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Best Bank Account Interest Rates - Summary for September 5, 2017

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Best Bank Account Interest Rates - Summary for September 5, 2017

The August jobs report that was released last Friday didn’t have much effect on the odds of a December Fed rate hike. According to this MarketWatch article:

The mildly disappointing jobs report in August will be little more than a speed bump on the Federal Reserve’s road to continue tightening, economists said Friday.

Economist Tim Duy reviewed the jobs report in his Fed Watch blog post, and he summed up his expectation about December:

the Fed will hike in December even if inflation remains tepid. I think the Fed will need to see more evidence of slowing in the real economy before they cease rate hikes

A December Fed rate hike is far from a sure thing, and that was clear today in a speech by Federal Reserve Governor Lael Brainard. She’s pushing the Fed to move in an even a more gradual pace in raising the federal funds rate. Economist Tim Duy wrote about her influence on Fed policy. According to Duy, Brainard was influential in moving Fed policy in 2016 away from four rate hikes to only one. Duy summed up her speech by saying:

Bottom Line: Brainard is making a push to slow the pace of rate hikes. I am not sure she will be as successful as her last effort to change the course of policy.

I hope Duy is right. This shows the importance of having more inflation hawks at the Fed.

Brainard’s speech didn’t have a big impact on the Fed funds future. The odds of a December Fed rate hike went up from last week (31.5% to 36.9%).

When I saw the Treasury yield changes from last week, I thought the big increase in the 1-month yield was a good sign for a future rate hike, but it appears it had nothing to due with Fed expectations. According to this Reuters article.

Concerns whether the federal debt ceiling would be raised in time to avert a default resulted in a lousy one-month bill auction and the highest interest rate on one-month T-bills in nine years at 1.300 percent.

That 1-month T-bill yield increase from last week of 34 bps far surpassed the size of all other Treasury yield changes. All of the long-dated Treasury yields decreased over the last week, with the 10-year Treasury yield falling the most (6 bps).

The following numbers are based on Daily Treasury Yield Curve Rates and the CME Group FedWatch.

Treasury Yields:

  • 1-month: 1.30% up from 0.96% last week (0.52% on Jan 3)
  • 6-month: 1.13% same as last week (0.65% on Jan 3)
  • 2--year: 1.30% down from 1.33% last week (1.22% on Jan 3)
  • 5--year: 1.65% down from 1.70% last week (1.94% on Jan 3)
  • 10-year: 2.07% down from 2.13% last week (2.45% on Jan 3)
  • 30-year: 2.69% down from 2.74% last week (3.04% on Jan 3)

Fed funds futures' probabilities of future rate hikes by:

  • Sep 2017 - up by at least 25bps: 0% same as last week
  • Dec 2017 - up by at least 25bps: 36.9% up from 31.5% last week
  • Dec 2017 - up by at least 50bps: 0.7% up from 0.6% last week
  • Dec 2017 - down by 25bps: 0.9% down from 1.8% last week
  • Jun 2018 - up by at least 25bps: 50.7% up from 49.4% last week

Savings and Checking Account Rates

We had small surge of rates hikes on savings and money market accounts in the last two weeks. This was a pleasant surprise. In my last liquid account update, I had noted the slowdown of rate hikes. I’ll be surprised to see more of these surges until the odds grow for a December Fed rate hike.

This small surge of rate hikes included two big internet banks, Ally and Capital One. Both increased their rates to 1.20% APY. Ally Bank’s savings account rate increased from 1.15% to 1.20% APY for all balances. Capital One’s 360 Money Market rate increased from 1.10% to 1.20% APY for balances of $10k+.

It’s interesting to note that Capital One is hiking rates on its money market account while its keeping the 360 Savings Account rate at 0.75%, where it has been since ING Direct became Capital One 360 in 2013.

Ally Bank is doing the opposite. It’s raising its savings account rate while the money market rate is left behind.

Other internet banks that increased their rates included EverBank and FNBO Direct.

EverBank increased its first-year intro APY of its money market account from 1.21% to 1.31%. The ongoing rate also increased, but the rate is still low for an internet bank (0.86%).

FNBO Direct increased the rate of its Online Savings Account by 5 bps to 1.15% APY for all balances. FNBO Direct doesn’t appear to want to compete with the leaders, but at least they want to keep it in the ballpark. I miss the good old days back in 2007 when FNBO Direct was on top of the internet banks with a 6% savings account..

