5.50% 12-Month CD at a Massachusetts Bank read and submit comments for this post

The Needham Cooperative Bank has a special certificate of deposit with an APY of 5.50% (5.35% interest rate) and a term of one year. The minimum deposit is $2.5K. You must visit the branch to open the CD.

The bank has 4 branches in the Massachusetts cities of Needham, Medfield, Westwood and Wellesley.

Credit for this find goes to scott61 who mentioned it in the finding deals post.

4.75% Savings Account / 5.35% 6-Month CD at Ascencia Bank read and submit comments for this post

Here's another savings account with rates way above ING Direct. Ascencia Bank is offering 4.75% APY on their savings account. The minimum initial deposit is $50 and there are no minimum balance requirements or monthly maintenance fees.

Ascencia Bank is also offering a 5.35% APY (5.22% APR) 6-month certificate of deposit. The minimum is $500. The maximum deposit limit is $100K. This rate equals the 1-year CD rate. The rates on their longer term CDs are much lower. CDs with terms of 12 months or less have an early withdrawal penalty of 3 months interest. No withdrawals are allowed for the first 90 days.

Ascencia Bank has an ACH transfer system; however, you need to fill out a form and include a voided check. There doesn't seem to be a limit on the number of other bank accounts that can be linked. ACH transfers in and out are free. From their documentation, they state that ACH transfers requested before 3pm on a business day will be completed that day. They require ACH transfers to be at least $25.

Ascencia only accepts account applications completed online. They do not provide blank applications by fax or mail, and they do not take applications by phone. Refer to their FAQ or their fee sheet for more info.

Ascencia Bank is based in Louisville, Kentucky. Bankrate gives them 4 out of 5 stars (sound).

ING Direct Savings Account Now 4.25% - History of Lagging? read and submit comments for this post

ING Direct raised the yield on their Orange Savings Account today from 4.15% to 4.25% APY. This puts their savings account yield 0.40% under both HSBC and EmigrantDirect and under 0.50% to the new leaders of Amboy Direct and Citibank.

Looking back at last year, I thought it would be interesting to compare ING Direct's savings account rate with those of HSBC and EmigrantDirect. Last year at this time, ING Direct savings account was at 3% APY which was identical to HSBC's new savings account rate and just 0.25% under EmigrantDirect's yield. However, as the year progressed, ING started to lag both of the others by anywhere from 0.10% to 0.60%. Below are the details:

How Much ING Direct has lagged:
              HSBC     Emigrant
05/31/05      0.00%     0.25%
06/30/05      0.00%     0.25%
07/31/05      0.10%     0.35%
08/31/05      0.20%     0.20%
09/30/05      0.35%     0.60%
10/31/05      0.35%     0.60%
11/30/05      0.50%     0.50%
12/31/05      0.45%     0.20%

Thanks to the commenter who mentioned this update in the finding deals post.

Facts about FDIC and NCUA read and submit comments for this post

I keep seeing misinformation about FDIC in forums. Earlier this month I posted about the FDIC's article on the Top 10 FDIC Misconceptions. The top 2 FDIC misconceptions that I've encountered include: 1) You do not get the interest earned, only the principal when a bank fails, and 2) It may take years before they release all your funds.

If you keep below the insured limits, neither of these are true. Here's what that FDIC article states:

Federal law requires the FDIC to pay 100 percent of the insured deposits up to the federal limit - including principal and interest.

and

Federal law requires the FDIC to pay the insured deposits "as soon as possible" after an insured bank fails. Historically, the FDIC pays insured deposits within a few days after a bank closes, usually the next business day. In most cases, the FDIC will provide each depositor with a new account at another insured bank. Or, if arrangements cannot be made with another institution, the FDIC will issue a check to each depositor.

There are also a lot of misconceptions concerning the NCUA which is similar to the FDIC but for credit unions. The NCUA has made their insurance very similar to what FDIC offers. One common misconception about NCUA is that it doesn't have the same features regarding revocable trusts or POD accounts which allow you to go beyond the $100K coverage limit. Here's what the NCUA states:

Additional coverage is available on revocable trust or payable on death accounts. You can now name a parent or sibling as a beneficiary to get separate coverage. Previously, beneficiaries had to be a spouse, child or grandchild.

So for example, if you have an account at a credit union that's POD to one brother and another account that's POD to another brother, your total insurance can be increased to $200K.

FDIC Links

• FDIC Insurance Overview
• FDIC Insurance Calculator
• Is the bank FDIC insured?
• FDIC Answers to Common Questions

NCUA Links

• NCUA (NCUSIF) Insurance Overview
• NCUA Insurance Calculator
• Is the credit union NCUA insured?

7% 70-Day / 7% 70-Month CD at a Connecticut CU ($70K max) read and submit comments for this post

CorePlus Federal Credit Union is having a 70th anniversary special with a deal on two certificates of deposit. The first is a 7.00% APY 70 day CD. The second is a 7.00% APY 70-month CD. Both CDs have a minimum of $7K and a maximum of $70K. This offer is limited to the first 70 members who respond.

The credit union's field of membership includes persons who live, work, worship, or attend school in and businesses and other legal entities located in New London County or Windham County, Connecticut.

Branches are located in the Connecticut cities of Norwich, Groton, East Lyme and New London.

The credit union is NCUA insured with $145 million in assets and 18,572 members.

7% 6-Month CD at a California CU ($5K Max) read and submit comments for this post

Pacific Service Credit Union has improved their new member certificate special that I first reported about on May 13. They are now offering 7% APY for new members of any age. Previously, the APY for new members over 21 was 6%. The maximum deposit limit is still $5K. The minimum for those 21 and under is $100. The minimum for those over 21 is $1K.

Also, they are still offering the bonus rebate that will provide 5% rebate on interest earned on all deposits on 6-month CDs earned through October 31, 2006. So with this rebate, the APY of this special certificate is about 7.35%. This results in about an extra $50 over the earnings of a top 6-month CD available nationally.

The credit union's field of membership includes residents of the following California counties: Alameda, Contra Costa, Fresno, Marin, Napa, Placer, Sacramento, San Francisco, San Mateo, Santa Clara, Solano or Sonoma.

Branches are located in San Francisco, Pleasant Hill and Fresno. The credit union is NCUA insured with 68,000 members and $1.07 billion in assets.

5.50% 12-Month CD at a South Dakota CU read and submit comments for this post

Telco Federal Credit Union is offering a 5.50% APY (5.39% APR) certificate of deposit. The minimum is $10K. For deposits between $1K and $10K, the APY is 5.25% (5.15% APR).

The field of membership includes those who live, work or worship in Custer County, South Dakota. It also includes those who live, work or worship in a 15 mile radius of Hill City. In addition, employees and members of several companies and churches are included.

Braches are located in Rapid City, Hill City and Custer, South Dakota (Note the high tech branch in Hill City :-)

The credit union is NCUA insured. It's a small credit union with $39 million in assets and 7,000 members.

5.50% 13-Month CD at a New Hampshire CU read and submit comments for this post

Bellwether Community Credit Union is offering a 5.50% APY (5.37% dividend) 13-month certificate. The minimum deposit is $10K. An IRA certificate is also available at this rate and term.

The credit union's field of membership includes anyone who lives or works in the state of New Hampshire. Also, any communication industry employee in Maine, Massachusetts or Vermont is also part of the FOM. Membership application is available online.

Branches are located in Nashua and Manchester, New Hampshire.

The credit union is NCUA insured with $261 million in assets and 16,409 members.

6.00% 36-Month CD at a Colorado CU read and submit comments for this post

BCS Community Credit Union has two nice certificate of deposit specials. The first is a 6.00% APY (5.85% APR) 36-month CD. The minimum is $10K. It's also available in an IRA. The second is a 6.00% APY 60-month CD. The minimum is $1K and it allows additional deposits. CDs that allow additional deposits can be useful to guard against falling interest rates.

The credit union's field of membership includes those who live, work or worship within the City of Wheat Ridge, Colorado. Also it also includes employees of Burlington Northern Santa Fe, Union Pacific Railroad and Amtrak.

The credit union is NCUA insured. It's a small credit union with assets of $17 million and 2,600 members.

EmigrantDirect Press Release - 5% CD rather than 5% Savings Account read and submit comments for this post

EmigrantDirect issued a press release last Friday announcing the reduced minimum maturity of their My Way CDs from 9 to 6 months and also the new 4.65% APY savings account rate. One thing I found odd was their use of the term "groundbreaking":

Responding to market conditions and high demand for its recently introduced groundbreaking "My Way" Certificate of Deposit that had guaranteed customers five percent interest for anytime between nine months to 10 years -- EmigrantDirect today has reduced the minimum maturity to six months.

Even if these CDs had an APY of 6%, I don't know if I would classify them as groundbreaking. ING Direct has long offered CDs that can be opened online. And even ING has rates higher than 5%.

Another interesting quote from this press release was Emigrant Bank CEO's remark on the 5% rate:

"Many of our customers are seeking that 'magical' 5% return," said Howard Milstein, Chairman and CEO of Emigrant Bank, the parent company of EmigrantDirect.com. "Now they have the return by committing their money for a very short period of time."

A 5% CD rate isn't magical, but a 5% savings account rate is. With a credit union offering 5.25% APY on a no-minimum savings account (post), I'm not even sure 5% on a savings account should be considered magical. Friday's rate and term changes at EmigrantDirect were disappointing. I was hoping for at least a bump of 0.25% on both the savings and CDs. A 0.50% bump in both would have been very respectable.

But I guess with growing deposits, there's less of a need to be the rate leader. The press release ended with this:

EmigrantDirect's American Dream savings account has attracted more than 225,000 customers and $6 billion in deposits since opening in January 2005, making it the fastest growing and most successful Internet bank in the country.

5.50% 11-Month CD at a Texas Bank read and submit comments for this post

First National Bank is offering a 5.50% APY 11-month certificate of deposit. The minimum deposit to open is $5K. A higher rate of 5.65% APY is offered for the same term for deposits of $100K and greater. This special doesn't seem to be listed at their website. It was advertised in today's Corpus Christi newspaper. The ad is available online here.

Based on a previous CD special, the bank sometimes has different CD specials at branches in different cities. It's interesting to note that this new special is 50 basis points higher than the special I posted on 4 months ago. Plus the term is 4 months shorter.

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.

Personal DVD Player / iPod nano Bonus for Checking Account at TCF Bank read and submit comments for this post

TCF Bank is offering a personal DVD player for opening a new personal checking account at the new TCF Bank branch located at 9475 South University Boulevard. It looks valid for any of their personal checking accounts including their Totally Free Checking account. However, the bonus requires a minimum initial deposit of $100. Also, it's only available for the first 250 new checking accounts opened at this branch. This special isn't listed at their website. It was advertised in today's Denver newspaper. The ad is available online here.

Here's the small print:

DVD offer available to households without a TCF checking account within the past 90 days. Free Personal DVD Player offer only available to the first 250 new personal checking accounts opened at the TCF Bank location at 9475 S. University Blvd., Highlands Ranch, CO 80126. $100 minimum deposit required at the time of opening new checking account. Limit one free Personal DVD Player per household, while supplies last. OFfer available to any Colorado resident, 18 years or older. Cost of the Personal DVD Player reported as interest earned on customer's IRS form 1099-INT. Account holder is responsible for any applicable taxes. Offer available for new personal checking accounts only.

Free iPod nano Checking Account Bonus

TCF Bank also has an iPod nano promotion that doesn't have branch restrictions. This seems to be a continuation to the one they started last March. The ad for this one is available online here.

This seems like an improvement over what was offered in March. It only requires a new personal or small business checking account with recurring direct deposit service. Before a savings account was also required to receive the bonus. The new checking account must be opened by June 30, 2006. Direct deposit transactions must post by August 15, 2006. Some more details were mentioned in this FW thread: direct deposit must be a minimum of $100 each, checks for the Totally Free Checking account are not free but the charge will be reversed once they receive the first direct deposit. Refer to TCF's Checking Account page for more info.

I'm not sure if they do a hard credit pull when you open the account. Refer to this FW hard pull thread.

You may be able to use ACH transfers in place of direct deposit. Refer to this FW ACH/direct deposit thread.

5.40% 9-Month CD Special at Countrywide Bank read and submit comments for this post

Countrywide Bank is advertising in several newspapers today a Memorial Day special certificate of deposit. It's a 5.40% APY 9-month CD with a $10K minimum. The special is not listed at their website. It was reported on FW to be advertised in the today's Boston Globe. It was also advertised in today's Dallas Morning News. The ad is available online here. This ad states that the Dallas Countrywide branches will be open tomorrow and that this may be only a one-day special.

This 5.40% APY is just under their current 1-year CD APY of 5.41% that is listed at their CD rate page. The standard 9-month APY is listed at 5.20%.

Countrywide Bank just started a new online savings account called SavingsLink. Refer to this post for more info.

Bank Deal Summary for May 27, 2006 read and submit comments for this post

This week EmigrantDirect finally raised the rate on their savings account. Unfortunately, the rate increase was the smallest they have ever done: only 0.15%. In the past, they've always made at least a 0.25% increase. Last September they even did a 0.50% increase. Their new yield is 4.65% APY which exactly matches HSBC's rate increase from the prior week. It looks like they're not worrying about being the rate leader but only near the top.

Next week is the last week to take advantage of World Savings' in-branch CD specials: 5.51% APY for terms between 7 and 11 months (post). In addition, you can add a 5.26% APY 3 to 5-month CD (post). For those who don't have a World Savings branch nearby, their 5-month internet special CD is looking good. They bumped that up this week from 5.16% to 5.31% APY.

CD rates continue to gradually increase. My list now has 5 banks with 12-month CDs of 5.40% APY and over. One new bank that I added to my list is First Internet Bank due to their very competitive 6-month and 12-month CD rates. Their long term CDs are also near the top. Unfortunately, their money market account has a relatively low rate of 3.61% APY.

I've also added EmigrantDirect to the list of CDs. They've reduced the minimum term on their My Way CDs from 9 to 6 months. The APY for all of the terms (6 months to 10 years) remains at 5.00%. They should have started off with terms as short as 6-months from the beginning. A 5% 6-month CD is not bad, but as you can see from my list, it's way below the top rate.

The big news for this week was with Agriculture Federal Credit Union. They started a CD special with a 6% APY 6-month CD and a 6.36% 36-month CD. Anyone can join this credit union by becoming a member of a non-profit organization (post). Also, the membership and account applications can be done online. This has attracted a lot of attention and they are not a large credit union. Hopefully, they'll be able to keep this special for awhile.

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 May 20th, May 13th, May 6th, Apr 29th, Apr 22nd, Apr 15th and Apr 8th.

As of May 27, 2006

Savings Accounts/Money Market Accounts:

• BankUnited - 5.00% (min $5K), my post
• interState Net Bank - 5.00% MMA (min $10K for APY/$2.5K to avoid fee), my post
• Presidential - 4.87% (min $5K, only first $35K receives this rate), offers 4.50% checking, my post
• Corus Bank - 4.81% MMA (min $10K to open)
• AmboyDirect - 4.75%, my post
• Citibank - 4.75%, requires checking account, my post
• GMAC Bank - 4.75% MMA (min $500), my post
• UmbrellaBank.com - 4.75% MMA (min $1K), offers checking, my post
• Heritage Bank Online - 4.72% (min $1K), my post
• CapitalOne/Costco - 4.72% MMA (min $5K, Costco members only, $25 deal for exec. members)
• Zions Bank - 4.71% (min $1K)
• American Partners Bank - 4.71% MMA (min $1K), my post
• HSBC Direct - 4.65%, offers checking, (rate history), my post
• EmigrantDirect - 4.65%, my post, (rate history)
• Western Financial Bank - 4.60% MMA, offers checking, my post
• VirtualBank - 4.60% (min $100), offers checking, my post ($20 bonus)
• FirstFedDirect - 4.57% (min $1K) (closed to CA residents), my post
• CapitalOne - 4.55% (MMA has same rate, but with checks and ATM. $100 min.), my post
• MyBankingDirect - 4.55% MMA (min $5K), my post
• Transportation Alliance Bank - 4.50% MMA (min $25), my post
• UFB Direct - 4.40%, offers checking, my post
• Self-Help Credit Union - 4.37% MMA (min $500), my post
• Countrywide - 4.25% (min $1K), my post
• MetLife Bank - 4.25% MMA (min $5K), my post ($50 bonus)
• ING Direct - 4.15%, my post ($25 bonus), (rate history)
• Stonebridge - 4.00% ($100 min), my post
• First Internet Bank - 3.61% ($4K min)
• 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
• ETrade Bank - 3.00% (min $1K to avoid fees/$5K for APY), my post (4.75%/$50 bonus)

6-Month Certificates of Deposit:

• Agriculture FCU - 6.00% (min $1K), my post
• World Savings - 5.51% (7 months) (min $10K), branch only, new funds only, my post
• World Savings - 5.31% (5 months) (min $10K), new funds only, my post
• UFB Direct - 5.30% (min $8K)
• Corus Bank - 5.30% (min $10K)
• First Internet Bank - 5.27% (min $1K) my post
• AmTrustDirect - 5.25% (min $1K) my post
• VirtualBank - 5.25% (min $10K), my post ($20 bonus)
• ETrade Bank - 5.21% (min $1K), my post
• FirstFedDirect - 5.21% (min $10K), my post
• GMAC Bank - 5.20% (min $500), my post
• UmbrellaBank.com - 5.20% (min $1K)
• Meadows Credit Union - 5.12% ($1K min), new funds only, my post
• Countrywide - 5.11% (min $10K), my post
• Stonebridge - 5.00% ($500 min), my post
• NetBank - 5.00% (min $1K)
• EmigrantDirect - 5.00% (min $1K)
• ING Direct - 4.75%, my post
• ebank - 4.75% (min $1K), 5.00% for ePremium checking customers
• Self-Help Credit Union - 4.67% (min $500), my post
• Transportation Alliance Bank - 4.65% ($1K min)
• Western Financial Bank - 4.50% ($100 min)
• MetLife Bank - 4.50% ($1K min)

12-Month Certificates of Deposit:

• World Savings - 5.51% (11 months) (min $10K), branch only, new funds only, my post
• Corus Bank - 5.45% (min $10K)
• First Internet Bank - 5.43% (min $1K) my post
• AmTrustDirect - 5.41% (min $1K) my post
• Countrywide - 5.41% (min $10K), my post
• UFB Direct - 5.40% (min $8K)
• GTE FCU - 5.38% (min $500) my post
• GMAC Bank - 5.35% (min $500)
• UmbrellaBank.com - 5.35% (min $1K)
• Mutual Bank - 5.35% (min $2.5K) my post
• Melrose CU - 5.35% (min $5K) my post
• BankUnited - 5.35% (min $5K), my post
• VirtualBank - 5.35% (min $10K), my post ($20 bonus)
• FirstFedDirect - 5.32%, (min $10K) my post
• ETrade Bank - 5.30% (min $1K), my post
• ING Direct - 5.25%, my post
• Western Financial Bank - 5.25% ($100 min) (13-month)
• Stonebridge - 5.25% ($500 min), my post
• NetBank - 5.25% (min $1K), my post ($100 bonus)
• Transportation Alliance Bank - 5.15% ($1K min)
• American Partners Bank - 5.07% (min $1K), my post
• MetLife Bank - 5.05% ($1K min)
• Self-Help Credit Union - 5.04% (min $500), my post
• ebank - 5.00% (min $1K), 5.25% for ePremium checking customers
• EmigrantDirect - 5.00% (min $1K)

18-Month Certificates of Deposit:

• Stonebridge - 5.50% ($500 min), my post
• First Internet Bank - 5.43% (min $1K) my post
• Mutual Bank - 5.40% (min $5K) my post
• CapitalOne/Costco - 5.40% (min $5K, Costco members only)
• GMAC Bank - 5.30% (min $500)
• American Partners Bank - 5.18% (min $1K), my post

36-Month Certificate of Deposit:

