Bank of America's Interest Rates - 2012 Update

So far, Bank of America's CD and savings account rates in 2012 are pretty abysmal. The best CD rate available is currently their 10 year CD, which yields 2.30% APY, meaning you won't even beat inflation.

Their promotional offers probably offer the best deal as far as Bank of America products go, but to be honest they are still quite terrible. You can get far better rates at your local credit union or with an  an online CD.

Promotional CDs and IRA CDs:

  • 9 month CD yielding 0.30% APY with a minimum deposit requirement of $5,000 for standard deposits and $2,000 for retirement accounts.
  • 12 month CD yielding 0.45% APY with a minimum deposit requirement of $10,000 for standard deposits and $2,000 for retirement accounts.
  • 18 month “Opt Up” CD yielding 0.55% APY with a minimum deposit requirement of $10,000. This product is only available as a standard CD. After 6 months you have a one-time option to raise the rate for the remaining 12 months. The new rate will be based off of current market conditions at that time.

Regular CDs (2012 Edition):

  • 7 to 89 day CD yielding 0.25% APY.
  • 90 day to 23 month CD yielding between 0.28% and 0.35%.
  • 2 year to 35 month CD yielding 0.40% APY.
  • 3 year to 47 month CD yielding 0.60% APY.
  • 4 year to 59 month CD yielding 0.85% APY.
  • 5 year CD yielding 1.10% APY.
  • 10 year CD yielding 2.30% APY.

One thing to note is that BofA automatically renews their CDs with the same duration if you do not opt out once the term is up. There is also an early withdrawal penalty for all these CDs.

Bank of America savings and money market accounts have laughable rates - the only reason you would keep your money in a BofA savings account is because they are "Too Big to Fail."

Eloan CD Rates

E-loan has a CD rate of 1.26 percent annual percentage yield (APY) for a 1-year term. The interest rate on this certificate of deposit is current as of June 1, 2011, and can change at any time. Other online CD rates and terms include:

  • 1.05 percent APY for 9 months
  • 0.75 percent APY for 18 months
  • 1 percent APY for 2 years
  • 1.15 percent APY for 3 years
  • 1.35 percent APY for 4 years
  • 1.9 percent APY for 5 years
  • 2 percent APY for 6 years

Shorter certificate of deposit terms than those listed are also available. You’ll need a minimum of $10,000 to open a certificate of deposit at E-loan. The CD rates assume that the principal and interest will remain on deposit for the full term. Early withdrawal of funds results in a penalty fee.

E-loan also has an online savings account with tiered savings rates. The rates include:

  • 0.2 percent APY for balances of $5,000 to $9,999
  • 0.5 percent APY for $10,000 to $24,999
  • 0.55 percent APY for $25,000 to $49,999
  • 0.6 percent APY for $50,000 to $99,999
  • 0.65 percent APY for $100,000 and up

E-loan offers banking services nationwide. It is a wholly-owned subsidiary of Banco Popular North America. Accounts are insured by the Federal Deposit Insurance Corp.

Hudson City Money Market Account

Hudson City has a money market that earns 1.25% APY. This money market rate applies to balances of $2500 and more. If your balance fall below 2500 you'll earn 1% APY. This rate is current as of 3/22/11. The Hudson City MMA account features:

  • Interest rates are subject to change without notice
  • Interest is compounded daily and monthly
  • Statement format
  • Limited withdrawals and transfers
  • Insured by Federal Deposit Insurance Corp. (FDIC)
  • Telephone banking

Hudson City also offers a money market checking account that earns interest. Balances of $25,000 and up earn a higher interest rate, which is currently 0.85 percent APY. Accounts with balances below $25,000 earn 0.6 percent APY. Money market accounts with balances of less than $10,000 are charged a $10 monthly fee. Accounts also have limited check writing and third party payments, unlimited deposits and in-person withdrawals and free debit/ATM cards.

Bank accounts at Hudson City are available to individuals who live or work in New York, New Jersey, Connecticut, Pennsylvania and Delaware. Accounts can be opened online. Hudson City has been named by Forbes magazine to be among the best managed banks in America.

Savings Rate at 5.3%

Saving money is one of the smartest financial moves you can make whatever the state of the economy. Many Americans have changed their spending ways and are adding to savings accounts. The personal savings rate was 5.3 percent of disposable income in November, compared with 5.4 percent in October, according to a recent report from the Bureau of Economic Analysis.

Although savings rates are not very high–savings accounts are paying an average of 0.39 percent interest and money market accounts are averaging 0.32 percent–it still makes sense to build a nest egg. Getting started on a savings program now can help you become disciplined about building up an emergency fund. If you stick with a savings plan, the money will add up sooner than you think, especially if you put it away and don’t touch it until it’s really needed.

Shop around to find the right savings account for your money. If you know that you won’t need the funds for a year or two, consider opening up a certificate of deposit to earn a higher interest rate. CD rates for a 1-year term are averaging 0.77 percent, but if you shop around to compare bank deals you should be able to find an account with higher promotional rate.

SFGI Online Savings Account

SFGI Direct has an online savings account with a 1.41% annual percentage yield (APY). You can open a savings account online. Details of the offer include:

  • No monthly service charge
  • Minimum opening balance of $500
  • Minimum balance required to earn interest is $1
  • Insured by the Federal Deposit Insurance Corp. (FDIC)

The online savings rate is current as of Dec. 3, 2010. Interest on savings accures daily and is compounded monthly on the last day of the statement period. Savings rate is not guaranteed and could change at any time.

