suburbs of Dallas.

5.50% 18-Month CD at a Washington State CU read and submit comments for this post

Cascade Forest Products Credit Union is offering a 5.50% APY 18-month CD. The minimum deposit is $1000. This certificate special is for a limited only.

The credit union's field of membership includes all those who live, work or worship in the State of Washington.

This is a small credit union with just one branch in Vancouver, Washington. Membership and account applications are available online and can be mailed or faxed.

The credit union is NCUA insured with just $8.3M in assets and about 2,200 members. Credit goes to eMoneyCentral for finding this deal.

$50 Checking Account Bonus at a Missouri Bank read and submit comments for this post

The First National Bank of St. Louis is offering a $50 gift card for opening a free checking account. The minimum to open an account is $50, but there is no minimum balance required to receive the incentive. The offer expires 3/31/2006. This promotion is not listed at the bank's website. An ad was published in the February 21, 2006 edition of the St. Louis Post-Dispatch newspaper, and is available online here.

The nice thing about this checking account deal is that there's no direct deposit or bill pay requirement. The Free Checking Account has no minimum balance requirements and no monthly fees. However, if you get the debit card, you have to make at least 6 transactions a month to avoid a $2 per month fee.

The bank has 10 branches in St. Louis and in other Missouri cities.

5% 3-Month Intro Rate on a Money Market Account read and submit comments for this post

The Dime Savings Bank of Williamsburgh is offering an introductory 3-month APY of 5% on its Reward Money Market account. The 5% APY is good for 3 months after the account is opened and is good on balances up to $250K. There is no minimum requirement. Here's the link to the promotional page. A promotional code is 1147857. Credit for this deal goes to FW member bksavings who posted this deal on this FW thread.

It should be noted that Dime Savings' regular rates on this money market account are rather low especially for balances under $25K which is currently only 1.10% APY.

It's not known if this is open to out-of-state customers. The Dime Savings Bank has branches throughout the Greater New York metropolitan area.

Bank Deal Summary for Feb 25, 2006 read and submit comments for this post

The list of banks with money market rates above 4.50% continues to grow. GMAC Bank raised its money market account today to 4.60% APY. The number of banks with 1-year 5%+ CDs also continues to grow. Bankrate.com now lists 8 banks in this category. The latest is Countrywide Bank with a 5% 12-month CD. In my list, the Self-Help Credit Union broke 5% on the 12-month CD. Its current APY is 5.01%. Hopefully, this will last longer than the last time it broke through 5% back in December. GMAC Bank and Corus Bank both raised their 1-year CD rates. Corus Bank is now at 5.09% and GMAC Bank is at 5.05% APY. VirtualBank continues to be on top with its 12-month 5.10% APY CD.

We are also seeing more promotional short-term CDs with rates over 5%. World Savings Bank quietly introduced its liquid internet 5.01% 5-month CD (see post).

There were many impressive local CD deals this week. The best is a 6% 6-month CD and an 7% 12-month IRA CD at First Reliance Bank in South Carolina (see post). Another good deal is at a Neveda bank which is offering a 5.50% 17-month CD (see post). A Tennessee Bank is offering 5.07% on a 5-month CD (see post), and a New Jersey bank is offering a 5% 5-Month CD (see post). As is typical, most of these local specials are only for a limited time. If you find one that has already expired, please leave a comment.

Thanks to all who have helped by leaving comments or sending emails on rate updates. Sorry I can't include all of the best rates in this summary.

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. Previous weekly summaries are available for Feb 18th, Feb 11th, Feb 4th, Jan 28th, Jan 21st and Jan 14th.

As of February 25, 2006

Savings/Money Market Accounts:

• HSBC - 4.80%, offers checking, (rate history), my post ($25 bonus)
• VirtualBank - 4.60% (min $100), offers checking, my post ($20 bonus)
• GMAC Bank - 4.60% MMA (min $500), offers checking, my post
• UmbrellaBank.com - 4.60% MMA (min $1K), offers checking, my post
• Corus Bank - 4.54% MMA (min $10K to open)
• Presidential - 4.37% (min $5K, only first $35K receives this rate), offers checking, my post
• UFB Direct - 4.30% MMA, offers checking, my post
• CapitalOne/Costco - 4.30% MMA (min $5K, Costco members only, $50 deal for exec. members)
• MyBankingDirect - 4.30% MMA (min $5K), my post
• EmigrantDirect - 4.25%, my post, ($10 signup bonus), (rate history)
• Western Financial Bank - 4.25% MMA, offers checking, my post
• FirstFedDirect - 4.25% (closed to CA residents), my post
• Self-Help Credit Union - 4.15% MMA (min $500), my post
• CapitalOne - 4.00% (MMA has same rate, but with checks and ATM. $100 min.)
• MetLife Bank - 4.00% MMA (min $5K), my post ($50 bonus)
• ING Direct - 3.80%, my post (4.75% promo and $25 bonus), (rate history)
• NetBank - 3.52% MMA ($500 min), requires checking, my post ($175 deal)
• ebank - 3.50% MMA ($1K min, rate for $10K-25K balance), offers checking

6-Month Certificates of Deposit:

• World Savings - 5.01% (5-month) (min $5K), new funds only, my post
• VirtualBank - 4.80% (min $10K), my post ($20 bonus)
• Corus Bank - 4.80% (min $10K)
• GMAC Bank - 4.80% (min $500)
• ETrade Bank - 4.75% (min $1K), my post
• UmbrellaBank.com - 4.75% (min $1K)
• NetBank - 4.60% (min $1K)
• FirstFedDirect - 4.60% (min $10K), my post
• Self-Help Credit Union - 4.58% (min $500), my post
• Western Financial Bank - 4.50% ($100 min)
• ebank - 4.50% (min $1K), 4.75% for ePremium checking customers
• MetLife Bank - 4.50% ($1K min)
• UFB Direct - 4.40% (min $8K)
• MyBankingDirect - 4.35% (7-month term) ($500 min)
• ING Direct - 4.20%

8-Month Certificate of Deposit:

World Savings - 4.76% ($10K min with new funds), my post

12-Month Certificates of Deposit:

• VirtualBank - 5.10% (min $10K), my post ($20 bonus)
• Corus Bank - 5.09% (min $10K)
• GMAC Bank - 5.05% (min $500)
• UmbrellaBank.com - 5.05% (min $1K)
• Self-Help Credit Union - 5.01% (min $500), my post
• Pacific Mercantile Bank - 4.92% (min $10K), my post
• FirstFedDirect - 4.90%, (min $10K) my post
• NetBank - 4.90% (min $1K), my post (iPod/$50 bonuses)
• ETrade Bank - 4.80% (min $1K), my post
• ebank - 4.75% (min $1K), 5.00% for ePremium checking customers
• MetLife Bank - 4.75% ($1K min)
• Western Financial Bank - 4.60% ($100 min)
• ING Direct - 4.40%
• UFB Direct - 4.40% (min $8K)

18-Month Certificates of Deposit:

• Pacific Mercantile Bank - 5.02% (min $10K), my post
• CapitalOne/Costco - 5.00% (min $5K, Costco members only)

26-Month Certificate of Deposit:

• Third Federal - 5.10% (min $500) my post

36-Month Certificate of Deposit:

• Pentagon Federal CU - 5.50% (min $1K), my post
• Self-Help Credit Union - 5.22% (min $500), my post
• GMAC Bank - 5.05% (min $500)

60-Month Certificate of Deposit:

• Pentagon Federal CU - 5.75% (min $1K), my post
• Self-Help Credit Union - 5.21% (min $500), my post
• Pacific Mercantile Bank - 5.13% (min $10K), my post
• GMAC Bank - 5.10% (min $500)

84-Month Certificate of Deposit:

• Pentagon Federal CU - 6.00% (min $1K), my post

High Rates with Conditions - Open to All

• 10% Savings Account for kids ($500 max)
• 5.01% 3-month intro rate on checking account
• 5.00% Money Market with $30K (3-month intro rate)
• 4.78% Money Market with $50K min
• 4.65% Money Market with $50K min
• 4.55% Money Market with $25K min
• 4.50% Money Market with $25K min
• 4.00% checking account (CU that's open to all)

Checking and Saving Accounts at Local Credit Unions

• 4.75% no-minimum savings account (New York)
• 4.50% money market account, $25K min (Pennsylvania)

CD Specials at Local Credit Unions/Banks Over the Last Two Months

Terms of 60 Months and Over

• 6.66% 62-Month CD at a Pennsylvania CU
• 6.40% 60-Month CD at a South Carolina CU
• 6.25% 60-Month CD at a Carolina CU
• 5.80% 60-Month CD at a Virginia CU
• 5.75% 72-Month CD at a CU
• 5.66% 60-Month CD at a South Carolina CU
• 5.63% 60-Month CD at a Texas CU
• 5.50% 60-Month CD at a CU
• 5.45% 60-Month CD at a Massachusetts CU
• 5.38% 60-Month CD at a Utah CU
• 5.25% 60-Month CD at a PA CU

Terms of 24 Months to Under 60 Months

• 5.50% 55-Month CD at a California CU
• 5.25% 24-Month CD at a Florida Bank
• 5.12% 24-Month CD at a Texas CU
• 5.10% 25-Month CD at a Illinois Bank
• 5.03% 25-Month CD at a Florida Bank
• 5.00% 29-Month CD at a Pennsylvania CU
• 5.00% 24-Month CD at a Michigan Bank
• 5.00% 30-Month CD at a Wisconsin Bank
• 5.00% 27-Month CD at a Ohio CU
• 5.00% 30-Month CD at a Florida CU

Terms of 12 Months to Under 24 Months

• 5.5% 17-Month CD at a Nevada Bank
• 5.50% 12-Month CD at a Ohio CU
• 5.30% 15-Month CD at a Ohio CU
• 5.25% 19-Month CD at a OH/KY Bank
• 5.25% 17-Month CD at a Wyoming CU
• 5.25% 13-Month CD at a Minnesota CU
• 5.19% 12-Month CD at a North Carolina Institution
• 5.15% 19-Month CD at a Ohio CU
• 5.15% 12-Month CD at a Michigan CU
• 5.15% 12-Month CD at a Georgia Bank
• 5.09% 12-Month CD at a Ohio CU
• 5.09% 14-Month CD at a Pennsylvania CU
• 5.05% 15-Month CD at a Georgia Bank
• 5.05% 13-Month CD at a CA CU (Open to All)
• 5.05% 13-Month CD at a Florida Bank
• 5.02% 13-Month CD at a Florida Bank
• 5.00% 15-Month CD at a Connecticut CU
• 5.00% 12-Month CD at a Florida Bank
• 5.00% 12-Month CD at a Illinois Bank
• 5.00% 15-Month CD at a Florida Bank
• 5.00% 15-Month CD at a Chicago Bank
• 5.00% 16-Month CD at a New York CU
• 5.00% 13-Month CD at a California CU
• 5.00% 12-Month CD at a Pennsylvania CU
• 5.00% 15-Month CD at a Texas Bank
• 5.00% 12-Month CD at a Georgia Bank
• 5.00% 12-Month CD at a Washington State CU
• 5.00% 15-Month CD at a OH/KY Bank
• 5.00% 12-Month CD at a Wisconsin/Illinois CU
• 5.00% 19-Month CD at a Tennessee CU
• 5.00% 13-Month CD at a Georgia Bank
• 5.00% 12-Month CD at a Western Bank
• 5.00% 13-Month CD at a South Carolina Bank
• 5.00% 13-Month CD at a Georgia Bank
• 5.00% 18-Month CD at a Ohio Bank
• 5.00% 12-Month CD at a Georgia Bank
• 4.85% 12-Month CD at a Texas Bank
• 4.75% 12-Month CD at a Dallas Bank

Terms of Under 12 Months

• 6.00% 6-Month CD at a South Carolina Bank
• 5.36% 7-Month CD at a Tennessee Bank
• 5.25% 3-Month CD at a Florida CU
• 5.20% 8-Month CD at a Missouri Bank
• 5.15% 11-Month CD at a Georgia CU
• 5.13% 6-Month CD at a Oregon CU
• 5.07% 5-Month CD at a Tennessee Bank
• 5.01% 6-Month CD at a Florida CU
• 5.00% 10-Month CD at a Michigan CU
• 5.00% 7-Month CD at a Missouri Bank
• 5.00% 5-Month CD at a Northeast Bank
• 5.00% 11-Month CD at a Kansas CU
• 5.00% 5-Month CD at a Wisconsin CU
• 5.00% 6-Month CD at a Michigan CU
• 5.00% 11-Month CD at a Massachusetts CU
• 5.00% 5-Month CD at a New Jersey Bank
• 5.00% 3-Month CD at a Ohio Bank
• 5.00% 6-Month CD at a Missouri Bank
• 4.95% 7-Month CD at a California CU
• 4.90% 9-Month CD at a Chicago Bank
• 4.90% 8-Month CD at a AZ/TX CU
• 4.85% 7-Month CD at a Georgia Bank
• 4.75% 9-Month CD at a New Jersey Bank
• 4.70% 7-Month CD at a Georgia Bank
• 4.70% 11-Month CD at a Nebraska CU
• 4.65% 7-Month CD at a New Jersey Bank Branch

5% 6-Month CD at a Missouri Bank read and submit comments for this post

St. Louis Bank is offering a 5.00% APY CD. Available terms are from 6 to 11 months. There's a $10K minimum deposit. This special is for a limited time and is not currently listed at the bank's website. The special is described in an ad that was published in the February 25, 2006 edition of the the St. Louis Post-Dispatch, and is available online here.

St. Louis Bank's main location is in Town and Country, Missouri. The bank has several other locations throughout Missouri.

$100 Checking Account Bonus at a Northwestern Bank read and submit comments for this post

Umpqua Bank is offering a $100 12-month CD for opening a free personal checking account. The checking account is free of monthly service charges and has free bill pay. The minimum to open is $250. There is a $100 closing fee if closed prior to one year from the opening date. The free certificate of deposit will be given to customer at account opening. There are also other specials being advertised including special CD rates, home equity line of credit and business checking. These specials are not listed at the bank's website. Instead they were published in the February 23, 2006 edition of the Seattle Times Newspaper. The ad is available online here.

Umpqua Bank has branches up and down the I-5 corridor from Washington State, throughout Oregon and into Northern California.

5.15% 12-Month CD at a Georgia Bank read and submit comments for this post

Sea Island Bank is having an anniversary special that includes a 5.15% 12-month CD or IRA. There's a minimum deposit of $5K and the offer is for a limited time only. The special also includes a 4.15% premium money market account but it requires $10K deposit. Balances under $10K are hit with a $20 monthly maintenance charge. These specials are not listed at the bank's website, but were advertised in the February 24, 2006 edition of the Savannah Morning News newspaper. The ad is available online here.

Sea Island Bank has branches in the Georgia cities of Savannah, Metter and Statesboro.

6.00% 6-Month CD at a South Carolina Bank read and submit comments for this post

First Reliance Bank is offering two CD specials as part of its Spirit of 76 Presidents' Day sale. The first is a 7.00% APY 12-month IRA CD and the second is a 6.00% APY 6-month regular CD. The minimum deposit is $500 and there's a maximum deposit limit of $50K per household. These promotional certificates are not listed at the bank's website, but were advertised in the February 25, 2006 edition of The State newspaper. The ad is available online here.

The promotion may be withdrawn without notice and is limited to residents within the bank's defined market area. The bank has four branches in the South Carolina cities of Charleston, Mt. Pleasant, Florence and Lexington.

On a side note, one nice perk that I noticed on the bank's home page was a free coin counter that's free for everyone.

GMAC Bank Raises Money Market Account to 4.60% read and submit comments for this post

GMAC Bank just raised the APY of its Money Market Savings account from 4.30% to 4.60%. I was surprised it took GMAC so long to make this latest rate increase. The last rate increase was done in December 10th when GMAC raised the money market APY from 4.10% to 4.30%. In the last five months, GMAC's money market rates have increased by 1.15% (from 3.45% to 4.60%). Before October, GMAC Bank had been in the bottom of the money market rate leaders. But since then, GMAC has remained very competitive.

Even though there has been some concerns with GMAC Bank, I see it praised for its quick and easy account opening and transfering of funds. Unlike HSBC, there are no days of lost interest.