• Agriculture FCU - 6.36% (min $1K), my post
• Pentagon Federal CU - 6.00% (min $1K), my post
• Melrose CU - 5.56% (min $5K) my post
• Stonebridge - 5.50% ($500 min), my post
• Transportation Alliance Bank - 5.44% ($1K min)
• First Internet Bank - 5.43% (min $1K) my post
• GMAC Bank - 5.35% (min $500)
• Self-Help Credit Union - 5.29% (min $500), my post

48-Month Certificate of Deposit:

• USA FCU - 6.01% (min $1K) my post
• Pentagon Federal CU - 6.00% (min $1K), my post
• Melrose CU - 5.67% (min $5K) my post
• Stonebridge - 5.50% ($500 min), my post
• Transportation Alliance Bank - 5.47% ($1K min)
• First Internet Bank - 5.43% (min $1K) my post
• GMAC Bank - 5.35% (min $500)
• Self-Help Credit Union - 5.32% (min $500), my post

60-Month Certificate of Deposit:

• Pentagon Federal CU - 6.00% (min $1K), my post
• Melrose CU - 5.77% (min $5K) my post
• First Internet Bank - 5.54% (min $1K) my post
• Transportation Alliance Bank - 5.51% ($1K min)
• Stonebridge - 5.50% ($500 min), my post
• Self-Help Credit Union - 5.36% (min $500), my post
• GMAC Bank - 5.35% (min $500)

84-Month Certificate of Deposit:

• Pentagon Federal CU - 5.95% (min $1K), my post

High Rates with Conditions - Open to All

• 10% Savings Account for kids ($500 max)
• 5.51% 3-month intro rate on checking account
• 5.40% 6-month CD with $40K min
• 5.00% Money Market with $100K min
• 5.00% Money Market with $100K min

Checking and Saving Accounts at Local Credit Unions

• 5.25% no-minimum online savings account (New York)
• 5.00% Money Market Account (Wisconsin)
• 5.00% savings account (Pennsylvania)
• 5.00% Money Market Account (New York)
• 4.50% checking account promo (Oklahoma)

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

Terms of 60 Months and Over

• 6.25% 60-Month CD at a Carolina CU (Variable)
• 6.14% 60-Month CD at a Virginia CU
• 6.00% 61-Month CD at a Michigan CU (Open to All)
• 6.00% 60-Month CD at a Florida Bank
• 5.64% 60-Month CD at a South Carolina/Georgia CU

Terms of 24 Months to Under 60 Months

• 6.36% 36-Month CD at a DC CU (Open to All)
• 6.01% 48-Month CD at a California CU (Open to All)
• 6.00% 59-Month CD at a Missouri CU
• 6.00% 24-Month CD at a California CU (Variable)
• 5.96% 48-Month CD at a Washington DC CU
• 5.90% 27-Month CD at a California CU
• 5.87% 30-Month CD at a Wisconsin CU
• 5.75% 41-Month CD at a Missouri CU
• 5.75% 27-Month CD at a Florida CU
• 5.75% 36-Month CD at a Florida Bank
• 5.61% 24-Month CD at a Chicago Bank
• 5.60% 24-Month CD at a Georgia Bank
• 5.55% 24-Month CD at a Ohio CU
• 5.50% 35-Month CD at a Oklahoma Bank
• 5.50% 49-Month CD at a Georgia Bank
• 5.50% 36-Month CD at a New York Bank
• 5.45% 36-Month CD at a Los Angeles CU
• 5.39% 24-Month CD at a California/Texas CU
• 5.35% 48-Month CD at a Texas CU

Terms of 12 Months to Under 24 Months

• 10.00% 12-Month CD at a Dallas Bank ($5K max)
• 10.00% 12-Month CD at a Massachusetts Bank ($1K Max)
• 8.30% 12-Month CD at a Texas CU ($2K Max)
• 8.00% 12-Month CD at a NJ/NY/PA CU ($2K max)
• 5.90% 18-Month CD at a Houston CU ($90K min)
• 5.85% 20-Month CD at a Nevada CU
• 5.78% 12-Month CD at a Georgia Bank
• 5.60% 23-Month CD at a Indiana CU
• 5.55% 12-Month CD at a Georgia Bank
• 5.54% 13-Month CD at a California CU
• 5.50% 12-Month CD at a Virginia CU
• 5.50% 13-Month CD at a Massachusetts Bank
• 5.50% 20-Month CD at a Illinois CU (Open To All)
• 5.50% 12-Month CD at a New York/California Bank
• 5.50% 12-Month CD at a Georgia Bank
• 5.50% 18-Month CD at a Iowa CU
• 5.50% 18-Month CD at a New Jersey/Pennsylvania Bank
• 5.50% 12-Month CD at a California Bank
• 5.50% 15-Month CD at a Florida Bank
• 5.50% 13-Month CD at a Florida Bank
• 5.50% 13-Month CD at a Indiana CU
• 5.48% 18-Month CD at a Florida Bank
• 5.48% 18-Month CD at a Florida Bank
• 5.44% 12-Month CD at a Washington DC CU
• 5.40% 12-Month CD at a New York Bank
• 5.40% 12-Month CD at a Nebraska CU
• 5.40% 12-Month CD at a Chicago Bank
• 5.40% 15-Month CD at a Massachusetts Bank
• 5.38% 15-Month CD at a Maine CU
• 5.38% 12-Month CD at a CU Open to All
• 5.35% 13-Month CD at a Ohio CU
• 5.35% 15-Month CD at a Florida Bank
• 5.35% 12-Month CD at a Missouri Bank
• 5.30% 13-Month CD at a Georgia Bank
• 5.30% 13-Month CD at a Pennsylvania Bank
• 5.30% 19-Month CD at a Florida CU
• 5.30% 15-Month CD at a Florida Bank
• 5.27% 15-Month CD at a Kentucky Bank
• 5.25% 18-Month CD at a Florida Bank
• 5.25% 20-Month CD at a Pennsylvania Bank
• 5.25% 13-Month CD at a Florida CU
• 5.17% 12-Month CD at a Texas CU
• 5.15% 12-Month CD at a Pennsylvania Bank

Terms of Under 12 Months

• 8.00% 8-Month CD at a California CU ($5K Max)
• 6.00% 6-Month CD at a South Carolina Bank
• 6.00% 6-Month CD at a California CU ($5K Max)
• 6.00% 6-Month CD at a Virginia CU
• 6.00% 6-Month CD at a DC CU (Open to All)
• 6.00% 7-Month CD at a Vermont CU
• 5.75% 3-Month CD at a Virginia CU
• 5.75% 9-Month CD at a Georgia Bank
• 5.55% 11-Month CD at a Georgia Bank
• 5.51% 11-Month CD at a Wisconsin Bank
• 5.50% 9-Month CD at a Georgia Bank
• 5.50% 10-Month CD at a California CU
• 5.50% 7-Month CD at a Virginia Bank
• 5.50% 9-Month CD at a Maryland Bank
• 5.50% 10-Month CD at a Chicago Bank
• 5.50% 9-Month CD at a New Hampshire Bank (open to all)
• 5.50% 9-Month CD at a Georgia Bank
• 5.50% 7-Month CD at a Georgia Bank
• 5.50% 9-Month CD at a Virginia CU
• 5.45% 9-Month CD at a California Bank
• 5.40% 10-Month CD at a Nebraska Bank
• 5.38% 9-Month CD at a CU Open To All
• 5.38% 11-Month CD at a Arizona CU
• 5.40% 6-Month CD at a Multi-State CU (Open to All)
• 5.35% 10-Month CD at a Tennessee CU
• 5.33% 9-Month CD at a North Dakota Bank
• 5.30% 9-Month CD at a Massachusetts Bank (open to all)
• 5.25% 11-Month CD at a Michigan CU
• 5.25% 10-Month CD at a Massachusetts Bank
• 5.25% 7-Month CD at a Florida CU
• 5.25% 11-Month CD at a Wisconsin CU
• 5.25% 7-Month CD at a Georgia Bank
• 5.22% 6-Month CD at a California CU
• 5.20% 9-Month CD at a Nebraska CU
• 5.20% 9-Month CD at a Massachusetts Bank
• 5.15% 7-Month CD at a Georgia Bank
• 5.15% 10-Month CD at LaSalle Bank
• 5.12% 7-Month CD at a Wisconsin CU
• 5.00% 9-Month CD at a Wisconsin Bank

Savings Account/CD Alternatives

• Money Magazine article on risk-free investments
• Paypal Money Market Fund - 4.72% 7-day yield (1% cashback debit MasterCard)
• FW Thread on Treasury Bills
• I Bond Rate Starting May 2006, I Bond Article, I Bonds as CD Alternatives
• SmartMoney Brokerage Survey

5.41% 12-Month / 5.30% 9-Month CD at AmtrustDirect read and submit comments for this post

AmTrustDirect continues to keep their CD yields competitive. Their latest rates include a 5.41% APY 1-year CD and a 5.30% APY 9-month CD. Since I first posted about them on April 10th, their CD rates have consistently moved up. Below is the full list of rates and how they've changed over the last month. The old APY refers to the rates on April 28th.

AmTrustDirect Certificate of Deposit Yields:
Term        Old APY   New APY  Change
6 months    5.15%     5.25%    +0.10%
9 months    5.20%     5.30%    +0.10%
12 months   5.30%     5.41%    +0.11%
18 months   5.30%     5.41%    +0.11%
24 months   5.30%     5.46%    +0.16%
30 months   5.30%     5.46%    +0.16%
36 months   5.30%     5.46%    +0.16%
60 months   5.30%     5.46%    +0.16%

One thing to note is that the biggest change is in the long term CD rates. However, they still have a long way to go before it's worthwhile to chose a 24-month or longer CD instead of a 12-month CD. And with interest rates continuing to rise, that's another reason to stick with short term CDs.

5.50% 13-Month / 5.60% 23-Month CD at an Indiana CU read and submit comments for this post

The Forum Credit Union is offering a 5.50% APY 13-month and a 5.60% APY 23-month share certificate. These are also available as an IRA certificate.

The credit union's field of membership includes residents of Indianapolis and surrounding counties. Membership application can be done online. They do pull a credit report and a Chex system record during application.

The credit union has 11 branches in the Indiana cities of Avon, Carmel, Fishers, Noblesville and Indianapolis.

The credit union is NCUA insured with $979 million in assets and 92,000 members.

5.50% 9-Month CD at a Virginia CU read and submit comments for this post

Freedom First Credit Union is offering a 5.50% APY 9-month certificate. There is a minimum deposit of $1K. They also have a 15-month special CD at this rate.

The credit union's field of membership:

Credit Union membership is open to anyone living, working, worshipping, or going to school in Montgomery, Botetourt and Roanoke counties as well as the cities of Roanoke, Radford, Salem, and the town of Vinton.

Virginia is another state like Georgia that has many great CD deals. The Agricultural FCU with a branch in Alexandria, Virginia currently has one of the best CD specials: 6% APY 6-month and 6.36% APY 36-month (post).

$100 Checking Account Bonus at a California CU read and submit comments for this post

Visterra Credit Union is offering up to $100 for opening a checking account. Opening the checking account earns $25, direct deposit earns $50 and paying 3 bills using Bill Payer earns $25. Offer valid until 6/30/06. Their Freedom Checking account has no minimum balance or monthly fees. This promotion doesn't seem to be listed at the credit union's website. It was advertised in the May 22nd Inland Southern California newspaper. The ad is available online here.

The credit union's field of membership includes residents of Riverside County, California. Branches are located in the cities of Moreno Valley, Corona and Murrieta.

The credit union is NCUA insured with $440 million in assets and over 39,000 members.

GMAC Bank's 12-Month CD at 5.35% - Update on CD Opening read and submit comments for this post

There wasn't much change today in GMAC Bank rates. Only the rate of the 12-month CD increased today. It went from 5.30% to 5.35% APY. All other rates remained unchanged including the rate on their money market account. The last money market account rate increase was on April 21st when the APY increased from 4.70% to 4.75%.

GMAC Bank Certificate of Deposit Rates:
Term        Old APY    New APY  Change
3 months    4.85%      4.85%   
6 months    5.20%      5.20%
9 months    5.15%      5.15%
12 months   5.30%      5.35%    +0.05%    
18 months   5.30%      5.30%    
2 years     5.35%      5.35%
3 years     5.35%      5.35%
4 years     5.35%      5.35%
5 years     5.35%      5.35%

The last CD rate change was on May 19th.

Update on My GMAC CD experience

In last week's post I described my experience opening a GMAC CD. I just received a welcome package for the CD in the mail which includes a signature card to be sent back (along with a postage paid envelope). One thing to note if you fund the CD with money from your GMAC money market account, the debit counts against the 6 transaction per statement limit.

As I mentioned in the previous post, it didn't seem like GMAC had a CD management system like what ING Direct has which allows you to easily close out a CD online. From information I received from GMAC, requests to close a CD have to be made by e-mail, standard mail or by phone. I assume by e-mail, they mean the secure message system that's available when you log in to your account. A secure message system is one feature that ING Direct lacks.

4.75% Money Market Account at SalemFive read and submit comments for this post

SalemFive increased the yield on their Star Money Market account from 4.50% to 4.75% APY. The 4.75% applies to balances of over $10K. Balances under $10K earn 0.55%. There's no minimum balance required to waive monthly maintenance fees. As I posted on May 12, they also have a good 9-month CD deal with an APY of 5.30%.

Accounts can be opened at their branches in Massachusetts or online by people from any state.

In addition to government-backed FDIC insurance, SalemFive has private DIF insurance which covers deposits above the FDIC limits.

Thanks and credit for this deal goes to scott61 who mentioned it in the finding deals post

EmigrantDirect Savings Account Now at 4.65% read and submit comments for this post

EmigrantDirect raised the yield on their American Dream Savings Account from 4.50% to 4.65% APY today. The last rate hike by Emigrant was March 15 when they raised the savings account rate from 4.25% to 4.50% APY.

Interesting that this rate hike exactly matches HSBC's rate hike last week. Since EmigrantDirect began in January 2005 with a 3% savings account, they have always raised the yield by at least 25 basis points. This is yet another indication that EmigrantDirect isn't trying to be the leader any more of no-minimum savings accounts. They seem to be more in the mode of keeping customers and deposits rather than gaining new customers.

Savings and money market account rates have leveled off lately. The yield on Corus Bank's money market account actually went down a little this week (post). GMAC Bank hasn't increased the yield on their money market account since April 21. UmbrellaBank's money market has remained at 4.75% since May 11.

With savings account rates failing to increase much, short-term certificates of deposit are starting to become better options. Many banks are now offering 5% 3-month CDs including VirtualBank, UmbrellaBank, Beal Bank and UFB Direct. For those with at least $90K, Stearns Bank has a very good 3-month CD deal with a 5.15% APY 3-month CD. World Savings also has a good 3-month CD deal with their 5.26% APY 3-month CD (post).

More Info on interState Net Bank's 5% Money Market Account read and submit comments for this post

As I posted on May 3rd, interSTATE Net Bank is offering a 5% APY money market account on balances of over $10K. With high yield money market accounts, you want to make sure that the high rate is not just a temporary promotion. interState Net Bank just started advertising that this 5% is guaranteed through December 31, 2006. The only concern is that by the second half of this year, 5% may not be that great for a money market account. As I mentioned in the previous post, the previous yield on this account was 4% which had remained from last November through April. So it's likely this 5% won't increase any time soon.

The good features of this money market account include: first 200 checks free and ATM/Debit card. The negatives include a $2.5K minimum to open, low rates on balances below $10K, $10/month fee for balances under $2.5K and a $3/month fee on internet banking for balances under $2.5K.

6% 60-Month / 5.75% 36-Month CD at a Florida Bank read and submit comments for this post

First State Bank has high yields on its long-term certificates of deposit. These include a 6% APY 5-year CD with a $25K minimum (5.90% APY available for a $1K minimum) and a 5.75% APY 3-year CD with a $1K minimum. These rates and terms are also available for individual retirement accounts. I first reported on this bank last January. They've continued to keep very competitive rates. Below is a list of their rates and how they've changed:

Term       Old APY   New APY
---------- -------   -------
6 months   4.00%     4.75%
1 year     4.50%     5.25%
15 months  4.78%     4.78%
18 months  4.75%     5.35%
2 years    4.80%     5.50%
25 months  5.03%     5.03%
3 years    5.00%     5.75%
4 years    5.10%     5.90%
5 years    5.25%     5.90%

The bank has six branches in the Florida cities of Sarasota, Seminole and St. Petersburg.

Credit for this find goes to CD Man who mentioned it in the finding deals post.

6.00% 7-Month CD at a Vermont CU read and submit comments for this post

Heritage Family Credit Union is offering a 6.00% APY 7-month certificate. Credit for finding this deal goes to eMoneyCentral, and according to eMoneyCentral, the special rate requires the member to have either a checking account, direct deposit, or a loan at the credit union.

The credit union's field of membership includes residents of the following Vermont counties: Rutland, Addison, Bennington, Windsor or Windham. Also included are residents in Hooksett, New Hampshire.

The credit union is NCUA insured with $119 million in assets and 20,500 members.

5.50% 7-Month CD at a Georgia Bank read and submit comments for this post

American United Bank increased the certificate of deposit yield on terms between 7 and 12 months from 5.25% to 5.50% APY. They've been keeping their mid and long term CD rates competitive for quite awhile. My last post on them was on April 28th when their 7-month CD reached 5.25%.

They also increased yields on longer terms, but not by as much. The 7-to-12 month term now has the highest yield except for the terms of 49-months and longer which has an APY of 5.55%. Below is the full list of yields and how they've changed. Note, I only list the shortest term for each tier.

CD Terms  Old APY   New APY   Change
1 month   4.30%     4.30%
4 month   4.75%     4.75%
7 month   5.25%     5.50%     +0.25%
13 month  5.30%     5.40%     +0.10%
25 month  5.35%     5.50%     +0.05%
37 month  5.40%     5.45%     +0.05%
49 month  5.50%     5.55%     +0.05%

The bank is located in Lawrenceville, Georgia which is in the northeast suburbs of Atlanta. American United Bank is a new bank that has only been FDIC insured since December 2004. So there is currently no Bankrate safe and sound rating.

5.25% Money Market Account in Southern California read and submit comments for this post

IndyMac Bank has increased the rate on the Prime Index Account from 5.00% to 5.25% APY. The rate is good only at the Ventura and Camarillo, California branches.

I had posted on this account on April 5th when the rate was 5%. The account requires a $1K minimum and a checking account. Credit for finding this deal goes to Carol who mentioned it in the finding deals post.

No-Minimum GE Money Savings Account - $25 Bonus read and submit comments for this post

GE has a no-minimum online savings account with a $25 signup bonus. This savings account is new to me. The interest rates are not really competitive: 3.80% APY for balances over $4K, 1.75% APY for balances under $4K. But like ING Direct, there are no minimum balance requirements or monthly fees. It can be set up just like an ING Direct account by linking it to an external checking account and the application can be done online.

Since this is new to me, I checked it out at the FDIC's bank find tool. I searched for "GE Money" and the search produced one result for "GE Money Bank" The web address listed was at www.ge.com. From GE's site, I eventually found a link to the gemoneysavings.com.

For the $25 bonus, here's the info I received from a FW thread:

- You will be eligible to receive a $25 bonus only if you maintain a minimum average daily balance of $500 for the first 30 days after your Account is opened.
- Offer only available to primary Account holders who are new customers and open a new GE Money Savings Account.
- Limit one $25 bonus per Promotion Code per Account.
- $25 bonus will be provided within 30 days after eligibility requirements are met.

Promo code: GEMMC136L

I wasn't able to confirm this bonus since the customer service hours don't start until 9:00am EDT. It's not known if they do a hard or soft pull.

Even though they don't provide the best interest rates, the more online savings accounts and more competition, the better rates and deals we should see in the future.