These rate hikes didn’t result in any new 1.25%+ rates, thus my 1.25% club has remained the same. This 1.25% club is the group of nationally available checking, savings and money market accounts that have rates of at least 1.25% APY and that are clearly not promotional or temporary. The ten in the club include Northern Bank Direct, Sallie Mae Bank, CIT Bank, ableBanking, Self-Help FCU, BankPurely, UFB Direct, PurePoint Financial, Dollar Savings Direct and Live Oak Bank.

Reward Checking Accounts

Again, there were essentially no changes to my list of nationally available reward checking accounts (Heritage Bank’s eCentive Account rate reduced 1 bps to 1.25% APY). Reward checking rates have been slower to respond to the Fed rate hikes as compared to internet savings account rates. Since much of the rates of reward checking accounts are paid for by debit card activity, banks may continue to go slow with rate hikes.

To find the highest reward checking rates and balance caps in your state or nationwide, please refer to our reward checking rate table. If you're new to reward checking, please refer to my blog post, Overview of Reward Checking and Our Reward Checking Table.

Certificate of Deposit Rates

I’m now publishing my CD survey as a separate post. Please refer to my survey of the best CD rates. This recap will focus on banking news of the week and liquid accounts.

CD Deals: I just wanted to include this reminder of a few noteworthy CD deals that are available.

Advancial Credit Union had been a rate leader for most CD terms, but it reduced several of its CD rates at the start of September. Its Jumbo 5-year CD now earns 2.49% (down from 2.67%). On the positive side, its shorter-term CDs continue to be rate leaders. Its Jumbo 1-year CD now earns 1.78% APY. More details about this credit union and its CDs are available in this blog post and in the comments of that post.

USALLIANCE Financial ended its special Cooperative Rewards CDs in September, but it came out with higher rates on its longer-term CDs. It now holds the top spot for a 2-year term (2.00% APY, 25-month) and for a 3-year term (2.17% APY, 36-month). Please see this blog post for a review of USALLIANCE and these CDs.

Ally Bank continues to offer a 1.50% APY on its 11-month No Penalty CD for balances of at least $25k. Balances of $5k to under $25k earn a 1.25% APY. Please refer to this blog post for more details. Ally now has some competition for No Penalty CDs. CIT Bank just increased its 11-month No-Penalty CD rate to 1.45% APY, with only a $1k minimum deposit (see blog post).

For those who want a longer-term CD, Ally Bank’s 5-year CD (2.25% APY for all balances) is a good choice. It isn’t the 5-year rate leader, but its 5-year CD is very competitive when you factor in the mild early withdrawal penalty (150 days of interest). Sallie Mae Bank is giving Ally some competition. Its 5-year CD APY is 2.35%. This CD’s early withdrawal penalty is just slightly larger than Ally’s (180 days of interest). An easy-to-join credit union recently surpassed Sallie Mae Bank for a top 5-year rate with a mild early withdrawal penalty. Signal Financial Federal Credit Union’s 5-year CD earns 2.40% APY, and its early withdrawal penalty equals six months of interest. You can see the effective yields of these CDs when closed early by using the CD Early Withdrawal Penalty Calculator.