GMAC Bank also made some modest increases to its short term CD rates. The 6-month CD increased from 4.75% to 4.80% APY. The 12-month CD increased from 5.00% to 5.05% APY. One thing I noted from the FW thread is that GMAC doesn't allow funding a CD from the money market account. The online options for funding a CD only include an ACH from a linked checking account, wire transfer or mail a check with a deposit slip.

Below are all of the latest certificate of deposit rates:

CD Term    Rate     APY     Previous APY
3 months   4.35%    4.45%   4.40%
6 months   4.69%    4.80%   4.75%
9 months   4.71%    4.82%   4.75%
12 months  4.93%    5.05%   5.00%
18 months  4.93%    5.05%   5.00%
2 years    4.93%    5.05%   no change
3 years    4.93%    5.05%   no change
4 years    4.93%    5.05%   no change
5 years    4.97%    5.10%   no change

5.05% 13-Month CD at a Florida Bank read and submit comments for this post

Old Florida Bank is offering a 5.05% APY 13-Month CD. It also has 5-percent-plus yields on all of its CDs with terms of 1-year and over: 5% 1-year, 5.10% 2-year, 5.15% 3-year, 5.20% 4-year and 5.25% 5-year. IRA certificates also have similar rates.

The bank has offices in Fort Myers, Naples, Bonita Springs and Cape Coral, Florida.

$100+ Checking Account Bonus at Bank of NY read and submit comments for this post

This Free-For-Life Checking promotion seems to be a long running promotion at the Bank of New York. I first reported on it back in October when the deal was scheduled to last through the end of the year. I saw from this SlickDeals thread that the expiration date is now March 4th. You can get the first $50 by signing up for direct deposit. An additional $25 bonus for using your debit card and $25 for paying your bills online. There's another $25 bonus, but it shouldn't really be considered part of this checking account bonus.

Refer to the promo page for the details.

The Bank of New York has branches in New York, New Jersey and Connecticut.

5.66% 60-Month CD at a South Carolina CU read and submit comments for this post

SAFE Federal Credit Union is offering some long term CD rates that are even better than rates being offered by Penfed (see post). The 5-year CD with a $50K minimum deposit pays 5.66% APY. The APY is as high as 5.77% with a $100K minimum. Below is the full list of the long term certificate rates:

Term       APY for Minimums of
           $1K    $50K   $100K  
18-months  4.50%  4.76%  4.86%
24-months  4.55%  4.81%  4.92%
30-months  4.55%  4.81%  4.92%
36-months  4.75%  5.01%  5.12%
48-months  5.25%  5.52%  5.62%
60-months  5.40%  5.66%  5.77%

The credit union also offers IRA certificates of deposit with rates beteween 0.25% and 0.40% higher than these.

The field of membership includes those who live in the following South Carolina counties: Lee, Clarendon, Sumter, Kershaw, Florence, Richland and Lexington.

The credit union has branches in the South Carolina cities of Sumter, Bishopville, Camden, Columbia, Florence and Lexington.

SAFE Federal Credit Union is NCUA insured and has assets over $451M with over 96,000 members.

5.01% 5-Month CD at World Savings Bank read and submit comments for this post

World Savings is offering a 5.01% APY 5-month liquid internet certificate of deposit. The liquid feature allows you to make deposits and withdrawals of at least $500 without penalties if the balance remains above $5K. There is a limit of $100K balance per household and it's for personal accounts only. Here's the link to the promotional page.

This CD is available to everyone. The application can be submitted online. The account can then be funded by either mailing a check or brining your deposit to a World Savings branch.

Credit for finding this deal goes to FW member link626 who posted it on this FW thread.

VirtualBank's Money Market Account Referral System is Back Up read and submit comments for this post

As I mentioned in this previous post, VirtualBank was upgrading their referral system and this took it down since late Friday. I'm happy to report that it's back up and running. I've just sent out referrals to all those who've requested them since Friday. Please let me know if you haven't received them.

Several people have asked good questions about VirtualBank and this eMoney Market Account. So I thought it would be useful to provide some more important details (both the good and the bad):

• 4.60% APY for any balance
• $100 minimum to open
• To open an account at VirtualBank, you must be a U.S. citizen or resident alien with a valid social security number.
• There are no monthly fees if you go under $100. It seems from their disclosure that you can go as low as $0.01 in balance without account closure or monthly fees.
• It really should be called a savings account since it doesn't have check writing. It's intended to be linked to an external checking account in which you use to deposit or withdraw money.
• After the first account linkage, you do need to send in a check to create an additional link. They allow up to 4 linked checking accounts.
• There's a $50 fee if you close the account within 90 days. There doesn't seem to be any closure fee after that.
• VirtualBank places a 10 business day hold on deposits made in the first 30 days. So you cannot withdraw during this time. After these 30 days, the hold is 3 business days.
• After 12 months of inactivity, VirtualBank starts charging a $5/month fee.
• CDs can be funded with money from the eMoney Market account. Current 1-year CD rate is 5.10% APY. See this post for more info on opening VirtualBank CDs.

Sign-Up Bonus Referral Program

Here are the details about the referral program:

• You can refer up to 50 friends to open eMoney Market accounts.
• Each friend that opens an eMoney Market account earns $20.
• You then earn $20 for each friend who opens an account.
• You can earn up to $1000.

If you would like a referral, please email me your first and last name to bankdeals@gmail.com

For more information, refer to VirtualBank's eMoney Market page, the FAQ page and the Rate and Fee Schedule at the Forms and Disclosures page.

5.38% 60-Month CD at a Utah CU read and submit comments for this post

Family First Federal Credit Union is offering a 5.38% APY 5-year CD. There's a $500 minimum deposit requirement.

One nice thing about this CD is that it only has a 90-day interest penalty for early withdrawal. Certificates with terms over 12-months typcially have penalties of 6 months. This can make a big difference if you have to make an early withdrawal. For example, the effective interest rate at 3 years with an early withdrawal is about 4.93%. If the penalty were 6 months, the effective interest rate would be about 4.48%.

The credit union's field of membership includes anyone who lives, works or attends school in Utah County. Utah County is located 44 miles south of Salt Lake City. The County Seat is the city of Provo.

The credit union has 4 branches and is NCUA insured with over $131M in assets and over 25,000 members.

Nationally Available 5-year CDs

The best nationally available 5-year CD listed at Bankrate.com is 5.15% APY at KeyDirect (available in 37 states). Penfed Credit Union continues to offer a 5.75% APY 5-year CD. It has a $1K minimum and a 180-day interest penalty for early withdrawals. Note, Penfed is available to all. See post.

$50 Bonus for Checking Account in a Wisconsin CU read and submit comments for this post

Here's another Wisconsin checking account bonus. Royal Credit Union (RCU) is offering $50 for opening a new checking account with no direct deposit requirement. A $50 fee will be assessed if account is closed within six months. Offer expires 4/15/06.

You can also get up to $10 for turning in old checks (10 cents per check).

The RCU Free Checking has unlimited check writing with no minimum balance or monthly service fees. However there is a $1/month fee for the Check and ATM card. The Checking Plus offers a free Check and ATM card with no minimum balance or monthly fees. However, over 15 checks per month incur a 30 cent per check fee.

The field of membership includes anyone living or working in 18 counties of western Wisconsin.

The credit union is NCUA insured with $734M in assets and over 102,000 members.

$50 Bonus for Checking Account in a Wisconsin Bank read and submit comments for this post

AnchorBank is offering $50 for opening its Convenience Checking. The checking account has no monthly fees with either direct deposit, a $500 balance or if you're over 55. The checking account can be opened with $100. Offer is for a limited time. Credit for finding this deal goes to this FW thread.

AnchorBank is based in Madison, Wisconsin and has 50 locations throughout Wisconsin.

CPI Up More than Expected - Impact to Savings Accounts and I Bonds read and submit comments for this post

The Labor Department reported today that the Consumer Price Index (CPI) rose 0.7% last month which was larger than the 0.5% increase most economists had been expecting. However, 70% of this increase was due to higher energy costs. The core rate which excludes energy and food was 0.2% which was in line with expectations.

Impact to Savings Account Rates

Many analysts are predicting the Fed will raise the Fed Funds rate at its meetings in March and May. The rate hikes are expected to end after that.

With today's news, rate hikes in March and May look likely. If these conditions continue, perhaps HSBC will keep its Online Savings account rate at 4.80% past April. I doubt ING Direct will keep its 4.75% promo. However, I would expect the standard rate would finally make it above 4%. If EmigrantDirect wants to keep its title as America's highest savings account rate, it should be looking towards an increase to 5%. Perhaps Emigrant will surprise us in March.

Impact to Series I US Savings Bonds

Even with the 0.7% gain in the CPI-U in January, the current CPI-U level (198.3) is still under what it was in September 2005 (198.8). This is important to those who invest in I Bonds since the inflation component is based on the difference between the March and September CPI-U levels. The March index will be announced on April 19. If this isn't over September's level, than the I Bond inflation component announced in May will be negative. Those who purchased I Bonds in November could see their 6.73% returns that they're receiving now fall to below 1%.

However, it's probably unlikely that CPI-U will be flat in February and March. If February and March match January in the gain to the CPI-U, this would result in a March CPI-U level of 201.9 and would result in the inflation component of the I Bonds issued starting May 1st to be about 3.12%. If the fixed rate component remains the same at 1.0%, the combined interest rate would be about 4.12%.

I think it's unlikely that the fixed rate will remain at 1.0% in May. The lower the inflation component, the better chance at a higher fixed rate component. Since the Treasury lowered the fixed rate last November (1.2% to 1.0%) to counteract the very high inflation component, I hope (and anticipate) that it'll do the opposite in May.

If the inflation component is 2% or less, I think there's a good chance that the fixed rate component will be increaed to 2%. If the inflation component is around 3%, I think it's likely that the fixed rate will increase to at least 1.5%. Without a rise in the fixed rate, I Bonds will look very unattractive compared to savings accounts which may be near 5% by May. For those considering I Bonds for the long term, I would recommend keeping your cash in HSBC's 4.80% savings account and waiting for the new I Bond rates to come out in May.

For more info on I Bonds, please refer to this previous post.

Info on VirtualBank Money Market Account Referrals read and submit comments for this post

For those who requested a VirtualBank referral or those who would like to send one, I just learned from a VB customer service representative that the VB referral system is temporarily down. They are doing some type of upgrades, and the referral system should be back sometime this week with the same rules.

The referral system went down last Friday. When I tried to send a referral, the system responded with the message "The System is currently unable to process your request. Please try again later." Since it was late Friday before a long weekend when I experienced this, I wasn't able to reach a VB rep until early Tuesday morning. I called back this morning and was told that it's temporarily down. I was assured that the program would be back up with the same rules as before.

I have to admit this doesn't help build confidence in VB. One good thing to note is that for both times I called, I was able to get through to a rep in less than a minute. I've also had good experience with VB when I have sent emails both before and after I opened an account. The email replies sometimes take a few days, but they have always replied.

So for those who requested a referral, sorry for the delay. If you would like to know more about VirtualBank, my experiences with VB or if you are interested in a referral, please refer to this previous post.

5% 12-Month CD at a Georgia Bank read and submit comments for this post

Integrity Bank is offering a 5.00% APY 1-year CD. There's a $1K minimum deposit. This rate is also available in the IRA but with a $500 minimum deposit. They do not accept out of state funds

Integrity Bank has branches in the Georgia cities of Alpharetta, Roswell, Smyrna and Lawrenceville. All of these cities are just north of Atlanta.

Credit goes to the commenter who posted this deal. Thanks!

National 12-Month Ceritificate of Deposit Update

The best 1-year CD listed at Bankrate.com continues to be 5.10% APY at VirtualBank. Corus Bank almost caught up to VirtualBank, it just raised its 1-year CD APY to 5.09%.

New and Extended HSBC Checking Account Bonuses read and submit comments for this post

HSBC has extended its $50 bonus for the Smart Checking package. The new expiration date is now March 15, 2006 and is listed at the promo page. The promotion code is GET50. Refer to my previous post for more info on this deal.

According to this FW thread there is also a $10 sign-up bonus for HSBC's Free Checking account. The promo code is Check. Unlike the checking accounts required for the Smart Package, the Free Checking has no direct deposit, minimum blance requirements or monthly maintenance fees. Here's the link to the page. The promotion code box is on the bottom right. Enter "Check" into this box and a page opens with all of the official details. The expiration for this bonus is also March 15, 2006.

4.95% 7-Month CD at a California CU read and submit comments for this post

The Stanford Federal Credit Union is offering a 4.954% 7-Month Liquid Certificate. The CD has a $10K minimum deposit and is for new money only. Maximum deposit limit is $500K. The liquid feature allows you to withdraw funds as often as you want without penalty. However, balances under $10K will cause the account to be closed with a $100 early closure fee.

The credit union's field of membership includes the Stanford Community and employees and members of several organizations.

The credit union has 4 branches in Palo Alto and Stanford, California. It is NCUA insured with $700M in assets and over 44,000 members.

$75 Checking Account Bonus at a California CU read and submit comments for this post

Christian Community Credit Union is offering $75 for new members who open an Interest Checking account and sign up for Direct Deposit within 90 days of opening your account. The bonus will be deposited to the checking account within 30 days of receipt of the first Direct Deposit. A minimum deposit of $100 is required. The Interest Checking Account has no monthly fees with Direct Deposit. Without Direct Deposit, a minimum balance of $750 or a combined deposit balance of $3,500 is required to avoid a $7 monthly fee. Credit for finding this deal goes to this FW thread.

The credit union also has two other specials for new members: 6% APY 7-month certificate and a 5% APY money market account. However, both deals are only good for the first $2,500. The 5% money market rate only lasts for the first 6 months. After that period, the rate falls back to the current money market APY (currently 2.10% for deposits over $10K).

Comparing these three new member specials, the checking account is the best deal. The special CD and MMA only earn you about $35 over what you would get by leaving your money at EmigrantDirect.

The credit union's field of membership is not based on location but rather on membership in various church and Christian organizations. It looks like there are many organizations in which anyone can join.

It should be noted that this credit union has private ASI insurance instead of NCUA.

The credit union only has one personal banking location in Covina California, but it is a member of the CU Service Centers. Also, the credit union is set up to handle account opening through the mail and online with the ability to fund an account electronically.

5% 3-Month / 5% 18-Month CD at an Ohio Bank read and submit comments for this post

Ohio Central Savings is offering a 5.00% APY CD. You can choose a certificate of deposit term from 3 months to 18 months. The minimum deposit requirement is $10K.

The bank has branches in the Ohio cities of Dublin and Cleveland.

5.50% 12-Month CD at an Ohio CU read and submit comments for this post

Focus Federal Credit Union is advertising a 5.50% APY 12-month CD with a minimum deposit of $500 and a maximum deposit limit of $100K. This special is not listed at the credit union's website. The FW member stiltner heard it advertised on the local radio station and posted it on the FW CD thread.

The credit union eligibility page claims that anyone may join regardless of what state you live in. However, according to the small print, you are required to come in and complete and sign all necessary documents to open your account.

The credit union has two offices in Toledo, Ohio and is NCUA insured.

The best one-year certificate of deposit currently listed at Bankrate.com continues to be 5.10% APY at VirtualBank.

5.07% 5-Month CD at a Tennessee Bank read and submit comments for this post

Citizens First Bank is offering a 5.07% APY 5-month CD. Minimum deposit requirement is $10K. Also it requires an existing checking account with an average balance of $500 or a new checking account with an opening balance of $1K. The bank does offer a Free Checking Account with no monthly service charges. Credit for finding this certificate special goes to eMoneyCentral.

Citizens First Bank has offices in the Tennessee cities of Wartburg, Oliver Springs and Oneida.

$75 Bonus for Checking Account at TCF Bank read and submit comments for this post

Get up to $75 when you open any new personal or small business checking account with recurring automatic payment and direct deposit services. You also have the choice to establish just one of these sevices for a $50 bonus. The account must be opened by 3/17/06 and recurring services must post by 5/15/06.

TCF's Totally Free Checking Account has no minimum balance requirements or monthly service charges.