New Rates at Corus, VirtualBank, UFB Direct read and submit comments for this post

Corus Bank's CD streak continues. Every Tuesday for the last several weeks, their 6-month and 1-year CD rates have increased. Today, both the 6-month and 12-month CD rates increased by 0.05%. The new APYs are 5.30% and 5.45%. At the start of this year, their 6-month and 12-month CDs had APYs of 4.65% and 4.84%. If interest rates continue to rise for the rest of this year like they have for these first 5 months, we should be seeing a 6% 6-month CD at Corus by year end.

Not everything went up today at Corus. The yield on their money market account went down from 4.84% to 4.81%. It should be noted that this account is indexed to the 91-day US Treasury Bill discount rate.

UFB Direct had several rate increases. The APYs on their 3-month, 6-month and 12-month CDs are now 5%, 5.30% and 5.40%. Also, their Jumbo money market account yield is up to 4.91% APY (requires $50K balance).

Virtual Bank increased the rate on their 3-month CD. The APY is now 5.02% (up from 4.90%). All other rates remain the same including their 4.60% APY savings account (refer to this post for more info on VirtualBank).

Thanks to newlybornfirestarter who mentioned these rate updates in the finding deals post.

10% 12-Month CD at a Massachusetts Bank ($1K Max) read and submit comments for this post

Eagle Bank is offering a special 10% APY 12-month certificate of deposit. The maximum deposit is $1K and the minimum deposit is $100. This offer is only available to new checking account customers with direct deposit at least monthly into a new Eagle Bank checking account, which must be maintained. A $10 minimum deposit is required to open a checking account.

This special is essentially the same as a $50 checking account/direct deposit bonus. The 10% APY on $1K for one year results in about $50 over what you could get from a top 1-year CD.

The bank has branches in the Massachusetts cities of Everett, Medford and Lexington.

You may be able to use ACH transfers in place of direct deposit. Refer to this FW ACH/direct deposit thread.

Credit for this find goes to the commenter who mentioned it in the finding deals post.

6% 6-Month / 6.36% 36-Month CD at a DC CU (Open to All). read and submit comments for this post

Agriculture Federal Credit Union is offering a 6.00% APY 6-month share certificate. A 6.36% APY 36-month certificate is also available. The minimum deposit for both is $1K.

The credit union's field of membership includes members of CityDance Ensemble. CityDance has open membership to anyone that pays membership dues of $20.00. This membership can be done at the same time that you apply for credit union membership. They have an online membership application in which you can join CityDance for $20, join the credit union for a $5 inital deposit to the Primary Share account, and open the CD.

The FOM also includes those who live, work or worship in Washington DC plus other group affiliations.

The credit union seems to have a good online banking system that allows you to open accounts online and to transfer funds to and from other financial institutions.

To offset the $20 membership fee, you'll want to invest at least $5.3K in the 6-month CD. The 6% APY provides about 0.75% more interest than other top 6-month CDs. It takes about $5.3K for six months with 0.75% extra interest to equal $20.

The credit union has branches in Washington DC, Riverdale, Maryland and Alexandria, Virginia.

The credit union is NCUA insured. Note, it's not a large credit union with $167 million in assets and 23,422 members. So with a membership open to all and rates this high, these CDs may not last long. As a comparison, Pentagon FCU has over $8 billion in assets and over 665K members. It's interesting to note that both are headquartered in Alexandria, Virginia so perhaps Algriculture FCU is trying to compete with Penfed.

Credit for this find goes to the FW CD thread.

5.31% 5-Month CD at World Savings read and submit comments for this post

World Savings just increased the yield of their 5-month internet certificate of deposit special from 5.16% to 5.31% APY. There's a $10K minimum and a $100K maximum. New funds only. This CD is only available online.

In addition to this internet special, World Savings currently has two unadvertised, branch-only CD specials. One is a 5.51% APY CD with a choice of terms of 7 to 11 months (see post). The other is a 5.26% APY CD with a choice of terms of 3 to 5 months (see post). Both of these specials end June 3.

Credit for this find goes to scott1961 who mentioned it in the finding deals post.

5.32% 6-Month / 5.09% 3-Month CD at Merrill Lynch read and submit comments for this post

Merrill Lynch Bank is offering a 5.32% APY 6-month CD and a 5.09% APY 3-month CD. The certificates of deposit are FDIC insured. Both have a minimum deposit requirement of $25K. The funds must come from sources other than an existing Merrill Lynch relation. Offer expires June 16, 2006, 2pm EST. This special doesn't seem to be listed at Merrill Lynch's website. It advertised in today's Ventura County Star. The ad is available online here.

In February Merrill Lynch was offering a 5.06% APY 6-month CD and a 4.58% 3-month CD.

Since these CDs are not being purchased directly from a bank, there are more details. Refer to the ad's small print for all the details. Here are some of them: The CDs are sold by Merrill Lynch and held in brokerage accounts in which standard account fees may apply. The CDs are issued by Merrill Lynch Bank USA or Merrill Lynch Bank and Trust Co. Merrill Lynch limits the purchase amount of a single CD from any one Bank to $97K for six-month CDs and $98K for 3-month CDs. The limits for retirement accounts are $243K and $246K.

5.50% 13-Month CD at a Florida Bank read and submit comments for this post

Community Bank of Naples, N.A is offering a 5.50% APY 13-month certificate of deposit. They also have a 5.15% APY 7-month CD. Both have a $25K minimum deposit requirement. These specials are not listed at the bank's website. They were advertised in today's Naples Daily News. The ad is available online here.

The bank has four branches in Naples and Bonita Springs, Florida.

5.85% 20-Month CD at a Nevada CU read and submit comments for this post

Greater Nevada Credit Union has a special with several high yield certificates of deposit. The highest is a 5.85% APY 20-month CD with a $50K minimum. A 5.75% CD is available with a $10K minimum and a 5.50% for a $1K minimum. Shorter term CDs of 15 months, 10 months and 5 months are also available. These CD yields range from 4.75% to 5.60% APY based on minimum deposit and term.

The field of membership includes residents of following the northern Nevada counties: Carson City, Douglas, Eureka, Humboldt, Lander, Lyon, Pershing, Storey, Washoe and White Pine. Also residents within a 25-mile radius of the city of West Wendover are included.

Branches are located in the Nevada cities of Carson City, Reno, Sparks, Minden, Ely and West Wendover.

The credit union is NCUA insured. It has $470 million in assets and over 49,000 members.

Credit for this find goes to eMoneyCentral.

5.78% 12-Month CD at a Georgia Bank read and submit comments for this post

First National Bank is offering a 5.78% APY 12-month certificate of deposit with a $5K minimum deposit requirement. In March I had reported on the bank's 5.18% 12-month CD special. Just like before, this current special isn't listed at the bank's website, but was advertised in the Savannah Morning News and is shown online here.

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

5.75% 9-Month CD

Georgia seems to be the state with the best CD deals. On Sunday I reported on a 5.75% APY 9-month CD offered by Colony Bank, another Georgia Bank. A reader checked with the bank and was told they do accept deposits from out-of-state people.

Updated Info on 5% Savings Account from BankUnited read and submit comments for this post

As I mentioned in my Saturday post, BankUnited has increased the APY of their internet savings account to 5% APY from 4.75%. As I first reported on this account last month, their website still has inconsistent information on this savings account. I called Saturday, but the customer service rep didn't have the details. So I called back again this morning and finally did receive the details. The CSR still made some mistakes during the conversation, so hopefully, this information is accurate. Here's what I received:

• APY is guaranteed not to go below 5% through October 16, 2006
• Available for people in any state
• Available only through the internet
• Minimum opening balance is $5,000
• $5/month fee if balance falls below $2,500
• 5% APY good on balances above $2,500. 1.85% for below $2,500

This appears to be a legitimate deal that's not just a short term promo. Their move of increasing the yield from 4.75% to 5.00% makes it look like they intend to keep the rate competitive.

5.27% 6-Month / 5.43% 12-Month CD at First Internet Bank read and submit comments for this post

First Internet Bank has some nice rates on 6 and 12 month certificates of deposit. The 6-month CD yield is 5.27% APY, and the 12-month CD yield is 5.43% APY. All longer term CDs are also at 5.43% APY except the 60-month CD which is at 5.54% APY. All have a minimum deposit requirement of $1K. One negative about these CDs is a large early withdrawal penalty. Both the 6-month and 12-month CD have a 180-day of interest penalty. This is usually 90 days at most other banks.

You can complete the application online but you need to print out and mail the application. You can also request the application by mail. They provide ACH but there's a $500 limit for initial deposits. So this does not seem to be an option for funding your first CD. Before you can initiate an ACH deposit, you must first fill out a form and submit a voided check.

5.75% 9-Month CD at a Georgia Bank read and submit comments for this post

Colony Bank is offering a 5.75% 9-month certificate of deposit. The minimum is $500. They are also offering this rate for a 12-month and 13-month term. A 5% money market account is also advertised but the minimum is $100K. This special is not listed at the bank's website, but was advertised in the May 21st Savannah Morning News. The ad is available online here.

Colony Bank has branches throughout central and south Georgia.

Colony Bank has been offering high yield CDs for awhile. Last month there were advertising a 5.50% 9-month CD.

Many Georgia banks are offering very nice CD deals. Refer to this post for other high rate CDs at Georgia banks.

5.44% 12-Month / 5.96% 48-Month CD at a Washington DC CU read and submit comments for this post

The D.C. Teachers Federal Credit Union is offering a 5.44% APY 12-month share certificate. There's a $10K minimum deposit requirement. The credit union also has several high yield long term CDs including a 5.96% APY 48-month CD and a 5.70% APY 36-month CD. These have a minimum deposit of $500.

The credit union's field of membership includes employees of DC public schools and several other groups.

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

Chase is offering $50 for opening a Chase Free Checking account. Here's the promo page link. It requires a minimum opening deposit of $100. The Chase Free Checking account has no monthly service fee when you have a monthly direct deposit. Checking account must remain open for six months or the reward will be debited from the account at closing. The cash bonus is considered interest and will be reported on your 1099-INT.

I'm not sure if they do a hard credit pull when you open the account. Refer to this FW hard pull thread.

You may be able to use ACH transfers in place of direct deposit. Refer to this FW ACH/direct deposit thread.

Credit for finding this deal goes to this FW thread and this iBankDesign Thread.

Top 10 FDIC Misconceptions and Proving FDIC/NCUA Coverage read and submit comments for this post

In their Spring 2006 consumer news, the FDIC has an article titled Misconceptions: A Top 10 List. Some of the more common misconceptions include that there's no way to insure over $100K, it can take a long time for the FDIC to pay depositors of a failed bank and FDIC may only pay a percentage of your insured funds.

It should also be noted, that most credit unions have a very similar federal insured program through NCUA. The NCUA has kept their insurance inline with the FDIC including the latest increase in the IRA limits. I've never come acrosss a bank based in the US that's not FDIC insured. However, I've come across many credit unions that are not NCUA insured. Most of these have decided to use a private insurer like from ASI.

To confirm that a bank or credit union that you find online is legitimate and federally insured, both the FDIC and NCUA provide a database that includes the website address of the institution.

• The FDIC bank database link
• The NCUA credit union database link

Finding the bank or credit union can sometimes be difficult. The parent bank or credit union may be the one that's listed in the database. UmbrellaBank is one example of this. You have to search for Umbrella's parent, New South Federal Savings Bank in the FDIC database.

I have to admit that this is one hole in this check. Many banks that are creating online divisions are not providing a way for people online to verify their FDIC status. The FDIC database only points to the parent bank, not the online division. At the very least, the bank should include a link on their main website pointing to the new online division. Emigrant Savings Bank has done this with EmigrantDirect. The FDIC only lists Emigrant Savings Bank along with the emigrant.com web address. However, there's a link at emigrant.com pointing to emigrant-direct.com. This allows me to say with confidence that EmigrantDirect is FDIC insured.

Bank Deal Summary for May 20, 2006 read and submit comments for this post

This week we started to see more action in the savings account rates. One surprise was from Citibank which increased the APY on their no-minimum e-Savings to 4.75%. I didn't expect Citibank to be one of the first banks to make it to 4.75% with their no-minimum savings account. It looks like they intend to keep this e-Savings account competitive. Add in their numerous branches across the nation, and this should provide tough competition for HSBC, EmigrantDirect, ING and others. Perhaps HSBC was feeling some of this competition when they raised their savings account rate from 4.50% to 4.65% APY this week. Presidential Bank also made some rate bumps. Their Premier Savings account yield increased from 4.75% to 4.87% and their Internet Checking Plus yield increased from 4.37% to 4.50%. Presidential may be trying to compete better with these new no-minimum savings accounts. They've removed the $5K minimum balance requirement. There are no more monthly fees when your balance drops, however, there is still a $5K initial deposit requirement.

The new savings account leader on my list is now BankUnited with a 5% APY (see post). With only a $5K initial deposit requirement, I give them the lead over interState Net Bank which requires a minimum $10K deposit. I first posted about BankUnited in April when their savings account was at 4.75%. It looks like they intend to keep this savings account competitive.

RateEdge.com (an online division of Sunmark FCU) continues their dominance in online savings accounts. This week they raised the APY from 5.00% to 5.25% (see post). I don't include RateEdge on my main list since it's a credit union with a field of membership primarily limited to areas of New York State. RateEdge has consistently kept their rates about 25 basis points above the Fed funds rate since I started following them in November. Too bad more credit unions don't start their own online divisions.

I've added two banks to my main lists: Countrywide and Stonebridge. Countrywide just started a new online savings account called Savingslink which links to your external accounts (see post). The yield is only 4.25% APY for balances between $1K and $50K. However, the main reason I included Countrywide is that they often have very competitive CD rates. Their 1-year CD now pays 5.41% APY.

The other new online bank I included this week was Stonebridge (see post). Like Countrywide, they don't provide very competitive savings accounts, however, they do have some top CD rates. Stonebridge currently offers 5.50% APY CDs for all terms of 18-months and longer.

You may have noticed that my rate lists don't always includes the best rates. Also, they often include several low rates. My intent is to highlight banks that have high rates on both savings accounts and CDs. I will also include some banks that may not have a great savings account, but offer a sign-up bonus. Netbank and Etrade are examples of this. The main intent of this list is not just to show which bank is the top in one area, but to help you decide which bank or credit union would be the best deal for your specific situation.

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 May 13th, May 6th, Apr 29th, Apr 22nd, Apr 15th, Apr 8th and Apr 1st.

As of May 20, 2006

Savings Accounts/Money Market Accounts:

• BankUnited - 5.00% (min $5K), my post
• interState Net Bank - 5.00% MMA (min $10K for APY/$2.5K to avoid fee), my post
• Presidential - 4.87% (min $5K, only first $35K receives this rate), offers 4.50% checking, my post
• Corus Bank - 4.84% MMA (min $10K to open)
• AmboyDirect - 4.75%, my post
• Citibank - 4.75%, requires checking account, my post
• GMAC Bank - 4.75% MMA (min $500), my post
• UmbrellaBank.com - 4.75% MMA (min $1K), offers checking, my post
• Heritage Bank Online - 4.72% (min $1K), my post
• CapitalOne/Costco - 4.72% MMA (min $5K, Costco members only, $25 deal for exec. members)
• Zions Bank - 4.71% (min $1K)
• American Partners Bank - 4.71% MMA (min $1K), my post
• HSBC Direct - 4.65%, offers checking, (rate history), my post
• Western Financial Bank - 4.60% MMA, offers checking, my post
• VirtualBank - 4.60% (min $100), offers checking, my post ($20 bonus)
• FirstFedDirect - 4.57% (min $1K) (closed to CA residents), my post
• CapitalOne - 4.55% (MMA has same rate, but with checks and ATM. $100 min.), my post
• MyBankingDirect - 4.55% MMA (min $5K), my post
• EmigrantDirect - 4.50%, my post, ($10 signup bonus), (rate history)
• Transportation Alliance Bank - 4.50% MMA (min $25), my post
• UFB Direct - 4.40%, offers checking, my post
• Self-Help Credit Union - 4.37% MMA (min $500), my post
• Countrywide - 4.25% (min $1K), my post
• MetLife Bank - 4.25% MMA (min $5K), my post ($50 bonus)
• ING Direct - 4.15%, my post ($25 bonus), (rate history)
• Stonebridge - 4.00% ($100 min), my post
• 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
• ETrade Bank - 3.00% (min $1K to avoid fees/$5K for APY), my post (4.75%/$50 bonus)

6-Month Certificates of Deposit:

• World Savings - 5.51% (7 months) (min $10K), branch only, new funds only, my post
• UFB Direct - 5.25% (min $8K)
• VirtualBank - 5.25% (min $10K), my post ($20 bonus)
• Corus Bank - 5.25% (min $10K)
• ETrade Bank - 5.21% (min $1K), my post
• FirstFedDirect - 5.21% (min $10K), my post
• GMAC Bank - 5.20% (min $500), my post
• AmTrustDirect - 5.20% (min $1K) my post
• UmbrellaBank.com - 5.20% (min $1K)
• World Savings - 5.16% (5 months) (min $10K), new funds only, my post
• Meadows Credit Union - 5.12% ($1K min), new funds only, my post
• Countrywide - 5.11% (min $10K), my post
• Stonebridge - 5.00% ($500 min), my post
• NetBank - 5.00% (min $1K)
• ING Direct - 4.75%, my post
• ebank - 4.75% (min $1K), 5.00% for ePremium checking customers
• Transportation Alliance Bank - 4.65% ($1K min)
• Self-Help Credit Union - 4.65% (min $500), my post
• Western Financial Bank - 4.50% ($100 min)
• MetLife Bank - 4.50% ($1K min)

12-Month Certificates of Deposit:

• World Savings - 5.51% (11 months) (min $10K), branch only, new funds only, my post
• Countrywide - 5.41% (min $10K), my post
• Corus Bank - 5.40% (min $10K)
• GTE FCU - 5.38% (min $500) my post
• UmbrellaBank.com - 5.35% (min $1K)
• AmTrustDirect - 5.35% (min $1K) my post
• Mutual Bank - 5.35% (min $2.5K) my post
• Melrose CU - 5.35% (min $5K) my post
• BankUnited - 5.35% (min $5K), my post
• VirtualBank - 5.35% (min $10K), my post ($20 bonus)
• FirstFedDirect - 5.32%, (min $10K) my post
• UFB Direct - 5.31% (min $8K)
• GMAC Bank - 5.30% (min $500)
• ETrade Bank - 5.30% (min $1K), my post
• ING Direct - 5.25%, my post
• Western Financial Bank - 5.25% ($100 min) (13-month)
• Stonebridge - 5.25% ($500 min), my post
• NetBank - 5.25% (min $1K), my post ($100 bonus)
• Transportation Alliance Bank - 5.15% ($1K min)
• American Partners Bank - 5.07% (min $1K), my post
• MetLife Bank - 5.05% ($1K min)
• Self-Help Credit Union - 5.02% (min $500), my post
• ebank - 5.00% (min $1K), 5.25% for ePremium checking customers

18-Month Certificates of Deposit:

• Stonebridge - 5.50% ($500 min), my post
• Mutual Bank - 5.40% (min $5K) my post
• CapitalOne/Costco - 5.31% (min $5K, Costco members only)
• GMAC Bank - 5.30% (min $500)
• American Partners Bank - 5.18% (min $1K), my post

36-Month Certificate of Deposit:

• Pentagon Federal CU - 6.00% (min $1K), my post
• Melrose CU - 5.56% (min $5K) my post
• Stonebridge - 5.50% ($500 min), my post
• GMAC Bank - 5.35% (min $500)
• Transportation Alliance Bank - 5.34% ($1K min)
• Self-Help Credit Union - 5.30% (min $500), my post

48-Month Certificate of Deposit:

• USA FCU - 6.01% (min $1K) my post
• Pentagon Federal CU - 6.00% (min $1K), my post
• Melrose CU - 5.67% (min $5K) my post
• Stonebridge - 5.50% ($500 min), my post
• Transportation Alliance Bank - 5.36% ($1K min)
• GMAC Bank - 5.35% (min $500)
• Self-Help Credit Union - 5.32% (min $500), my post