Rates as of September 5, 2017

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
State Bank of Texas1.55% ($100k)Jumbo MMDA - Account review
All America Bank1.50% (up to $35k), 0.50% ($35k+)Mega Money Market Account - Account review
Redneck Bank1.50% (up to $35k), 0.50% ($35k+)Mega Money Market Account
DollarSavingsDirect1.40% (no min)Dollar Savings Account - Account review
Live Oak Bank1.40% ($250k max)Savings Account - Account review
Self-Help Federal Credit Union1.37% ($500k), 1.27% ($500)Money Market - Account review
Salem Five Direct1.35%eOne Savings, for new customers only Account review
Signal Financial Credit Union1.35% ($25k, enrollment in Premium Bundle)Premium Money Market - Account review
EverBank1.31% (1yr intro rate) 0.86% ongoing rateMMA - Account review
Nationwide Bank1.30%Online Savings - Account review
CIT Bank1.30% (up to $100k), 1.25% ($100k+)Premier High Yield Savings - Account review
Sallie Mae Bank1.30%MMA - Account review
BankPurely1.30% ($1 min)SavingPurely - Account review
ableBanking1.30% ($250 min)Money Market Savings - Account review
PurePoint Financial1.30% ($10k min)Online Savings - Account review
UFB Direct1.30% ($25k+), 0.20% ($100)Premium Savings - Account review
The Palladian PrivateBank1.30% (6mo intro rate) 1.10% blended APYSavings Account - Account review
Northern Bank Direct1.26% ($250k max)Money Market - See review
BBVA Compass1.25% ($10k min)ClearChoice MMA Promo - Account review
EBSB Direct1.25% ($10k min)Money Market Special 3 - Account review
McGraw-Hill Federal Credit Union1.25% ($75k), 1.10% ($20k),1.00% ($5k) (guaranteed through 8/31/17)Ascend Account - Account review
EverBank1.21% (1yr intro rate) 0.71% ongoing rateChecking - Account review
SFGI Direct1.21%Savings account - Account review
Incredible Bank1.21% ($2.5k), 0.05% ($250k+)IncredibleBank Savings - Account review
Popular Direct1.21%Popular Direct Plus Savings - Account review
Barclays1.20%Online Savings - Account review
Synchrony Bank (formerly GE Capital Retail Bk) 1.20%High Yield Savings - Account review
GS Bank1.20%Online Savings Account - Account review
Radius Bank1.20% ($2.5k min)Radius High-Yield Savings - See review
Ally Bank1.20%Online Savings - Account review
Capital One1.20% ($10k+), 0.60% (up to $10k)360 Money Market - Account review
American Express Bank1.15%High Yield Savings - Account review
My e-BAnC by BAC Florida Bank1.15%Super Saver - Account review
Discover Bank1.15% (no min)Online Savings - See review
FNBO Direct1.15%Online Savings
MyBankingDirect1.15% ($5k+), 0.25% (less than $5k)Earn >More Money Market
SmartyPig1.15% ($10k min), 1.05% (less than $10k)SmartyPig Savings - Account review
Nationwide Bank1.15% ($10k), 1.00% ($1)Nationwide Member Checking Account
Connexus Credit Union1.15% ($100k), 1.00% ($50k,) 0.75% ($20k)MMA - active chk required
Northpointe Bank1.12%Statement Savings - Account review
Alliant Credit Union1.11% ($100 min)High-Rate Savings - See review
Northeast Bank1.10%Pearl Money Market Promo, new customers - Account review
Dime Savings Bank1.10%Dime Direct Money Market, new money - Account review
iGObanking.com1.10% ($25k min)MMA, New accounts and new money only, Account review
Chevron Federal Credit Union1.10% ($250k+), 1.00% ($2.5k+)MarketEdge Savings
Pacific National Bank1.06%Money Market Deposit Account - See review
AloStar Bank of Commerce1.05%Savings account - Account review
Discover Bank1.01% ($100k min), 0.95% ($2.5k)MMA - See review
iGObanking.com1.00%iGOsavings - Account review
MySavingsDirect1.00%MySavings Account - Account review
UFB Direct1.00% ($25k min)UFB Savings - Account review

