Is this surprising? Not at all. After FED Chairman Ben Bernanke came out with his latest statement reminding Congress and the general public that they plan on keeping interest rates at these record low levels through 2014, it seems like most banks and credit unions are doing exactly what Melrose did. And although Melrose lowered their CD rates, we gotta hand it to them for holding out for so long. The last time they cut their rates was at the end of the summer of 2011, and interest rates in general have fallen slightly since then, with almost every major bank and credit union making some additional cuts to their FDIC insured savings products.

Related: See how much banks borrowed from the FED in 2008.

Melrose Credit Union’s CD Rates (Feb 2012):

(Visit Melrosecu.org for further information regarding interest rates.)

To put the above CD rates in further perspective the current national average for 6 month CD’s, 12 month CD’s and 3 year CD’s sit at roughly 0.40% APY, 0.60% APY and 0.95% APY, respectively.

If you’d like to take a quick look back at the history of Melrose Credit Union’s CD rates check out further articles from our archives noting their premium savings products.

They were featured in our 2011 round-up of the best CD rates from credit unions with their 3 year CD’s pumping out a return of 1.91% APY in the beginning of May of last year. And if you take a look even further back you’ll see they were once featuring the best 12 month IRA CD rates in the nation (during the end of 2010).

In light of this little tidbit, we put together a list of the top 3 new checking account bonuses that won’t end up paying off if you’re not considered a ‘high value account’ to them.

However, before we hop into the 3 account promotions, let’s analyze what makes up a high value client for the likes of Citibank, Bank of America, Chase or any other large national powerhouse.

1) Someone who has or will open multiple accounts with the bank (ie. credit cards, mortgage or home loan, auto loan, etc.)

2) Someone who regularly holds a high balance in their checking account. In fact, these are the would-be customers hit by the new fees that were so badly brutalized in the media. Anyone who regularly keeps under $500 in their checking account can consider themselves a ‘low value client’ to a big bank and should probably look into a credit union or online bank. Conversely, check out how one can earn 2% cash back on their checking account by keeping more than $5k as a balance.

3) Someone who plans on keeping their retirement account(s) with the bank’s investment arm. Obviously the larger your nest egg, the more valuable of a client you are.

So…for the littler guys just looking for a no fee’s checking account with a lucrative sign-up bonus, STAY AWAY from these tempting offers, which, by the way, will immediately pop up in Google when searching for “checking account bonuses.” Don’t believe me? Give it a try!

Stay Away From…

1) Key Bank’s Checking Account Bonus. Get $150 by opening one of their many checking account packages.

What they tell you: Get $150 when you switch to Key Bank.

What you’ll also need to know: You’ll need to open one of their various checking accounts and make 60 payments and or purchases within 3 months, plus, make 3 separate $500 deposits in 3 months. However, the most important thing to notice is that ALL of their checking account packages come with “maintenance fee’s” (besides one) unless you can keep a rather hefty $10 – $100k in them. Their most basic checking package is the “Key Express Checking Account” and you’ll still need to deposit at least $500 or initiate five account transfers per statement cycle to avoid fees.

2) Citibank’s Checking Account Bonus Offer. Open one of two checking accounts and earn between $50 and $100 in bonuses.

What they tell you: Get $100 after opening a Citi Gold Checking Account or $50 from their traditional Citi Checking Account.

What you’ll also need to know: There’s no monthly service fee if you maintain a $15,000 combined average monthly balance requirement in eligible products; otherwise $20.00 monthly service fee is applied. Eligible products are linked deposits, loans, mortgages, and investment accounts.

3) Chase Checking Account. Get $125 for opening a new account by using a promo code or getting one emailed to you. Google “Chase Checking Promotion” to find the promo code.

What they tell you: Get $125 for opening a new Chase Checking Account and making one direct deposit. As a quick disclaimer, we did mention this on our list of top checking account offers in 2012, however, we provided the disclaimer that this account bonus will only be worth it if you plan on making Chase your primary bank and moving larger sums over to their bank.

What you’ll also need to know: Chase’s checking account has no monthly service fee’s for those who can either make a monthly direct deposit of $500 or more or keep a daily average balance of $1,500. If you can’t you’ll get dinged with a $12 fee. So as you can see it’s the best of the three big bank checking account promotions, but still likely not worth it for the little guy.

This week we rounded up the top 12 month CD rates from Arkansas based financial institutions and found that all the noteworthy rates for this specific term (1 year) are coming from smaller community based banks – other than one credit union which made our top-5 list.