This special is not listed at the bank's website. It was advertised in the February 19th edition of The Denver Post, and the ad is available online here. A commenter also mentioned this deal in this post about TCF's 5% 8-month CD. As the commenter mentioned, you may be able to get this $75 bonus for opening a checking account and then the 5% 8-month CD. However, you have to hurry since the CD special expires today.

This checking account deal might just be for the Denver area. If you see it offered elsewhere, please leave a comment.

TCF has 453 banking locations in six states, including Minnesota, Illinois, Michigan, Wisconsin, Colorado and Indiana.

5% 5-Month CD at a New Jersey Bank read and submit comments for this post

The 1st Bank of Sea Isle City is offering a 5% 5-month CD. There's a $500 minimum required deposit. This special certificate is not advertised at the bank's website but was advertised in the February 18, 2006 edition of the Press of Atlantic City newspaper. The ad is available online here.

The bank also has a decent 5-year CD with an APY of 5.19% and a minimum of $500. The standard CD rates are listed at the bank's rates page.

1st Bank of Sea Isle City has three New Jersey branches in the cities of Sea Isle City, Seaville and Swainton.

5.5% 17-Month CD at a Nevada Bank read and submit comments for this post

The First Savings Bank of Las Vegas, Nevada is offering a 5.5% 17-month CD. There's a $5K minimum and it also requires a $1K checking account. Credit for finding this deal goes to the FW member traderprofit on the CD thread. It appears that this was advertised in the Vegas newspaper. No additional information was posted.

I believe that the bank's website is here. The bank also has branches in Arizona, Nebraska, New Mexico, South Dakota and Texas.

5% 13-Month CD at a Georgia Bank read and submit comments for this post

The Savannah Bank is offering a 5% 13-month CD. Minimum opening deposit is $5K. The offer is available for personal and business accounts. This special certificate is not listed at the bank's website, but was advertised in the February 17, 2006 edition of the Savannah Morning News. The ad is also available online here.

The Savannah Bank has 5 branches in Savannah, Georgia.

Bank Deal Summary for Feb 18, 2006 read and submit comments for this post

GMAC Bank started the 5 percent plus 12-month CD trend last week. This week many other banks followed. They include a 5% CD from Corus Bank, a 5.05% CD from UmbrellaBank and a 5.10% CD from VirtualBank. There were also rate increases on many of the 6-month CDs.

The big news this week for the savings and money market accounts was VirtualBank's major rate hike. The APY on VirtualBank's eMoney Market account went from 3.55% to 4.60%. Unlike the new rates at ING Direct and HSBC Direct, this new rate doesn't seem to be a promotion. VirtualBank's eMoney Market account had remained at 3.55% since last September and even trailed ING Direct since early December. So this 1.05% rate increase was very unexpected. Before this new 4.60% rate, the only reason I continued to track VirtualBank was the competitive CD rates. That was the reason why I had opened an eMoney Market account last year. For more information on VirtualBank's CDs, eMoney Market account and the $20 referral sign-up bonus, refer to this post.

VirtualBank wasn't the only one this week to reach 4.60%. UmbrellaBank also increased the yield of its money market account to 4.60% from 4.40%. VirtualBank has the advantage of a smaller minimum initial deposit requirement ($100 vs $1K) and no minimum balance requirement afterwards. However, UmbrellaBank's money market account is a true money market account that offers checks. VirtualBank's eMoney Market account is really a savings account with no check writing.

Another bank with a significant savings rate hike this week was UFB Direct. Its no-minimum savings account increased from 4.00% to 4.30% APY.

On local deals, Millstream Area Credit Union of Ohio is offering a 5.30% APY 15-month CD (see post). First Citizens National Bank of Tennessee was advertising a 5.36% 7-month CD with a $2.5K minimum. To get the 5.36% requires a checking account and some additional services. Without the checking account the available APY was 5.05% (see post).

Thanks to all who have helped by leaving comments or sending emails on rate updates. Sorry I can't include all of the best rates in this summary.

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. Previous weekly summaries are available for Feb 11th, Feb 4th, Jan 28th, Jan 21st, Jan 14th and Jan 8th.

As of February 18, 2006

Savings/Money Market Accounts:

• HSBC - 4.80%, offers checking, (rate history), my post ($25 bonus)
• VirtualBank - 4.60% (min $100), offers checking, my post ($20 bonus)
• UmbrellaBank.com - 4.60% MMA (min $1K), offers checking, my post
• Corus Bank - 4.53% MMA (min $10K to open)
• Presidential - 4.37% (min $5K, only first $35K receives this rate), offers checking, my post
• UFB Direct - 4.30% MMA, offers checking, my post
• GMAC Bank - 4.30% MMA (min $500), offers checking, my post
• CapitalOne/Costco - 4.30% MMA (min $5K, Costco members only, $50 deal for exec. members)
• MyBankingDirect - 4.30% MMA (min $5K), my post
• EmigrantDirect - 4.25%, my post, ($10 signup bonus), (rate history)
• Western Financial Bank - 4.25% MMA, offers checking, my post
• FirstFedDirect - 4.25% (closed to CA residents), my post
• Self-Help Credit Union - 4.15% MMA (min $500), my post
• CapitalOne - 4.00% (MMA has same rate, but with checks and ATM. $100 min.)
• MetLife Bank - 4.00% MMA (min $5K), my post
• ING Direct - 3.80%, my post (4.75% promo and $25 bonus), (rate history)
• NetBank - 3.52% MMA ($500 min), requires checking, my post ($175 deal)
• ebank - 3.30% MMA ($1K min, rate for $10K-25K balance), offers checking

6-Month Certificates of Deposit:

• World Savings - 4.86% (min $10K), branch only, my post
• VirtualBank - 4.80% (min $10K), my post ($20 bonus)
• Corus Bank - 4.78% (min $10K)
• GMAC Bank - 4.75% (min $500)
• ETrade Bank - 4.75% (min $1K), my post
• UmbrellaBank.com - 4.75% (min $1K)
• NetBank - 4.60% (min $1K)
• FirstFedDirect - 4.60% (min $10K), my post
• Self-Help Credit Union - 4.54% (min $500), my post
• Western Financial Bank - 4.50% ($100 min)
• ebank - 4.50% (min $1K), 4.60% for ePremium checking customers
• MyBankingDirect - 4.35% (7-month term) ($500 min)
• UFB Direct - 4.40% (min $8K)
• MetLife Bank - 4.25% ($1K min)
• ING Direct - 4.20%

8-Month Certificate of Deposit:

World Savings - 4.76% ($10K min with new funds), my post

12-Month Certificates of Deposit:

• VirtualBank - 5.10% (min $10K), my post ($20 bonus)
• UmbrellaBank.com - 5.05% (min $1K)
• GMAC Bank - 5.00% (min $500)
• Corus Bank - 5.00% (min $10K)
• Self-Help Credit Union - 4.97% (min $500), my post
• Pacific Mercantile Bank - 4.92% (min $10K), my post
• FirstFedDirect - 4.90%, (min $10K) my post
• NetBank - 4.90% (min $1K), my post (iPod/$50 bonuses)
• ETrade Bank - 4.80% (min $1K), my post
• ebank - 4.75% (min $1K), 5.00% for ePremium checking customers
• Western Financial Bank - 4.60% ($100 min)
• MetLife Bank - 4.51% ($1K min)
• ING Direct - 4.40%
• UFB Direct - 4.40% (min $8K)

18-Month Certificates of Deposit:

• Pacific Mercantile Bank - 5.02% (min $10K), my post
• CapitalOne/Costco - 5.00% (min $5K, Costco members only)

26-Month Certificate of Deposit:

• Third Federal - 5.10% (min $500) my post

36-Month Certificate of Deposit:

• Pentagon Federal CU - 5.50% (min $1K), my post
• Self-Help Credit Union - 5.19% (min $500), my post
• GMAC Bank - 5.05% (min $500)

60-Month Certificate of Deposit:

• Pentagon Federal CU - 5.75% (min $1K), my post
• Self-Help Credit Union - 5.20% (min $500), my post
• Pacific Mercantile Bank - 5.13% (min $10K), my post
• GMAC Bank - 5.10% (min $500)

84-Month Certificate of Deposit:

• Pentagon Federal CU - 6.00% (min $1K), my post

High Rates with Conditions - Open to All

• 10% Savings Account for kids ($500 max)
• 5.01% 3-month intro rate on checking account
• 5.00% Money Market with $30K (3-month intro rate)
• 4.78% Money Market with $50K min
• 4.60% Money Market with $50K min
• 4.55% Money Market with $25K min
• 4.50% Money Market with $25K min
• 4.00% checking account (CU that's open to all)

Checking and Saving Accounts at Local Credit Unions

• 4.75% no-minimum savings account (New York)
• 4.50% money market account, $25K min (Pennsylvania)

CD Specials at Local Credit Unions/Banks Over the Last Month

Terms of 60 Months and Over

• 6.66% 62-Month CD at a Pennsylvania CU
• 6.40% 60-Month CD at a South Carolina CU
• 6.25% 60-Month CD at a Carolina CU
• 5.80% 60-Month CD at a Virginia CU
• 5.75% 72-Month CD at a CU
• 5.63% 60-Month CD at a Texas CU
• 5.50% 60-Month CD at a CU
• 5.45% 60-Month CD at a Massachusetts CU
• 5.25% 60-Month CD at a PA CU

Terms of 24 Months to Under 60 Months

• 5.50% 55-Month CD at a California CU
• 5.25% 24-Month CD at a Florida Bank
• 5.12% 24-Month CD at a Texas CU
• 5.10% 25-Month CD at a Illinois Bank
• 5.03% 25-Month CD at a Florida Bank
• 5.00% 29-Month CD at a Pennsylvania CU
• 5.00% 24-Month CD at a Michigan Bank
• 5.00% 30-Month CD at a Wisconsin Bank
• 5.00% 30-Month CD at a Florida CU

Terms of 12 Months to Under 24 Months

• 5.30% 15-Month CD at a Ohio CU
• 5.25% 19-Month CD at a OH/KY Bank
• 5.25% 17-Month CD at a Wyoming CU
• 5.25% 13-Month CD at a Minnesota CU
• 5.19% 12-Month CD at a North Carolina Institution
• 5.15% 19-Month CD at a Ohio CU
• 5.15% 12-Month CD at a Michigan CU
• 5.09% 12-Month CD at a Ohio CU
• 5.09% 14-Month CD at a Pennsylvania CU
• 5.05% 13-Month CD at a CA CU (Open to All)
• 5.02% 13-Month CD at a Florida Bank
• 5.00% 15-Month CD at a Connecticut CU
• 5.00% 12-Month CD at a Florida Bank
• 5.00% 12-Month CD at a Illinois Bank
• 5.00% 15-Month CD at a Florida Bank
• 5.00% 15-Month CD at a Chicago Bank
• 5.00% 16-Month CD at a New York CU
• 5.00% 13-Month CD at a California CU
• 5.00% 12-Month CD at a Pennsylvania CU
• 5.00% 15-Month CD at a Texas Bank
• 5.00% 12-Month CD at a Georgia Bank
• 5.00% 12-Month CD at a Washington State CU
• 5.00% 15-Month CD at a OH/KY Bank
• 5.00% 12-Month CD at a Wisconsin/Illinois CU
• 5.00% 19-Month CD at a Tennessee CU
• 5.00% 13-Month CD at a Georgia Bank
• 5.00% 12-Month CD at a Western Bank
• 5.00% 13-Month CD at a South Carolina Bank
• 4.85% 12-Month CD at a Texas Bank
• 4.75% 12-Month CD at a Dallas Bank

Terms of Under 12 Months

• 5.36% 7-Month CD at a Tennessee Bank
• 5.25% 3-Month CD at a Florida CU
• 5.20% 8-Month CD at a Missouri Bank
• 5.15% 11-Month CD at a Georgia CU
• 5.13% 6-Month CD at a Oregon CU
• 5.01% 6-Month CD at a Florida CU
• 5.00% 10-Month CD at a Michigan CU
• 5.00% 7-Month CD at a Missouri Bank
• 5.00% 5-Month CD at a Northeast Bank
• 5.00% 11-Month CD at a Kansas CU
• 5.00% 5-Month CD at a Wisconsin CU
• 5.00% 6-Month CD at a Michigan CU
• 5.00% 11-Month CD at a Massachusetts CU
• 4.90% 9-Month CD at a Chicago Bank
• 4.90% 8-Month CD at a AZ/TX CU
• 4.85% 7-Month CD at a Georgia Bank
• 4.75% 9-Month CD at a New Jersey Bank
• 4.70% 7-Month CD at a Georgia Bank
• 4.70% 11-Month CD at a Nebraska CU
• 4.65% 7-Month CD at a New Jersey Bank Branch

CD Alternatives

• I Bond Article, New I Bond Rate, I Bonds as CD Alternatives

Making Sure an Online Bank is Legit read and submit comments for this post

A few of my friends have been hesitant to sign up for online bank deals like at HSBC, ING Direct, or VirtualBank. I have to admit that the name VirtualBank doesn't help matters any. It doesn't give an impression of an established financial institution.

So how can someone ensure that an internet bank is legitimate and that your money won't become virtual money? The most important thing is to make sure the bank is FDIC insured. Next, make sure the website is the official website of the bank. Both of these can be verified at FDIC's bank-find tool.

Confirming that a Bank is FDIC Insured

Let's use VirtualBank as an example. Before searching for a bank at the FDIC, be sure you get their official name. In the case of VirtualBank, you need a little more information about the bank before you can find it on the FDIC. This information is typically available in the bank's "About Us" page. In this section you can find out the online bank's parent company. In VirtualBank's case, it's Lydian Bank and Trust Company.

With the bank's official name, you can now search the FDIC database. The bank is often listed in the FDIC database with a name that's slightly different than what is on the bank's website. This is the case for VirtualBank. So in the search box, just use the main name such as "Lydian". Using Lydian gives an exact match with the following information:

Lydian Private Bank (FDIC Cert: 35356)

is a Savings Association and has been FDIC insured since April 6, 2000.
It was established on April 6, 2000.
Its main office (headquarters) is located at:
              180 Royal Palm Way
              Palm Beach, Florida 33480
              County of Palm Beach
                 
Lydian Private Bank has 2 Domestic Branches (Offices) located in 1 state(s)
and 0 Foreign Offices. (Check to locate Branches (Offices) by state.)
    
Lydian Private Bank's website. http://www.virtualbank.com:80/ 

This confirms the information at VirtualBank's website. The FDIC page also gives the web address for the bank. This allows you to confirm that the URL www.virtualbank.com is in fact part of Lydian Private Bank which is FDIC insured. Another useful piece of information is how long the bank has been FDIC insured.

How Much Safety Does FDIC Insurance Give You?

Even if an online bank like VirtualBank is FDIC insured, does that mean my money is safe with them? According to this FDIC article as long as your deposits are under the insurance limit, you should be safe. Here are some points mentioned in this article:

• No depositor has lost a single cent of FDIC-insured funds as a result of a failure
• The FDIC's deposit insurance guarantee is rock solid
• The FDIC pays depositors promptly after the failure of an insured bank.

Also, it's important to know that your FDIC insurance limit can be extended beyond $100K per bank. You can extend this limit by having multiple ownership categories. This FDIC article has all the details.

Hopefully, you can use this post to help convince your friends and family about the legitimacy of online banks like VirtualBank. Then they can feel comfortable about signing up, and will be glad with the benefits of high interest rates and sign-up bonuses.

If this has helped convince you, and you want to sign up with an online bank, check out these posts for sign-up bonus information:

• VirtualBank - 4.60% Savings and $20 Sign-up Referral Bonus
• ING Direct - 4.75% Savings (promo rate) and $25 Sign-up Referral Bonus
• HSBC Direct - 4.80% Savings (promo rate) and $25 Sign-up Bonus
• NetBank - 3.52% Money Market and up to $175 Bonus

5% 11-Month / 5.45% 60-Month CD at a Massachusetts CU read and submit comments for this post

Luso Federal Credit Union is offering a 5.00% APY 11-month CD. There's also a 5.45% APY 60-month CD special. These share certificate specials require a share draft checking account with a minimum balance of $200.

The credit union has a field of membership that includes residents of Ludlow, Massachusetts.

The credit union is insured by NCUA and has over $130M in assets with over 5700 members.