Reward Checking Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
Northpointe Bank5.00% (up to $10k), 0.10% ($10k+)UltimateAccount - Account review
Consumers Credit Union4.59% (up to $20k)Rewards Checking - debit card and $1k credit card requirements
Consumers Credit Union3.59% (up to $15k)Rewards Checking - debit card and credit card requirements
One American Bank3.50% (up to $10k), 0.25% ($10k+)Kasasa Cash - Account review
Consumers Credit Union3.09% (up to $10k)Rewards Checking - debit card with NO credit card requirements
Evansville Teachers Federal Credit Union3.00% (up to $15k), 0.00% ($15k+)Vertical Dividend Checking - Account review
Lake Michigan Credit Union3.00% (up to $15k), 0.00% ($15k+)Max Checking
Great Lakes Credit Union3.00% (up to $10k), 0.10% ($10k+)Ultimate Checking
Security State Bank3.00% (up to $10k), 0.25% ($10k+)Kasasa Cash - Account review
Partner Colorado Credit Union3.00% (up to $10k), 0.50% ($10k+)High Interest Checking
American Bank & Trust2.51% (up to $10k), 0.25% ($10k+)Kasasa Cash
Industrial Bank2.50% (up to $15k), 0.25% ($25k+)Kasasa Cash
Capital Educators Federal Credit Union2.50% (up to $10k), 0.20% ($10k+)High Yield Checking
New Buffalo Savings Bank2.27% (up to $35k), 0.2497% ($35k+)Kasasa Cash - Account review
Bellco Credit Union2.25% (up to $25k), 0.25% ($25k+)Boost Interest Checking - Account review
Main Street Bank2.25% (up to $25k), 0.25% ($25k+)Kasasa Cash - Account review
Altra Federal Credit Union2.25% (up to $15k), 0.50% ($15k+)A+ Checking
Coastal Credit Union2.25% (up to $10k), 0.10% ($10k+)Go Green Checking - Account review that includes companion Go Green MMA
Georgia Bank Company2.15% (up to $25k), 0.40% ($25k+)Kasasa Cash - Account review
TruStone Financial Credit Union2.02% (up to $20k), 0.10% ($20k+)TruRate Checking - Account review
BankFirst2.02% (up to $10k), 0.15% ($10k+)Kasasa Cash
Finex2.018% (up to $25k), 0.20% ($25k+)Axcess Rewards Checking, Premier Account (formerly First New England Federal Credit Union)
XCEL Federal Credit Union2.01% (up to $25k), 0.03% ($25k+)Kasasa Cash Checking
Bay State Savings Bank2.01% (up to $20k), 0.25% ($20k+)Kasasa Cash - Account review
Legence Bank2.01% (up to $10k), 0.25% ($10k+)Kasasa Cash
5Star Bank2.00% (up to $25k), 0.15% ($25k+)Kasasa Cash Checking Account review
Country Bank2.00% (up to $20k), 0.25% ($20k+)Kasasa Cash Checking Account review
Elements Financial2.00% (up to $20k), 0.10% ($20k+)High Interest Checking - Account review
MainStreet Bank2.00% (up to $15k), 0.25% ($15k+)Kasasa Cash - Account review
Blue Federal Credit Union2.00% (up to $15k), 0.25% ($15k+)Extreme Checking (up to 4% w/account relationships) - Account review
All America Bank2.00% (up to $10k), 0.50% ($10k+)Ultimate Rewards Checking
United Educators Credit Union2.00% (up to $10k), 0.25% ($10k+)Kasasa Cash
KS StateBank1.95% (up to $25k), 0.50% ($25k+)Check PLUS - Account review
Connexus Credit Union1.75% (up to $25k), 0.25% ($25k+)Xtraordinary Checking
First Tech Federal Credit Union1.58% (up to $10k), 0.16% ($10k+)Dividend Rewards Checking
MemoryBank1.50% (up to $250k)EarnMore Interest Checking - Account review
Superior Choice Credit Union1.50% (up to $30k)AMP Checking
Bank of Internet USA1.25% (up to $150k), 0.00% ($150k+)Rewards Checking
Heritage Bank1.25% (up to $25k), 0.10% ($25k+)eCentive Account
ABCO Federal Credit Union1.01% (up to $25k), 0.10% ($25k+)Rewards Checking
Community Bank of Raymore1.01% (up to $10k), 0.20% ($10k+)Kasasa Cash
Community Bank of Pleasant Hill1.01% (up to $10k), 0.20% ($10k+)Kasasa Cash
First American Bank1.00% (up to $15k), 0.21% ($15k+)Everyday Rewards Checking
Bank of Blue Valley1.00% (up to $10k), 0.10% ($10k+)$1k/month debit card req (formerly Ultimate Checking)

Certificates of Deposit:

Bank Account Alternatives - NOT FDIC Insured

InstitutionRatesNotes
Ally Financial Demand Notes1.15% rate for $50k+
Duke Energy PremierNotes1.15% rate for $50K+Duke Energy PremierNotes review
Ford Interest Advantage1.15% rate for $50k+Ford Interest Advantage review
Vanguard Prime Money Market Fund1.11% 7-day yield
Fidelity Money Market Fund0.97% 7-day yieldreviews on Fatwallet
Vanguard Tax-Exempt Money Market Fund0.71% 7-day yield
Fidelity Municipal Money Market Fund0.49% 7-day yield
Related Pages: savings accounts, money market accounts, checking accounts, reward checking accounts, nationwide deals, Internet banks
Comments
gregk
gregk | | Comment #1
All the hikes are teeny-tiny, Ken, - on CD's also. You're straining to find good news when there really isn't any.
Of course by absolute measures one could say these hundredths of a percent bumps are "better" than the rates preceding them, but by standards of "materiality" (in my own mind, at least) they're really not, and don't even register as a change. Frankly, my only rationale for making a daily check of DA in this ongoing rate morass is with the odd hope of some hero FI throwing "out there" a 3% CD, likely even barely plausible only towards the end of the year.
You're documenting no more than a few extra crumbs here in the Bank Account summaries, - and too often
seeming to view it as good news, rather than (in the larger context) the bad that it is.
MYTROPHYWIFE
MYTROPHYWIFE | | Comment #3
this domain got started on 2005 when the Fed was appearing to go back to normalcy,,,even a 1990's senario where they only went to 3.25 ffr or 3.00ffr in the early 90's for about 18 months.....it looked like a worthy product service if you will. HOWEVER WITH THE NAIROBI TRIO IN CHARGE and BEGINNING IN DEC 2008 TO DEC 2016, THIS SITE BEGAN TO SPLIT HAIRS AND WAS NOTHING MORE THAN PR FLACKERY, FOR THE DESPICABLE CONTEMPTIBLE BANKING BUSINESS as far as humble depositor savers were concerned. it looks like the moe howard's white haired granny believes the new fed neutral to be 1.75 to 2.00 ffr AND WITH THE PROSPECT OF GARY COHNFINGER OF GOLDMAN SACHS TO BE HER REPLACEMENT,,,,the future of rate hikes looks bleak,,,,GOLDMAN SACHS WOULD LIKE TO SEE ZERO 4EVER. AND TRUMP'S KID'S FORTUNES ARE GUARANTEED WITH LIRP, ZIRP, NIRP. this domain's future will be to celebrate nothing like it was something and be educational for those that need to know banking and credit union basics. when it's snowing,,i don't need a weatherman. HOW CAN NOTHING LESS CAN A BRAZEN LOW LIFE BANK PRESIDENT AND BUSINESS PERSON PRESENT RATES SCHEDULES FOR LIQUID FDIC SAVINGS AND MMA'S THAT LOOKS LIKE A MATRIX ARRAY OF 0.00,,,,0.00...0.00...REVERSE ROBIN HOOD IN ALL CAPS AND IF YOU WANT TO DRAW YOUR GREENBACKS OUT,,,you are being coerced not to under penalty of being suspected of being a suspect. MY TROPHY WIFE SEZ ENGLANDS POLS LOOK HONEST COMPARED TO OUR DC %$#!*[email protected]!"s
deplorable 1
deplorable 1 | | Comment #4
Hey compared to the Obama years things are actually starting to move again. I mean after 8 years of absolutely nothing or rate decreases even a small move up is substantial particularly if you are a saver with a few hundred grand or a couple of million. It all adds up and we can't all tie up 100% of our money in the stock market casino. Trump hasn't even been in for a year yet and everyone is complaining about rates I find it particularly irritating when former Obama voters complain yet said nothing for the last 8 years as rates dropped into the abyss.
statingtheobvious
statingtheobvious | | Comment #11
You do realize that the rates dropped to Zero during the Obama years because of the crash that occurred right before he took office correct? I'm sure you also realize that the Fed announced the rate hikes before Trump took office. So you should probably be thankful that the markets stabilized enough over the past 8 years to allow for a rate hike now.
deplorable 1
deplorable 1 | | Comment #15
@statingtheobvious: You do realize that this whole debacle started with the housing crisis which led to the financial crisis right? So what you really need to understand is what actually caused the housing crisis. Well it all started when Bill Clinton loosened the banking regulations. But the real root cause was racism. Now I know that this will seem like a surprise for some but it was the "perceived" racism of the banks that led to the loosening of lending standards for poor minorities which was supposed to help them gain access to home loans. There were people on the senate banking committee who felt that minorities were being discriminated against just because of the color of their skin. They strong armed the banks into giving out 0 down no doc loans and promised the banks that they would be made whole if these loans went into default. Now Bush realized finally after at first going along with Clinton and the "everybody deserves a house" mantra that it had gone too far. He