60-Month Certificate of Deposit:

• Pentagon Federal CU - 6.00% (min $1K), my post
• Melrose CU - 5.77% (min $5K) my post
• Stonebridge - 5.50% ($500 min), my post
• Transportation Alliance Bank - 5.39% ($1K min)
• GMAC Bank - 5.35% (min $500)
• Self-Help Credit Union - 5.35% (min $500), my post

84-Month Certificate of Deposit:

• Pentagon Federal CU - 5.95% (min $1K), my post

High Rates with Conditions - Open to All

• 10% Savings Account for kids ($500 max)
• 5.51% 3-month intro rate on checking account
• 5.40% 6-month CD with $40K min
• 5.00% Money Market with $100K min
• 5.00% Money Market with $100K min

Checking and Saving Accounts at Local Credit Unions

• 5.25% no-minimum online savings account (New York)
• 5.00% Money Market Account (Wisconsin)
• 5.00% savings account (Pennsylvania)
• 5.00% Money Market Account (New York)
• 4.50% checking account promo (Oklahoma)

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

Terms of 60 Months and Over

• 6.25% 60-Month CD at a Carolina CU (Variable)
• 6.14% 60-Month CD at a Virginia CU
• 6.00% 61-Month CD at a Michigan CU (Open to All)
• 5.64% 60-Month CD at a South Carolina/Georgia CU

Terms of 24 Months to Under 60 Months

• 6.01% 48-Month CD at a California CU (Open to All)
• 6.00% 59-Month CD at a Missouri CU
• 6.00% 24-Month CD at a California CU (Variable)
• 5.90% 27-Month CD at a California CU
• 5.87% 30-Month CD at a Wisconsin CU
• 5.75% 41-Month CD at a Missouri CU
• 5.75% 27-Month CD at a Florida CU
• 5.61% 24-Month CD at a Chicago Bank
• 5.60% 24-Month CD at a Georgia Bank
• 5.55% 24-Month CD at a Ohio CU
• 5.50% 35-Month CD at a Oklahoma Bank
• 5.50% 49-Month CD at a Georgia Bank
• 5.50% 36-Month CD at a New York Bank
• 5.45% 36-Month CD at a Los Angeles CU
• 5.39% 24-Month CD at a California/Texas CU
• 5.35% 48-Month CD at a Texas CU

Terms of 12 Months to Under 24 Months

• 10.00% 12-Month CD at a Dallas Bank ($5K max)
• 8.30% 12-Month CD at a Texas CU ($2K Max)
• 8.00% 12-Month CD at a NJ/NY/PA CU ($2K max)
• 5.90% 18-Month CD at a Houston CU ($90K min)
• 5.55% 12-Month CD at a Georgia Bank
• 5.54% 13-Month CD at a California CU
• 5.50% 12-Month CD at a Virginia CU
• 5.50% 20-Month CD at a Illinois CU (Open To All)
• 5.50% 12-Month CD at a New York/California Bank
• 5.50% 12-Month CD at a Georgia Bank
• 5.50% 13-Month CD at a Massachusetts Bank
• 5.50% 18-Month CD at a Iowa CU
• 5.50% 18-Month CD at a New Jersey/Pennsylvania Bank
• 5.50% 12-Month CD at a California Bank
• 5.50% 15-Month CD at a Florida Bank
• 5.48% 18-Month CD at a Florida Bank
• 5.48% 18-Month CD at a Florida Bank
• 5.41% 13-Month CD at a Washington DC CU
• 5.40% 12-Month CD at a New York Bank
• 5.40% 12-Month CD at a Nebraska CU
• 5.40% 12-Month CD at a Chicago Bank
• 5.40% 15-Month CD at a Massachusetts Bank
• 5.38% 15-Month CD at a Maine CU
• 5.38% 12-Month CD at a CU Open to All
• 5.35% 13-Month CD at a Ohio CU
• 5.35% 15-Month CD at a Florida Bank
• 5.35% 12-Month CD at a Missouri Bank
• 5.30% 13-Month CD at a Georgia Bank
• 5.30% 13-Month CD at a Pennsylvania Bank
• 5.30% 19-Month CD at a Florida CU
• 5.30% 15-Month CD at a Florida Bank
• 5.27% 15-Month CD at a Kentucky Bank
• 5.25% 18-Month CD at a Florida Bank
• 5.25% 20-Month CD at a Pennsylvania Bank
• 5.25% 13-Month CD at a Florida CU
• 5.17% 12-Month CD at a Texas CU
• 5.15% 12-Month CD at a Pennsylvania Bank

Terms of Under 12 Months

• 8.00% 8-Month CD at a California CU ($5K Max)
• 6.00% 6-Month CD at a South Carolina Bank
• 6.00% 6-Month CD at a California CU ($5K Max)
• 6.00% 6-Month CD at a Virginia CU
• 5.75% 3-Month CD at a Virginia CU
• 5.55% 11-Month CD at a Georgia Bank
• 5.51% 11-Month CD at a Wisconsin Bank
• 5.50% 9-Month CD at a Georgia Bank
• 5.50% 10-Month CD at a California CU
• 5.50% 7-Month CD at a Virginia Bank
• 5.50% 9-Month CD at a Maryland Bank
• 5.50% 10-Month CD at a Chicago Bank
• 5.50% 9-Month CD at a New Hampshire Bank (open to all)
• 5.50% 9-Month CD at a Georgia Bank
• 5.45% 9-Month CD at a California Bank
• 5.40% 6-Month CD at a Multi-State CU (Open to All)
• 5.40% 10-Month CD at a Nebraska Bank
• 5.38% 9-Month CD at a CU Open To All
• 5.38% 11-Month CD at a Arizona CU
• 5.35% 10-Month CD at a Tennessee CU
• 5.33% 9-Month CD at a North Dakota Bank
• 5.30% 9-Month CD at a Massachusetts Bank (open to all)
• 5.25% 11-Month CD at a Michigan CU
• 5.25% 10-Month CD at a Massachusetts Bank
• 5.25% 7-Month CD at a Florida CU
• 5.25% 11-Month CD at a Wisconsin CU
• 5.25% 7-Month CD at a Georgia Bank
• 5.22% 6-Month CD at a California CU
• 5.20% 9-Month CD at a Nebraska CU
• 5.20% 9-Month CD at a Massachusetts Bank
• 5.20% 10-Month CD at LaSalle Bank
• 5.15% 7-Month CD at a Georgia Bank
• 5.12% 7-Month CD at a Wisconsin CU
• 5.00% 9-Month CD at a Wisconsin Bank

Savings Account/CD Alternatives

• Money Magazine article on risk-free investments
• Paypal Money Market Fund - 4.69% 7-day yield (1% cashback debit MasterCard)
• FW Thread on Treasury Bills
• I Bond Rate Starting May 2006, I Bond Article, I Bonds as CD Alternatives
• SmartMoney Brokerage Survey

GMAC Bank CDs: New 5.20% 6-Mo, Opening Process read and submit comments for this post

GMAC Bank's Friday rate updates weren't much yesterday. The only change was the 6-month CD. The new rate increased from 5.10% to 5.20% APY. The rates for all other terms and for their money market savings account remains the same. With other banks raising their savings account rates, I thought there was a good chance we would see at least a 5-basis point jump in their money market account. The last money market account rate increase was on April 21st when the APY increased from 4.70% to 4.75%.

GMAC Bank Certificate of Deposit Rates:
Term        Old APY    New APY  Change
3 months    4.85%      4.85%    
6 months    5.10%      5.20%    +0.10%
9 months    5.15%      5.15%    
12 months   5.30%      5.30%    
18 months   5.30%      5.30%    
2 years     5.35%      5.35%
3 years     5.35%      5.35%
4 years     5.35%      5.35%
5 years     5.35%      5.35%

The last CD rate change was on May 5th.

My Experience Opening a GMAC Certificate of Deposit

After GMAC increased the APY on their 6-month CD yesterday to 5.20%, I decided to try opening one. The process can be done online very quickly. You can fund the CD with money from your money market account. It's better than VirtualBank's online CD application (see post), but not quite as easy as ING Direct's CD process.

It seems like you have to start the application from outside your account. The link is located at the CD rate page. At the top of the application page there's a link "Already a customer? Login here to open additional accounts". When you click this link, a login page is provided. After logging in, the application continues where you can select the CD term and deposit amount. It includes all of your personal information so you don't have to waste time re-entering this. You then click a button to buy the CD and you're taken to the CD funding page. The top link is a link to fund it electronically from your money market account. It appears you can also fund it from one of your linked accounts. I chosed the money market account. Once this is submitted, the money is immediately debited, and the new CD account is shown in the summary page.

I like ING Direct's process a little better because it gives you one last page with all of the details including the funding source where you can confirm the details before doing the final submission. ING Direct also has a nice CD management application which allows you to close the CD online and deposit the money into your savings account or external linked accounts. I'm not sure if GMAC has such a CD management system.

5.00% Online Savings Account at BankUnited read and submit comments for this post

BankUnited just increased the APY of their online savings account from 4.75% to 5.00%. I first posted about them on April 15th when the yield was at 4.75%. This is a new offering from BankUnited of Florida, and it looks like they intend to keep the rates very competitive.

Based on my conversation last month with the customer service rep, the savings account can be opened online by people from any state. Like the typical savings account, there's no check writing, however, you can get an ATM card. The online account applications appear to be through CashEdge which is the same online banking service provider used by HSBC. The application instructions imply that account funding will be done by ACH. However, the CSR stated that it can be funded only by check. I'm not sure if she was too familar with these new online accounts.

This unfamiliarity with this savings account continues. I called again today to resolve some inconsistencies in the account descriptions, and the customer service rep wasn't familiar with this account and said to call back on Monday. The learn more page of the savings account states that the minimum opening balance is $50 and a $5/month maintenance fee when the minimum balance is under $300, otherwise, there's no $5 fee. However, to obtain the stated APY requires a balance of $5K.

I saw some inconsistencies when I opened the savings account disclosure. This document states that there's a $5 monthly maintenance fee that is not waived by a specific balance. The minimum balance to earn interest is $300. Page 2 of the disclosure actual contradicts this. It lists 7 tiers, and all tiers from $0 balance on up earn 5%.

This could be a nice online savings account if BankUnited is able to run it properly and staff it with knowledgeable customer service reps.

In addition to the increase in the savings account rate, Bank United also increased the 1-year certificate of deposit APY from 5.25% to 5.35%. Like the savings account, the CD can be opened with a similar online application. The minimum deposit is $5K. The early withdrawal penalty is 6 months of interest.

Opened a KeyDirect Money Market Account Last Year? Beware! read and submit comments for this post

A reader just informed me of a questionable marketing tactic that has been done at KeyDirect. In January, KeyDirect created a new money market account called the Optimum Money Market Savings with a high interest rate. The existing money market account called the Premier Money Market Account was retained and the interest rate was quietly reduced. I was told by the reader that the rate is well below 4%.

Customers are allowed to switch to this new Optimum account but they need to make a specific request. The change can be done without new checks or a new account number.

You have to wonder how many KeyDirect customers who opened a Premier Money Market Account before this year haven't noticed the change in interest rates. I can only find the rates for the Optimum Money Market Savings Account on their website. Currently the APY is at 4.75%. You also have to wonder how much this is profiting KeyDirect.

If you are a KeyDirect customer who still has a Premier Money Market Account, you may want to consider finding a new bank instead of switching to the new Optimum account. In another year, they may do this same tactic. There are now many banks with comparable interest rates.

$100 Bonus for 5.25% 12-Month CD at Netbank read and submit comments for this post

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

Netbank has updated their Drugstore.com promotion. Previously, the most you could get by opening a 1-year CD was a $25 Visa gift card. With the new promotion, you can now get up to a $100 Visa Gift Card. This requires opening a Netbank 12-month CD with a minimum deposit of $15K. You also have the choice of a $50 Visa gift card for a minimum deposit of $10K or a $20 card for a $5K minimum. The current APY of Netbank's 12-month CD is 5.25% APY.

Here's the Drugstore.com page with the Netbank link, and here's the Netbank promotional page. Be sure to sign up through this promotional page.

If you convert these bonuses into extra interest, the resulting APY would be approximated as follows:

Deposit   Standard  Bonus  Bonus     Total APY
          APY       Amount Interest  with Bonus
$15K      5.25%     +$100  +0.67%    5.92%
$10K      5.25%      +$50  +0.50%    5.75%
 $5K      5.25%      +$20  +0.40%    5.65%

In addition to this $100 bonus, you can also get another $150 bonus by opening a Netbank money market account and checking account for a total of $250 bonus. This is the same as before except that you now only need to maintain a balance of $1000 in the money market account for one month to receive the bonus $75. The checking account bonus is the same as before: $75 signup bonus for opening a checking account with a $50 minimum deposit and maintaining a balance of $500 for at least one month. As before, you can choose any combination of these bonuses.

For the money market and checking accounts, be sure to review the fees. I would recommend against the SuperValue Checking Account. It has a $3/month service fee for balances over $2.5K and a $9/month fee for balance under $2.5K. the interest rate for this account is only 2% APY. The NetValue Checking's APY is 0.75% without any balance requirements or monthly fees.

The money market account has a $5/month fee for balances under $500. Netbank's money market accounts have never had competitive rates. Currently, the standard money market account has an APY of 2.90%. You can increase this to 3.52% APY with some extra requirements, and up to 4.05% with an auto loan.

There's a $25 fee if you close either the checking or money market account within 6 months. After the first months there's still a $7.50 account closure fee.

Also beware of the online bill payment inactivity fees for the checking account. They charge $5/month after 3 months of inactivity or for balances under $3K.

Credit for finding this latest Netbank promotion goes to this FW thread.

5.50% 9-Month CD at a Georgia Bank read and submit comments for this post

Sea Island Bank is offering a 5.50% APY 9-month certificate of deposit. The minimum deposit is $5K. The CD is available for personal or IRA accounts. This speical is not listed at the bank's website, but was advertised in the May 17th Savannah Morning News. The ad is available online here.

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

Georgia doesn't seem to have a shortage of CD deals. Earlier this month I posted on a 5.55% 12-month CD at Security Exchange Bank of Georgia. In this May 4th post I sum up other Georgia CD deals that have been advertised around late April and early May.

5.41% 12-Month CD and the New Savings Account at Countrywide Bank read and submit comments for this post

Countrywide Bank made a nice bump to their 12-month CD. It's now paying 5.41% APY. The minimum deposit is $10K. This just beats out Corus Bank's new 5.40% APY 12-month CD.

I noticed that Countrywide Bank has added a new type of savings account called SavingsLink. Like the typical online savings account it can link to your accounts at other financial institutions (not just checking). You can link up to 3 external accounts, and all links can be done online. Also like the typical online savings accounts, there are no minimum balance requirements to avoid a monthly fee. However, you need a balance of $1K to open the account and to obtain the APY.

The SavingsLink interest rate is not the best, the current APY for deposits between $1K and $50K is 4.25%. However, this account can be convenient to use for their certificates of deposit. You can fund a CD with money from the Savingslink account although I was told this has to be done by phone. Also, when the CD matures, you can move the money back into your SavingsLink account where you can do an ACH transfer to the next best deal.

4.85% Money Market Account at Domestic Bank read and submit comments for this post

Domestic Bank is offering a 4.85% APY money market account with a minimum of $2.5K. I first noted this money market account deal on Bankrate where it was listed as 4.75% APY. I could not find this deal listed at their website, so I requested information from their contact page. I was told it's actually 4.75% APR and 4.85% APY. Here are the additional details that I received:

This is a call center promotion so you can only open this account by giving us a call at the phone number listed below and we can set you up so you can wire the funds to us and we will mail back a receipt. We can also send you a package including the enrollment form and you can mail everything back with your deposit. This promotion is on new money only. In order to earn this rate you must maintain a minimum balance of $2500. If the balance falls below it $2500 there will be a $10 monthyly fee.

Domestic Bank is located in Rhode Island, but they accept out-of-state customers. Their toll free number is 1-800-556-6600. Please refer to their hours and location page for more info.

The only problem with money market account deals is that there's no way to know how long the bank will keep the rates competitive. With a $2.5K minimum and check writing, at least it's easy to move your money. And if the rate drops too much, you can always close the account. I was told that there's no fee for closing the account.

6.00% 6-Month CD at a Virginia CU read and submit comments for this post

Bronco Federal Credit Union (BFCU) has a special 6% APY 6-month share certificate with a no penalty feature. There's a $10K minimum deposit. You must have a BFCU checking account with direct deposit.

The credit union's field of membership includes residents of the Virginia counties of Greensville and Sussex and the North Carolina counties of Hertford, Halifax and Northampton.

BFCU has branches in the Virginia cities of Franklin and Emporia which are located near the border of North Carolina.

BFCU is NCUA insured with $135 million in assets and 13,000 members.

It's Official. HSBC Online Savings Account Now at 4.65% read and submit comments for this post

As I had posted yesterday, HSBC Direct did their official rate hike from 4.50% to 4.65% APY on their Online Savings Account today.

Who's going to be the next to raise their savings account rates? The last rate increase from EmigrantDirect was on March 15th when they raised their savings account rate from 4.25% to 4.50% APY. So Emigrant is due for an increase. I would expect at least a 0.25% increase within the next month. With Citibank's e-Savings account now at 4.75% and HSBC at 4.65%, hopefully, they'll do another 0.50% increase for a 5% APY. But if they don't feel the need to attract more deposits, they could be content to follow ING Direct.

One interesting note about EmigrantDirect's website is that they no longer mention "America's Highest Rate". Here's their front page archived on March 2005. Note the first bullet on their current front page no longer has "America's Highest Rate".

Stonebridge Online Bank - 5.50% 18-Month CD read and submit comments for this post

Stonebridge Bank is offering a 5.50% APY 18-month certificate of deposit. The minimum is $500. Longer terms are also available at this yield. Their 12-month and 6-month CDs have APYs of 5.25% and 5.00% (rate page).

You can open the CD accounts online. The accounts are available to residents of any state. They don't seem to have an ACH transfer system. Initial deposits have to be mailed. Free incoming wire transfers are available for additional deposits. Refer to their FAQ page for more info.

In addition to CDs, they also offer some decent money market accounts and checking accounts. Their checking account pays 2% APY and doesn't have a minimum balance requirement. Their basic money market account pays 4% APY and also doesn't have a minimum. Their premier money market pays up to 4.60% APY on balances of $50K and over. This one has a $1K minimum to open and to avoid a monthly fee.

The bank is located in Pennsylvania with full service branches in Exton and West Chester.

5.71% Money Market Account for First 6 Months at USAA Bank read and submit comments for this post

USAA Bank has a promotion in which you can earn up to 5.71% APY on a money market account for the first 6 months with a balance of $50K or more. The details are on their website, but to gain access, you need a member number. This can be done by phone (1-800-531-2265). There's no cost or obligation to gain access (see post for more info).

Here are the details that were shown when I was logged in:

For a limited time, you can earn even more. Open a new savings account or a Performance First Index account online and we'll pay you an additional 1 percent in interest for the first six months. After that, your earnings continue at the regular competitive rates.

This was located under the Spotlight section when you first log in. Click on the link that says "Special benefits on checking and savings accounts".

Performance First Index account has the following standard rates. I've also included the approximate promotional rates.

Balance             Stnd APY   Promo APY
$0 - $9,999         2.22%      3.22%
$10,000 - $24,999   4.34%      5.34%
$25,000 - $49,999   4.60%      5.60%
over $50,000        4.71%      5.71%

Even a $10K balance will beat most 6-month CDs that are nationally available. A balance over $25K will beat World Savings' 5.51% CD special and Everbank's 5.51% 3-month promo rate.

The Performance First Index has no monthly service fees or minimum balance requirements, so you are always free to transfer the money to a better deal after the initial $10K deposit. USAA also has an easy and fast ACH transfer system to move money to and from other banks.