Highest Yielding 12 Month CD Rates Arkansas (2012 Edition):

(Interest rates are accurate as of February 2012. Visit our CD rate center for updated rates available throughout the country.)

1) Unico Bank, based out of Trumann, Arkansas, is currently featuring a 12 month CD yielding 1.16% APY requiring a minimum deposit of $1,000. To put this offer – the top offer in Arkansas – in perspective, the top 12 month CD rate available online and nationwide sits at 1.15% APY and requires a $1,000 minimum deposit as well. This rate is offered by Doral Bank, a bank frequently leading the pack for 1 year deposit rates.

2) Corning Savings and Loan Association is featuring a 12 month CD yielding 1.11% APY requiring a minimum deposit of $1,000 as well. Corning Savings and Loan Association is based out of Pocahontas, Arkansas and has just one location.

3) First Security Bank is featuring their 17 month CD with an APY of 1.10% requiring a minimum deposit of $2,500. Keep in mind this is a 17 month CD, not a 12 month CD. Sometimes banks offer these oddball terms usually when they are associated with a promotional offer. Even though this promotional offer is a little less than what you can yield with the top online CD’s available nationwide we still figured it was worth mentioning since it’s offered from a local Arkansas based institution. First Security Bank has just on location in Jonesboro, Arkansas.

4) Southern Bankcorp Bank is featuring their 12 month CD with an APY of 1.06% requiring a minimum deposit of just $500. Southern Bankcorp Bank also has just one location in Trumann, Arkansas.

5) Timberline Federal Credit Union is featuring their 12 month CD also with an APY of 1.06% requiring a rather hefty minimum deposit of $10,000. Timberline Federal Credit Union has two locations in Arkansas – one in Fordyce and the other in Crossett.

Think we missed a high yielding certificate of deposit in Arkansas? Let us know about it by leaving a comment!

The first state we chose to survey was Florida. As most people know (especially those into politics or those that reside in the state) Florida’s demographics primarily consists of an aging population. A population that has made their contributions to society and have earned their wages for doing so – be it large, small or somewhere in between – and are looking for fixed income investment vehicles to stick at least a portion of their nest egg. And here at BankVibe.com we currently are recommending the 3 year CD. We find this to be the optimal time in which to invest. After the FED’s most recent meeting and public announcement, we think the 36 month deposit, if invested in today, will expire at precisely the time in which interest rates will begin to rise, thus freeing up those funds to put back into another certificate of deposit with a higher annual percentage yield.

The top 3 year CD rates in FL are listed below. Keep in mind that the current national average for 36 month certificates of deposit hovers around an incredibly low 1.0% APY.

Top Five 3 year CD Rates in Florida (February 2012)

(If you don’t live in Florida and would like to review the best CD rates available nationwide, stop by our CD rate center.)

1) Peoples Alliance Federal Credit Union (Miami, FL) has a 36 month deposit yielding 1.67% APY requiring a minimum deposit of $500.

2) American Airlines Federal Credit Union (Miami, FL) has a 36 month deposit yielding 1.61% APY requiring a steep minimum deposit of $10,000.

3) Florida Credit Union (Starke, FL) has a 36 month deposit yielding 1.61% APY requiring a minimum deposit of $1,000.

4) Flagier Bank (West Palm Beach, FL) has a 36 month deposit yielding 1.60% APY requiring a minimum deposit of $500.

5) GulfSouth Private Bank (Santa Rosa Beach, FL) has a 36 month deposit yielding 1.60% APY requiring another rather steep minimum deposit of $10,000.

Have you locked in a 3 year CD lately in the sunshine state with a higher interest rate than what we’ve listed above? If so, please share by leaving a comment!

Why 3 year CD’s?

Because interest rates are horrendous and are expected to remain this low for the foreseeable future. We made a similar argument based on this reasoning for 2 year CD’s a short while ago but we believe the same could likely apply for 36 month deposit products as well.

Basically the FED has made it quite clear that interest rates are not going to rise anytime in 2012 or 2013. And as a hunch, we see it completely rational to assume that key rates could also remain at these historically low levels even through 2014 as well.

A number of economical factors must change (and rather dramatically at that) for anything significant to change on the interest rate front for savers within the next 3 years. First, regardless of the record low mortgage rates for both new home purchases and refinancing, there is still a vast supply of homes on the market (and in foreclosure) that simply aren’t selling. This dynamic gives the FED absolutely zero incentive to increase rates when homes can’t even sell with the lowest mortgage rates we’ve seen in decades. Second, the jobless rate is still sitting at an unprecedentedly high rate which means there is a shortage of potential home buyers to soak up this plethora of real estate on the market. So while these factors need to make a positive turn for interest rates to begin to rise we find it highly unlikely.