then warned the senate banking committee about the solvency of Fannie Mae and Freddie Mac several times only to be called a racist by the likes of Maxine Waters and Charlie Wrangle and many others. The banks were never acting in a racist matter in the first place by requiring that everyone had enough income and a down payment in order to secure a loan. There was no need to change the banks lending standards based on the false accusations of racism. The only color the bank is concerned with is GREEN and rightfully so. So the bottom line is that this whole housing and subsequent financial crisis which has led us to these ultra low interest rates need never have happened in the first place if the government was not influenced by the baseless accusations of racism. The lending standards were the same for EVERYONE and there was nothing unfair about them.
FULL DISCLOSURE: I have a relative who was the vice president of a major U.S. bank during this time. He was told by his boss to make the rounds to all the minority churches in the area to advertise that they were giving out "free" no doc loans to any and all who applied. He was strongly against giving out these loans to people that he knew had no way what so ever of paying them back. When he voiced these concerns to his boss he was told "Do it now or I will find someone else that will!" which meant that he would be fired.
deplorable 1
deplorable 1 | | Comment #16
For the grammar police: In my above comment it should be "manner" not matter.........sorry.
deplorable 1
deplorable 1 | | Comment #17
Now in reference to my above comment I actually feel that home ownership is a good thing. It leads to financial security and the building of wealth. I think that everyone that can afford to buy a house should unless their job requires them to move often. The problem is that not everyone can or even should own a home because they are not financially responsible enough or have enough income to afford it. The 20% down payment was in part to determine if the borrower is responsible enough to save for a goal. When they started making low or no down payment loans with no income documentation they were only loaning money to irresponsible people. Now would you loan your money out to people with no income or savings? Yeah didn't think so, yet this is what the banks essentially did. So who ended up footing the bill for all this nonsense? All us hard working savers, retirees and homeowners who did the right thing all our lives! The banks got bailed out with our tax dollars, the folks who bought too much house either walked away or got write downs and lower interest rates. Only the responsible people were punished for things we had no control over. So yes some of us are still angry and rightfully so!
???
??? | | Comment #18
Didn't the Banks Ponzi Scam those loans to others?
deplorable 1
deplorable 1 | | Comment #21
Sure many of the banks sold these loans to other banks and/or investors to get them off their books. They knew these loans were junk and would never get paid back. Yes that was wrong and I'm in no way advocating any of that. I was just trying to get down to the root cause which led Clinton to lower the standards in the first place. I actually think he was trying to help people get home loans in the hopes that they would actually OWN those homes one day(as was Bush). As is the problem with many liberal/progressive ideas though there are always unintended consequences. In other words you can't help everyone, you can't fix stupid and you shouldn't punish the responsible people of the country in order to help the irresponsible yet this is what the government does. The government rewards/encourages the irresponsible with handouts while making the responsible pay for it then they have the nerve to call it "fairness".
Dunmovin
Dunmovin | | Comment #19
Deplor..."you" need to know Anti-Deficiency Act provisions when you say, "When they started making low or no down payment loans with no income documentation they were only loaning money to irresponsible people." The lenders ARE LOOKING ONLY TO THE VALUE OF THE PROPERTY in those states! They want to churn!
deplorable 1
deplorable 1 | | Comment #20
@Dunmovin: So you don't think the bank wanted income verification as a basis for the repayment of a loan? You think the banks really want to deal with foreclosures and liquidation of property at a below market rate? The bank wants to make money on the interest rate spread and they would like to see people making their payments.
Dunmovin
Dunmovin | | Comment #22
Deplore, "Some people don't know what they don't know!"
statingtheobvious
statingtheobvious | | Comment #36
@deplorable 1, so what you are stating here is the Financial crisis of 2008 that happened after 8 years of Bush was the fault of Clinton and the Interest rate increase that was announced before Trump became president is all because of how wonderfully he has managed the economy these last 8 months.