Credit for this find goes to this FW thread. One person on the thread has reported being told by USAA that the promotion was over as of May 16th. Another reported being told it's still in effect as of May 17th. When I logged in this morning, the special is still being displayed.

5.50% 9-Month CD at a New Hampshire Bank (open to all) read and submit comments for this post

Southern New Hampshire Bank and Trust Co. is having a special with a 5.50% APY certificate of deposit with terms of 9 months to 24 months. The minimum is $500. The CD application is online and can be printed and mailed. There doesn't seem to be any restrictions for out-of-state deposits.

The bank has 6 branches in New Hampshire and one in Andover, Massachusetts. Credit for this find goes to Mark who mentioned it in the finding deals post.

HSBC Direct's Online Savings Being Raised to 4.65% read and submit comments for this post

HSBC Direct will be increasing the yield on their Online Savings Account to 4.65% APY tomorrow. The website is still showing 4.50%. I saw the new rate advertised on Bankrate and called to confirm. The CSR told me that this new rate will take effect on May 18th. Also, I asked about any new sign-up bonuses or promotions. No luck. The CSR said that only invitational promotions are available.

I thought HSBC might match Citibank's latest rate increase to 4.75% APY (see post). But it looks like they don't care about being on top. An HSBC official was quoted on May 5th in the New York Times saying that "HSBC Direct does not feel compelled to offer the very highest yield." At least they feel compelled to remain close to the top, unlike ING Direct. Now the question is when will Emigrant Direct respond. Do they want to be the rate leaders or are they content with being close to the leaders. If they don't respond soon, they'll be with ING outside the ball park.

5.50% 15-Month CD at a Florida Bank read and submit comments for this post

First Florida Bank is advertising a 5.50% APY 15-month certificate of deposit. The minimum deposit is $1K. This special is not listed at the bank's website. It was advertised in Monday's Orlando Sentinel newspaper.

The bank has branches in the Florida cities of Winter Park, Naples and Ft. Myers.

5.50% 12-Month CD at a California Bank read and submit comments for this post

Spectrum Bank is offering a special 5.50% APY on a 1-year certificate of deposit. There is a minimum deposit of $1K. The same APY is also available on longer terms CDs.

The bank has branches in the California cities of Irvine, Montebello and Huntington Beach. Credit for this find goes to eMoneyCentral.

$125 Bonus at Bank of America for New Checking / Savings Account read and submit comments for this post

It has been reported in this FW thread that Bank of America has a $125 promotion for opening a new checking account and savings account. You have to include the offer code Thz1 in the application. One of the posters included this reply from an Bank of America online assistant:

Get $100 when you open any new, personal checking account with a Bank of America Visa Check card. Get an additional $25 when you open any new, personal savings account at the same time online, for a total of $125, deposited directly into your new checking account. Because you are an existing Bank of America customer, you can save time by adding your new checking and savings account using our online express application. There is no set exp. date for the Thz1

With Bank of America, you have to careful to avoid fees. Also, it has been reported that they do a hard pull on Experian Credit Bureau.

iPod Checking Account Bonus at Western Financial Bank read and submit comments for this post

Western Financial Bank is offering a free 512MB iPod Shuffle (retail value $69) when you open a new Free Checking account (details in pdf). No direct deposit is required. A minimum opening deposit of $1K in a new checking account or a combined opening balance of $1K in a new checking account and money market account or certificate of deposit is required. The checking account must remain open for 6 months. Offer expires on June 30, 2006. This offer is not valid if you have opened or closed a WFB checking account in the past 12 months.

Although you can open WFB accounts online, this looks like it may require a branch visit. Branches are located throughout Southern California.

Credit for this find goes to this SlickDeals thread. Refer to my summary of iPod deals for other free iPod opportunities.

CD Streak Continues but Money Market Streak Ends at Corus Bank read and submit comments for this post

Corus Bank has a long Tuesday streak now of raising rates. The CD streak continues. The yield on their 1-year CD increased today from 5.35% to 5.40% APY. This new 12-month CD rate puts Corus ahead of a pack of 8 banks listed at Bankrate.com with a 12-month CD APY of 5.35%. The 6-month CD yield increased from 5.20% to 5.25% APY. However, the money market account streak has ended. For the first time in several weeks there was no increase to the money market account yield. It remains at 4.84% APY.

5.25% No-Minimum Savings Account (New York CU) read and submit comments for this post

If Citibank's 4.75% no-minimum savings account sounds good, how about 5.25%? The yield on RateEdge.com's no-minimum online savings account reached 5.25% APY today. RateEdge.com has consistently maintained a yield higher than the online savings accounts offered by the banks. Unfortunately, RateEdge.com is a division of Sunmark FCU which has a field of membership (FOM) that's primarily limited to those who live in areas of New York State.

One note regarding their FOM, you can also be eligible even if you don't live in this area of New York State. If an immediate family member lives, works, worships, owns a business, volunteers or attends school in this area, you are eligible. Your family member doesn't have to already be a RateEdge member.

As you can see below, RateEdge has consistently maintained a high yield on their savings account. Since I began tracking them in November, they've maintained an APY 25 basis points above the intended federal funds rate. RateEdge has also had the lead over EmigrantDirect and HSBC except during HSBC's 4.80% promotion (for most of the promotion RateEdge was only behind by 0.05%).

RateEdge       RateEdge   Fed Funds  Emigrant     HSBC
Rate Change    APY        Rate       Direct APY   APY
May 16         5.25%      5.00%      4.50%        4.50%
Apr 05         5.00%      4.75%      4.50%        4.80%
Feb 09         4.75%      4.50%      4.25%        4.80%
Jan 07         4.50%      4.25%      4.00%        4.25%
Nov 14         4.25%      4.00%      4.00%        4.00%

RateEdge doesn't exactly have a no-minimum savings account since it requires a balance of $5. For practical purposes, I consider this as a no-minimum account. According to their FAQ, the savings account seems to have a nice ACH transfer system that allows you to link not only to checking accounts but also money market accounts and brokerage accounts. There are some fees that you should be aware of such as a fee when you go over 2 outbound ACH transfers.

As I mentioned in last month's post when RateEdge reached 5%, I wish more credit unions would follow the lead of Sunmark FCU and set up an online division to focus on high-yield online savings accounts. Brick-and-mortar credit unions have consistently offered better rates than B&M banks. As RateEdge has shown, this can also be true with online divisions. I've emailed my credit unions about RateEdge and asked them to consider setting up a similar division. More credit unions will likely offer this if more people request it.

Citibank's e-Savings Account Now 4.75% read and submit comments for this post

Citibank just increased the yield of their e-Savings Account from 4.50% to 4.75% APY. This is a good sign that Citibank is serious about keeping this savings account competitive. When Citibank relaunched this account last March with a 4.5% APY, it was unclear if this was just a one-time promo rate. Early this month, a Citibank official was quoted by the New York Times saying that "when the Fed increases rates, we will go up as well." I'm glad it to see this was more than just talk. Hopefully, it'll encourage EmigrantDirect, HSBC Direct and others to stay competitive.

Citibank's e-Savings account now joins with Amboy Direct's new Premium Online Savings Account (see post) as the highest yield no-minimum savings account. Even though Citibank doesn't have any minimum balance requirements, it does require a Citibank checking account. Another negative about e-Savings is that it has been reported that Citibank does a hard inquiry when opening this account (see FW thread). There are also some perks like Citibank Thankyou Points (see FW thread), and hopefully, they'll do another checking account bonus program like the $200 bonus program they started last January.

Thanks goes to the commenter who mentioned this news in the finding deals post.

5.50% 10-Month CD at a Chicago Bank read and submit comments for this post

Hyde Park Bank is offering a 5.50% APY 10-month certificate of deposit. The minimum is $5K and at least $5K must be money new to the bank. A Hyde Park Bank checking account is required. There's a $50 fee for checking accounts closed within one year of opening. Several checking accounts are available, one of which is an Economy Checking Account that has no minimum balance requirements.

The bank has several branches in Chicago, Illinois. Credit for this find goes to eMoneyCentral.

5.37% 6-Month CD at a Multi-State CU (Open to All) read and submit comments for this post

Northrop Grumman Federal Credit Union has high rates on all of their CD terms. The best deal is a 5.37% APY 6-month certificate of deposit. The minimum is $40K. A smaller APY of 5.11% is available for a minimum deposit of $2.5K. Below is the full list of yields and terms:

CD Term      APY         APY
          $2.5K min   $40K min
6 month     5.11%       5.37%
12 month    5.10%       5.36%
24 month    5.05%       5.32%
30 month    5.06%       5.33%
36 month    5.07%       5.34%
48 month    5.10%       5.36%
60 month    5.12%       5.38%

There is a 90 days of interest penalty for CDs with terms of 12 months or less. The penalty is 182 days of interest for CD terms over 12 months. There's one nice policy related to these penalties in that the penalty will only be applied to the money withdrawn if the CD balance after the withdrawal remains above the minimum balance. Otherwise, the penalty is on the entire balance and the CD will be closed.

In addition to employees of Northrop Grumman, the credit union's field of membership includes members of the Southern California Historical Aircraft Foundation. The credit union allows you to join this foundation concurrently with your membership to the credit union. The minimum payment is $15 which includes a one year membership to this foundation, a one-time fee for the credit union and an initial deposit of $5 to open a regular share account.

The credit union has branches in several cities of California, Illinois, Maryland, Virginia, Louisiana and Florida.

The credit union is NCUA insured. It has $538 million in assets and over 50,000 members.

Presidential Bank's Savings Account Now 4.87%, Checking 4.50% read and submit comments for this post

Presidential Bank increased the rate on both their Premeir Savings Account and Internet Checking Plus account today. The savings account APY increased from 4.75% to 4.87%. The Checking account APY increased from 4.37% to 4.50%.

The last rate change at Presidential was on April 28th.

Refer to this post for info on these accounts. The 4.87% APY only applies to balances up to $35K. Balances over $35K earn 3% APY. There's a $5K minimum to open and to avoid a monthly fee. For the Internet Checking Plus account, the 4.50% APY applies to the first $25K. Balances over $25K earn 2.75% APY. There's a $1.5K minimum to open and $1K balance requirement to avoid monthly fees. The checking account also requires direct deposit.

$125 Checking Account Bonus at Meadows CU read and submit comments for this post

Meadows Credit Union is offering $125 for opening their eChecking account with direct deposit. The account must be opened and direct deposit started by July 31, 2006 to qualify for the award. You must enter the promo code DH125 in the application. The direct deposit has to be from an employer or governmental source and not from PayPal or other non-employment direct transfers. You must be a new member with no previous membership. The $125 award will be paid in 5 $25 increments over 5 consecutive months after direct deposit has started.

The eChecking account is a free checking account with direct deposit. There doesn't seem to be a minimum balance requirement unless you want to earn a small 0.65% interest. In that case the minimum is $2.5K.

Credit for this find goes to this FW thread. According to this thread, they do a hard inquiry on your Trans Union credit report when opening a checking account.

Meadows has a CashEdge money trasfer system that makes it easy to move money between institutions. With eChecking you get unlimited free inbound transfers, but only 2 per month free outbound transfers.

Meadows has the least restrictive field of membership. All you need is an email address.

5.51% 11-Month CD at a Wisconsin Bank read and submit comments for this post

Superior Savings Bank is offering a 5.51% APY 11-month certificate of deposit. There's a $10K minimum. An APY of 5.26% is available for a minimum of $2.5K. This CD special is only available from Monday, May 15 to Tuesday, May 23. This special doesn't seem to be listed at the bank's website. It was advertised in today's edition of the Duluth News Tribune. The ad is available online here.

The bank has 3 branches in Superior, Wisconsin.

Bank Deal Summary for May 13, 2006 read and submit comments for this post

After another Fed rate hike this week, I was hoping to see more new and higher deposit rates. But there wasn't much activity. EmigrantDirect and HSBC both kept their 4.50% yield. There weren't any significant rate hikes in any savings accounts at the major online banks. There were a few minor increases. Corus Bank did another small increase. Their money market account now earns 4.84% APY. UmbrellaBank also did a minor 0.05% rate increase to their money market account which is now 4.75% APY. CapitalOne raised their Costco money market account from 4.60% to 4.72% APY.

For CDs, VirtualBank had a nice bump-up on their rates. Their 6-month CD now pays 5.25% APY which is the top for a 6-month term. For an extra month, World Savings still has the best CD deal with a 5.51% APY 7-month CD (see post). For those who prefer a shorter term, World Savings also has a 5.26% APY 3-month CD (see post).

For those who had their money in HSBC during their 4.80% promotion and were hoping for some nice surprises after the Fed meeting, there doesn't seem to be any really good deals. The best deal for those who want the liquidity of a savings account is still EverBank with their 5.51% APY 3-month checking account promotion. After 3 months the rates go way down (currently only 3.01% for balances under $10K.) Even if the Fed pauses a little in their rate hikes, it's still likely that we'll have better rates available 3 months from now.

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 May 6th, Apr 29th, Apr 22nd, Apr 15th, Apr 8th, Apr 1st and Mar 25th.

As of May 13, 2006

Savings/Money Market Accounts:

• interState Net Bank - 5.00% MMA (min $10K for APY/$2.5K to avoid fee), my post
• Corus Bank - 4.84% MMA (min $10K to open)
• AmboyDirect - 4.75%, my post
• GMAC Bank - 4.75% MMA (min $500), my post
• UmbrellaBank.com - 4.75% MMA (min $1K), offers checking, my post
• Presidential - 4.75% (min $5K, only first $35K receives this rate), offers checking, my post
• BankUnited - 4.75% (min $5K), my post
• Heritage Bank Online - 4.72% (min $1K), my post
• CapitalOne/Costco - 4.72% MMA (min $5K, Costco members only, $25 deal for exec. members)
• Zions Bank - 4.71% (min $1K)
• American Partners Bank - 4.71% MMA (min $1K), my post
• Western Financial Bank - 4.60% MMA, offers checking, my post
• VirtualBank - 4.60% (min $100), offers checking, my post ($20 bonus)
• FirstFedDirect - 4.57% (min $1K) (closed to CA residents), my post
• CapitalOne - 4.55% (MMA has same rate, but with checks and ATM. $100 min.), my post
• MyBankingDirect - 4.55% MMA (min $5K), my post
• HSBC Direct - 4.50%, offers checking, (rate history), my post
• EmigrantDirect - 4.50%, my post, ($10 signup bonus), (rate history)
• Citibank - 4.50%, requires checking account, my post
• Transportation Alliance Bank - 4.50% MMA (min $25), my post
• UFB Direct - 4.40%, offers checking, my post
• Self-Help Credit Union - 4.37% MMA (min $500), my post
• MetLife Bank - 4.25% MMA (min $5K), my post ($50 bonus)
• ING Direct - 4.15%, my post ($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
• ETrade Bank - 3.00% (min $1K to avoid fees/$5K for APY), my post (4.75%/$50 bonus)

6-Month Certificates of Deposit:

• World Savings - 5.51% (7 months) (min $10K), branch only, new funds only, my post
• VirtualBank - 5.25% (min $10K), my post ($20 bonus)
• ETrade Bank - 5.21% (min $1K), my post
• UmbrellaBank.com - 5.20% (min $1K)
• Corus Bank - 5.20% (min $10K)
• UFB Direct - 5.17% (min $8K)
• World Savings - 5.16% (5 months) (min $10K), new funds only, my post
• AmTrustDirect - 5.15% (min $1K) my post
• Meadows Credit Union - 5.12% ($1K min), new funds only, my post
• FirstFedDirect - 5.12% (min $10K), my post
• GMAC Bank - 5.10% (min $500)
• NetBank - 5.00% (min $1K)
• ING Direct - 4.75%, my post
• ebank - 4.75% (min $1K), 5.00% for ePremium checking customers
• Transportation Alliance Bank - 4.65% ($1K min)
• Self-Help Credit Union - 4.63% (min $500), my post
• Western Financial Bank - 4.50% ($100 min)
• MetLife Bank - 4.50% ($1K min)

12-Month Certificates of Deposit:

• World Savings - 5.51% (11 months) (min $10K), branch only, new funds only, my post
• GTE FCU - 5.38% (min $500) my post
• UmbrellaBank.com - 5.35% (min $1K)
• Mutual Bank - 5.35% (min $2.5K) my post
• Melrose CU - 5.35% (min $5K) my post
• VirtualBank - 5.35% (min $10K), my post ($20 bonus)
• Corus Bank - 5.35% (min $10K)
• UFB Direct - 5.31% (min $8K)
• GMAC Bank - 5.30% (min $500)
• AmTrustDirect - 5.30% (min $1K) my post
• ETrade Bank - 5.30% (min $1K), my post
• FirstFedDirect - 5.27%, (min $10K) my post
• ING Direct - 5.25%, my post
• Western Financial Bank - 5.25% ($100 min) (13-month)
• NetBank - 5.25% (min $1K), my post ($25 bonus)
• BankUnited - 5.25% (min $5K), my post
• Transportation Alliance Bank - 5.15% ($1K min)
• American Partners Bank - 5.07% (min $1K), my post
• MetLife Bank - 5.05% ($1K min)
• Self-Help Credit Union - 5.03% (min $500), my post
• ebank - 5.00% (min $1K), 5.25% for ePremium checking customers

18-Month Certificates of Deposit:

• Mutual Bank - 5.40% (min $5K) my post
• CapitalOne/Costco - 5.31% (min $5K, Costco members only)
• GMAC Bank - 5.30% (min $500)
• American Partners Bank - 5.18% (min $1K), my post

36-Month Certificate of Deposit:

• Pentagon Federal CU - 6.00% (min $1K), my post
• Melrose CU - 5.56% (min $5K) my post
• GMAC Bank - 5.35% (min $500)
• Transportation Alliance Bank - 5.34% ($1K min)
• Self-Help Credit Union - 5.34% (min $500), my post

48-Month Certificate of Deposit:

• USA FCU - 6.01% (min $1K) my post
• Pentagon Federal CU - 6.00% (min $1K), my post
• Melrose CU - 5.67% (min $5K) my post
• Self-Help Credit Union - 5.37% (min $500), my post
• Transportation Alliance Bank - 5.36% ($1K min)
• GMAC Bank - 5.35% (min $500)

60-Month Certificate of Deposit:

• Pentagon Federal CU - 6.00% (min $1K), my post
• Melrose CU - 5.77% (min $5K) my post
• Self-Help Credit Union - 5.41% (min $500), my post
• Transportation Alliance Bank - 5.39% ($1K min)
• GMAC Bank - 5.35% (min $500)

84-Month Certificate of Deposit:

• Pentagon Federal CU - 5.95% (min $1K), my post

High Rates with Conditions - Open to All

• 10% Savings Account for kids ($500 max)
• 5.51% 3-month intro rate on checking account
• 5.00% Money Market with $100K min
• 5.00% Money Market with $100K min

Checking and Saving Accounts at Local Credit Unions

• 5.00% no-minimum savings account (New York)
• 5.00% Money Market Account (Wisconsin)
• 5.00% savings account (Pennsylvania)
• 5.00% Money Market Account (New York)
• 4.50% checking account promo (Oklahoma)

CD Specials at Local Credit Unions/Banks Over the Last Two Months
Terms of 60 Months and Over

• 6.25% 60-Month CD at a Carolina CU (Variable)
• 6.14% 60-Month CD at a Virginia CU
• 6.00% 61-Month CD at a Michigan CU (Open to All)
• 5.64% 60-Month CD at a South Carolina/Georgia CU