5% 8-Month CD at TCF Bank read and submit comments for this post

TCF Bank is offering a 5% APY 8-month CD. It requires a $500 minimum deposit and also a checking account. The offer expires February 20, 2006. However, the bank is open 7-days a week. This certificate special is not advertised at the bank's website, but was reported by FW member km on the FW CD thread.

TCF has 453 banking locations in six states, including Minnesota, Illinois, Michigan, Wisconsin, Colorado and Indiana.

5% 13-Month CD at a South Carolina Bank read and submit comments for this post

Independence National Bank is offering a 5.00% APY 13-Month CD. There is a $1K minimum balance requirement and a $500K maximum limit.

Independence National Bank is located in Greenville, South Carolina. Credit for finding this deal goes to eMoneyCentral.

4.90% 8-Month CD at an AZ/TX CU read and submit comments for this post

TruWest Credit Union is offering a 4.90% 8-month CD. It has a $1K minimum deposit requirement and a maximum deposit limit of $250K per person ($500K per household). The rate is effective through March 14, 2006.

TruWest is calling this special an investment certificate, and it replaces the 4.65% 9-month special from last month.

The credit union's field of membership includes those who live in Maricopa County and parts of Pinal County, Arizona. Also, it includes those who live in Travis County and parts of Williamson County, Texas.

TruWest has branches in Phoenix, Mesa, Chandler and Scottsdale of Arizona and in Austin, Texas.

The highest 9-month CD rate listed at Bankrate.com is 4.85% APY at American United Bank of Lawrenceville, Georgia. VirtualBank is third with an APY of 4.80%. VirtualBank also has a 4.80% 6-month CD.

UFB Direct's No-Minimum Savings Now 4.30% read and submit comments for this post

Yesterday, UFB Direct raised the interest rate on its High Yield Money Market Savings account from 4.00% to 4.30% APY. This is another high yield savings account without a minimum opening deposit or balance requirement that has a rate higher than EmigrantDirect's. I think it's about time for EmigrantDirect to remove the statement "America's Highest Rate" from its home page or raise its rate.

Last week, UFB Direct raised the APY of its Jumbo Money Market Account to 4.60%.

5.30% 15-Month CD at an Ohio CU read and submit comments for this post

Millstream Area Credit Union is offering a 5.30% APY 15-month certificate of deposit. There is a $5K minimum deposit requirement.

The field of membership includes residents of Hancock County of Ohio. The credit union has two branches in the city of Findlay, Ohio which is located about 50 miles south of Toledo.

This credit union is not insured by NCUA and instead is privately insured by American Share Insurance (ASI) which is the same company that insures Patelco Credit Union.

VirtualBank is Back in the Game! 4.60% Money Market read and submit comments for this post

VirtualBank just made a stunning rate increase on its Money Market Account. The Money Market rate increased from 3.55% to 4.60% APY. The last money market rate increase from Virtual Bank was back on September 27, 2005 when the APY went from 3.40% to 3.55%. Over the next 5 months it remained at 3.55%. I had thought VirtualBank had given up on being the money market rate leader. Perhaps VirtualBank took a lesson from what EmigrantDirect did last September in that you can get more attention with one big rate increase rather than a bunch of small rate increases.

$20 Sign-Up Referral Bonus

VirtualBank still has a nice sign-up referral bonus program. Here are the details:

1. You can refer up to 50 friends to open eMoney Market accounts.
2. Each friend that opens an eMoney Market account earns $20.
3. You then earn $20 for each friend who opens an account.
4. You can earn up to $1000.

If you want a referal, send an email to me at bankdeals@gmail.com and I will send you one within a day. Note, there is a $100 minimum deposit requirement. Just like ING Direct, you can fund the account with an ACH transfer, and future deposits and withdraws can also be done with ACH transfers. Unlike HSBC, you don't have redo the ACH setup for future transfers. The only bad thing is that you have send in a check to link additional accounts.

5.10% 1-year CD

In addition to the money market rate increases, it also raised rates on most of its certificates of deposit. The APY on the 12-month CD increased from 4.90% to 5.10%. All the CDs have a minimum deposit requirement of $10K.

My Experience Opening a VirtualBank CD

I just opened a 6-month CD with VirtualBank last month. The process was fairly easy, however, it's not as easy as opening an ING Direct CD. If you're interested in a VirutalBank CD, I recommend first opening an eMoney Market Account. Now with an APY of 4.60%, there's no reason not to. After it's open, you can do ACH transfers into the eMoney Market Account and then use this money to fund the CD. Unlike ING Direct, you begin the CD application process outside of your login account here. You enter your information and then log into your account where you specify that you'll be funding the CD with money from the eMoney Market Account.

There were two complications for me during the CD application process. First it asked for my eMoney Market account number and client ID number. The account number is listed when you log in. However, the client ID number is not. I had to send VirtualBank a message from the secure mailbox for this answer. The second problem is that VirtualBank requires that you send in a signature card even when you are funding the CD from the eMoney Market account. During the application it looked like I had to print out the card, sign it and mail it in before the CD would begin. I was having some problems with my printer, so this was very aggrevating. However, the CD took effect the next day. Also, VirtualBank sent me in the mail the signature card along with other CD documentation. So I was able to just sign that and mail it back in a postage-paid envelope.

The CD can be managed using VirtualBank's secure message email system that's available when you log in. I was told by a VirtualBank rep that I can make requests through this secure email to deposit a mature CD into my eMoney Market account. Also, you can use it to request an early withdrawal (there's still a penalty). I've sent several emails through this message system and VirtualBank has always done a good job at replying within a day or two.

Before I opened a money market account at VirtualBank, the reps did a good job at answering my email questions. Here's one of their answers on penalties for early withdrawals on CDs:

Any CD with a term less than six month would have to pay a penalty of one month interest. CDs with terms equal to six months but less that one year would pay a penalty of three months interest. CDs with a term equal to one year or more would pay a penalty of six months interest. Please be aware these penalties would be applied whether the interest has been earned or not.

Previous VirtualBank Posts

• New High CD Rates at Virtual Bank - Jan 19, 2006
• VirtualBank Raises Money Market Account Rate - Sep 27, 2005

5% One-Year CDs Proliferate read and submit comments for this post

The number of banks offering 5% APY or higher on 12-month CDs is increasing. Just yesterday Corus Bank increased the yield on its 12-month CD to 5.00%. UmbrellaBank made the jump to 5.05% on Monday. There are now six banks with 1-year CDs paying 5% APY or higher listed at Bankrate.com. The highest is 5.06% APY at M&T Bank of Oakfield, New York. Both Mutual Bank and UmbrellaBank are second with their 5.05% APY. The last three are Corus Bank, GMAC Bank and KeyDirect with 5.00% APY.

As has been the case for the last year, long term certificates of deposit aren't keeping up with these shorter term CDs. Bankrate.com lists only 14 banks with 5-year CDs that have APYs at or above 5%. The highest APY is only 5.12% at KeyDirect which is only 0.06% higher than the best 1-year CD with a term 5 times longer. The only reason to get a 5-year CD would be if you think rates are headed down. I think that's premature. They may not rise as much as last year, but I think there's still more time of rising rates before they start to fall.

If you do want to lock in a high-rate 5-year CD, the best that's nationally available continues to be from PenFed Credit Union with a 5.75% APY 5-year CD. Even with that rate, it's hard to justify that CD over a 5% 1-year CD.

Another MetLife $50 Bonus for Money Market Account read and submit comments for this post

MetLife seems to have been offering these $50 bonuses off and on for the last 2 years. Here's the promo page for the latest one. MetLife's money market account now has an APY of 4.00%. In addition to not being the rate leader, there are some other issues to consider before jumping on this deal:

• Requires a deposit of $5K by 3/31/06 and maintain at least $5K for 90 days.
• Interest rate goes way down on balances below $5K. Currently it's only 1% APY.
• Balances under $1.5K result in a $15 monthly fee.
• There doesn't seem to be an account closure fee, however, if the account is closed before interest is credited, accrued interest for that statement period will not be paid.
• It was mentioned on this FW thread that the MetLife does a hard credit inquiry of Experian during the application process.

MetLife's Money Market Account does have a few benefits such as a free ATM Card and up to $5 monthly reimbursements for fees incurred at non-MetLife Bank ATMs. Also, the first order of standard checks are free.

5% 12-Month CD at a Western Bank read and submit comments for this post

Washington Federal Savings is advertising a 5.00% APY 12-month CD. There's a $1K minimum deposit requirement and an maximum deposit limit of $250K per household. This special is not listed at the bank's website, but advertised in the February 14th Dallas Morning News and is available online here. The bank is also advertising a 4% APY checking account. The checking account has a minimum of $10K. There does not seem to be any checking requirement for this special certificate.

Since this special is not listed Washington Federal Savings' website, it's not known if this is available at branches outside the Dallas area. In addition to branches in the Dallas, Texas area, it also has branches in the states of Washington, Oregon, Idaho, Utah, Nevada and Arizona.

5.50% 55-Month CD at a California CU read and submit comments for this post

The Golden 1 Credit Union is offering a 5.50% APY 55-month CD special. The minimum deposit requirement is $1K. The other special certificates are not quite as competitive. These include a 4.10% 10-month CD and a 4.50% 16-month CD.

The Golden 1 Credit Union's field of membership includes many counties of California. The FOM also has a long list of eligible employers.

The Golden 1 Credit Union was listed as the fourth largest credit union in 2004 by total assets. In 2004, it had over $5B in assets and close to 600K members. It currently has more than 68 offices across California.

Credit for finding this deal goes to the CD FW thread.

4.60% MMA and 5.05% 1-yr CD at UmbrellaBank read and submit comments for this post

UmbrellaBank made several increases in its deposit rates late yesterday. The APY of its Pot o'Gold Money Market Account was increased from 4.40% to 4.60%. The money market account had been at 4.40% APY since December 15th. The 6-month CD APY went up by 0.10% to 4.75% and the 12-month APY went up by 0.20% to 5.05%.

Refer to my previous post for more info on UmbrellaBank. The one big disadvantage of UmbrellaBank seems to be the lack of an ACH transfer system. Another negative is the low Bankrate.com rating of 2 out of 5 stars (below industry average) for its financial health.

UmbrellaBank still has the $20 bonus for opening its checking account and paying your bills online. To get the full $20 requires paying 10 bills over 2 months.

Thanks to the commenter who posted the rate update!

5.75% 72-Month / 5.50% 60-Month CD at a CU read and submit comments for this post

The Bayer Federal Credit Union is offering some high rates on 5 and 6-year CDs. The APYs of the 6-year and 5-year CDs are 5.75% and 5.50%. The credit union also offers Step-Up Certificates with yields 0.10% less than the fixed rate CDs. All the CDs have only a $200 minimum deposit requirement.

As you would expect, the field of membership includes all those who work in the Bayer Corporation. There are also many other employers listed in the FOM. You may also be eligible based on where you live or work. The website doesn't provide these details, so you'll have to contact the credit union.

The credit union has branches in many of the areas where the Bayer Corporation has facilities including Elkhart Indiana, Michigan City Indiana, Bereley California, Clayton North Carolina, Morristown New Jersey, Orange Connecticut, Tarrytown New York and Walpole Massachusetts.

More Free Sporting Tickets for Free Checking Account read and submit comments for this post

Wachovia Bank is offering two free sporting event tickets for each free checking account opened. This looks like a deal for the Philadelphia area. Your choice of tickets is either for a 76ers or Phantoms home game. The checking account must be opened by March 15, 2006. The checking account has a minimum deposit requirement of $100. There are no monthly service fees, no minimum balances and no direct deposit requirements.

Thanks goes to Mike S. for emailing me this deal.

Self-Help Credit Union CDs - The Perfect CD Ladder? read and submit comments for this post

Self-Help Credit Union (SHCU) has been slowly but surely raising rates on its money market account and CDs. For those not aware of SHCU, it's one of the few credit unions in which anyone from any state can join by just paying a one-time $25 fee for membership into a non-profit organization (FOM).

SHCU disappointed many in late December when rates on its 3-month, 6-month and 12-month CDs fell by around 0.50% in one day. From December 26 to December 27, the rates changed as follows:

3 month CD from 4.62% APY to 4.10% APY
6 month CD from 4.82% APY to 4.31% APY
12 month CD from 5.00% APY to 4.60% APY

For at least two months previous to that, SHCU CD rates always remained within 0.10% from day to day.

The 3-month and 6-month CDs are still low, however, the 1-year is now at 4.97% APY. In addition, the longer term CDs have APYs well above 5%. The current CD rates as of February 13, 2006 are as follows:

3-month term   4.25   4.34
6-month term  4.43  4.53
12-month term  4.85  4.97
24-month term  5.08  5.21
36-month term  5.07  5.20
48-month term  5.08  5.21
60-month term  5.10  5.23

Two Important SHCU CD Features

There are two important and unusual features about these CDs: one bad and one good.

• Bad: Early withdrawals are not allowed. Your money is totally locked until maturity.
• Good: You can add any amount to a CD without changing the term or rate

Due to this no-withdrawal feature, you may not want to make a big investment into one of these long term CDs. Also, with the 5-year CD rate only 0.26% higher than the 1-year CD, there's little incentive to invest in the long-term CDs. However, because of the second feature, it does make sense to start long term CDs with the minimum required deposit of $500. This additional-deposit feature can allow for a very nice CD ladder. Below I give the details of this ladder approach.

Easy Way to Manage CDs

The other concern about SHCU is how to fund the CDs and ensure you lock in the high rates. You don't want to mail in a check and find out that the CD rates went down by 0.5% when SHCU received your application and check. To prevent this, I recommend first starting a SHCU money market account with at least $500 (it's currently paying 4.15% APY). Then you can link this account with your HSBC Online Savings account or other bank that allows linking to non-checking accounts. You can then transfer the money using an ACH push into the SHCU MMA. When the CD rates look good, you can call and purchase the CDs with funds from the MMA. When the CDs mature, you can call and request either a renewal or the funds be transfered back to the MMA. From the MMA, you're free to write a check or do an ACH pull (up to 3 withdraws allowed per month).

From my phone call with a SHCU representative, I confirmed that the above method should work. If you want paper checks, there's a $8 additional fee for a box of 50 checks. Also, you'll have to add $25 for the membership fee.

Advantages of the SHCU CD ladder over the typical CD ladder

First, to understand a typical CD ladder, refer to this article on laddering certificates of deposit. The unique features of the SHCU CDs allow for a better CD ladder approach. Here are some of the advantages:

1. Most of your money is available without penalty within one year. In the following example, over 96% is always available within one year. A typical CD ladder with 5 CDs would only have about 20% of your money available within one year.
2. If interest rates rise, most of your money can be moved each year to the higher interest rate. In the following example, it would be over 96%. In a typical CD ladder, only about 20% of the CD would be able to be moved to the higher interest rate.
3. If interest rates fall, most of your money can be moved each year to the higher interest rates available on previous long term CDs.

An example of a SHCU CD ladder:

1. In 2006, start a CD ladder with $50K 1-yr CD and $500 2-yr, 3-yr, 4-yr and 5-yr CDs. Every year after, purchase one $500 5-yr CD.
2. In 2007, if interest rate of a new 1-yr CD is higher than the 2006 2-yr CD, move the money from the 2006 matured 1-yr CD into a 2007 1-yr CD.
3. However, if in 2007, interest rate of a new 1-yr CD is lower than the 2006 2-yr CD, move the money from the 2006 matured 1-yr CD into the 2006 2-yr CD.
4. In 2008, a similar decision would be made. In this case the rate of a 2008 1-yr CD would be compared to the rate of the 2006 3-yr CD. In 2009, the comparison would use the 2006 4-yr CD. In 2010, the comparison would use the 2006 5-yr CD. In 2011, the comparison would use the 2007 5-yr CD, and this would continue each year.

Graphical Representation of CD Ladder Example

In the example below, the CD id is the name of the CD. The notation refers to the maturity (i.e. 2y) followed by the year in which it started (i.e. 06). Additional deposits are noted by a plus sign followed by the year in which the additional deposit was made (i.e. +07). So the CD id 2y06+07 represents the 2-year CD started in 2006 with additional deposit made in 2007.