Is that correct?
deplorable 1
deplorable 1 | | Comment #37
@statingtheobvious: Not exactly. Clinton and Bush are both partially responsible for the housing and subsequent financial crisis but they are not alone. The liberal "everybody deserves a house" Democrats on the senate banking committee who were claiming racism were also at fault. Then you are missing Obama who didn't cause the housing or financial crisis(which led to the 0% interest rates) yet he did add 10 trillion to the debt and kept interest rates @ 0% for eight years straight in order to save money on servicing the debt at the expense of us savers. Obama did this so that the debt would not climb as fast. Yes the president does have some control over the FED and they usually go along with the presidents agenda. Now I know this goes against you folks who want to blame Bush for everything because he happened to be the sitting president when all this went down. I'm not a Republican or a Democrat I'm a conservative and I don't agree with either party 100% but just vote for the lesser of the 2 evils running.
deplorable 1
deplorable 1 | | Comment #38
I also firmly believe that had Hillary been elected we would still have 0% or negative interest rates. This would be because she would have given out more handouts like free college and single payer healthcare which would have doubled the debt once again to 40 trillion. The interest on the debt alone would have made rate hikes virtually impossible. The fact is that rates didn't rise until Obama left and Trump stepped into the white house. I don't count that one and done hike the FED did while Obama was in office due to the fact they only did it because they had lost all credibility and interest rates on savings and CD's actually went DOWN following that hike.
Dunmovin
Dunmovin | | Comment #39
Deplore...why do you think the Republicans in Congress would've passed those items if Clinton won?
deplorable 1
deplorable 1 | | Comment #41
@Dunmovin: Well it seems to me that there are many middle of the road Republicans who just seem to go along with whatever the Democrats want. Just look at all the budget busting social programs we have in place already. Social Security, medicaid, Obamacare, welfare, bridge cards and many many others. The list is a mile long and they keep adding to it. If you add up all these programs together and throw in foreign aid(welfare for other countries) it is almost the same as the military budget. With 20 trillion in debt can we really afford for the government to be a charity? I think there should be a law that says no more social programs until the debt is paid down.
Dunmovin
Dunmovin | | Comment #42
Deplore...glad to see that Obama needed "help" from some Republicans as would Clinton if she had been elected. Seem to recall Reagan needed the Democrats to tax Soc Sec and allow millions of (previous) illegals to stay in the country...thought all of that was too heavy for just a president to do!
deplorable 1
deplorable 1 | | Comment #44
Well that was easy as Democrats never met a tax they didn't like or a spending bill full of pork they didn't vote for. It's too bad that congress doesn't have to pay all these taxes that they get to vote for on us..................seems like a conflict of interest to me.
Dunmovin
Dunmovin | | Comment #45
And, all that unfounded items like war in Iraq and prescription drug coverage...just to name a couple..from Bush jr era
deplorable 1
deplorable 1 | | Comment #46
You are right both parties add to the debt but what did we get for that 10 trillion that Obama added to it? It is sometimes necessary to have a war when your country is attacked. It is also necessary to provide hurricane and natural disaster relief even though all this adds to the debt.
Smokeboat
Smokeboat | | Comment #2
Moneys like pizza and ****, if you have all you want you don't give it much thought. When you can't get any it's the only thing you can think about. Think of CD rates as a bidding war for your savings to loan to you neighbor so they can have some pizza.
Happy Times
Happy Times | | Comment #5
Think about it. Why buy corn from a farmer when you have a magical corn producing machine in your garage? The FED conjured four trillion dollars out of thin air with their machine which is why banks don't need your dollars. You have to work hard for dollars, the FED can effortlessly create them with a few keystrokes. Throw in some leverage and you've got mountains of debt as far as the eye can see. Debt is the goal, not solvency.
slovokia
slovokia | | Comment #6
What is quite striking about today's situation is how compressed the yield curve is: from ~ 1% overnight to ~ 2% at 10 years for US treasury securities. 1% additional yield for locking up one's money for 10 years isn't all that much, especially given the history of inflation and today's very low interest rates. It's almost as if the worlds central bankers have collectively put the worlds bond markets into a medically induced coma. I think the patient(s) will eventually wake up - the question is when.
a. jesuit
a. jesuit | | Comment #7
it's called communism or collectivism, rebranded as globalism.
Bozo
Bozo | | Comment #8
Slovokia (re comment #6), fixed-income these days, well, it's hard to make a real return, after one factors in taxes and inflation.
Bozo
Bozo | | Comment #9
Further to my comment #8, should we even expect a real return, or is it all about preservation of capital? I suspect it is the latter.
Jake
Jake | | Comment #13
Bozo... please check your inbox... thanks.
Bozo
Bozo | | Comment #26
Jake (re comment #13), fired off a reply minutes ago.
POPE CHUTZPAH 1
POPE CHUTZPAH 1 | | Comment #10
ALLOW ME TO PONTIFICATE AND SPEAK EX CATHEDRA WITH MY GOD GIVEN INFALLIBILITY: there was this movie with jason robards as the non comformist and a haughty supercillious, precious social worker supervisor played by william daniels who also played a similar type character in the movie 1776,,,,,,the robards movie was called " A THOUSAND CLOWNS''.....it was popular wih the hip college crowd in the 60's with a fetching barbara harris,,,,william daniels seemd to always play this self important officious type character throughout his acting career,,,,,BUT HIS SPIRIT LIVES ON, as it were, so to speak, shall we say, if you will,,,,on these scroll threads.
gregk
gregk | | Comment #12
And by way of contrast your own wiser insights on the topic would be what?
pope chutzpah I
pope chutzpah I | | Comment #14
start a vatican stamp collection.
Happy Times
Happy Times | | Comment #23
Does anyone recall seeing 7% rates and thinking, "7%, heck I'm going to make a minimum 15% in the market this year?" Twenty years from now people will be exclaiming, "3%, now those were the golden days for savers."
deplorable 1
deplorable 1 | | Comment #24
Back when I was earning 7% in a FDIC insured money market account or CD I had nothing in the stock market. I figured a guaranteed 7% compounded with 0 risk of loss was much smarter than chasing high returns in the stock market. I remember seeing the annual returns of some high flying mutual funds in the double digits only to see them with negative returns the following year. I only started investing in dividend paying stocks after interest rates dropped in order to try and make up for the lost interest. I'm pretty conservative by nature though and had to work a hard physical job to earn my money so the thought of risking it in the stock market was a pretty scary proposition to me. Now that I have some experience under my belt I wish I had started investing earlier. Investing in individual stocks used to be expensive before discount online brokerages though and the first rule of investing is to keep your expenses low.
Bozo
Bozo | | Comment #27
Deplorable 1 (re comment #24), Vanguard, Fidelity and Schwab all offer index funds with ERs just north of zero. I seem to recall VTSAX (Vanguard's total stock market) is 0.04 or thereabouts. My wife and I met with (another) financial planner this week. He saw the Vanguard funds and the IRA CDs on my summary, and he also threw in the towel.

