Top Savings Rate Drops to 1.55% APY - CD Rates Steady

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Savings and CD rate averages have held steady over the past two weeks although the top savings rate has dropped significantly. Two weeks ago the top savings rate was 1.75% APY and now the top rate is 1.55% APY.

Savings and CD rate averages have held steady over the past two weeks although the top savings rate has dropped significantly.

Savings Rates

Average rates dropped slightly from 1.34% APY to 1.31% APY. The top rate has come down significantly. Two weeks ago the top rate was 1.75% APY and now the top rate is 1.55% APY. One month ago, the top rate was 2% APY. So, in four weeks the top rate you could get on a savigns account has fallen significantly. For promotional rates, Everbank remains on top with their 3-month introductory bonus rate of 2.25% APY. After the three-month period, the rate drops down to 1.26% APY for a blended one year APY of 1.51% APY.

CD Rates

The average 1-year CD also remained steady at 1.57% APY for the fourth week in a row. First City Bank continues to hold the top spot with a 1.80% APY CD. First City Bank is in bad financial shape and has been operating under a FDIC Cease and Desist Order since 10/09. Acacia Federal Savings has moved into the second sport with a 1.65% APY CD.

The average 3-year CD rate is the only average to dropped slightly from 2.43% to 2.42% APY. The top spot continues to be occupied by USAA Federal Savings Bank, which offers a 2.65% APY CD with a minimum deposit of $175,000. The next highest rate is Acacia Federal Savings at 2.50% APY and a $500 minimum deposit.

The average 5-year CD rate remained steady this week at 3.12% APY after dropping from 3.17% APY four weeks ago. The average is now closing in on the 3% mark.

USAA continues to have the top rate at 3.31% APY. Everbank which holds the second highest rate dropped from 3.30% APY to 3.26% APY. A month ago Everbank was offering the same CD for 3.39% APY.

 

Savings,CDRateAnalysis

The spread between savings and 3-year CD rates dropped slightly and now stands at 1.11, from from a high of 1.24 in March. The ratio between 1-year CDs and 5-year CDs has remained steady over the past month and appears to have topped off. What does that mean? Both 1-year and 5-year CD rates have stopped dropping and are maintaining their relative ratios. The flat trends of the past month seem to support this conclusion. If the economy continues to improve I expect we'll see longer term CDs begin to move up first, followed by shorter maturities once the Fed looks poised to raise the Fed Funds Rate.

SavingsandCDSpreadAnalysis


WT Direct Offering Up to $500 Cash Bonus to Open Savings Account

Rate information contained on this page may have changed. Please find latest savings rates.

WT Direct just launched a pretty rich savings offer today. When you open a savings account with them, they'll pay a cash bonus of $100 for every $10,000 you deposit, up to $50,000. That means you can make $500 for depositing $50,000 into the bank.

Looking for a relatively easy way to make $500? WTDirect just launched a pretty rich savings offer today. When you open a savings account with them, they'll pay a cash bonus of $100 for every $10,000 you deposit, up to $50,000. That means you can make $500 for depositing $50,000 into the bank. The offer is good until June 15.

You only need to keep the money in the bank for three months to receive the cash bonus.

So, let's take a look at the economics of the offer. $100 for every $10,000 deposited equals a 1% return. WTDirect is on the high yield savings account list with a rate of 1.16%. That means the effective rate of keeping your money with them for a year is 2.16%, which is the highest of any bank on the BestCashCow rate tables.

The nice thing about WTDirect's offer is you only need to maintain the money in the bank for 3-months. That means the annualized return is actually 4%.

WTDirect is the online division of Wilmington Trust Corporation (NYSE: WL), a $48.1billion asset financial services company with more than 2,500 people worldwide. The company was founded in 1903 by members of the duPont family.  It is the largest banking company in Deleware and the 15th largest personal trust institution in the United States.

The bank was rated 3 out 5 stars (Adequate) for its safety and soundness according to Bauer Financial.


Top Savings and CD Rates Flat - Little Movement in Past Week

Rate information contained on this page may have changed. Please find latest savings rates.

Saings and CD rates were mostly flat this past week with the top rates holding.

Saings and CD rates were mostly flat this past week with the top rates holding.

Savings Rates

Average rates remained at 1.34% APY. Southern Community Bank continues to have the highest non-promotional ate at 1.75% APY. For promotional rates, Everbank remains on top with their 3-month introductory bonus rate of 2.25% APY. After the three-month period, the rate drops down to 1.26% APY for a blended one year APY of 1.51% APY.

 

CD Rates

The average 1-year CD also remained steady at 1.57% APY. First City Bank continues to hold the top spot with a 1.80% APY CD. First City Bank is in bad financial shape and has been operating under a FDIC Cease and Desist Order since 10/09. Tennessee Commerce Bank maintained the second spot at 1.70% APY.

The average 3-year CD rate is the only average to drop and it fell from 2.45% APY to 2.43% APY. The top spot continues to be occupied by USAA Federal Savings Bank, which offers a 2.65% APY CD with a minimum deposit of $175,000. The next highest rate is Acacia Federal Savings at 2.50% APY and a $500 minimum deposit.

The average 5-year CD rate remained steady this week at 3.12% APY after dropping from 3.17% APY two weeks ago. The average is now closing in on the 3% mark.

USAA continues to have the top rate at 3.31% APY. Everbank which holds the second highest rate dropped from 3.30% APY to 3.25% APY. Two weeks ago Everbank was offering the same CD for 3.39% APY.

 

Savings,CDRateAnalysis

The spread between savings and 3-year CD rates dropped slightly and now stands at 1.09, from from a high of 1.24 in March.. While savings rates have continued to come down, 3-year CD rates are coming down even faster. The ratio between 1-year CDs and 5-year CDs has remained steady over the past month and appears to have topped off. Expect 3-year CD rates to fall further to bring this ratio down.

SavingsandCDSpreadAnalysis