For simplicity the below example does not include the reinvestment of interest. Only the principle is carried forward in the example.

Starting the Ladder - Starting in 2006, put the maximum amount of your money in the 1-yr CD ($50K in this example) and the minimum amount in 2, 3, 4 and 5-yr CDs ($500). Every year afterwards, start a new 5-yr CD with the minimum amount ($500).

CD id      CD Total     Year
                        06  07  08  09  10  11  12  13  14  15
CD 1y06    $50000 1-yr  ----
CD 2y06      $500 2-yr  --------
CD 3y06      $500 3-yr  ------------
CD 4y06      $500 4-yr  ----------------
CD 5y06      $500 5-yr  --------------------
CD 5y07      $500 5-yr      --------------------
CD 5y08      $500 5-yr          --------------------
CD 5y09      $500 5-yr              --------------------
CD 5y10      $500 5-yr                  --------------------
  (cont.)

First choice if interet rates rise - New 1-yr CDs would have higher rate than previous longer term CDs. Starting in 2007, a new 1-yr CD would be funded with your maximum investment.

CD id      CD Total     Year
                        06  07  08  09  10  11  12  13  14  15
CD 1y07    $50000 1-yr      ----
CD 1y08    $50000 1-yr          ----
CD 1y09    $50000 1-yr              ----
CD 1y10    $50000 1-yr                  ----
CD 1y11    $50000 1-yr                      ----
CD 1y12    $50000 1-yr                          ----
CD 1y13    $50000 1-yr                              ----
CD 1y14    $50000 1-yr                                  ----

Second choice if interest rates fall - Previous longer term CDs have higher rates than current 1-yr CD. Deposit into previous CD that is set to mature within one year.

CD id      CD Total     Year
                        06  07  08  09  10  11  12  13  14  15
CD 2y06+07 $50500 2-yr      ----
CD 3y06+08 $51000 3-yr          ----
CD 4y06+09 $51500 4-yr              ----
CD 5y06+10 $52000 5-yr                  ----
CD 5y07+11 $52500 5-yr                      ----
CD 5y08+12 $53000 5-yr                          ----
CD 5y09+13 $53500 5-yr                              ----
CD 5y10+14 $54000 5-yr                                  ----

Rates rise and fall - Choice one and two above may alternate every year.

Risks

SHCU is NCUA insured so deposits under the limit should not be at risk. However, being able to earn high rates through low interest-rate environments may not last. SHCU may change the CD policy and not allow additional deposits into future CDs. In that case, you would have to revert to a typical CD ladder. SHCU rates may also become uncompetitive. In that case, you may be better off with transfering the money to other banks or credit unions.

SHCU is a small credit union with only about $184M in assets and about 16K members (per NCUA). As a comparison Pentagon Federal Credit Union has almost $8B in assets and almost 650K members (per NCUA). So with a liberal field of membership and with very high deposit rates, SHCU could attract so many new members and deposits that it may be forced to lower the rates.

Previous SHCU Posts

• Major CD Rate Changes at SHCU - 12/28/05
• 5% 1-year CD Milestone - 12/27/05
• Updated CD and MMA rates - 12/02/05
• More info on SHCU and its CD rate history - 11/4/05
• First post on SHCU - 11/3/05

5.36% 7-Month CD at a Tennessee Bank read and submit comments for this post

First Citizens National Bank is offering a 5.36% APY 7-month CD. The minimum deposit requirement is $2.5K. To get 5.36% also requires a checking account with direct deposit and with free online Banking and Bill Pay. If the CD is opened without the checking and these extra features, the APY is 5.05%. If you don't want all three features, you can still earn 0.10% more on the CD for each one of the extra features. This certificate of deposit special is not listed at the bank's website. It was advertised in this Memphis Newspaper's online ad.

The checking account must be either a Wall Street or First Rate checking account. The Wall Street Checking has an initial deposit requirement of $5K and a minimum balance requirement of $1K to avoid a $7 monthly fee.

First Citizens National Bank has several branches all along the west side of Tennessee.

5% 13-Month CD at a Georgia Bank read and submit comments for this post

First National Bank is offering a 5.00% APY 13-month CD. There's a minimum deposit requirement of $5K. This certificate special is only for a limited time and is not listed at the bank's website. It was advertised in last week's Savannah Newspaper and can be viewed in this online ad.

The bank has four branches in Savannah, Folkston and Pooler Georgia.

5.25% 13-Month CD at a Minnesota CU read and submit comments for this post

Soo Line Credit Union is offering a 5.25% 13-month CD special. This APY requires a $50K minimum deposit. You can also get a 5.13% CD at this same 13-month term with only a $2K minimum deposit.

The credit union's field of membership includes residents of Pope County Minnesota. There's also a long list of eligible employers. Branches are located in Minneapolis, Brooklyn Center, St. Paul, Glenwood and Savage Minnesota.

Soo Line Credit Union is NCUA insured with almost $47M in assets and over 10,000 members.

iPod Shuffle or PSP or $50 Checking Account Deal at KS/OK Bank read and submit comments for this post

Fidelity Bank gives you the choice of three gifts for opening up a checking account. The higher dollar gifts require the more costly checking accounts with additional services. The highest dollar gift is a Sony Playstation Portable. Next is an Apple iPod Shuffle and the third is $50 cash. Here's the bank's promotional page for all of the requirements and details. Offer expires March 5, 2006.

The $50 bonus is the easiest to receive. All that is required is a $25 minimum deposit in the bank's free checking, account and the $50 will be deposited upon opening.

Fidelity Bank has branches in the Kansas cities of Witchita and Derby and in the Oklahoma cities of Edmond and Oklahoma City.

Credit goes to the fatwallet member 4myfamily who posted the deal in this FW thread

Checking Account Bonus - Two Sporting Event Tickets read and submit comments for this post

For sporting fans in the Northeast, this might be a good deal. TD Banknorth has is offering 2 free tickets to your favorite sporting event - The Bruins, Celtics, Harlem Globetrotters or John Hancock Champions on Ice when you switch to free checking. The bank's free checking account does not have a direct deposit requirement and has no minimum balance or monthly maintenance fee. Offer ends 3/19/06 and is available only to new accounts opened in Maine, New Hampshire, Massachusetts or Vermont. An initial deposit of $25 is required.

Credit for this deal goes to this SlickDeals thread.

$50 Bonus for Checking Account at SunTrust Bank read and submit comments for this post

SunTrust Bank is offering a $50 Visa Gift Card when you open a free personal or free business checking account. The checking account must be opened by 3/31/06. The free personal checking account has no minimum balance requirements, no monthly maintenance fees and no direct deposit requirements. SunTrust also has a FAQ page on this promotion. Here's the small print:

Open a new Free Checking account from 2/13/06 through 3/31/06 to receive a redemption certificate for a free $50 SunTrust Visa Gift Card. Clients must complete and postmark the redemption certificate included in the new checking account materials no later than 4/21/06. The account must remain open and in good standing as of 5/31/06 in order to qualify for the offer; only one redemption certificate per household. The $50 SunTrust Visa Gift Card will be sent to qualifying clients by 7/15/06.

SunTrust Bank has over 1700 bank branches across southeastern states, including Florida, Alabama, North Carolina, South Carolina, Georgia, Tennessee, Virginia, West Virginia, Maryland and Washington, DC.

5.02% 13-Month CD at a Florida Bank read and submit comments for this post

Harbor Federal Bank is offering a 5.02% APY 13-month CD. There's a $5K minimum deposit requirement. This certificate of deposit special also requires a $500 minimum balance in a new or existing checking account. Without the checking account, the APY is 4.87%. The bank does offer a free checking account without monthly service charges.

Harbor Federal has 40 branches on the east side of Central Florida.

Bank Deal Summary for Feb 11, 2006 read and submit comments for this post

This week a one-year CD from a major online bank finally reached 5% APY. GMAC Bank just recently incresed the rates on most of its CD. The 1-year CD went from 4.90% to 5.00% APY. The 6-month also went up 0.10% to 4.75% APY. As has been typical, there wasn't much increase on the longer term CDs. The 5-year CD remains at 5.10% APY.

In the last 5 months, GMAC Bank has maintained top rates on both its money market account and CDs. If you combine that with a relatively low $500 minimums and the very easy and quick online ACH transfer system, it's hard to find something not to like with GMAC Bank. Too bad it doesn't have a sign-up bonus. There might be some concern over GM's troubles and GM's attempt at selling GMAC Financial Services. But I don't see this having any real effect on GMAC Bank or its financial health. Bankrate.com currently rates GMAC Bank with 4 out of 5 stars (sound).

In addition to GMAC Bank several other lesser known banks reached 5% on their 1-year CDs. These include Mutual Bank (5.05%), M&T Bank (5.01%) and American United Bank (5.00%). There's even a 5.06% 6-month CD being offered by Merrill Lynch (see post). World Savings' 4.86% 6-month CD was re-issued this week and is valid through March 4, 2006. As usual with World Savings, this is not publicly advertised and is only available at a branch.

There weren't a lot of changes in money market and savings accounts this week. HSBC remains on top with 4.80% APY (see post). For very large balances, Hillcrest's money market now pays 5.09% APY (over $500K). For balances of at least $50K the APY is still a high 4.78%. UFB Direct also made a rate increase on its Jumbo money market account. Balances over $50K earn 4.60% APY.

On local deals, RateEdge.com raised its no-minimum online savings account APY from 4.50% to 4.75% (see post). Unlike HSBC and ING Direct, this rate isn't a promo. RateEdge.com has been leading in the savings account rates since it began around September of last year. One of the best local CD deals was at the Keys FCU with its 5.25% APY on any term CD (see post).

Thanks to all who have helped by leaving comments or sending emails on rate updates. Sorry I can't include all of the best rates in this summary.

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. Previous weekly summaries are available for Feb 4th, Jan 28th, Jan 21st, Jan 14th, Jan 8th and Dec 31st.

As of February 11, 2006

Savings/Money Market Accounts:

• HSBC - 4.80%, offers checking, (rate history), my post ($25 bonus)
• Corus Bank - 4.47% MMA (min $10K to open)
• UmbrellaBank.com - 4.40% MMA (min $1K), offers checking, my post
• Presidential - 4.37% (min $5K, only first $35K receives this rate), offers checking, my post
• GMAC Bank - 4.30% MMA (min $500), offers checking, my post
• CapitalOne/Costco - 4.30% MMA (min $5K, Costco members only, $50 deal for exec. members)
• MyBankingDirect - 4.30% MMA (min $5K), my post
• EmigrantDirect - 4.25%, my post, ($10 signup bonus), (rate history)
• Western Financial Bank - 4.25% MMA, offers checking, my post
• FirstFedDirect - 4.25% (closed to CA residents), my post
• Self-Help Credit Union - 4.15% MMA (min $500), my post
• CapitalOne - 4.00% (MMA has same rate, but with checks and ATM. $100 min.)
• UFB Direct - 4.00% MMA, offers checking, my post
• MetLife Bank - 4.00% MMA (min $5K), my post
• ING Direct - 3.80%, my post (4.75% promo and $25 bonus), (rate history)
• VirtualBank - 3.55% (min $100), offers checking, my post ($20 bonus)
• NetBank - 3.52% MMA ($500 min), requires checking, my post ($175 deal)
• ebank - 3.30% MMA ($1K min, rate for $10K-25K balance), offers checking

6-Month Certificates of Deposit:

• Merrill Lynch - 5.06% (min $25K), phone/branch only, my post
• World Savings - 4.86% (min $10K), branch only, my post
• GMAC Bank - 4.75% (min $500)
• ETrade Bank - 4.75% (min $1K), my post
• VirtualBank - 4.75% (min $10K), my post ($20 bonus)
• Corus Bank - 4.70% (min $10K)
• UmbrellaBank.com - 4.65% (min $1K)
• NetBank - 4.55% (min $1K)
• FirstFedDirect - 4.52% (min $10K), my post
• Western Financial Bank - 4.50% ($100 min)
• Self-Help Credit Union - 4.42% (min $500), my post
• ebank - 4.35% (min $1K), 4.60% for ePremium checking customers
• MyBankingDirect - 4.35% (7-month term) ($500 min)
• UFB Direct - 4.30% (min $8K)
• MetLife Bank - 4.25% ($1K min)
• ING Direct - 4.20%

8-Month Certificate of Deposit:

World Savings - 4.76% ($10K min with new funds), my post

12-Month Certificates of Deposit:

• Mutual Bank - 5.05% ($1K min)
• GMAC Bank - 5.00% (min $500)
• Self-Help Credit Union - 4.95% (min $500), my post
• Corus Bank - 4.94% (min $10K)
• VirtualBank - 4.90% (min $10K), my post ($20 bonus)
• Pacific Mercantile Bank - 4.87% (min $10K), my post
• UmbrellaBank.com - 4.85% (min $1K)
• FirstFedDirect - 4.84%, (min $10K) my post
• NetBank - 4.80% (min $1K), my post (iPod/$50 bonuses)
• ETrade Bank - 4.80% (min $1K), my post
• ebank - 4.75% (min $1K), 5.00% for ePremium checking customers
• Western Financial Bank - 4.60% ($100 min)
• MetLife Bank - 4.51% ($1K min)
• ING Direct - 4.40%
• UFB Direct - 4.40% (min $8K)

18-Month Certificates of Deposit:

• CapitalOne/Costco - 4.92% (min $5K, Costco members only)
• Pacific Mercantile Bank - 4.92% (min $10K), my post

26-Month Certificate of Deposit:

• Third Federal - 5.10% (min $500) my post

36-Month Certificate of Deposit:

• Pentagon Federal CU - 5.50% (min $1K), my post
• Self-Help Credit Union - 5.13% (min $500), my post
• GMAC Bank - 5.00% (min $500)

60-Month Certificate of Deposit:

• Pentagon Federal CU - 5.75% (min $1K), my post
• Self-Help Credit Union - 5.14% (min $500), my post
• Pacific Mercantile Bank - 5.13% (min $10K), my post
• GMAC Bank - 5.10% (min $500)

84-Month Certificate of Deposit:

• Pentagon Federal CU - 6.00% (min $1K), my post

High Rates with Conditions - Open to All

• 10% Savings Account for kids ($500 max)
• 5.01% 3-month intro rate on checking account
• 5.00% Money Market with $30K (3-month intro rate)
• 4.78% Money Market with $50K min
• 4.60% Money Market with $50K min
• 4.55% Money Market with $25K min
• 4.50% Money Market with $25K min
• 4.00% checking account (CU that's open to all)

Checking and Saving Accounts at Local Credit Unions

• 4.75% no-minimum savings account (New York)
• 4.50% money market account, $25K min (Pennsylvania)

CD Specials at Local Credit Unions/Banks Over the Last Month

Terms of 60 Months and Over

• 6.66% 62-Month CD at a Pennsylvania CU
• 6.40% 60-Month Variable CD at a South Carolina CU
• 6.25% 60-Month Variable CD at a Carolina CU
• 5.80% 60-Month CD at a Virginia CU
• 5.63% 60-Month CD at a Texas CU
• 5.25% 60-Month CD at a PA CU

Terms of 24 Months to Under 60 Months

• 5.25% 24-Month CD at a Florida Bank
• 5.12% 24-Month CD at a Texas CU
• 5.10% 25-Month CD at a Illinois Bank
• 5.03% 25-Month CD at a Florida Bank
• 5.00% 29-Month CD at a Pennsylvania CU
• 5.00% 24-Month CD at a Michigan Bank
• 5.00% 30-Month CD at a Wisconsin Bank
• 5.00% 30-Month CD at a Florida CU

Terms of 12 Months to Under 24 Months

• 5.25% 19-Month CD at a OH/KY Bank
• 5.25% 17-Month CD at a Wyoming CU
• 5.19% 12-Month CD at a North Carolina Institution
• 5.15% 19-Month CD at a Ohio CU
• 5.15% 12-Month CD at a Michigan CU
• 5.10% 14-Month CD at a CU Open to All
• 5.09% 12-Month CD at a Ohio CU
• 5.09% 14-Month CD at a Pennsylvania CU
• 5.05% 13-Month CD at a CA CU (Open to All)
• 5.00% 15-Month CD at a Connecticut CU
• 5.00% 12-Month CD at a Florida Bank
• 5.00% 12-Month CD at a Illinois Bank
• 5.00% 15-Month CD at a Florida Bank
• 5.00% 15-Month CD at a Chicago Bank
• 5.00% 16-Month CD at a New York CU
• 5.00% 13-Month CD at a California CU
• 5.00% 12-Month CD at a Pennsylvania CU
• 5.00% 15-Month CD at a Texas Bank
• 5.00% 12-Month CD at a Georgia Bank
• 5.00% 12-Month CD at a Washington State CU
• 5.00% 15-Month CD at a OH/KY Bank
• 5.00% 12-Month CD at a Wisconsin/Illinois CU
• 5.00% 19-Month CD at a Tennessee CU
• 4.92% 18-Month CD at a CA Bank
• 4.85% 12-Month CD at a Texas Bank
• 4.75% 12-Month CD at a Dallas Bank

Terms of Under 12 Months

• 5.25% 3-Month CD at a Florida CU
• 5.20% 8-Month CD at a Missouri Bank
• 5.15% 11-Month CD at a Georgia CU
• 5.13% 6-Month CD at a Oregon CU
• 5.01% 6-Month CD at a Florida CU
• 5.00% 10-Month CD at a Michigan CU
• 5.00% 7-Month CD at a Missouri Bank
• 5.00% 5-Month CD at a Northeast Bank
• 5.00% 11-Month CD at a Kansas CU
• 5.00% 5-Month CD at a Wisconsin CU
• 5.00% 6-Month CD at a Michigan CU
• 4.90% 9-Month CD at a Chicago Bank
• 4.85% 7-Month CD at a Georgia Bank
• 4.75% 9-Month CD at a New Jersey Bank
• 4.75% 6-Month CD at a California Bank
• 4.70% 7-Month CD at a Georgia Bank
• 4.70% 11-Month CD at a Nebraska CU
• 4.65% 9-Month CD at a AZ/TX CU
• 4.65% 7-Month CD at a New Jersey Bank Branch

CD Alternatives

• I Bond Article, New I Bond Rate, I Bonds as CD Alternatives

5.13% 6-Month CD at an Oregon CU read and submit comments for this post

NW Preferred Federal Credit Union is offering a 5.13% APY 6-month certificate of deposit. The minimum is $500 with no maximum and no limit on how many you can open. This is a limited time offer.