You can fund the savings account by transferring money from another bank, and you can only linke to one external account. You must open a high interest savings account online. The maximum opening deposit that can be made is $25,000. The opening deposit will be available five business days after your external account is charged.

The savings offer is for personal accounts only; the bank does not offer business accounts or individual retirement accounts (IRAs). SFGI Direct is a division of Summit Community Bank of Moorefield, W.Va., which is a financial holding company that serves customers in parts of West Virginia and Virginia.

EverBank Yield Pledge MMA Tops Savings

EverBank's Yield Pledge Money Market Account is currently yielding a first year APY of 1.51%, soundly beating the national average for money market rates by nearly 75%. The 1.51% APY does, however, come with a few strings attached.

To begin with, rate is actually 1.26% APY but it comes with a 3 month promotional rate of 2.25% APY which averages out to 1.51% over the course of 12 months. As of now the second year will feature the 1.26% APY but keep in mind this is a variable interest rate that is subject to change at anytime, which means it could potentially go up or down.

Secondly, although the minimum balance required for this account is $1,500 you will have to maintain a minimum balance of at least $5,000 to avoid the monthly fee of $8.95. So if you were to simply open this account with the minimum balance requirements your accrued interest would be completely wiped away with fees (and them some).

Unless you can maintain a $5,000 monthly balance this account is not worth it. However, if you generally keep a large amount of money in your liquid savings accounts then this account will provide you with one of the top FDIC insured money market yields on the market.

Best Savings Rates - 11/8/2010

Online banks are overall offering better savings account interest rates than local banks and credit unions. The primary reason for this is that online banks have much lower overhead costs, and do not need to maintain a brick and mortar physical locations. Often you'll be able to find better savings rates in local community credit unions. However, as interest rates continue to stay low, online banks have been the place to go to find the best savings rates.

Top Money Market and Savings Rates from Online Banks:

WT Direct Merges with M&T Bank

Wilmington Trust announced today that it will merge with M&T Bank Corporation. Here's an excerpt from the press release:

Its merger with Wilmington Trust will extend M&T’s community banking franchise, and add to its market-leading positions in Upstate New York, Central Pennsylvania and the Mid-Atlantic region. M&T will acquire 48 branch locations in Delaware and 225 ATMs, and there is no overlap between branch networks. Following completion of the merger, M&T will operate approximately 800 branches and 2,000 ATMs in eight states, the District of Columbia and Ontario, Canada.

M&T expects to gain approximately $8.3 billion in deposits and $8.1 billion in loans from the merger (before acquisition accounting adjustments), giving M&T the top deposit share and a leading commercial lending position in Delaware.

For us savers, the noteworthy issue is that WTDirect is a division of Wilmington Trust FSB which is part of the bank holding company Wilmington Trust Corporation.

The worrisome issue for us savers is that M&T Bank hasn't been kind to its internet savings accounts. One of its internet divisions, OnBank, used to have a competitive savings account in 2008, but in 2009 the rate plummeted to 0.50%, and it's still 0.50% as of today. M&T Bank also offers the e-Money Market from its main bank website. Its rate also fell to 0.50% in 2009 and it remains at 0.50% as of today.

It's still too early to know how this merger will affect WTDirect. According to the press release, the merger is expected to close by mid-year 2011. After that I'm sure it'll take many months for the conversion to take place. Even after the merger, it's possible that M&T Bank will let WTDirect to continue without changing it too much. Hopefully that will be the case.

Zions Bank Internet MMA

Zions Bank has an Internet money market account with an annual percentage yield (APY) of 1.11%. The money market rate is currently one of best rates for a money market, compared with the average of 0.33% APY. The money market rate is current as of April 26, 2010. Details of the money market offer include:

  • Minimum opening deposit if $1,000
  • Must have a balance of at least $2,500 to earn promotional money market rate
  • Interest is variable and can change at any time
  • Fees may reduce earnings

Zions Bank also has an Internet savings account with a 1.11% APY. To earn the interest rate you must have a balance of $1,000, but the minimum opening deposit is $100. The interest rate for the online savings account is variable and can change at any time. The savings account is only available to consumers and can also be opened in the name of a trust.

Both online accounts have no monthly fees or minimum balance fees. They are also insured by the Federal Deposit Insurance Corp. (FDIC). Both the savings account and money market account can be accessed online 24 hours a day. Zions Bank is based in Salt Lake City.

Northpointe Bank Tops 3 Year CD Rates

Northpointe Bank has 3-year certificate of deposit with an annual percentage yield (APY) of 2.1%. Other details of Northpointe certificate of deposits include:

  • Withdraw funds after 18 months without a penalty
  • $5,000 minimum deposit required to open account
  • CD must be opened with funds not currently deposited at Northpointe Bank
  • Deposits insured by Federal Deposit Insurance Corp. (FDIC) up to $250,000
  • CD rate not valid with other offers
  • Automatically renewable upon maturity

Northpointe Bank has other certificates of deposit with terms ranging from 6 months to 5 years or more. Other CD rates include:

  • 1% APY for 6 to 11 months
  • 1.35% APY for 12 to 17 months
  • 1.55% APY for 18 to 23 months
  • 1.7% APY for 24 to 29 months
  • 2.4% for 48 to 59 months
  • 2.7% for 60 months

The bank also offers a high yield money market account with a 1.4% APY. The money market requires a minimum deposit of $100,000. Northpointe Bank is based in Grand Rapids, Mich., and is locally owned and operated. If you live outside of Michigan you can call the bank to find out rates for your state.