Online Banks ready for Summer with New Deals and Rates

Online banks are ready for their summer promotional blitz by offering a wide variety of new online banking deals as well as higher rates on bank deposits. Consumers now have a variety of incentives to open new bank accounts including free cash, free airline miles, or even free iPods. In addition, with the prospect of higher interest rates on the horizon many online banks have increased their deposit rates. This week’s best rates and deals include:

Countrywide Bank 1-year CD at a 3.95% APY
GMAC Bank 2-year CD at a 4.10% APY
Discover Bank’s 4-year CD at a 4.57% APY
KeyDirect’s 5-year CD at a 5.00%

Find more CD rates at Money-Rates.com as well as rates on money markets (+3.80%), checking accounts (+4.00%), savings accounts (+4.00%), and reward checking accounts (+6.00%).

Wachovia Bank’s Way2Save Program is a savings progam in which Wachovia Bank will pay up to $300 to customers for Wachovia Bank check card purchases, paying bills online, or seting up automatic debits. Each transaction earns $1 which is transferred into the savings account. Wachovia Bank is listing a 5.00% APY on their site as a first-year bonus for the savings account.

Bank of America’s Keep the Change Promotion rounds up every Bank of America check card purchase made by cardholders and then transfers the difference to a Bank of America savings account. Bank of America will match the amount transfered for the first three months and thereafter will match 5% a year. The maximum total that Bank of America will match in a year is $250. Limited to five checking accounts.

UFB Direct has a Mileage Checking and Mileage Savings promotion where customer can earn American Airlines AAdvantage miles (up to 17,00 miles) for their banking activity by opening a checking or savings account at UFB Direct.

Midwest Bank will pay a $100 bonus for new customers who open a checking and relationship savings accounts. To be eligible for the bonus the checking account must have direct deposit. Offer limited to one reward per household.

Flagstar Bank will pay 10% APY on a 6-month CD for customers who open a new checking account and have at least 15 transactions such as bill payments through online banking or $250 in direct deposit credits per month. The minimum deposit is $500 and the maximum deposit is $2,500. One CD per household.

Trustco Bank is rewarding customers who open a new checking account with direct deposit with a free $100 savings bond. Offer valid until 7/5/2008. One reward per household.

Bank of North Georgia is giving away free iPod nano for customers who open a personal checking account before June 20, 2008, enroll in online banking, and make three online bill payments by July 31, 2008. Offer good for new customer only and limited to one per household.

Sovereign Bank is giving away a $25 iTunes gift card for students who open a checking account with at least a $10 deposit and sign up for a VISA CheckCard.

Westbridge Bank and Trust is offering a free $50 BP gas card for customers who open an interest checking account which currently is yielding 3.55% or a $100 BP gas card for customers who open a 3.65% 18-month CD with a $5,000 minimum deposit.

E*Trade Bank is paying a $25 cash bonus if you open a new Max-Rate Checking Account before May 31, 2008. The checking account comes with no ATM fees and a 3.25% APY for accounts of $5,000 or more.

Bank of America will pay a $75 bonus to new customers who open a personal checking account. To receive your $75, apply online or go to your nearest banking center. Use offer code AOU260408, and open a personal checking account before June 30, 2008.
KeyBank is offering a $100 cash reward for trying the Key Express Free Checking account. Customer must make a combination of two direct deposits and/or automated payments each of $100 or more by 8/15/08 to qualify. Apply online at key.com before June 13, 2008.