This credit union's field of membership includes residents of the following Oregon communities: Stayton, Aumsville, Sublimity, Lyons, Gates, Mill City, Detroit, Idahna or Mehama. This is the area south of Portland. Also, licensed insurance professionals of Oregon, Washington or Idaho are eligible.

I wonder how the credit union decided on the domain name MyCreditUnion.com. The name gives an impression of an institution that's available nationally. Perhaps it has intentions to expand. Currently, the credit union is small with $85M in assets and just over 7200 members (from NCUA).

Credit for finding this deal goes to this Fatwallet thread.

Note, it can be useful to open multiple CDs rather than one CD. If you need some money before the maturity, you can break one or a few of the small CDs rather than break the one CD. The only problem is the extra hassle of opening multiple CDs.

5.25% 17-Month CD at a Wyoming CU read and submit comments for this post

Warren Federal Credit Union is offering a 5.25% APY 17-month certificate of deposit. There's a $25K minimum balance requirement and at least 50% of the deposit must be new money. You may also be able to get a free gift when you apply for this CD with this Valpak coupon. This free gift deal expires 2/25/2006.

The credit union's field of membership includes those who live in areas of Cheyenne, Wyoming. There is also a large list of Select Employee Groups. The credit union has four branches in Cheyenne and one in the Warren Air Force Base. Warren FCU is NCUA insured with total assets of $176M and with over 24K members.

I just noticed that this is my first deal for a credit union or bank inside Wyoming. Since it is the smallest state in terms of population, there are probably not too many financial institutions. Wyoming's population is around 500K. The three biggest cities are Cheyenne, Casper and Laramie, and all have populations under 100K.

$110 for Checking/Direct Deposit/BillPay at BestBank read and submit comments for this post

Open a Fresh Checking Account at BestBank and they'll buy up to $10 worth of your unused checks from another bank. The Fresh Checking account has no minimum balance requirements and you get free checks for life of the account. The normal bonus for initiating direct deposit in this account is $25. However, BestBank has this special in which you can earn $100 for direct deposit and Preferred BillPay. Here are the important details:

Direct deposit bonus of $50 for direct deposit of Social Security, payroll, or retirement. Must have three consecutive direct deposits of $75 or more from the same source in a 120 day period. One direct deposit bonus per tax depositing TIN. Bonus will be credited to account within 30 days of third direct deposit. Preferred BillPay bonus of $50 for signing up for our online billpay system and paying three bills by March 31, 2006. Billpay bonus will be credited to account by April 30, 2006. Direct Deposit offer good on new accounts opened February 1, 2006 through March 5, 2006. Personal accounts only.

Credit for the deal goes to this SlickDeals thread. There's some uncertainty if this can be opened online from any state. If you live in Georgia, Illinois, Minnesota, Ohio or Wisconsin, a branch is likely to be nearby to open an account. If there's not a branch nearby, you may be able to open by mail, phone or online. However, the online application requires that you already have an account number.

Another nice perk from BestBank is a grocery rewards check card which has an introductory 10% cash back on the first $250 of groceries at participating grocery stores. However, if you already use a 5% cash card credit card, this is not quite as good, but you would still get an extra $12.5 for using this check card for the first $250 of groceries.

5% 19-Month CD at a Tennessee CU read and submit comments for this post

The US Community Credit Union is offering a 5.00% APY 19-month CD. The minimum required deposit is $25K. There's also a 9-month special certificate with an APY of 4.40% with only a $5K minimum. Both specials are only for a limited time.

The credit union's field of membership includes residents of the Tennessee counties of Davidson, Rutherford and Wilson. It has two branches in Nashville and one in Antioch.

This 5% CD matches the best 18-month CD currently listed at Bankrate.com.

$75 Checking Account Bonus at a California CU read and submit comments for this post

California Credit Union is offering a $75 Bonus for opening a new checking account with direct deposit. In addition, the first order of checks will be free. The direct deposit must be from your net pay or at least $500 and must be made within 30 days of account opening.

The checking is free with no monthly service charges. It also doesn't require direct deposit, so the direct deposit could be cancelled after some amount of time after the bonus is received. The small print doesn't provide how long this needs to be.

The credit union's field of membership primarily includes employees of California schools. However, the FOM also says you can qualify if you are a Parent Teacher Association or Parent Teacher Student Association member. If you're not a member, they can sign you up.

California Credit Union is a large credit union with over $1 billion in assets and almost 75,000 members.

The main office is located in Glendale, California. It has several other branches in Los Angeles, North Hills, Encino, Pasadena and Torrance.

There seems to be lots of checking account bonuses in Southern California lately. Refer to this previous post for bonuses from two banks.

UFB Direct 4.60% Jumbo Money Market Account read and submit comments for this post

The yield on UFB Direct's Jumbo Money Market Account went up from 4.50% to 4.60% this week. It had been at 4.50% since around the end of January, and 4.35% previous to this. Thanks to the commenter who noted this latest change!

I would consider this as a mini-Jumbo money market account. The minimum balance required to get this rate is $50K. Many jumbo accounts typically require $100K balance. UFB Direct also has a no-minimum high yield savings account with an APY of 4.00%. This savings account hasn't kept up as well as HSBC or EmigrantDirect, but it has done better than ING Direct.

As I mentioned in my post last month, UFB Direct lacks an ACH transfer system. Its parent (Union Federal Bank of Indianapolis) has improved slightly on its Bankrate.com financial strength rating. It's back up to 2 out of 5 stars. When I reported on it last month it had only one star. Also according to Bankrate.com, it had about $3.5 billion in total assets as of September 30, 2005.

No-Minimum Online Savings Account Hits 4.75% read and submit comments for this post

RateEdge.com just increased the yield on its no-minimum online savings account from 4.50% to 4.75% APY. It was just about a month ago when it raised the APY to 4.50%. The only problem with RateEdge.com is that it's a division of Sunmark Federal Credit Union which has a field of membership that's primarily limited to those who live in areas of New York State.

Unlike ING Direct and HSBC, this isn't a promotional rate. RateEdge.com has been consistently offering high interest rates for several months. I first noticed RateEdge.com back in mid November when it was offering an APY of 4.25%.

One note, RateEdge.com's savings account isn't exactly a no-minimum savings account. It does require a $5 deposit to open and to keep it open. For all practical purposes, I consider this a no-minimum account.

I'll ask the same question that I did last month: Why don't more credit unions open online branches like RateEdge.com? I've emailed my credit union, and it did spark the interest of a VP. The more people requesting this, the better chance more credit unions will pursue it which means more competition and better rates for us.

Thanks to the reader who left a comment about this rate update!

$50 Bonus for NetBank 1-Year CD read and submit comments for this post

Update 9/28/07: NetBank closed by the FDIC. See post for more details.

NetBank is offering a $50 Visa cash card for opening a CD with a minimum of $2k for at least 1 year. NetBank's 12-month certificate currently pays 4.80% APY which isn't bad for a 12-month CD. This offer seems to only be available to current NetBank customers. The promotion is running until March 31 '06. Thanks to the reader who sent me this deal in the mail and also the reader who posted it here!

For those not yet a NetBank customer, the $175 promotion seems to still be valid. Also, NetBank's iPod shuffle promotion is still active through this month. So you could get these bonuses and then another $50 for this new CD promotion. NetBank seems to be continuing these types of promotions. Its latest one is with TigerDirect.com and is similar to the $175 promotion except that the bonuses are in TigerDirect.com gift cards. Also, it's only $160 in value. If the $175 promotion expires, this Tiger one may be the next best one.

NetBank's Warns of a Weak First Quarter

On a side note, NetBank reported fourth quarter earnings a few days ago and warned of a weak first quarter. This Motley Fool article describes how the flattening yield curve and the tough competition are affecting NetBank. It'll be interesting to see if NetBank continues these promotions. They may not help NetBank's profits but it could be the reason why NetBank reported moderate increases of 6% year over year in both customers and deposits.

5.25% 24-Month CD at a Florida Bank read and submit comments for this post

Peoples First Community Bank is offering a 5.25% APY 2-year CD. There's a $1K minimum required deposit. It also requires a checking account. Many of the checking accounts at this bank have no minimum balance requirements to avoid fees. Other CD specials include a 4.75% 18-month CD and a 4.50% 12-month CD. These certificate specials are not listed at the bank's website, but were advertised in the Orlando Sentinel and the Daytona Beach News (see online ad).

The bank has branches throughout Central and North Florida including the cities of Jacksonville, Panama City, Tallahassee, Pensacola, Altamonte Springs, Apoka and Kissimmee.

The best 24-month CD currently listed at Bankrate.com is 5.00% APY at American United Bank of Lawrenceville, Georgia.

$50 Checking Account Bonuses in S. CA read and submit comments for this post

There are two decent checking account bonuses at two banks with branches throughout Southern California. Neither requires direct deposit.

First $50 Bonus

The first checking account promotion is being offered by Cal National Bank. Credit goes to Fatwallet member wokscott who got the deal from a LA Times ad yesterday and posted it in this FW thread. Below are the important details from the ad:

Move your checking account to Cal National and than use our check card 5 times and we'll give you $50.

Small print:
$50 credited to your open, non business checking account on or before 4/15/06 and is subject to IRS and other tax reporting. Qualifying card transactions must be PIN or signature based purchases (non-ATM) and be settled to your account by 3/31/06. Maximum of one credit per account per household. Must be new checking relationship to the Bank opened on or after 1/23/06. Minimum opening balance is $100. 866-42-SWITCH

Second $50 Bonus

The second checking account promotion is being offered by Western Financial Bank. I found this deal being advertised in this WFB ad in the online version of the Riverside Press. Below are the important details from the ad:

Come in to your nearest branch, open you Free Checking for Life account between January 30th and February 20th and walk out with your Free $50 Target GiftCard.

Small print:
A minimum opening checking deposit of $500 is required. Offer expires at the end of business day February 20, 2006. This offer is limited to new consumer Free Checking accounts only and is not valid if you have closed a WFB account in the past 12 months. This checking account is free of monthly service charges. The checking account must remain open for 6 months.

[Edit: There was a correction in the fatwallet thread. Only $50 is possible from that Cal National Bonus. This post was changed accordingly.]

Hillcrest Bank's Money Market Breaks 5% read and submit comments for this post

Hillcrest Bank made some substantial increases on its Index Money Market rates. For very large deposits (over $500K) the APY was increased from 4.85% to 5.09%. For more reasonable deposits of between $50K and $250K, the APY was increased from 4.54% to 4.78%. Below are the interest rates for all of the balance tiers:

APY   Interest  Min Deposit  Min Balance
      Rate      to Open      for APY
4.20%   4.13%   $10,000       $10,000 
4.46%   4.38%   $10,000       $25,000 
4.78%   4.68%   $10,000       $50,000 
4.93%   4.83%   $10,000      $250,000 
5.09%   4.98%   $10,000      $500,000 

It looks like Hillcrest intends to remain on top of the money market rates. About a month ago, I reported on Hillcrest's 4.54% APY.

This fatwallet thread does a good job at reviewing this bank and this Index Money Market Account. It can be opened through the mail without having to visit the branches. The minimum deposit requirement is only $10K. If balance falls below $10K, there's a $10 per month fee (This might have recently changed since the FW thread specifies a $50K minimum opening deposit and balance requirement to avoid fees.) The other features of this account seem similar to most other money market deposit accounts such as 6 withdrawals per month allowance (3 of the 6 can be debits to a third part. $10 fee per withdrawal after 6) and check writing privileges. It was also reported on the FW thread that Hillcrest gives you the first 40 checks free.

The only drawback from Hillcrest is that its online banking system doesn't seem to have an ACH transfer capability. However, you should be able to link it to the ACH systems of other banks like HSBC.

Hillcrest Bank's main office is in Overland Park, Kansas, and bank has 5 branches in Kansas and 5 in Missouri. Bankrate.com rates the financial strength of the bank as 3/5 stars (performing). As of September 30, 2005, it had $1.2 billion in total assets. As a comparison, ING Direct also has 3 stars, and in September 30, 2005, it had reported $51.4 billion in total assets (Bankrate.com).

5% 12-Month CD at a Wisconsin/Illinois CU read and submit comments for this post

Heritage Credit Union if offering a special 5.00% APY 12-month CD. There's a minimum deposit requirement of $5K and it requires new money. Other special certificates include a 5% APY 48-month CD and a 4.75% APY 14-month CD. These also have a $5K minimum but do not require the money to be new. All of these special CDs are available as regular shares or IRA certificates.

There are few details on the website regarding the credit union's field of membership. Branches are located in several cities of Illinois and Wisconsin.

$100 / $25 Checking Account Bonuses at Two Indiana Banks read and submit comments for this post

There were some nice checking account bonuses listed in yesterday's Indianapolis Star newspaper. Thanks to the FW member pitchow who posted the details and the scan of the ads on Fatwallet.

The $100 bonus is offered by Flagstar Bank. Get a $100 Visa Gift Card when you open a Personal Checking Account and establish Direct Deposit or Auto Bill Pay. Flagstar personal checking account requires $50 minimum opening deposit. Offer expires February 28, 2006. This special is available only at the 5004 West 71st St., Indianapolis and the 50 N. Ford Rd., Zionsville branches. Refer to the FW thread for the scan of the ad.

The $25 bonus is offered by First Indiana Bank. The nice thing about this promotion is that it doesn't require direct deposit and it's for a free checking account with no minimum balance requirements. There is a $25 minimum initial deposit requirement. Here are the important details: Mention this ad and receive your $25 gift card when you open a First Indiana personal checking account. The $25 minimum initial deposit must originate outside of First Indiana. Offer expires March 31, 2006. Refer to the FW thread for the scan of the ad.

I also noticed on First Indiana Bank's website some decent CD rates. The APY and terms of these certificates are: 4.75% 11-months, 4.80% 22-months, 4.85% 33-months and 5.00% 44-months.