PS: Poster "Jake" would appreciate your advice on those credit card transfers.
deplorable 1
deplorable 1 | | Comment #31
@Bozo: I just deposited my credit balance refund check for $31,000 at Bank of America. I don't have to pay it back until April 2019 0% APY no fee for 20 mo. Next I'll be doing another 0% no fee balance transfer for $40,000. That should get me to around $200,000 @ 0%. While at the bank depositing the check I met a old Navy vet who was actually at Pearl Harbor on a destroyer during WW2! He was 95 which means he must have been 19 at the time. I thanked him for his service and we talked a while. As a Navy vet myself I was stationed on a aircraft carrier and I couldn't even imagine how scary that must have been. The scariest thing that happened to me was when we hit a oil tanker and the ship went up on a steep angle. I was actually on the flight deck on watch with my radio and I called in to warn them we were very close to the tanker.............the guy on watch told me it was just an optical illusion and we were on auto pilot.........then came the loud sound of screeching metal on metal..........oh well I tried. Shortly thereafter the captain got sent to serve somewhere in Alaska! lol
Bozo
Bozo | | Comment #34
Deplorable 1, as you might recall, Navy here as well. See, we have more in common than you might think. Active duty 1969 - 1972. In the Reserves 1972 - 1980.
deplorable 1
deplorable 1 | | Comment #32
@Jake: Ask me anything about 0% no/low/capped fee balance transfers. I have been doing them for around 20 years now so there isn't much I don't know. I can tell you how to do it without tanking your credit score too bad also.
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willp
willp | | Comment #25
Yes, indeed, many banks/credit unions are very obviously following a strategy of seeking to get customers to--in the case of cd's lock in these so-called "special" rates that are actually "peanuts" (2 percent for a year is attractive ?) in order to paying higher rates as the Fed continues to slowly raise interest rates down the road, as it will. The Fed's real policy is to "rearm" itself, dumping some Treasuries and raise rates somewhat slowly so that it won't be caught with its pants down when the next recession looks to be looming (maybe not too distant) and the Fed again goes back to lowering rates with its goal of stimulating the economy during a recession.
Bozo
Bozo | | Comment #28
Willp (re comment # 25), 2% for a 12-month "no gimmicks" CD would be nice. Not finding here in CA.
deplorable 1
deplorable 1 | | Comment #33
I'm not locking in for less than 2.5% or for longer than 3 years. I will bite on a 3% 5 year CD though if one does pop up. I need somewhere to stash the banks money I borrow for free with 0% no fee balance transfers so these short term CD's fit the bill.
Bozo
Bozo | | Comment #40
Deplorable 1, no need to get greedy. If you can borrow at 0% and plop that money into a garden-variety savings account at 1.1%+, you qualify as a "bandido". At Alliant CU, you can transfer from savings (at 1.1%) to checking with the click of a mouse.
deplorable 1
deplorable 1 | | Comment #43
@Bozo: 5% in some capped debit card savings accounts, 2-3% in CD's, 1.5% in Redneck/All America bank, 1.3% bank purely. Then I have 3 REITs that pay from 9-20% APY in monthly dividends. My DRA just did a merger with JRI and bumped up the dividends. Remember I have to make up for losing my good paying manufacturing job that went to China. It cracks me up when I hear about people robbing the teller window at a bank for a couple hundred dollars. Don't these fools know you can make more from the banks legally? Oh I found something interesting about Suze Orman. I never agreed with her financial advise and there was just something off about her. Well apparently she is a big scammer and fleeced people with a prepaid debit card scam that she was claiming would help your credit score. There is a youtube video all about it detailing her various scams. Now she is giving financial advise to service members and hawking some CD's on PBS. The FICO company was even taken in by her. She was posting videos of her vacation with her "partner" while people lost access to their paychecks deposited onto her debit card. The card has now been "quietly" shut down. She has a relationship with big government liberals like Elisabeth Warren as well...................interesting stuff. The IRS should be investigating her.
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Att
Att | | Comment #30
Was looking at CIT Bank website. The rate on the Premier Savings Account is 1.35% up to 100K. 1.30% for total balances over 100K. Looks like they are no longer giving any bonus for opening an account. My account still shows 1.30% but I guess they will update.
Att
Att | | Comment #35
They updated the rate on my account to 1.35%. Waiting for the $100 bonus they promised last month. I believe I have to wait 90 days
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