Finally, we have a little bit of good news. Ally Bank raised its savings and money market rates from 1.00% to 1.04% APY. These rates are still low even compared to other internet banks, but it's nice to see a rate hike for a change.
The one rate cut this week happened at FNBO Direct which cut its savings account rate from 1.00% to 0.85% APY. When FNBO Direct was offering 6.00% in 2007, I hoped they would be a long-term rate leader. With this latest rate cut, they're now below the banks on the bottom of my list.
The Costco version of Capital One's InterestPlus Savings Account continues to hold the lead for the top rate. Its official yield is only 1.15% APY, but I added 0.12% to the yield to take into account the 10% quarterly bonus when one maintains a minimum $10K balance in the account.
In other side, Southwest 66 Credit Union was originally founded in 1949 as the Odessa 66 Federal Credit Union with the purpose of serving the primary financial and transactional needs of the Permian Basin employees of Phillips Petroleum Company. Southwest 66 Credit Union as it is now known has undergone many changes and expansions to its field of membership. In fact, it now has over 10,500 members and assets of $47 million. If you would like to find out why Southwest 66 is considered one of the best credit unions in Texas, visit the Odessa branch to learn more about the financial products and services offered.
Space City Credit Union provides members with the opportunity to earn interest by offering competitive rates on their deposit as well as loan accounts. They also have a variety of Online Services, also known as E-Services, that provide members with access to their accounts and statements online at their own convenience. Space City Credit Union wants to provide all of their exclusive members with beneficial financial services and products at an affordable price. Please visit Space City Credit Union directly in Houston, Texas for more information.
The big news this week for reward checking accounts was the Senate vote on delaying the debit card interchange fee regulation. It didn't pass, so there will be no delay, and we can expect the Federal Reserve to implement the debit card interchange fee caps. It's scheduled to take effect in July.
The regulation exempts institutions with under $10 billion in assets. This was suppose to prevent small banks and credit unions from being hurt, but it's generally believed that it won't be effective.
The vast majority of reward checking accounts are from small banks and credit unions. So if the regulation does work as intended without hurting the small institutions, reward checking may not be seriously impacted. It's going to take some time before we know the full impact.
The regulation exempts institutions with under $10 billion in assets. This was suppose to prevent small banks and credit unions from being hurt, but it's generally believed that it won't be effective.
The vast majority of reward checking accounts are from small banks and credit unions. So if the regulation does work as intended without hurting the small institutions, reward checking may not be seriously impacted. It's going to take some time before we know the full impact.
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