5.15% 12-Month CD at a Michigan CU read and submit comments for this post

Huron River Area Credit Union has a special called the No Nonsense 12 Month CD. With this special you can get up to 5.15% APY on a 1-year certificate with a $10K minimum required deposit. For deposits between $5K and $10K, the APY is 5%. Deposits under $5K have an APY of 4.58%. Offer expires February 28, 2006.

The credit union's field of membership is primarily employer based. However, it looks like the credit union is trying hard to expand its membership. For example, one of the easy employment requirements includes persons employed in an engineering or scientific field located in any one of several Michigan counties. The last qualification states "Persons who are enrolled in the organization Learn & Earn Credit.org" This looks like it may open up membership to everyone. However, I found this Learn & Earn Credit website and it doesn't give any information about how to enroll. This organization seems to have been put together by the credit union and is still in the start-up phase.

The credit union has branches in the Michigan cities of Ann Arbor, Chelsea, Auburn Hills, Van Dyke, Howell and Brighton.

On a side note, I came across this credit union from this Ann Arbor news story about a fake credit union website. Apparently someone set up a site with the same domain name as this credit union except it uses .com rather than .org. There was concern that this could be a phishing site, but it turned out to just be a misleading advertisement page. Creating websites at similar domain names as popular sites can unfortunately acquire many accidental hits.

5.25% 19-Month / 5.00% 15-Month CD at a OH/KY Bank read and submit comments for this post

United Midwest Savings Bank has three high interest CD specials. These include a 5.25% APY 19-month CD, a 5.00% APY 15-month CD and a 4.75% APY 7-month CD. All of these certificates have a minimum deposit requirement of $500.

The bank has branches in the Ohio cities of DeGraff, Columbus and Bellefontaine. The bank also has a branch in Falmouth, Kentucky.

5.06% 6-Month CD at Merrill Lynch read and submit comments for this post

Merrill Lynch is offering a 5.06% APY 6-month CD and a 4.58% APY 3-month CD. Both are FDIC insured. The minimum required deposit for the 6-month CD is $25K. No minimum is specified for the 3-month CD. The special requires new funds only. Offer expires 2/10/06 at 2:00 pm EST. Contact your Merrill Lynch Financial Advisor or call (888) MER-2265 Monday thru Friday 8:00 am to 8:00 pm (EST).

Credit for this deal goes to a reader who emailed me this information from an ad in today's paper.

5.80% 60-Month CD at a Virginia CU read and submit comments for this post

Vantria Federal Credit Union is offering a 5.80% APY 5-year CD. There's also a competitive 4-year CD with an APY of 5.12%. Both have a $1K minimum deposit requirement. These two share certificates qualify as a Step-Up Certificate which allows for 2 bump-up in rates.

The credit union's field of membership includes residents of Fairfax County, Virginia. Vantria has one branch in Springfield, Virginia.

Compared to Other 5-Year CDs

This 5-year CD from Vantria even tops Penfed's 5.75% CD. The best 60-month CD listed today at Bankrate.com is 5.10% APY at GMAC Bank.

World Savings Extends 4.86% 6-Month CD read and submit comments for this post

The World Savings' 4.86% APY 6-Month CD special has been re-issued and will last through March 4, 2006. The requirements are the same as I reported in December. There's a $10K minimum deposit requirement and a $100K maximum. It's not available online. You have to visit a branch and specifically mention this special rate. Credit for this info goes to this Fatwallet thread.

World Savings currently has a 4.76% APY 8-month CD that is available online. This also has a $10K minimum.

5.19% 12-Month CD at a North Carolina Institution read and submit comments for this post

Amerifirst Direct is advertising a 5.19% APY 12-month CD at their Charlotte, North Carolina offices. There's a $20K minimum deposit. Deposits over $50K are not guaranteed to received this yield. Deposits are advertised to be FDIC insured. This was advertised in the Charlotte Observer. A reader was nice enough to scan the ad which is available at this link. Four Charlotte offices are listed.

I was not able to find Amerifirst Direct at the FDIC's database. Amerifirst Direct might be acting as a broker and selling these certificates of deposit as a type of brokerage CD.

Update: Comments have been disabled in this post. Please refer to this comment policy for more information. Refer to this post for a general discussion of these financial service companies. Any comments about these financial service companies should be considered opinions. Comments are owned by whoever posted them. The author of this website is not responsible for them in any way.

5.05% 13-Month Bump-Up CD at a CA CU (Open to All) read and submit comments for this post

Kinecta Federal Credit Union is offering a 5.05% APY 13-month Bump-Up Certificate. The CD has a minimum deposit requirement of $1K and 50% must be funded by new money. The bump-up feature allows a one-time request for a rate adjustment to the rate of the 1-year CD. The new rate will carry forward until the original maturity date.

I don't think the bump-up feature will be useful for this CD. The credit union's current APY for a 1-year CD is only 4.30%. I would consider it unlikely that this 1-year CD yield will jump to over 5.05% in the next year. Nevertheless, the 5.05% APY for a 13-month term is great without any other benefit.

Kinecta FCU appears to be another credit union in which anyone can join by just becoming a member of a non-profit society called the Consumers Cooperative Society of Santa Monica. Membership into this society requires a $10 fee.

Another nice thing about Kinecta is that it seems to have a comprehensive online banking system which even allows opening a share certificate online. However, becoming a member still requires printing and mailing the application. For those who don't live near a Kinecta branch, it may be questionable if this CD deal is good enough to make it worthwhile to apply. If the application takes too long, you could miss out on this CD. However, if Kinecta often has similar CD deals, a longterm membership could be worthwhile. All that is required to maintain membership is $5 in the savings account. Also, there's a free no-minimum balance checking account. Linking the savings or checking account to an online bank could make it easy to transfer out matured CDs or transfer money in for new CDs.

Kinecta has branches in several California cities including Brea, Hawthorne, Irvine, Malibu, Manhattan Beach, El Segundo, Goleta, Santa Monica and Torrance.

5% 12-Month CD at a Washington State CU read and submit comments for this post

The Cascade Forest Products Credit Union is offering a 5.00% APY 12-month share certificate. The CD has a minimum deposit requirement of $1K and is a limited time offer.

The credit union's field of membership includes all those who live in the State of Washington. The FOM is surprisingly large considering it has only one branch located in Vancouver, Washington.

5% 6-Month CD at a Michigan CU read and submit comments for this post

The Valley State Employees Credit Union is offering a 5% APY 6-month CD. The maximum allowed deposit is $15K. Although it doesn't list the minimum for this special, other certificates of deposit have a $1K minimum.

This credit union's field of membership includes state of Michigan employees and students and staff of Saginaw Valley State University.

$50 Bonus for ETrade Money Market Account read and submit comments for this post

Earn 4.40% APY for the first 3-months and receive a $50 bonus when you fund an ETrade Money Market Account with at least $100. Here's the link to the promotion. The ETrade Bank website links to a page that doesn't mention the $50 bonus, only the 4.40% 3-month APY. Also, some others have listed the link to an ETrade page that has a 3.60% APY rather than this 4.40% APY. I had to search around to find the page that had both the $50 and the 4.40% APY.

This has been offered by ETrade many times in the past. I first posted on this last September. The terms have remained the same. An important note about this money market account is that it requires a minimum balance of $1K (or $5K in total E*Trade Bank deposits) to avoid a $10 monthly fee. This $50 bonus offer expires February 28, 2006. A $10 early closeout fee will be assessed if account is closed within 120 days of opening.

After the first three months, the money market yields at ETrade are not competitive. Currently, those with $5,000 to $49,999 earn 2.75% and those with less than $5,000 earn 0.30%.

ETrade has kept its CD rates competitive. It currently is offering a very nice 4.75% APY 6-month CD. You could fund the money market account to get the bonus and the temporary 4.40% APY. Then use the money market money to fund a 6-month CD. If the CD is at least $5K, you could then avoid the $10 monthly fee.

6.40% 60-Month Variable CD at a South Carolina CU read and submit comments for this post

Founders Federal Credit Union is offering a 6.40% APY 5-year variable certificate. There's a $5K minimum deposit requirement. The CD is also available for IRA accounts with only a $3K minimum.

Unlike the typical fixed CD, a variable CD rate is not locked during the term. I can't find any details on the website about when and how the rates will change. There's always the concern that there might be a large decline in the rate sometime in the future. With a yield of 6.40% ,however, at least you start out way ahead of most CD yields currently available.

The credit union's field of membership includes some communities, but the website doesn't provide details. There are 19 branches in South Carolina and one in Wisconsin.

Thanks to the commenter who posted this deal.

5.25% 3-month / 60-month CD at a Florida CU read and submit comments for this post

The Keys Federal Credit Union has a very unique CD promotion. A special APY of 5.25% is being offered on any certificate term. The minimum term is 91 days and the maximum term is 5 years. There's a minimum deposit requirement of $10K and the money must be new to the credit union. This is a limited time offer.

The credit union's field of membership includes all those who live in the Florida Keys. It has branches in Key West, Big Pine Key and Marathon Shores, Florida.

Not only do the folks in the Keys get to enjoy great weather this winter, but they also can get this great CD deal. Doesn't seem to be fair...

Bank Deal Summary for Feb 4, 2006 read and submit comments for this post

Looks like we have a battle of the banks going on. HSBC Direct came out with their Fat Savings Bonus which beats ING Direct's Winter Save Up Sale by 0.05% (4.80% APY vs. 4.75% APY). Unlike ING's promo, HSBC's 4.80% APY applies to all deposits, not just new deposits. I placed HSBC on top of the savings account list. There's never a guarantee with savings account rates. The only thing different between HSBC's rate and other rates is that HSBC has put an expectation that the rate is likely to fall after April 30th. I didn't put ING's 4.75% on top last week since it applied only to new money.

Now the question is how will the other online banks respond? Is EmigrantDirect hearing a giant sucking sound from people transfering money to ING or HSBC? I can understand some EmigrantDirect customers not wanting to transfer their money to ING since after the promo, ING's rates will almost surely be much less than what Emigrant will be offering. However, HSBC is another story. HSBC's yield has averaged higher than EmgirantDirect for the last several months. After Emigrant's disappointing 0.25% increase last month and their disappointing cash back credit card launch, HSBC may be looking very appealing. Another thing that makes HSBC appealing is that you can link your EmigrantDirect's savings account to your HSBC's savings account. This is not possible with ING Direct. The only problem with HSBC is their slow transfer system in which transfered money loses 2 to 4 days of interest during the transfer.

In addition to HSBC, several banks increased rates after the Fed fund rate increase. Corus Bank's money market APY went from 4.38% to 4.47%. Presidential Savings Account increased by 0.25% to 4.37% APY, and MyBankingDirect's money market APY increased from 4.10% to 4.30%. The Self-Help Credit Union's money market account also increased this week from 3.96% to 4.15% APY.

In addition to savings accounts, CD rates increased at many banks. GMAC Bank's 1-year CD now equals VirtualBank's 4.90% APY. ETrade's 6-month CD APY increased from 4.62% to 4.75% APY to match VirtualBank. ING Direct just made some small increases to its CDs today. Penfed didn't increase its CD rates, but it did keep the rates the same which should last through February. Their long-term CDs continue to be great deals.

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. Previous weekly summaries are available for Jan 28th, Jan 21st, Jan 14th, Jan 8th, Dec 31st and Dec 17th.

As of February 4, 2006

Savings/Money Market Accounts:

• HSBC - 4.80%, offers checking, (rate history), my post ($25 bonus)
• Corus Bank - 4.47% MMA (min $10K to open)
• UmbrellaBank.com - 4.40% MMA (min $1K), offers checking, my post
• Presidential - 4.37% (min $5K, only first $35K receives this rate), offers checking, my post
• GMAC Bank - 4.30% MMA (min $500), offers checking, my post
• CapitalOne/Costco - 4.30% MMA (min $5K, Costco members only, $50 deal for exec. members)
• MyBankingDirect - 4.30% MMA (min $5K), my post
• EmigrantDirect - 4.25%, my post, ($10 signup bonus), (rate history)
• Western Financial Bank - 4.25% MMA, offers checking, my post
• FirstFedDirect - 4.25% (closed to CA residents), my post
• Self-Help Credit Union - 4.15% MMA (min $500), my post
• CapitalOne - 4.00% (MMA has same rate, but with checks and ATM. $100 min.)
• UFB Direct - 4.00% MMA, offers checking, my post
• MetLife Bank - 4.00% MMA (min $5K), my post
• ING Direct - 3.80%, my post (4.75% promo and $25 bonus), (rate history)
• VirtualBank - 3.55% (min $100), offers checking, my post ($20 bonus)
• NetBank - 3.52% MMA ($500 min), requires checking, my post ($175 deal)
• ebank - 3.30% MMA ($1K min, rate for $10K-25K balance), offers checking

6-Month Certificates of Deposit:

• ETrade Bank - 4.75% (min $1K), my post
• VirtualBank - 4.75% (min $10K), my post ($20 bonus)
• Corus Bank - 4.70% (min $10K)
• GMAC Bank - 4.65% (min $500)
• UmbrellaBank.com - 4.65% (min $1K)
• FirstFedDirect - 4.52% (min $10K), my post
• NetBank - 4.50% (min $1K)
• Self-Help Credit Union - 4.46% (min $500), my post
• ebank - 4.35% (min $1K), 4.60% for ePremium checking customers
• MyBankingDirect - 4.35% (7-month term) ($500 min)
• UFB Direct - 4.30% (min $8K)
• MetLife Bank - 4.25% ($1K min)
• ING Direct - 4.20%
• Western Financial Bank - 3.75% ($100 min)

8-Month Certificate of Deposit:

World Savings - 4.76% ($10K min with new funds), my post

12-Month Certificates of Deposit:

• Patelco Credit Union - 5.00% (min $1K), not NCUA insured, my post
• Corus Bank - 4.94% (min $10K)
• GMAC Bank - 4.90% (min $500)
• VirtualBank - 4.90% (min $10K), my post ($20 bonus)
• Pacific Mercantile Bank - 4.87% (min $10K), my post
• Self-Help Credit Union - 4.86% (min $500), my post
• UmbrellaBank.com - 4.85% (min $1K)
• FirstFedDirect - 4.84%, (min $10K) my post
• ETrade Bank - 4.80% (min $1K), my post
• ebank - 4.75% (min $1K), 5.00% for ePremium checking customers
• NetBank - 4.75% (min $1K), my post (iPod or $25 bonus)
• MetLife Bank - 4.51% ($1K min)
• Western Financial Bank - 4.40% ($100 min)
• ING Direct - 4.35%
• UFB Direct - 4.40% (min $8K)

18-Month Certificates of Deposit:

• Pacific Mercantile Bank - 4.92% (min $10K), my post
• CapitalOne/Costco - 4.81% (min $5K, Costco members only)

26-Month Certificate of Deposit:

• Third Federal - 5.00% (min $500) my post

36-Month Certificate of Deposit:

• Pentagon Federal CU - 5.50% (min $1K), my post
• Self-Help Credit Union - 5.15% (min $500), my post
• GMAC Bank - 5.00% (min $500)

60-Month Certificate of Deposit:

• Pentagon Federal CU - 5.75% (min $1K), my post
• Self-Help Credit Union - 5.18% (min $500), my post
• Pacific Mercantile Bank - 5.13% (min $10K), my post
• GMAC Bank - 5.10% (min $500)

84-Month Certificate of Deposit:

• Pentagon Federal CU - 6.00% (min $1K), my post

High Rates with Conditions - Open to All

• 10% Savings Account for kids ($500 max)
• 5.01% 3-month intro rate on checking account
• 5.00% Money Market with $30K (3-month intro rate)
• 4.55% Money Market with $25K min
• 4.54% Money Market with $50K min
• 4.50% Money Market with $25K min
• 4.00% checking account (CU that's open to all)

Checking and Saving Accounts at Local Credit Unions

• 4.50% money market account, $25K min (Pennsylvania)
• 4.50% no-minimum savings account (New York)

CD Specials at Local Credit Unions/Banks Over the Last Month

Terms of 60 Months and Over

• 7.00% 70-Month CD at a Michigan CU
• 6.66% 62-Month CD at a Pennsylvania CU
• 6.25% 60-Month CD at a Carolina CU
• 5.63% 60-Month CD at a Texas CU
• 5.25% 60-Month CD at a PA CU
• 5.23% 60-Month CD at a CA Bank

