Online Bank Deals with Yields of 5.50% and Higher

Countrywide Bank is fighting back after a difficult week which the bank maximized its credit line to $11.5 billion, their stock price (CPC) continued to fall, Moody’s warned that the company’s debt may be downgraded to junk, and news reports of customer storming branch offices to withdraw funds. Countrywide has responded by pointed out the bank has $107 in assets and reiterating that customer deposits are FDIC-insured up to $100,000 per depositor (see news story here). In another move designed to raise deposits Countrywide Bank has raised bank CD rates as follows:

90-days 5.50% APY, $10,000 minimum

180-days 5.50% APY, $10,000 minimum

270-days 5.50% APY, $10,000 minimum

1-year 5.65%, $10,000 minimum

IndyMac Bank saw their stock (IMB) jump 11% Friday after the announcement by the Federal Reserve that the discount rate would be lowered 50 basis points. The nation’s 2nd largest lender also fighting intense media scrutiny over their mortgage portfolio also raised deposit rates last week to shore up their base. Their rate offerings include:

5-month CD - 5.55% APY, $1,000 minimum

1-year CD - 5.55% APY, $1,000 minimum

Internet First RateMoney Market Account -5.75% APY, $25,000 minimum

More Online Bank Deposit Deals with +5.50% Yields

6.17% APY from FirstBank on their checking account for new customers. The details below are from their website:

FirstRewards is an account that lets you earn sky high interest (currently, 6.17% annual percentage yield) on balances up to $25,000 (1.00% on balances above $25,000) and refunds all domestic ATM surcharges. The minimum opening balance is $0. Sky high Interest is earned by completing a few tasks between statements (from the 4th Wednesday of one month to the 4th Tuesday of the next). If you complete all of the tasks, you earn the sky high interest, it’s that simple. In the event you do not complete the required tasks your account will earn .20% annual percentage yield. The tasks that will allow you to earn your accrued interest are: • At least 10 check card transactions (excess transactions will not carry over to the next month and ATM transactions are excluded) • Direct Deposit or at least One ACH Credit or Debit • Access Online Banking (by any joint account holder) • Receive Electronic Statements (

EverBank is offering a 6.01% APY on their money market and checking accounts for new customer with a rate guarantee of 90 days after which the yield drops to their line rate.

Equity Bank is promoting their Gold Checking account with a 6.01% APY on balances of up to $25,000.

FNBO Direct has a 6.00% savings account rate available until September 27. No guarantee on hwo long the 6.00% yield will hold.

Umbrella Bank has a new Savings account called the Green Day Savings account with a 5.83% rate on all balances for 90 days after which the rate drops to a tiered rate (currently 4.87% on a $25,000 balance).

New Dominion Bank is offering variable rate CDs with an interest rate tied to the Wall Street Journal prime rate. The bank will adjust the rate on the CDs as the prime rate increases or decreases. Current rates are 1-year (5.50% APY), 18-month (5.55% APY), 2-year (5.60% APY), and 2.5-year (5.60% APY).

Washington Mutual Bank 5.50% APY on their 6-month CD, $1,000 minimum

National Bank of Kansas City 5.50% APY on all terms from 90-days to 5-years, $10,000 minimum

Fireside Bank 5.50% APY on their 5-year CD, $50,000 minimum