Terms of 24 Months to Under 60 Months

• 6.01% 48-Month CD at a California CU (Open to All)
• 6.00% 59-Month CD at a Missouri CU
• 6.00% 24-Month CD at a California CU (Variable)
• 5.90% 27-Month CD at a California CU
• 5.87% 30-Month CD at a Wisconsin CU
• 5.75% 41-Month CD at a Missouri CU
• 5.75% 27-Month CD at a Florida CU
• 5.61% 24-Month CD at a Chicago Bank
• 5.60% 24-Month CD at a Georgia Bank
• 5.55% 24-Month CD at a Ohio CU
• 5.50% 35-Month CD at a Oklahoma Bank
• 5.50% 49-Month CD at a Georgia Bank
• 5.50% 36-Month CD at a New York Bank
• 5.45% 36-Month CD at a Los Angeles CU
• 5.39% 24-Month CD at a California/Texas CU
• 5.35% 48-Month CD at a Texas CU

Terms of 12 Months to Under 24 Months

• 10.00% 12-Month CD at a Dallas Bank ($5K max)
• 8.30% 12-Month CD at a Texas CU ($2K Max)
• 8.00% 12-Month CD at a NJ/NY/PA CU ($2K max)
• 5.90% 18-Month CD at a Houston CU ($90K min)
• 5.55% 12-Month CD at a Georgia Bank
• 5.54% 13-Month CD at a California CU
• 5.50% 12-Month CD at a Virginia CU
• 5.50% 20-Month CD at a Illinois CU (Open To All)
• 5.50% 12-Month CD at a New York/California Bank
• 5.50% 12-Month CD at a Georgia Bank
• 5.50% 13-Month CD at a Massachusetts Bank
• 5.50% 18-Month CD at a Iowa CU
• 5.50% 18-Month CD at a New Jersey/Pennsylvania Bank
• 5.48% 18-Month CD at a Florida Bank
• 5.48% 18-Month CD at a Florida Bank
• 5.41% 13-Month CD at a Washington DC CU
• 5.40% 12-Month CD at a New York Bank
• 5.40% 12-Month CD at a Nebraska CU
• 5.40% 12-Month CD at a Chicago Bank
• 5.40% 15-Month CD at a Massachusetts Bank
• 5.38% 15-Month CD at a Maine CU
• 5.38% 12-Month CD at a CU Open to All
• 5.35% 13-Month CD at a Ohio CU
• 5.35% 15-Month CD at a Florida Bank
• 5.35% 12-Month CD at a Missouri Bank
• 5.30% 13-Month CD at a Georgia Bank
• 5.30% 13-Month CD at a Pennsylvania Bank
• 5.30% 19-Month CD at a Florida CU
• 5.30% 15-Month CD at a Florida Bank
• 5.27% 15-Month CD at a Kentucky Bank
• 5.25% 18-Month CD at a Florida Bank
• 5.25% 20-Month CD at a Pennsylvania Bank
• 5.25% 13-Month CD at a Florida CU
• 5.17% 12-Month CD at a Texas CU
• 5.15% 12-Month CD at a Pennsylvania Bank

Terms of Under 12 Months

• 8.00% 8-Month CD at a California CU ($5K Max)
• 6.00% 6-Month CD at a South Carolina Bank
• 6.00% 6-Month CD at a California CU ($5K Max)
• 5.75% 3-Month CD at a Virginia CU
• 5.60% 7-Month CD at a Kentucky CU
• 5.55% 11-Month CD at a Georgia Bank
• 5.50% 9-Month CD at a Georgia Bank
• 5.50% 10-Month CD at a California CU
• 5.50% 7-Month CD at a Virginia Bank
• 5.50% 9-Month CD at a Maryland Bank
• 5.45% 9-Month CD at a California Bank
• 5.40% 10-Month CD at a Nebraska Bank
• 5.38% 9-Month CD at a CU Open To All
• 5.38% 11-Month CD at a Arizona CU
• 5.35% 10-Month CD at a Tennessee CU
• 5.33% 9-Month CD at a North Dakota Bank
• 5.30% 9-Month CD at a Massachusetts Bank (open to all)
• 5.25% 6-Month CD at a Wisconsin Bank
• 5.25% 11-Month CD at a Michigan CU
• 5.25% 10-Month CD at a Massachusetts Bank
• 5.25% 7-Month CD at a Florida CU
• 5.25% 11-Month CD at a Wisconsin CU
• 5.25% 7-Month CD at a Georgia Bank
• 5.22% 6-Month CD at a California CU
• 5.20% 9-Month CD at a Nebraska CU
• 5.20% 9-Month CD at a Massachusetts Bank
• 5.20% 10-Month CD at LaSalle Bank
• 5.15% 7-Month CD at a Georgia Bank
• 5.12% 7-Month CD at a Wisconsin CU
• 5.00% 9-Month CD at a Wisconsin Bank

Savings Account/CD Alternatives

• Money Magazine article on risk-free investments
• Paypal Money Market Fund - 4.62% 7-day yield (1% cashback debit MasterCard)
• FW Thread on Treasury Bills
• I Bond Rate Starting May 2006, I Bond Article, I Bonds as CD Alternatives
• SmartMoney Brokerage Survey

5.50% 9-Month CD at a Maryland Bank read and submit comments for this post

1st Mariner Bank is offering a promotional 5.50% APY 9-month certificate of deposit at their Odenton Branch until the end of May. There's also a $25 bonus available for opening a checking account in addition to the CD. Below are the details I received:

1st Mariner Bank (Footprint of Maryland and Delaware) is offering a promotional 5.50%APY 9 month CD at their Odenton Branch until the end of May. There is an email campaign that will be sent out on Monday that will have a coupon that the customer must bring into the branch that will allow them to open the promo CD and a checking account with a $25 promotional deposit and a free gift. You can only receive the $25 dollars if you open the checking account with the CD and have the coupon to present to the Odenton branch at the time of opening. The email is being sent to those in and around Odenton but if you contact the branch they can forward it to you if you do not receive it. It is not required to open a checking account with the CD, you can simply go in and open the CD by itself.

5% Money Market Account / 5.25% 6-Month CD at a Wisconsin Bank read and submit comments for this post

Commerce State Bank is offering a 5.00% APY money market account and a 5.25% APY 6-month certificate of deposit. The money market account requires a minimum deposit of $25K. The 5% applies only to balances over $25K. The CD has a $10K minimum deposit and has an early withdrawal penalty of 3 months of interest.

Credit for this money market find goes to eMoneyCentral. According to eMoneyCentral, the money market account is open to residents of all US states. Balances between $10K and $25K earn 4.60% APY, between $5K and $10K earn 3.70% APY and under $2K earn 3.10%. There are no monthly fees.

The bank is located in West Bend, Wisconsin.

6% 6-Month CD at a California CU ($5K Max) read and submit comments for this post

Pacific Service Credit Union has a new member certificate special. They're offering a 7% APY 6-month CD for new members 21 and under. The minimum balance is $100 and the maximum is $5K. For new members over 21, the APY is 6% with the same 6-month term and maximum $5K limit. The minimum balance is $1K instead of $100.

The credit union also has a bonus rebate that will provide a 5% rebate on interest earned on all deposits on 6-month CDs earned through October 31, 2006. So with this rebate, the APYs of these special certificates are about 7.35% and 6.30%.

Since there's a $5K deposit limit, the 7.35% 6-month results in about $50 over the earnings from a top nationally available 6-month CD. The 6.30% 6-month results in about $25 over the earnings from a top nationally available 6-month CD.

The credit union's field of membership includes residents of the following California counties: Alameda, Contra Costa, Fresno, Marin, Napa, Placer, Sacramento, San Francisco, San Mateo, Santa Clara, Solano or Sonoma.

Branches are located in San Francisco, Pleasant Hill and Fresno. The credit union is NCUA insured with 68,000 members and $1.07 billion in assets.

Credit for this find goes to FW member Jom in the FW CD Thread.

5.50% 7-Month / 13-Month CD at a Virginia Bank read and submit comments for this post

Chesapeake Bank is offering a special 5.50% APY certificate of deposit on terms of either 7-month or 13-month. The minimum deposit is $5K and it requires a Chesapeake Bank Checking Account. They do offer a free checking account with no monthly fees or minimum balance requirements after an initial opening deposit of $100.

The bank has branches in the following Virginia cities: Irvington, Kilmarnock, Lively, Mathews, Hayes, Gloucester and Williamsburg.

Credit for this find goes to FW member rubbindimes in this FW thread.

5.90% 27-Month CD at a California CU read and submit comments for this post

AM Federal Credit Union is offering a 5.90% APY 27-month certificate special. Other specials include a 5.38% APY 17-month CD and a 4.85% APY 7-month CD. All have a minimum deposit of $500. These certificates have a one-time bump option which allows you to bump-up the rate for the rest of your term to the then-current 1-year regular certificate rate.

The credit union's field of membership is primarily employer based, but includes a long list of employers.

The credit union is located in Rancho Dominguez, California which is in the Los Angeles metro area.

The credit union is NCUA insured. It's a small credit union with 8,000 members and $26 million in assets.

5.30% 9-Month CD at a Massachusetts Bank (open to all) read and submit comments for this post

SalemFive Bank is offering a 5.30% APY 9-month ceritificate of deposit special. The minimum is $10K. The bank is also offering this same 5.30% APY on a 15-month CD with the same $10K minimum.

I first posted on this bank back in October when they were offering a 4.25% APY no-penalty CD and a 5% 3-year callable CD. It's interesting that they are still offering these products as specials today. The 3-year CD has the same rate of 5% and the 9-month no penalty CD APY has actually dropped to 4% APY. Back in October, these were decent deals (GMAC Bank's 3-year CD was only at 4.73% APY), but they're not good deals today.

SalemFive has branches in Massachusetts. Accounts can also be opened online. In addition to government-backed FDIC insurance, SalemFive has private DIF insurance which covers deposits above the FDIC limits.

Thanks and credit for this deal goes to scott61 who mentioned it in the finding deals post.

5.50% 18-Month CD at a New Jersey/Pennsylvania Bank read and submit comments for this post

Yardville National Bank is having a summer promotion with two decent deals between May 15th to May 25th. First, they're offering a 5.50% APY 18-month certificate of deposit. The minimum deposit is $500 and the maximum limit is $250K. You must be either a New Jersey or Pennsylvania resident to open this CD, but it can be opened by phone/mail. There is a 3-month interest penalty for early withdrawal.

The bank is also offering a 4.50% APY Simply Better Money Market Account with a possible $100 cash bonus for the first customer to open this account at your YNB branch each day between May 15th and 25th, 2006. The 4.50% APY requires a balance of $30K or more. The APY drops to 0.50% for balances between $10K and $30K. There's a $15 monthly maintenance fee for balances under $10K.

YNB has New Jersey branches in Burlington, Hunterdon and Mercer Counties, and branches in Bucks County, Pennsylvania.

Thanks and credit for this deal goes to the commenter who mentioned it in the finding deals post.

New UmbrellaBank Rates: 5% 3-Month CD / 4.75% Money Market read and submit comments for this post

UmbrellaBank is the first to respond to the Fed funds rate hike although I was hoping for more of an increase to their money market rates. Their money market account rate is now 4.75% APY (up from 4.70% APY). Their short term CD rates have increased by 0.15%. Their 3-month, 6-month and 12-month CDs are now at 5%, 5.20% and 5.35% APY. Below is the full list of new and old yields:

Term    Old APY   New APY    Increase
3 Month   4.85%     5.00%    +0.15%
6 Month   5.05%     5.20%    +0.15%
1 Year    5.25%     5.35%    +0.10%
1.5 Year  5.28%     5.35%    +0.07%
2 Year    5.30%     5.35%    +0.05%
2.5 Year  5.20%     5.30%    +0.10%
3 Year    5.20%     5.25%    +0.05%
4 Year    5.20%     5.25%    +0.05%
5 Year    5.20%     5.25%    +0.05%

UmbrellaBank's last rate change was four weeks ago.

Friday is GMAC Bank's usual time for rate updates. It'll be interesting to see how GMAC will respond to yesterday's funds rate hike. I would have thought we would see a larger rate hike in Umbrella's money market account. The banks are raising rates, but they don't seem to be in a rush to reach 5%.

5.12% Money Market / 5.27% 6-Month CD at a New Jersey Bank read and submit comments for this post

Union Center National Bank (UCNB) is offering a promotion they are calling the "Ultimate" CD and money market accounts. The Ultimate Money Market Account has an APY of 5.12%. There's a $10K opening balance requirement. There's a big negative if you fall below $10K (no interest and a $25/month fee). UCNB's Ultimate 6-month certificate of deposit has an APY of 5.27% with a $5K opening balance. These accounts are available to individuals and businesses.

There is also an extra bonus of $100 in free gas when you open either account, but the details are a little confusing:

Gas certificates provide for a $100 value. Customer required to submit certificate within 30 days of receipt and will receive coupons. Only one coupon may be redeemed within a 30 day period. Sumbitted receipts must be postmarked within 7 days of the fuel purchase. Gas certificates limited to 2 per household.

UCNB has branches in several cities around New Jersey.

Fed Hikes Funds Rate Again - Savings Account/CD Rates? read and submit comments for this post

As expected, the Fed raised the intended federal funds rate from 4.75% to 5.00% (CNN article). This is the highest it has been since January 31, 2001 (see rate history). The Fed indicated they may take at least a brief pause in pushing rates up further. The "extent and timing" of additional rate hikes would depend on future economic data. There's a chance the Fed may pause at their June 29th meeting.

Which no-minimum savings accounts will be reaching 5%? Unlike last year, fewer and fewer banks are keeping up with the intended federal funds rate. Only RateEdge.com has continued to keep up (see post). Unfortunately, they're a credit union with membership restrictions.

On the last Fed rate hike, UmbrellBank and VirtualBank preceded the Fed action with higher CD rates. VirtualBank continued this trend yesterday with their new CD rates which includes a 5.25% APY 6-month CD. So far, there has been no rate changes at UmbrellaBank. Their last rate change was on April 11th. So they're due for new rates.

I was hoping for a big move by EmigrantDirect like they did on the Fed meeting last September when their savings account rate went from 3.50% to 4.00% APY. Seems like it would be a good time for Emigrant to bump up their savings account rate from 4.50% to 5.00%, and maybe their My Way CDs from 5% to 5.50%. Emigrant's savings account rate has been at 4.50% since March 15th. That was also the time when they introduced certificates of deposit. The CD rates remain the same at 5% although they did reduce the minimum term from 18 months to 9 months last month.

Last year, HSBC had a consistent record of keeping up with the Fed Funds rate (see chart). But from last week's New York Times article, a HSBC official was quoted as saying that they no longer feel compelled to offer the very highest rates (see post). So it seems they're in no rush to push past 4.50%. That article also had a quote from a Citibank manager who said they intend to keep their new e-Savings account rate high "When the Fed increases rates, we will go up as well.". No change yet. This week we should see if there's any truth to that.

CapOne/Costco Money Market Account Now 4.72% read and submit comments for this post

Capital One has raised the rate on their Costco Money Market account from 4.60% to 4.72% APY. After Capital One increased the yield on their standard money market account to 4.55% last week, I was expecting this Costco money market to also increase. However, they haven't done a good job lately in keeping the Costco money market account significantly above the standard version. As I reported in this April post the lead has often been only around 0.05%. Since the Costco version has a $5K minimum opening deposit compared to $100 with the standard money market, you would expect a better rate.

Note, the $25 sign-up bonus for Costco Executive members is still active for the first time opening of either a money market account or CD.

5.50% 18-Month CD at an Iowa CU read and submit comments for this post

Cedar Falls Community Credit Union is offering a special 5.50% APY 18-month share certificate. The minimum deposit is $1K. For a $100K minimum deposit, the special APY is 5.60%.

The field of membership includes residents of the following Iowa counties: Black Hawk, Bremer, Butler, Grundy, Fayette, Buchanan and Chickasaw. They have 4 branches in Cedar Falls and Waverly.

The credit union is NCUA insured. It's a small credit union with 9,000 members and $48 million in assets.

5.40% 15-Month / 5.20% 9-Month CD at a Massachusetts Bank read and submit comments for this post

Eastern Bank has a certificate of deposit special with two nice rates: 5.40% APY 15-month CD and a 5.20% APY 9-month CD. Both have a minimum deposit of $500. Personal accounts and Massachusetts residents only.

Eastern Bank is headquartered in Boston and has branches throughout Massachusetts.

Last September I posted about this bank's 4% money market account. The 4% was guaranteed through 3/31/06. That was the time when EmigrantDirect did their major rate hike to 4%. Like Emigrant, Eastern Bank money market rate hasn't changed much. Currently it's paying 4.25% APY and is guaranteed through 9/30/06. For more details refer to their promotional page.

5.20% 10-Month CD at BB&T Bank read and submit comments for this post

BB&T Bank is offering a special 5.20% APY 10-month certificate of deposit. The minimum deposit is $1K for personal or business CDs. The minimum for an IRA is $500. To open the CD, you must first print out an online coupon available at the CD promotional page, and take this coupon to your local BB&T branch.

BB&T has more than 1,400 branches in the Carolinas, Virginia, Maryland, West Virginia, Kentucky, Tennessee, Georgia, Florida, Alabama, Indiana and Washington, D.C..

5.60% 7-Month CD at a Kentucky CU. read and submit comments for this post

The Fort Knox Federal Credit Union is offering a 5.60% APY 7-month share certificate. Other longer terms ranging from up to 11 months and 13 to 17 months are also available at this same rate. This is way up from my last report on this credit union in March when the yields on these CDs were 5.20%. This credit union has been offering good short-term certificates of deposit deals for some time. Last November the credit union was offering a 5.25% 7-month CD.

The credit union's field of membership is primarily limited to those who live, work or worship in the following Kentucky counties: Boyle, Breckinridge, Grayson, Hart, Larue, Meade and Nelson.

The credit union currently has 10 branches across Kentucky and is NCUA insured.

New Corus Money Market / CD Rates: 4.84%, 5.20%, 5.35% read and submit comments for this post

This was another Tuesday rate hike at Corus Bank. The yield on their money market account increased from 4.79% to 4.84% APY today. Both of their 6-month and 12-month CD rates went up by 2 basis points to 5.20% and 5.35% APY. That was a little smaller than last week's increase.

VirtualBank's 6-month CD is still the best online bank deal at 5.25% APY. However, unlike Corus Bank, VirtualBank tends to keep their rates unchanged for a month or more. So within a week or two, Corus Bank will likely be the leader again. Although things could change if interest rates hikes start slowing down. Tomorrow's Fed meeting may provide some clues.

New VirtualBank CD Rates: 5.25% 6-Month CD read and submit comments for this post

VirtualBank increased the rates on all of their CDs today. The largest increase was in the 6-month and 9-month terms which increased from 5.00% to 5.25% APY. All the longer terms increased by 0.15%. The eMoney Market APY remains the same at 4.60%. The last CD rate change at VirtualBank occurred on April 5th. Below is the full list of CD rate changes:

Term       Old APY   New APY   Change
3 Months    4.85%     4.90%    +0.05%
6 Months    5.00%     5.25%    +0.25%
9 Months    5.00%     5.25%    +0.25%
12 Months   5.20%     5.35%    +0.15%
18 Months   5.20%     5.35%    +0.15%
2 Years     5.20%     5.35%    +0.15%
3 Years     5.20%     5.35%    +0.15%
4 Years     5.20%     5.35%    +0.15%
5 Years     5.25%     5.40%    +0.15%

The certificates of deposits have a $10K minimum deposit requirement. Based on info received from VirtualBank, the penalty for early withdrawal is one month of interest for the 3-month term, 3 months of interest for the 6 and 9 month terms, and 6 months of interest for the 12 month and longer terms.

One nice feature of these CDs is that they can be funded from money in your eMoney Market account. You can also have the CD money deposited in this account at CD maturity or if you need to do an early withdrawal. VirtualBank accepts instructions via the secure message system accessible when you are logged into your account.

So if you're interested in a VirtualBank certificate of deposit, I recommend first opening an eMoney Market account which is currently paying 4.60% APY. There's a $100 minimum opening deposit requirement but no balance requirement. You can even receive a $20 sign-up bonus through a referral (see post). For more info on the eMoney Market account, refer to this post.