Terms of 24 Months to Under 60 Months

• 5.75% 47-Month CD at a Michigan CU
• 5.12% 24-Month CD at a Texas CU
• 5.10% 25-Month CD at a Illinois Bank
• 5.03% 25-Month CD at a Florida Bank
• 5.00% 29-Month CD at a Pennsylvania CU
• 5.00% 24-Month CD at a Michigan Bank
• 5.00% 30-Month CD at a Wisconsin Bank
• 5.00% 27-Month CD at a Ohio CU
• 5.00% 30-Month CD at a Florida CU

Terms of 12 Months to Under 24 Months

• 5.15% 19-Month CD at a Ohio CU
• 5.09% 12-Month CD at a Ohio CU
• 5.09% 14-Month CD at a Pennsylvania CU
• 5.05% 15-Month CD at a Georgia Bank
• 5.00% 15-Month CD at a Connecticut CU
• 5.00% 12-Month CD at a Florida Bank
• 5.00% 12-Month CD at a Illinois Bank
• 5.00% 15-Month CD at a Florida Bank
• 5.00% 15-Month CD at a Chicago Bank
• 5.00% 16-Month CD at a New York CU
• 5.00% 13-Month CD at a California CU
• 5.00% 12-Month CD at a Pennsylvania CU
• 5.00% 15-Month CD at a Texas Bank
• 5.00% 12-Month CD at a Georgia Bank
• 4.92% 18-Month CD at a CA Bank
• 4.85% 12-Month CD at a Texas Bank
• 4.75% 12-Month CD at a Dallas Bank

Terms of Under 12 Months

• 5.20% 8-Month CD at a Missouri Bank
• 5.15% 11-Month CD at a Georgia CU
• 5.01% 6-Month CD at a Florida CU
• 5.00% 10-Month CD at a Michigan CU
• 5.00% 7-Month CD at a Missouri Bank
• 5.00% 5-Month CD at a Northeast Bank
• 5.00% 11-Month CD at a Kansas CU
• 5.00% 5-Month CD at a Wisconsin CU
• 4.90% 9-Month CD at a Chicago Bank
• 4.85% 7-Month CD at a Georgia Bank
• 4.75% 9-Month CD at a New Jersey Bank
• 4.75% 6-Month CD at a California Bank
• 4.70% 7-Month CD at a Georgia Bank
• 4.70% 11-Month CD at a Nebraska CU
• 4.65% 9-Month CD at a AZ/TX CU
• 4.65% 7-Month CD at a New Jersey Bank Branch

CD Alternatives

• I Bond Article, New I Bond Rate, I Bonds as CD Alternatives

ING Direct Increases Yields Slightly on CDs read and submit comments for this post

ING Direct made some slight increases in its CD rates. These increases on the short term CDs put the rates back to where they were before ING Direct reduced the rates on January 23. For terms of 2-years and over, the rates are still 0.05% less than where they were before January 23. It's interesting to see ING make changes so soon since its last CD rate change.

Like the Orange Savings Account, the CDs from ING Direct don't have the best rates. Since I've been tracking ING CD rates for awhile, I'll keep doing it for history sake. It may be a good gauge of interest rate trends. When ING's 4.75% Winter Save Up Sale nears its end, perhaps we'll see some spring sales on CDs.

CD Term   APY
6 month   4.20% (up from 4.15%)
9 month   4.25% (up from 4.20%)
12 month  4.40% (up from 4.35%)
18 month  4.60% (up from 4.50%)
24 month  4.70% (up from 4.60%)
30 month  4.70% (up from 4.60%)
36 month  4.70% (up from 4.60%)
48 month  4.75% (up from 4.65%)
60 month  4.80% (up from 4.70%)

Refer to this post for info on ING Direct's 4.75% promotion, and refer to this post for info on ING Direct's last certificate of deposit rate change.

Bank of America Promotions and Fees read and submit comments for this post

Bank of America offers many promotions, but there are often two problems: It can be difficult to receive the bonus, and you have to be very careful about fees.

I've had both of these problems. I was charged 3 times for a monthly fee on a checking account even though I met the conditions to avoid the fee. After each charge I would call. The customer service representative would always credit me the fee and claim it wouldn't happen again.

I've also had problems receiving bonuses from Bank of America. Last September, I took advantage of this promotion in which I would get paid $5 for each account that I stop paper delivery of my monthly statements. I did this around the first of October. The promotion ended on October 31. I patiently waited for the $5 credit to my accounts. After over 3 months, I finally emailed Bank of America through their secure message system. After about a week from this email, I received the $5 bonuses credited to my accounts. It looks like you have to remember to follow up with Bank of America. I would recommend to sign in to your account and use their secure message system first before calling. This can save time. If this doesn't work, you can always call or visit a branch.

This issue with Bank of America seems to be a common problem. Have you had similar problems? A couple of commenters provide some of their experiences on my last post on a Bank of America promotion. Many on this Fatwallet thread have described similar problems.

So if you sign up for a Bank of America promo, make sure you save the promotional flyer or webpage. Plus be sure to document when and how you signed up. Carefully read the terms and fee schedules to reduce chances of surprise fees. After a few months, if you haven't been credited for the bonus, be sure to follow up. I bet many haven't followed up with the $5 paper statement bonus. For bonuses that small it's easy to forget.

Here's a list of the latest Bank of America promotions:

• $75 for New Checking Account
• Keep the Change Program
• For those in the military, Bank of America's Military Bank has up to $380 in bonuses for checking, savings and CD accounts. Here's the promotional webpage. No expiration dates are shown.

7% 70-Month / 5.75% 47-Month CD at a Michigan CU. read and submit comments for this post

The Research Federal Credit Union is having a 70th Anniversary Certificate Special with CD yields higher than I've seen in a long time. The highest is a 7.00% APY 70-month CD with a $10K minimum deposit requirement. The next highest is a 5.75% APY 47-month CD with a $5K minimum. These CDs are also available in IRA accounts. Below is a list of all the CDs:

Term      Rate    Yield   Minimum Deposit
 7 month  4.36%   4.46%   $  2,500
27 month  4.89%   5.00%   $  5,000
47 month  5.60%   5.75%   $  5,000
70 month  6.78%   7.00%   $ 10,000

The credit union has a fairly restrictive employer-based field of membership with three branches in the cities of Warren, Milford and Detroit Michigan.

For the person who emailed me this deal and the details about membership, Thanks!

5.09% 14-Month / 6.66% 62-Month CD at a Pennsylvania CU read and submit comments for this post

The Boeing Helicopters Credit Union has some very high yields on CDs and money market accounts. The best certificate yields range from 5.09% for a 14-month term to 6.66% for a 62-month term. There's even a 5.61% APY for a jumbo 14-month CD ($100K minimum deposit required). The money market account has an APY as high as 4.58% for deposits over $50K. The following is the list of CD interest rates and terms:

CD Term    APY     APY ($100K min)
14-month   5.09%   5.61%
26-month   5.35%
38-month   5.61%
50-month   5.88%
62-month   6.66%

The credit union is also advertising on its front page a 5% no-penalty CD for new members. Money from your initial deposit receives 5% until its withdrawn. The money may be withdrawn at any time.

The only problem with this credit union is that it has a restrictive employer-based field of membership based on the Boeing company and employers within a 25-mile radius from Boeing's Pennsylvania Ridley Park office.

$101 Checking Account Deal at PNC Bank read and submit comments for this post

$101 Checking Account w/DD Deal at PNC Bank

This slickdeal thread has reported that PNC Bank is offering $101 for opening a free checking account. It requires direct deposit and 2 online bill paymaents a month. This deal is not on PNC Bank's website. The poster received a flyer in the mail but claims this flyer isn't necessary and should be valid for any PNC Bank branch. He received the bonous at a Washington DC branch.

As was mentioned in the thread, the direct deposit requirement can be easier meet now that many employers are providing the capability to split deposits across several banks. Some banks also accept ACH transfers from an online bank as direct deposit payments. I've seen some banks starting to require a certain amount of direct deposit as a simple method to get around these tricks. However, there doesn't seem to be this restriction for this PNC Bank promotion.

The online bill payment requirement is even easier to meet. The payments can be very small and be made out to a family member.

MyBankingDirect Raises Money Market Account APY to 4.30% read and submit comments for this post

MyBankingDirect just raised its money market account from 4.10% to 4.30% APY. MyBankingDirect is an online division of New York Community Bank. It began online operations around June of last year. It received some attention by offering a $25 sign-up bonus along with yields that have been higher than those of EmigrantDirect. The signup bonus went away sometime around early October when MyBankingDirect raised the interest rate to 4.00% to match EmigrantDirect. Here's a summary of MyBankingDirect's rate history:

Date    MyBankingD  EmigrantDirect
Aug   :  3.75%       3.50%
Sep 20:              4.00%
Oct  7:  4.00%
Dec  1:  4.10%
Jan 26:              4.25%
Feb  2:  4.30%

Without the sign-up bonus, there's not much to like about MyBankingDirect over the other online banks. It has a high minimum deposit requirement of $5K. If balances fall below $5K, the yield falls to 2.50%. Balances under $1K result in a $10/month fee.

One positive of MyBankingDirect is that it offers an debit/ATM card and will refund up to 3 ATM surcharge fees per month (up to $6). Also, according to this fatwallet thread, you can initiate ACH transfers to and from unlimited number of accounts. However, there is a fee for this. It would be interesting to see how long the transfers take. If there's no delay when the money isn't earning interest, the fee may be better than HSBC's free bank-to-bank transfer system which has a 2-to-4 day delay.

Here are some of my previous posts on MyBankingDirect:

• MyBankingDirect's raised yield to 4.10%
• MyBankingDirect matches EmigrantDirect's 4.0%, Bonus goes away
• First investigation into MyBankingDirect and its $25 Bonus

WSJ Article on Bank Teaser Rates read and submit comments for this post

As we've seen in the last couple of weeks, bank promotions are starting to pick up. You can get some ideas from this Wall Street Journal article on the latest bank promotions and on the motives of the banks. As the article mentioned:

Tantalizing rate offers have long been one of the most reliable asset-gathering mechanisms for financial institutions and some banks are now raising their rates to combat a slowdown in deposit growth.

The banks are hoping that they'll atract new customers who will then forget about these accounts after the promotion is over. This must be the hope of ING Direct. When the sale is over and the savings account rate returns to sub-par level, how many customers will keep their money in the account? Two other good examples of these types of promotions given by the article include:

• ETrade Financial Corp. - New customers earn 4.1 percent for 90 days. After that time, the rate would drop to 3.4 percent for balances over $50K, 2.6 percent for balances under $50K and just 0.30 percent for balances under $5K (assuming today's rates).
• National City Corp. - Money market account earns 4.5 percent for 180 days. New customers are required to open a Preferred Interest Checking account which has monthly fees if certain balances are not maintained.

The customers who pay attention and are willing to move their money will profit. The ones who forget and don't bother to move, will help the banks profit.

Credit for finding this article goes to this commenter. Thanks!

5% 12-Month / 4.85% 7-Month CD at a Georgia Bank read and submit comments for this post

American United Bank increased all of its CD rates by 0.15% to 0.20%. It now has some of the best rates in the nation which includes a 5% 12-month CD and a 4.85% 7-month CD. All of the certificates have a minimum deposit requirement of $1K. CDs with terms of one year or longer are available in IRA accounts. Below is the full list of rates and the changes since my last post.

CD Terms  APY    Change
1 month   4.20%  (up from 4.00%)
4 month   4.60%  (up from 4.45%)
7 month   4.85%  (up from 4.70%)
12 month  5.00%  (up from 4.85%)
25 month  5.05%  (up from 4.90%)
37 month  5.10%  (up from 4.95%)
49 month  5.15%  (up from 5.00%)

The bank is located in Lawrenceville, Georgia which is just outside of Atlanta. It's not apparent from the website if you have to be a Georgia resident to open an account.

5.05% 12-Month CD at Mutual Bank read and submit comments for this post

Mutual Bank is offering a 5.05% APY one-year CD. There's a minimum required deposit of $1K.

Mutual Bank had offered a 5.50% APY five-year CD, but it ended that special last month. The bank continues to have some high yields on its Premium Unique Money Market account. The best is 4.75% APY. However, this applies only to balances over $1M. Balances between $5K and $75K earn 4.00% APY.

The bank is located in Chicago, but people in other states can purchase a certificate of deposit through the mail.

5% 15-Month CD at a Texas Bank read and submit comments for this post

The First National Bank is offering a special 5.00% APY 15-month CD. The minimum deposit requirement is $5K. An APY of 5.15% is available for jumbo CDs with deposits over $100K. These special certificates were advertised in the February 2nd edition of the Dallas Morning News. The ad is available online at this link. These are not mentioned on the bank's website. This special is specifically for the Dallas area branches. I called a branch in Austin Texas and it was offering a similar special. The APY was still 5% but the term was 18 months rather than 15. It also had the same 5.15% jumbo APY.

The First National Bank has branches in many cities in Texas including Dallas, Houston, San Antonio, Austin, Laredo, Corpus Christi and the Rio Grande Valley.

5% 12-Month CD at a Pennsylvania CU read and submit comments for this post

Priority First Federal Credit Union has a 5% APY 12-month CD special. The certificate requires a minimum deposit of $10K and is available through February 21, 2006.

The credit union's field of membership includes residents of Jefferson County, Pennsylvania.

Official Details on HSBC's 4.80% Savings Account read and submit comments for this post

HSBC Direct finally published the details on its 4.80% Online Savings Account promotion. It's called the Fat Savings Bonus. Unlike ING Direct's Winter Save Up Sale, all of the money is eligible for the bonus, not just new deposits. The details also confirm that the 4.80% yield will last until April 30, 2006. After that date, all deposits will earn the variable APY available at that time.

I don't know if this should be classified as a promotion. Savings account rates are never guaranteed to not go down. When EmigrantDirect did the 4.00% rate last September, it guaranteed the rate through the end of the year. Should that have been considered a promotion? In terms of the high rate bump, it's only 0.05% more than what EmigrantDirect did last September. EmigrantDirect's rate went from 3.50% to 4.00%. HSBC's rate went from 4.25% to 4.80%.

I can understand ING Direct's Winter Save Up Sale being classifed as a promotion due to it only applying to new funds. Also, the rate bump went from 3.80% to 4.75%. I don't think anyone believes ING Direct's standard rate will be anywhere close to 4.75% by April 15th.

5% 5-Month CD at a Wisconsin CU read and submit comments for this post

Fond du Lac Credit Union has a special 5% APY 5-month CD. There's a $10K minimum, and the money must be new to the credit union.

The credit union's field of membership includes residents of Fond du Lac and Dodge County. It has two branches in the city of Fond du Lac which is about 50 miles north-nortwest of Milwaukee, Wisconsin.

The best 6-month certificate of deposit currently listed at Bankrate.com continues to be 4.75% APY at VirtualBank (see post). Corus Bank is still in second at 4.70% APY.

No-Minimum High Yield Savings Account Small Print read and submit comments for this post

If you're chasing rates, be sure to leave at least $1 in an no-minimum savings account. Since ING Direct, EmigrantDirect and others claim no minimum, there has been cases where people have had their accounts closed when the balance fell below $1. This example is from fatwallet. The guy transferred all but 50 cents from EmigrantDirect to ING Direct on January 26. EmigrantDirect transferred all the money and closed the account without paying him interest for January.

Others on the thread pointed to EmigrantDirect's fine print which states:

If you close your Account before interest is credited, you will not receive the accrued interest.

Also, the fine print says:

EmigrantDirect is authorized in its sole discretion to close your account with or without cause.

The important point is to make sure you leave no less than $1 in a no-minimum account. Even if you left $10 in the account, you would lose only $0.10/year if that money were making 1% more in interest somewhere else.

Another important point is if you decide to close your account, it's best to close it at the start of the month so you don't lose much interest.

5% 13-Month CD at a California CU. read and submit comments for this post

Cal State 9 Credit Union is offering a 5% APY 13-month certificate of deposit. There's a minimum deposit requirement of $5K, and the money must come from outside the credit union.

Cal State 9's field of membership includes residents of the following California counties: Alameda, Contra Costa, San Francisco, Sacramento, or Santa Clara.