Savings Account & MMA Rates
CD (Certificate of Deposit) Rates
This is really unforgivable.
Tennessee Commerce Bank jumped to the top of our rankings of the best savings accounts in late August by offering 1.50% APY, with a minimum deposit of just $250.
Anyone who entrusted more than $150,000 in one of its Classic Savings accounts could earn an even better 1.75%.
Now the small bank, which has a single branch in Franklin, Tenn., has slashed its return to 0.40% APY for balances below $150,000, and 0.50% APY for balances between $150,000 and $250,000.
We have seen some outrageous rate cuts since the financial crisis and recession struck two years ago, but rarely have we seen savers hosed like this.
That leaves two banks paying 1.40% APY, as the new leaders in nationally available savings accounts:
Sallie Mae Bank, an online bank owned by the big student lender, requires no minimum deposit and charges no monthly fees.
NewDominion Bank, with branches in Charlotte and Mooresville, N.C., requires a $1,000 average balance to avoid a $10 monthly service fee.
The next best return is 1.35% APY from:
Capital One Bank, which has 700 branches in New York, New Jersey, Connecticut, Louisiana and Texas, and requires a $1,000 minimum deposit. Its InterestPlus Online Savings also pays a 10% bonus on interest earned for qualifying accounts.
Discover Bank, an online bank owned by the credit card company, with a $500 minimum deposit.
Readysaver.com, an Internet site operated by Southern Community Bank based in Winston-Salem, N.C., and which requires no minimum deposit.
Compare these returns with the best savings rates from scores of other banks in our extensive database.
(5 votes, average: 4.20 out of 5)
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