High Interest Rates

Once again National City Bank has extended its latest CD and money market account promotions. The new scheduled end-date is 8/23/08. Only part of the promotion is listed online at nationalcity.com/SaveNow, and what’s listed may vary by your zip code that you enter.
Certificate of Deposit Specials for $10K minimum:

• 4.25% APY 13 to 18 months
• 4.75% APY 19 to 42 months
• 5.25% APY 43 to 54 months

Money Market Savings Special:

• 4.00% APY guaranteed for 180 days on $5,000 or more of new money

These have the typical National City requirement of an existing checking or savings account or a new checking (except Free checking) with a $1,500 minimum initial deposit. The maximum deposit limit is $500,000.

Goldwater Bank is offering a 4.00% APY savings account. According to the bank’s rate table, the minimum opening deposit is $1,500, and the minimum balance to obtain the APY is $100.

This savings account is listed at Bankrate.com , and it appeared to be available nationwide.

It appears the bank doesn’t provide any ACH transfer capabilities. According to the CSR, you can fund the account by check or wire transfer. The savings account does not offer check writing.

AmTrustDirect just increased the rates on many of its online CDs. The 12-month CD yield increased from 4.02% to 4.15% APY. The yield for all the longer terms is now 4.25% APY.

It looks like they’ve put all of their focus on CD rates rather than their savings accounts. Their original savings account, the e-Money Market account, now has a yield of only 1.50% APY for balances of up to $25,000. Even their newer e-Savings Account has a disappointing yield of 2.50% APY.

Discover Bank has a current money market account with a fairly competitive yield, at 3.04% APY.  Deposits over $50,000 yield 3.14%.

They also have some high CD rates on their long term CDs, with a 4.57% APY 4 year CD and a 4.81% 5 year CD. Minimum balance on CDs is $2,500.

Banking with discover could be useful if you already have other accounts with them.

Alliant Credit Union lowered rates on its savings account and certificates today, but the rates remain very competitive. The savings account yield fell from 4.35% to 4.00% APY.

The top yield on their 12-to-17 month certificate fell from 4.40% APY to 4.15% APY. This requires a minimum deposit of $25,000. However, the yield for the $1,000 minimum remained the same at 4.00% APY. The yield for $25K minimum deposits remained the same for the longer terms (4.15% APY). The yield for the $1K minimum deposits actually increased from 3.75% to 4.00% APY.

Branches are located in Chicago, Des Plaines, and Elk Grove Township, Illinois. There are also branches in Colorado, California and Virginia.

Meriwest Credit Union is currently running a special share certificate with a yield of 7.50% APY and a term of 12 months. The minimum and maximum deposit is $1,000. New membership and checking account are required. Existing members may open this CD if they refer a new member who opens this CD and a checking account.

The $1K cap applies to a member and not a household, so having more than one person open an account could increase the cap.

Field of membership includes those who live, work or study in Santa Clara, Alameda, Contra Costa, San Mateo, or San Francisco County. Select Employer Groups include IBM employees and retirees. Family members and other SEG’s can also qualify. Membership requires a one-time fee of $5.

Branches are located in California cities of San Jose, Milpitas, San Mateo, Mountain View, Palo Alto, Menlo Park, Dublin and San Ramon. There are also two branches in Tucson, Arizona.

Washington Mutual currently has one of the highest CD rates for large online banks, with a 4.0% APY rate on their 6 month CD. This is a better rate than both Wells Fargo and Bank of America are currently offering.

On top of this CD, they also have other certificates with rates ranging from 3.51% to 3.75% with 1 year to 5 year terms. Minimum deposit to open a CD with WaMu is $1,000.

To obtain the APY for the effective date on the day you apply, the Online CD account must be funded within seven (7) calendar days. If received on or after the eighth calendar day, the then effective date APY will be applied. Certificate of Deposit accounts earn a fixed interest rate and APY for the selected term. Fees may reduce earnings. Penalty for early withdrawals apply.

OneUnited Bank is one of the very few banks that have yet to cut the yield on their online savings account since the Fed started cutting rates in September. The yield remains one of the highest interest rates available at 5.30% APY.

This online savings account account was originally called the UNITY Internet Savings Account and only required a minimum balance of $10 to open and earn interest. At the end of 2006, they created the UNITY Gold E-Savings Account with the $1,000 minimum.

OneUnited Bank is FDIC insured. The bank has $632 million in assets and $358 million in deposits. Bankrate.com’s review gives the bank 3 out of 5 stars.

FNBO Direct has a 5.05% APY yield on their high yield savings rate. You can open your account with as little as $1, and there is no minimum balance on this account.

FNBO used to offer a 6.00% APY on their savings account, but after the recent fed cuts many banks have been cutting their rates significantly, as well. FNBO Direct is FDIC insured.

AmTrustDirect just introduced a new e-Savings Account that has an introductory yield of 5.36% APY for the first 90 days. The 5.36% applies only to the first $100K. Balances over $100K earn 5% APY. After the first 90 days, the promotional rates will revert to the standard tiered rates. The minimum deposit to open and the minimum balance to earn interest is $1. This account must be funded with new money that’s not currently on deposit with AmTrustDirect.

Amtrust’s e-Money Market account has had competitive rates ever since it was launched in August 2006, so if these rates are any indication, the e-Savings Account may be one that you might keep for the long term.