How is 5% Checking Possible? The Math Behind Reward Checking Accounts

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How is 5% Checking Possible? The Math Behind Reward Checking Accounts

Posted by drake 1224 days ago, popular 1224 days ago (http://bankdeals.blogspot.com)
Category: Personal Finance | Tags: banks checking accounts high rates

There are checking accounts that are still paying over 5%. How is this possible when the best online savings account only pays 4%? I review the math behind these accounts, the changes that have occurred over the last two years and what we may see in the future.

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thekritz 1224 days ago

Hmmm, this is very informative. I always wondered how banks could afford to pay out such high rates to customers- I still believe, however, that something fishy is going on behind the scenes.

sunnyspeaks 1223 days ago

Informative article. A must read for everyone who wants to know more about a checking account.

ESKCSG 1202 days ago

Check out the best rates on short term deposits at big banks versus those at select community banks from CheckingFinder.com. Community banks continue to offer higher yields on short term deposits to serve as economic engines.

COMMUNITY BANKS

Florida Central Credit Union 6.01 FL

First Robinson Savings Bank 6.01 IL

Union State Bank/Bank of Atchison 6.01 KS

Communications Federal Credit Union 5.25 OK

Connexus Credit Union 5.15 WI

Keystone Bank 5.15 AL

First New England Federal Credit Union 5.15 CT

Three Rivers FCU 5.01 IN

Legence Bank 5.01 IL

Community Bank of Pleasant Hill 5.01 MO

Community Bank of Raymore 5.01 MO

United Heritage Credit Union 5.01 TX

MEGA BANKS

• ING decreased their highest rate offered by 25 basis points, from a 2.50% APY on a 1 year CD to a 2.25% APY on a 4 year CD.

• Schwab decreased their 18 month CD rate by 15 basis points, from a 2.65% to 2.50% APY.

• E*Trade decreased their 5 year CD rate by 30 basis points, from a 1.70% to 1.40% APY.

• E-Loan increased their 6 year CD rate by 50 basis points, from a 3.50% to 3.70% APY

• Washington Mutual decreased their 5 year CD rate by 50 basis points, from a 3.00% to 2.50% APY.

• AARP Financial Savings Center decreased their savings rate by 50 basis points, from a 2.00% to 1.50% APY.

• Wachovia increased their 17 month CD rate by 15 basis points, from a 1.85% to 2.00% APY.

• E-Loan currently has the highest rate at 3.70% APY on a 6 year CD.

• E*Trade currently has the highest savings rate at 2.50% APY.

Courtesy of BancVue.

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