The CD application process can be done online, however, you do have to send in a signature card. This can be printed during the application process. VirtualBank will also you mail you the signature card with a postage-paid envelope along with the CD documentation. For more info on VirtualBank's CDs, refer to this post in which I described my experiences with opening a CD with them.

8.30% 12-Month CD at a Texas CU ($2K Max) read and submit comments for this post

Baptist Credit Union is offering a 8.30% APY 1-year certificate of deposit. There's no minimum deposit. The maximum deposit limit is $2K per member. Money must be new to the credit union.

This interest rate is about 3% above the best 1-year CDs. So for one year with a $2K deposit, this CD will earn you about an extra $60 compared to a 5.30% CD. Unlike other similar past deals (10% CD and 8% CD), this one doesn't seem to require a checking account.

The credit union is also advertising an auto refinance deal of 0.5% below your current rate with a minimum APR of 5.0%.

These deals are not advertised at the BCU's website, but were advertised in yesterday's Dallas Morning News. The ad is available online here.

The field of membership includes members of churches belonging to the San Antonio Baptist Association and the Dallas Baptist Association. It also includes other employee groups. Branches are located in the Texas cities of San Antonio, Dallas and Mesquite.

BCU is NCUA insured. It's a small credit union with 7,000 members and $20 million in assets.

5.40% 10-Month CD at a Nebraska Bank read and submit comments for this post

York State Bank and Trust Company is offering a 5.40% APY 10-month CD. The minimum deposit is $10K.

The bank has branches in the Nebraska cities of York, Geneva and Gresham. These cities are about 50 miles west of Lincoln. Credit for this find goes to eMoneyCentral, and according to eMoneyCentral, this CD is available to residents of all states.

Another World Savings CD Special: 5.26% 3-Month read and submit comments for this post

In addition to the new 5.51% 7-11 month certificate of deposit special, World Savings is also offering a 3 month CD paying a special rate of 5.26% APY. To qualify for this 3-month CD, you must first open the 7-11 month CD. However, the 3-month CD can be opened later. Like the 7-11 month CD special, this appears to be a branch-only special which is not advertised on their website.

Credit for this find goes to a reader who emailed me the details which he had received from two customer service reps. Thanks!

Netbank's $25 CD Bonus for Current Customers read and submit comments for this post

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

Netbank is offering current customers a $25 Visa Gift Card when you open and fund a 1-year (or longer) term CD with a minimum balance of $5K. This is not quite as good as what Netbank was offering last February in which the bonus was $50 and the minimum deposit was $2K. The current 1-year CD has a competitive APY of 5.25%. So for a $5K CD, this extra $25 raises the APY by 0.5% to 5.75%. The offer expires on 6/30/06.

For those not yet a NetBank customer, the $175 promotion seems to still be valid. The promotion includes $75 for a new checking account, $75 for a new money market account and a $25 Visa Gift card for a CD. After signing up with these promotions, you may then be able to add to it with this $25 promotion for current customers.

Unfortunately, Netbank's money market and checking accounts are not the best. The NetConnect Silver Money Market Account only pays 3.52% APY. Also, the money market account has a $500 minimum balance requirement to avoid a $5 monthly fee and the checking account has an inactivity fee after 3 months.

Credit for this find goes to Rammesh who left a comment in my new finding deals post. Thanks!

5.75% 3-Month CD at a Virginia CU. read and submit comments for this post

Fairfax County Federal Credit Union is offering a 5.75% APY 3-month CD called the Flex Certificate. The minimum deposit is $10K and the money must be new to the credit union.

New members can also get a $25 credit to their new account as a welcome gift.

The field of membership includes residents of Fairfax County, Virginia. They have branches in Alexandria, Fairfax and Herndon Virginia.

Fairfax FCU is NCUA insured with $187 million in assets and over 17,000 members.

Credit for this find goes to a reader who emailed me this deal. Thanks!

5.50% 36-Month CD at a New York Bank read and submit comments for this post

Astoria Federal Savings is offering a 5.50% APY 36-month CD. The minimum deposit is $500. They also have some other good CD deals including a 4.75% 3-month liquid CD with a $5K minimum. Their 1-year Jumbo certificate of deposit is a good deal with an APY of 5.43%. This is also available on longer terms. The minimum for the jumbo is $100K. Their 6-month jumbo CD has an APY of 5.20% and their 3-month jumbo CD has an APY of 5.01%.

Astoria Federal Savings has 86 branches in Brooklyn, Queens, Nassau, Suffolk and Westchester.

When to Invest in Long Term CDs?

The best 3-year CD continues to be 6% APY at Pentagon Federal Credit Union (see post). Even with 6%, it's hard to decide to go this long while rates have been rising so fast. This week the Fed will be meeting again and is likely to raise the funds rate to 5%. However, there have been signs that suggest they may take a break with rate hikes after this meeting. If rate hikes do slow, longer term CDs may start to make more sense.

World Savings Being Acquired by Wachovia read and submit comments for this post

Wachovia is acquiring Golden West Financial Corp. which is the parent of World Savings Bank (more, Washington Post). A few months ago, Wachovia acquired Western Financial Bank.

Hopefully, the bank deals at World Savings will continue. There was concern about Western Financial's online high yield money market account after the Wachovia take-over. However, the account remains, and the interest rate has remained competitive (currently 4.60% APY). Also, Western Financial has also been offering a competitive 5.25% APY 13-month CD.

World Savings currently has two nice CD deals. The first is a 5.16% 5-month internet certificate of deposit special. The other one just starts today and is available only at the branches. The CD pays 5.51% APY and you can choose terms between 7 and 11 months (see post).

6% 10-Month CD at an Ohio Credit Union. read and submit comments for this post

Kent Credit Union is having a grand opening special at their new branch. They are offering a 6.00% APY 10-month share certificate. The minimum is $1K and the maximum deposit is $100K. This is limited to personal accounts and requires money new to the credit union. This special CD is only available at their new branch in Streetsboro on Saturday May 13th from 9:00am to 1:00pm.

They are also offering auto loans as low as 3.49% APR for 48-months on new autos.

The credit union's field of membership includes residents of Portage County Ohio. The county is just southeast of Cleveland.

Credit for this find goes to eMoneyCentral.

Advanta Bank Corp's Top Tier Money Market at 4.90% read and submit comments for this post

Advanta Bank Corp recently increased rates on all tiers of its money market account by 0.15%. The new rates are shown below:

Tier                Old APY   New APY
$100 to $999        4.25%     4.40%
$1,000 to $9,999    4.60%     4.75%
$10,000 to $49,999  4.65%     4.80%
$50,000 to $99,999  4.70%     4.85%
$100,000 and above  4.75%     4.90%

There's a $2.5K minimum opening deposit requirement if you have no other accounts with Advanta. For those who currently have other accounts, this money market account may be opened with $1K. A monthly fee is charged on balances below $100.

The bank also has some nice rates on certificates of deposit. The 12-month CD has an APY of 5.26%. the 6-month CD is at 5.11% APY. These have a minimum $10K deposit requirement. The jumbo 6-month CD has an APY of 5.18% with a $99K minimum.

Advanta's rates have remained competitive since I've been following the bank. Refer to my posts from March, December and September.

They still don't offer an ACH transfer system. Based on their account opener link, accounts have to be opened by mail and funded by check. I did notice a page with ACH instructions, but they don't seem to have an ACH system built into their online banking.

$75 Checking Account Bonus and 4.77% Money Market at an Illinois Bank read and submit comments for this post

Archer Bank is offering $75 for opening a free checking account with direct deposit. The free checking account requires a minimum opening deposit of $100. $75 cash bonus will be automatically deposited into your account within one month of first direct deposit. Account must remain open for six months or $75 will be debited from your account at closing. You also have the alternative of receiving a 125 piece household tool set.

Another noteworthy aspect of Archer Bank is their 4.77% APY high yield money market account. The account requires a minimum $10K to open and to receive this APY. There's a $10 monthly fee if the deposit falls below $10K. Also, the interest rate falls to 0.49%. This top interest rate is equal to the 90-day Treasury Bill and is adjusted every Monday so it's not just a temporary promotion.

Archer Bank has branches in Chicago and several other cities of Illinois.

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

Fidelity Bank is offering $50 and a $10 gift card when you open a new free checking account. The account requires $25 to open and is only open to new checking account customers. No direct deposit is required.

The Apple iPod nano deal also includes a $50 iTunes Gift Card. This has more hoops to jump through. These include opening a Platinum Checking Account with a minimum deposit of $2.5K, receive an instant issue Visa Check Card, sign up for direct deposit, and register for online banking and bill pay.

Both of these offers end on May 20, 2006. If you miss this one, these bonuses are likely to be repeated. I had posted on a similar deal with Fidelity Bank back in February.

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

For those looking for a free iPod, please refer to my summary of bank iPod deals that I posted last month.

Bank Deal Summary for May 6, 2006 read and submit comments for this post

The Treasury started the week off by disappointing savers when they announced the new I Bond rates on Monday. Based on inflation numbers released last month, the inflation component was expected to be only 1%. There was hope for a big bump-up in the fixed rate. The Treasury did make a bump-up in the fixed rate from 1% to 1.4%, but it wasn't enough to make I Bonds attractive. The composite rate is only 2.41%. You're better off waiting for next November. Perhaps we'll get both a higher inflation and fixed rate component.

Thanks to World Savings, the week ended on an positive note for savers. World came out with another one of their secret branch-only CD specials. The new CD APY is 5.51% and you can pick terms between 7 to 11 months.

The best online 6-month CD deal is at ETrade Bank which started offering a 5.21% APY 6-month CD. World Savings still has their very competitive 5-month internet CD with an APY of 5.16%.

A small internet bank, interState Net Bank, became the first to offer a 5% money market account with a balance requirement of $10K (see post). With the Fed meeting this Tuesday and Wednesday, we may see more 5% savings and money market rates as the Fed is widely expected to hike the funds rate to 5%.

The Fed funds rate is only one factor in determining savings rates. In this post I discuss a New Times article which provides some insights into strategies of online banks like HSBC and Citibank in deciding what rates they'll offer on their high yield savings accounts. When banks introduce a new online savings account, they will often have high rates to lure in new customers and deposits. But once they've succeeded in acquiring those deposits, they feel they can slack off on the rates. We've seen this pattern in ING Direct, Emigrant Direct and HSBC. Fortunately, new competitors will put pressure on these banks. Although Amboy is not new, they've started a new no-minimum online savings account, and they are in the phase of attracting new customers with an APY of 4.75%. Refer to this post for more info on this new savings account.

With an APY the same as GMAC Bank, AmboyDirect is a good alternative to GMAC for those who don't want GMAC's $500 minimum. But GMAC Bank's money market account has many nice attributes. For a detailed review of this account along with my personal experiences in opening this account, refer to this 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 Apr 29th, Apr 22nd, Apr 15th, Apr 8th, Apr 1st, Mar 25th and Mar 18th.

As of May 6, 2006

Savings/Money Market Accounts:

• interState Net Bank - 5.00% MMA (min $10K for APY/$2.5K to avoid fee), my post
• Corus Bank - 4.79% MMA (min $10K to open)
• AmboyDirect - 4.75%, my post
• GMAC Bank - 4.75% MMA (min $500), my post
• Presidential - 4.75% (min $5K, only first $35K receives this rate), offers checking, my post
• BankUnited - 4.75% (min $5K), my post
• Heritage Bank Online - 4.72% (min $1K), my post
• Zions Bank - 4.71% (min $1K)
• American Partners Bank - 4.71% MMA (min $1K), my post
• UmbrellaBank.com - 4.70% MMA (min $1K), offers checking, my post
• Western Financial Bank - 4.60% MMA, offers checking, my post
• VirtualBank - 4.60% (min $100), offers checking, my post ($20 bonus)
• CapitalOne/Costco - 4.60% MMA (min $5K, Costco members only, $25 deal for exec. members)
• FirstFedDirect - 4.57% (min $1K) (closed to CA residents), my post
• CapitalOne - 4.55% (MMA has same rate, but with checks and ATM. $100 min.), my post
• MyBankingDirect - 4.55% MMA (min $5K), my post
• HSBC Direct - 4.50%, offers checking, (rate history), my post
• EmigrantDirect - 4.50%, my post, ($10 signup bonus), (rate history)
• Citibank - 4.50%, requires checking account, my post
• Transportation Alliance Bank - 4.50% MMA (min $25), my post
• UFB Direct - 4.40%, offers checking, my post
• Self-Help Credit Union - 4.37% MMA (min $500), my post
• MetLife Bank - 4.25% MMA (min $5K), my post ($50 bonus)
• ING Direct - 4.15%, my post ($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
• ETrade Bank - 3.00% (min $1K to avoid fees/$5K for APY), my post (4.75%/$50 bonus)

6-Month Certificates of Deposit:

• World Savings - 5.51% (7 months) (min $10K), branch only, new funds only, my post
• ETrade Bank - 5.21% (min $1K), my post
• Corus Bank - 5.18% (min $10K)
• World Savings - 5.16% (5 months) (min $10K), new funds only, my post
• AmTrustDirect - 5.15% (min $1K) my post
• Meadows Credit Union - 5.12% ($1K min), new funds only, my post
• FirstFedDirect - 5.12% (min $10K), my post
• GMAC Bank - 5.10% (min $500)
• UFB Direct - 5.10% (min $8K)
• UmbrellaBank.com - 5.05% (min $1K)
• VirtualBank - 5.00% (min $10K), my post ($20 bonus)
• NetBank - 4.80% (min $1K)
• ING Direct - 4.75%, my post
• Transportation Alliance Bank - 4.65% ($1K min)
• Self-Help Credit Union - 4.63% (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)

12-Month Certificates of Deposit:

• World Savings - 5.51% (11 months) (min $10K), branch only, new funds only, my post
• GTE FCU - 5.38% (min $500) my post
• Mutual Bank - 5.35% (min $2.5K) my post
• Melrose CU - 5.35% (min $5K) my post
• Corus Bank - 5.33% (min $10K)
• GMAC Bank - 5.30% (min $500)
• AmTrustDirect - 5.30% (min $1K) my post
• ETrade Bank - 5.30% (min $1K), my post
• FirstFedDirect - 5.27%, (min $10K) my post
• ING Direct - 5.25%, my post
• Western Financial Bank - 5.25% ($100 min) (13-month)
• UmbrellaBank.com - 5.25% (min $1K)
• BankUnited - 5.25% (min $5K), my post
• NetBank - 5.20% (min $1K), my post ($25 bonus)
• UFB Direct - 5.20% (min $8K)
• VirtualBank - 5.20% (min $10K), my post ($20 bonus)
• Transportation Alliance Bank - 5.15% ($1K min)
• American Partners Bank - 5.07% (min $1K), my post
• MetLife Bank - 5.05% ($1K min)
• Self-Help Credit Union - 5.04% (min $500), my post
• ebank - 4.75% (min $1K), 5.00% for ePremium checking customers

18-Month Certificates of Deposit:

• Mutual Bank - 5.40% (min $5K) my post
• GMAC Bank - 5.30% (min $500)
• CapitalOne/Costco - 5.22% (min $5K, Costco members only)
• American Partners Bank - 5.18% (min $1K), my post

36-Month Certificate of Deposit:

• Pentagon Federal CU - 6.00% (min $1K), my post
• Melrose CU - 5.56% (min $5K) my post
• GMAC Bank - 5.35% (min $500)
• Transportation Alliance Bank - 5.34% ($1K min)
• Self-Help Credit Union - 5.27% (min $500), my post

48-Month Certificate of Deposit:

• USA FCU - 6.01% (min $1K) my post
• Pentagon Federal CU - 6.00% (min $1K), my post
• Melrose CU - 5.67% (min $5K) my post
• Transportation Alliance Bank - 5.36% ($1K min)
• GMAC Bank - 5.35% (min $500)
• Self-Help Credit Union - 5.31% (min $500), my post

60-Month Certificate of Deposit:

• Pentagon Federal CU - 6.00% (min $1K), my post
• Melrose CU - 5.77% (min $5K) my post
• Transportation Alliance Bank - 5.39% ($1K min)
• GMAC Bank - 5.35% (min $500)
• Self-Help Credit Union - 5.35% (min $500), my post

84-Month Certificate of Deposit:

• Pentagon Federal CU - 5.95% (min $1K), my post

High Rates with Conditions - Open to All

• 10% Savings Account for kids ($500 max)
• 5.51% 3-month intro rate on checking account
• 5.00% Money Market with $100K min
• 5.00% Money Market with $100K min

Checking and Saving Accounts at Local Credit Unions

• 5.00% no-minimum savings account (New York)
• 5.00% savings account (Pennsylvania)
• 5.00% Money Market Account (New York)
• 4.50% checking account promo (Oklahoma)

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

Terms of 60 Months and Over

• 6.25% 60-Month CD at a Carolina CU (Variable)
• 6.14% 60-Month CD at a Virginia CU
• 6.00% 61-Month CD at a Michigan (CU Open to All)
• 5.64% 60-Month CD at a South Carolina/Georgia CU

Terms of 24 Months to Under 60 Months

• 6.01% 48-Month CD at a California CU (Open to All)
• 6.00% 59-Month CD at a Missouri CU
• 6.00% 24-Month CD at a California CU (Variable)
• 5.87% 30-Month CD at a Wisconsin CU
• 5.75% 41-Month CD at a Missouri CU
• 5.75% 27-Month CD at a Florida CU
• 5.61% 24-Month CD at a Chicago Bank
• 5.60% 24-Month CD at a Georgia Bank
• 5.55% 24-Month CD at a Ohio CU
• 5.50% 35-Month CD at a Oklahoma Bank
• 5.50% 49-Month CD at a Georgia Bank
• 5.45% 36-Month CD at a Los Angeles CU
• 5.39% 24-Month CD at a California/Texas CU
• 5.35% 48-Month CD at a Texas CU

Terms of 12 Months to Under 24 Months

• 10.00% 12-Month CD at a Dallas Bank ($5K max)
• 8.00% 12-Month CD at a NJ/NY/PA CU ($2K max)
• 5.90% 18-Month CD at a Houston CU ($90K min)
• 5.55% 12-Month CD at a Georgia Bank
• 5.54% 13-Month CD at a California CU
• 5.50% 12-Month CD at a Virginia CU
• 5.50% 13-Month CD at a Massachusetts Bank
• 5.50% 20-Month CD at a Illinois CU (Open To All)
• 5.50% 12-Month CD at a New York/California Bank
• 5.50% 12-Month CD at a Georgia Bank
• 5.48% 18-Month CD at a Florida Bank
• 5.48% 18-Month CD at a Florida Bank
• 5.41% 13-Month CD at a Washington DC CU
• 5.40% 12-Month CD at a New York Bank
• 5.40% 12-Month CD at a Nebraska CU
• 5.40% 12-Month CD at a Chicago Bank
• 5.38% 15-Month CD at a Maine CU
• 5.38% 12-Month CD at a CU Open to All
• 5.35% 13-Month CD at a Ohio CU
• 5.35% 15-Month CD at a Florida Bank
• 5.35% 12-Month CD at a Missouri Bank
• 5.30% 13-Month CD at a Georgia Bank
• 5.30% 13-Month CD at a Pennsylvania Bank
• 5.30% 19-Month CD at a Florida CU
• 5.30% 15-Month CD at a Florida Bank
• 5.27% 15-Month CD at a Kentucky Bank
• 5.25% 18-Month CD at a Florida Bank
• 5.25% 20-Month CD at a Pennsylvania Bank
• 5.25% 13-Month CD at a Florida CU
• 5.17% 12-Month CD at a Texas CU
• 5.15% 12-Month CD at a Pennsylvania Bank

Terms of Under 12 Months

• 8.00% 8-Month CD at a California CU ($5K Max)
• 6.00% 6-Month CD at a South Carolina Bank
• 5.55% 11-Month CD at a Georgia Bank
• 5.50% 9-Month CD at a Georgia Bank
• 5.50% 10-Month CD at a California CU
• 5.45% 9-Month CD at a California Bank
• 5.38% 9-Month CD at a CU Open To All
• 5.38% 11-Month CD at a Arizona CU
• 5.35% 10-Month CD at a Tennessee CU
• 5.33% 9-Month CD at a North Dakota Bank
• 5.25% 11-Month CD at a Michigan CU
• 5.25% 10-Month CD at a Massachusetts Bank
• 5.25% 7-Month CD at a Florida CU
• 5.25% 11-Month CD at a Wisconsin CU
• 5.25% 7-Month CD at a Georgia Bank
• 5.22% 6-Month CD at a California CU
• 5.20% 10-Month CD at LaSalle Bank
• 5.20% 9-Month CD at a Nebraska CU
• 5.15% 7-Month CD at a Georgia Bank
• 5.12% 7-Month CD at a Wisconsin CU
• 5.00% 9-Month CD at a Wisconsin Bank

CD Alternatives

• Money Magazine article on risk-free investments
• FW Thread on Treasury Bills
• I Bond Rate Starting May 2006, I Bond Article, I Bonds as CD Alternatives
• SmartMoney Brokerage Survey

Finding the Best Bank Rates and Deals #2 read and submit comments for this post

This post is intended to be a place where readers can share the best bank deals. Your help is much appreciated. Also, I'm including a list of the websites that provide the best lists of CD and money market rates. This is intended to be a place where you can start your search for the best bank deals.

The first post on finding the best bank deals was getting a little long with comments, so I'm starting this new one.

Please include the link to the deal in the comments of this post. If the deal is not on the bank's website, please include the source of the deal (i.e. a New York Times newspaper ad, a sign at a local bank, etc.)

I'll try my best to post on the deals, and I'll be sure to give you credit. If you want to remain anonymous, simply comment as an anonymous user and/or email me at bankdeals at gmail dot com.

Don't worry about being absolutely sure that a deal is new and worthwhile. It's often hard to find all the small print or to find if the deal has already been posted. One tip to see if the deal has already been posted is to use the search box at the top of this page.

Other Sources for Bank Deals

With new deals from banks and credit unions constantly popping up, no site has a complete list of all the best deals. Here are some of the best websites that I've found. If you find another good source of bank deals, please let me know.

Best Certificate of Deposit Rates

• Bank Deals CD List
• FatWallet CD Thread
• BestCashCow CD List
• Bank-CD List
• Bankrate.com 6-month CD List
• Bankrate.com 1-year CD List
• Bankrate.com 1-year Credit Union CD List
• eMoneyCentral
• BauerFinancial CD RateWatch

Best Money Market / Savings / Checking Account Rates

• Bank Deals Savings/Money Market List
• FatWallet Savings/Checking Thread
• BestCashCow Savings Account List
• Bankrate.com Savings/MMA List
• Bank-CD Checking/Savings List
• Bank Best Rates - Checking Accounts
• Bank Best Rates - Savings and MM Accounts
• iBankBonus - Bank Sign-up Bonuses

To find a previous deal from one of my older posts, refer to my Bank Deals Archive.

[Edited 6/26: Added link to my bank deals archive]

5% Special Savings Account at a Pennsylvania Bank read and submit comments for this post

Nittany Bank is offering a type of savings account called the Nittany Investors Fund that has an APY of 5.00% for balances over $20K. Balances under $20K earn 1% APY. There are no monthly fees. This is a little different than the typical savings or money market account in that only one free withdrawal per statement cycle can be made. There's a $30 charge for each additional withdrawal. It also has the typical limit of 6 preauthorized withdrawals per statement cycle.

I did a post on Nittany Bank back in April about their Prime Rate Indexed certificates of deposit.

The bank has branches in State College and Bellefonte, Pennsylvania which is about 50 miles northwest of Harrisburg.

Credit for this find goes to a commenter in the finding deals post. Thanks!

5.40% 12-Month CD at a Chicago Bank read and submit comments for this post

Builders Bank is advertising a 5.40% APY 12-month certificate of deposit. The minimum is $2.5K. The rate is available to new deposits only. The ad is available online here (pdf). The bank has 2 branches in Chicago.

Credit for this find goes to a reader who emailed me CD deals advertised in the May 4th Chicago Tribune. Some other good CD deals that were advertised included a 5.26% 10-month CD at Standard Bank and a 5.20% 9-month CD at Oak Brook Bank. Neither of these certificate specials are posted online.

$50 Checking Account Bonus at National City read and submit comments for this post

National City is offering $50 for opening their free checking account with a CheckCard and direct deposit. The checking account deal requires a minimum of $50 deposit. The Visa CheckCard must be issued and the first ACH direct deposit must be received within the first 60 days of account opening to qualify for the bonus. The $50 will be credited to your checking account within 60 days after all conditions have been met.

Not all places are eligible for this bonus. You'll have to enter your zip code to see if it's available. National City branches are primarily located in Ohio, Illinois, Indiana, Kentucky, Michigan, Missouri and Pennsylvania.

National City offers a point reward program in which you can earn points with check card and credit card purchases. Up to 15,000 points can be earned on your first use of the CheckCard, signing up for direct deposit, and paying a bill online. 4,000 points is equivalent to a $10 gift card. Gift cards are available for Home Depot, Amazon.com, CVS, Circuit City and many more.

National City also has a decent money market account promotion. The money market account has a rate of 4.70% APY that's guaranteed for 180 days. The minimum balance is $5K. Offer good for customers with an existing National City personal checking account or open a Preferred Interest Checking account with a minimum of $1,500.

Credit for this find goes to a commenter who mentioned it in the finding deals post. Some further information is also available at this FW thread.

New World Savings CD Special: 5.51% 7 to 11 Month read and submit comments for this post

World Savings just started a new CD special today. They're offering 5.51% APY CD. Like the last special they give you a range of terms to pick from (from 7 to 11 months). New funds are required. The minimum deposit requirement is $10K and the maximum deposit limit is $100K per term. This special is only available at the branches and expires on June 3, 2006. There is a 3-month early withdrawal penalty.

According to the CSR, the $100K max per term means that you can deposit up to $100K for the 7-month, $100K for the 8-month, all the way to 11-month.

As is typical with these World Savings certificate of deposit specials, your local branch may not be aware of this special. It may take them a while to confirm it. The best thing to say is that you heard about it from a friend who received a mailer. The CSR with whom I spoke wasn't aware of it until she checked into it. Also, she wasn't sure if it were available at all the branches, but after further review, she said there were no branch restrictions. Please refer to World Savings' branch finder for a local branch.

Note that this special is not advertised at World Savings' website. They often have these secret ceritifcate of deposit deals which are targeted to specific customers. Fortunately, World Savings seems to always let others in on these deals if they request them. The best internet deal is a 5.16% APY 5-month CD. They have also been advertising special 4-month CDs up to 5.01% APY at some branches.

Also note that it requires new funds. This is another typical requirement of their CD specials. They probably hope people will just let their CDs renew at the standard rates which are very low (their current internet standard 6-month CD rate is only 3.51% APY). So to get the most out of World Savings, you'll need to withdraw the money when your CD matures, and then open a new CD with money that had been withdrawn to another bank. I've heard of some people who have been able to negotiate with the branch manager on this, but many haven't had much luck.

This requirement of new funds is a good reason to have a high yield money market account from a bank like GMAC. You can fund this World Savings CD with a money market account check. You should lose minimal interest between the time you write the check and the time that it's posted into the CD. When the CD matures, you should be able to request a check where you can deposit the money in your local account. Then use GMAC's ACH system to transfer it back to the high yield savings account within a day. You may want to consider a World Savings checking account which could be used as a way to transfer from the CD to money market account. Unfortunately, all of World Savings checking and money market accounts have low rates and minimum requirements to avoid fees.

For more information on World Savings, please refer to my post on their last branch CD special. Several people shared their experiences with World Savings in the comments.

NY Times Article: Insights into Online Savings Accounts read and submit comments for this post

This article from the New York Times reports on the growth of online savings accounts and looks into how profitable they will be for the banks. Banks like HSBC and Emigrant Direct have been very successful over the past year in adding deposits through their high yield online savings accounts. The article mentioned two ways that banks profit from these deposits: one is the well known way of using it to make loans, the second way is by investing the deposits into financial instruments. The article states:

It is the selection of those financial instruments, and the performance of them, that can determine whether a bank profits from high-yield savings accounts, bankers and industry analysts say.

This can make these high yield savings accounts risky for the banks, and is probably a good reason why you want to make sure it's easy to transfer your money out without worrying about minimums. Although FDIC will protect your deposits (under the FDIC limits), a troubled bank may make big drops in their deposit rates.

The article describes the growing competition among online savings accounts. ING Direct led the way in the US in 2000 with their Orange Savings Account. Last year was a big year with Emigrant Direct and HSBC Direct. The growth seems to be continuing this year with major new players like Citibank. The article mentioned other major banks like Washington Mutual and Wachovia may be launching high-yield accounts soon.

The competition should help keep the rates high. The article had good news from a Citibank's managing director who was saying that their e-Savings account, which currently pays 4.5%, will remain high and "When the Fed increases rates, we will go up as well." We shall see if Citibank bumps up the rate next week after the Fed meeting.

However, competition alone won't result in higher rates. Customers must also be willing to leave for better rates. This is probably an important reason why banks like ING and Emigrant have fallen from their top rankings. Once they win customers and acquire deposits, many customers don't go through the trouble of moving their money even after the banks no longer remain competitive. Here's an interesting quote from an HSBC Bank executive:

Unlike credit card users, who freely hop from one product to the next to get a better rate, savings account holders tend to be more loyal. Thus, he said, HSBC Direct does not feel compelled to offer the very highest yield.

So this helps to explain why HSBC's yield on their savings acocunt fell to 4.50% after their promotional 4.80% ended. Once you attract customers and deposits, the bank just has to be good enough, not necessarily on top.

This is a good reason why you should move your money to the best deal. Even though the extra interest may not be much, it helps drive the banks to compete.

GMAC's Long Term CD Rates Move Up Slightly read and submit comments for this post

Friday seems to be the usual day in which GMAC Bank introduces new rates. It has been two weeks since GMAC Bank last did a rate bump on their money market account. I was hoping for another one today, but no luck. Their money market APY remains at 4.75%. And unlike last week, there were no changes on the short term CD rates. However, long term CD rates were increased by 0.05%. GMAC Bank's 2-year and longer term CDs are now at 5.35% APY. Below are the full list of old and new rates:

GMAC Bank Certificate of Deposit Rates:
Term        Old APY    New APY  Change
3 months    4.85%      4.85%
6 months    5.10%      5.10%
9 months    5.15%      5.15%
12 months   5.30%      5.30%
18 months   5.30%      5.30%
2 years     5.30%      5.35%    +0.05%
3 years     5.30%      5.35%    +0.05%
4 years     5.30%      5.35%    +0.05%
5 years     5.30%      5.35%    +0.05%

5.22% 6-Month CD at a California CU read and submit comments for this post

SAFE Credit Union is offering a "You Choose the Term" certificate special. With a relationship reward, you can get a 5.22% APY 6-month CD. You can also get CD terms up to 60 months. Without the relationship reward, the APY is 5.01%. This special is also available as an IRA certificate.

To receive the relationship reward APY for the term selected, one of the following requirements must be met: (1) open a new checking account with direct deposit; (2) a minimum deposit of $10,000 new money from another financial institution; or (3) a new loan funded for a minimum of $10,000.

The credit union's field of membership includes residents of the following California counties: Sacramento, Placer, Yolo, Yuba, Sutter, Amador, Butte, Contra Costa, Nevada, San Joaquin, Solano and El Dorado. It also includes several employeer groups and associations.

SAFE Credit Union is NCUA insured with $1.3 billion in assets and 117,000 members.

5.20% 10-Month CD at LaSalle Bank read and submit comments for this post

LaSalle Bank's Manager's Special CD continues to improve. The certificate of deposit now has any APY of 5.20% for a 10-month term. This CD had an APY of 5.10% when I first posted on it back on April 12th. It was up to 5.15% on my April 21st report. The conditions remain the same with a $10K minimum. The certificate of deposit can be opened online, by phone, by mail or by visiting a LaSalle branch.

LaSalle branches are located in California, Illinois, Indiana, Michigan, Minnesota and Missouri.

5.55% 12-month CD at a Georgia Bank read and submit comments for this post

Security Exchange Bank is offering a 5.55% APY 12-month CD. The minimum deposit is $500. The bank also has competitive rates on most of there certificate of deposit terms: Below is the full list of rates:

Term         APY
3 month      4.25%
6 month      5.00%
1 year       5.55%
2 year       5.55%
3 year       5.70%
4 year       5.70%
5 year       6.00%

The bank has branches in Marietta, Georgia. Credit for this find goes to this Slickdeals thead.

Other Georgia CD Deals

This is yet another Georgia CD deal. As I posted yesterday, CD deals seem to be all over Georgia. This is the fifth one over the last two weeks.

MetLife Money Market Now 4.25%, $50 Bonus Still Active read and submit comments for this post

MetLife Bank increased the rate of their money market account from 4.00% to 4.25% APY. Although this is 0.50% under the top money market accounts, MetLife Bank still has a $50 sign-up bonus. Here's the promo page. The expiration date listed on this one is 6/30/06. You must maintain a minimum balance of $5,000 for 90 days. The bonus will be credited to your account 90 days after your account is funded.

Refer to my previous post for more info on this MetLife money market account. Thanks to the commenter who mentioned this in the finding deals post.

8% 8-Month CD at a California CU ($5K Max) read and submit comments for this post

California Credit Union is offering a special 8% APY 8-month CD. As is typical with these very high rate CDs, there is a low deposit cap of $5K per member. The minimum deposit is $1K. Also, it requires a recurring $500+ direct deposit into a new or current CCU checking account or savings account.

The 8% is about 3% over a 5% CD 8-month that you could get online. So if you deposit the maximum $5K for 8 months, the extra 3% would net you about $100. Since it requires a checking account with direct deposit, it's almost like a checking account sign-up bonus. Just like sign-up bonuses, it's intended as a loss leader with the hopes that you'll become a long term customer. Credit for this find goes to this FW thread.

The credit union also has a $75 bonus for opening a new checking account with direct deposit which I described in this February post. This $75 bonus is valid through the end of this year. Unfortuantely, the terms specify that you can't combine this $75 bonus with the special 8% CD rate.

In addition to this special 8% CD, they are also offering a special 5.25% APY 17-month CD. The CD has a bump-up option. If the standard 18-month CD rate rises above this rate, you have the option to do one-time bump-up in the rate. The standard 18-month certificate of deposit currently pays 4.95% APY so this option could come in handy if rates continue to rise.

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.

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

4.71% Internet Money Market Account at Zions Bank read and submit comments for this post

Zions Bank increased the APY on their Internet Money Market Account from 4.50% to 4.71%. This account requires $1K to earn this APY, but there are no monthly fees. The minimum opening deposit required is $100. Unlike most money market accounts, the account lacks check access. However it does offer an ATM card.

Credit for this find goes a commenter in the finding deals post. Thanks!

5.00% 3-Month CD at UFB Direct read and submit comments for this post

UFB Direct has recently had some competitive CD rates. This week, they increased the APY of their 3-month CD from 4.85% to 5.00% for all rate tiers. The minimum deposit is $8K.

As I mentioned in this April 12th post, new customers can also earn 5% at UFB Direct on their Jumbo Money Market Account through May. The non-promo rate of their Jumbo Money Market account is 4.81% APY. A $50K balance is required for this jumbo.

In early April UFB Direct increased the APY on their no-minimum high yield savings account from 3.75% to 4.40%. Through most of March, UFB Direct had an unusally large dip in their deposit rates. Since April, they seemed to be back on track with competitive rates.

5.50% 12-Month CD at a Georgia Bank read and submit comments for this post

The Buckhead Community Bank is offering a special 5.50% APY 12-month certificate of deposit. Two other special CDs include a 5% 9-month CD and a 4.50% 6-month CD. The minimum deposit is $500. This offer ends on May 31, 2006.

The bank has branches in the Georgia cities of Atlanta, Alpharetta and Sandy Springs.

Other Georgia CD Deals

CD deals seem to be common in Georgia. On Monday I posted on a Geogia bank offering a 5.60% 24-month CD. Last week, I posted on a 5.25% 7-month CD and a 5.55% 11-month CD both at Georgia banks.

5.54% 13-Month CD at a California CU read and submit comments for this post

Golden Bay Federal Credit Union is offering a special 5.54% APY 13-month CD. The minimum is $5K and is available as a share certificate or IRA certificate. The offer expires on May 31, 2006. The CD requires funds new to the credit union.

The field of membership includes residents of Santa Clara County, California. Branches are located in the California cities of Moffett Field, Mountian View, San Jose and Sunnyvale.

Golden Bay is NCUA insured with $201 million in assets and 17,000 members. Credit for this find goes to the FW CD thread.

New Funds?

One thing I found interesting about this CD special was the following small print:

New funds are funds that are: 1) not already on deposit at GBFCU, and 2) cannot be traced, directly or indirectly, back to your GBFCU accounts within the last 120 days. GBFCU reserves the right to make the sole judgment as to whether or not the deposited funds are considered new funds.

This is the first time I saw a bank or a credit union define new funds this carefully. Hopefully, World Savings won't become this strict on new funds.

5% Money Market Account at interState Net Bank ($10K+) read and submit comments for this post

interState Net Bank has increased the rate on their money market account from 4% to 5% APY for balances over $10K. The APY for balances between $10K and $5K is 3.30%. Under $5K, the rates go way down to below 1.50%. There's a $10 monthly fee and a $3 internet access fee if the average balance falls below $2.5K. The account closing fee is $20 if closed within 180 days of first deposit. The first 200 checks are free.

My last post on this bank was back in November 16, 2005. That money market account was at 4% APY back then which was a competitive rate (both HSBC and EmigrantDirect were at 4%). The APY was still at 4% as of April 28th based on Google's cache. So based on history, my guess is that this rate will remain at 5% for the rest of this year. It should remain very competitive for the next few months. Later this year, it may start lagging if interest rates continue to rise.

As I had observed from my last post on this bank, they do seem to offer ACH transfer capabilities. The bank still has a low 2 out of 5 star rating at Bankrate.com which is below the industry average.

Capital One High Yield Money Market Rises to 4.55% read and submit comments for this post

Capital One increased the APY on their money market accounts from 4.25% to 4.55%. They just introduced a new Capital One Direct website with new names for their two high yield accounts, so perhaps they did an extra rate bump for some more publicity. Their last rate hike was in early March when the APY increased from 4% to 4.25%.

Although the looks have changed, the products appear the same as before. The High Yield Money Market is really a high yield savings account which has no minimums and links to a checking account. I consider it a savings account and not a money market account since it doesn't offer limited check writing. Capital One uses the same online banking platform as EmigrantDirect. Capital One has the advantage of no limits in the number of checking accounts that can be linked rather than EmigrantDirect's limit of 2 per account.

If you want checks, the Money Market Account has limited check writing and ATM cards. However, there is a $100 minimum deposit to open and no interest is earned for balances under $100. But there doesn't seem to be a monthly fee. Unlike the other account, this one doesn't link to your external checking account and doesn't have online (ACH) money transfers. A comparison of these two accounts is available here.

Capital One also offers CDs, but like HSBC, the rates are low (even lower than the money market rate).

In my opinion, they should combine the two so that the one money market account would have both ACH transfer capability and check writing. A $100 balance requirement for earning an APY is much better than a balance requirement to avoid fees. 5% of $100 for a year is only $5. Monthly fees can be $5 or more a month.

Capital One also increased the rate of their special money market account for Costco customers. The new APY is 4.60% (up from 4.51%). With only a 5 basis point advantage over the regular money market account, it doesn't seem worthwhile when you consider this Costco version has a $5K minimum opening deposit requirement. There is still a $25 sign-up bonus for Costco Executive members when they open their first Money Market account or CD.