That being said, rates will inevitabley rise again. So for those looking to lock in the most optimal rates for our current economic conditions, which then free up these funds at a time when savings rates could be on the rise again, we find the 36 month deposit as one of the best FDIC insured savings product to take advantage of in 2012.

2012

Now the good news!

Since then, crafty online banks and banks who cater to a more diverse set of consumers (not just the most profitable ones) have seen this as a golden opportunity to dangle tempting promotional offers in front of consumers contemplating a new checking account. So in many respects now is an optimal time to either switch your checking account over to a new bank or credit union or start a new account all together while cashing in on some freebies and cash!

Some of the accounts you will see here will be limited to a select group of consumers in order to avoid fees or even take advantage of the offer in the first place, but the top 2 (which are by far the most lucrative offers in the long run) are available online and to everyone in all 50 states.

Top 5 Checking Account Promotions of 2012:

(We will attempt to keep these offers up-to-date throughout the course of 2012. If you feel we’ve missed one, please let us know in the comment section below!)

1) ING Direct Checking Account - $50 Sign-Up Bonus and No Fees! This was last year’s number 2 top checking offer but took over at the one spot because they’ve managed to attach an interest rate to the account that is higher than the current national average for interest checking accounts. When you combine this with the sign-up bonus and the zero fees and the ease and simplicity of the account, it makes for a pretty enticing offer in 2012. The account is available to open online.

2) Perkstreet Cash Back Checking Account – Have you heard of this checking account before? It not, you better get to know them because it will likely become a household name in years to come. We’ve mentioned this company so many times before on BankVibe.com we feel like we are beating a dead horse by going over the facts again. Just click on the link above to see our full review. In a nutshell you’ll get 1% cash back on all purchases with a balance under $5k and 2% cash back on all purchases when your balance is above $5k. Consumers can earn up to $600 in cash back each year according to Perkstreet.

3) MB Financial Checking Account – Up to $200 in bonuses. This bonus structure, like many checking promo’s, is set up in tiers so that you earn a little bit of money for completing a certain number of requirements. For example, to earn the first hundred you have to set up a monthly recurring direct deposit. This likely means you’ll have to make this your primary checking account. You’ll also earn additional $50 and $25 incentives for things like opening additional accounts with the bank and enrolling in e-statements. Check out the bonus link here.

4) Chase Bank Checking Account – $125 Bonus. This is another bonus that is on and off the market every other day it seems. Right now just Google “Chase 125″ and you’ll get to the proper page. Basically you just need to set up a direct deposit with their “Chase Total Checking Account” either by stopping into a local branch or by having the coupon emailed to you. Watch out for fees with these accounts though, if you keep a limited balance you might get dinged pretty hard. Their latest promo is dated to expire at the end of February 2012.

5) Sovereign Bank – 3 promotions with $125, $75 and $50 cash bonuses for new checking accounts. Their premier checking account package (watch out for fees!) provides the $125 bounty. Sovereign Bank’s Preferred Checking Account pays the $75 bonus once you make 5 debit card transactions (again check fine print for fees!). The last offer is for their ‘less profitable clients’ and comes with a $50 bonus. It’s called their “Classic Checking Account.”

Know of a better existing deal in 2012? Tell us about it in the comment section below!

Before mentioning the institutions and their APY’s on their 1 year CD’s we should note that as of today the national average for these products sits at a meager 0.66% APY. You may also want to compare that with the top 12 month CD rates from our database of nationally available CD’s if you reside outside of Louisiana.

Top Three 12 month CD Rates in Louisiana:

(Interest rates accurate as of January 2012.)

1) First NBC Bank (Terrytown, Louisiana) has a 12 month CD featuring an APY of 1.26% requiring a minimum deposit of $1,000. First NBC Bank received it’s charter to begin operations in 2006 and now controls roughly $60 million in assets.

2) Beauregard Federal Savings Bank (Deridder, Louisiana) has a 12 month CD featuring an APY of 1.25% requiring a minimum deposit of $1,000. Beauregard Federal Savings Bank, originally established in 1948, is still relatively small with just 3 locations. They acquired their latest bank in 1988 which is also located in Deridder, LA.

3) Jefferson Financial Credit Union (Metairie, Louisiana) also has a 12 month CD featuring an APY of 1.25% however, their minimum deposit requirement is slightly more steep at $10,000. To join Jefferson Financial Credit Union you must submit a written request detailing why you wish to join. Visit their website for a sample letter or give them a call at 348-2424 ext. 123 for further instructions.

Think you know of a better 12 month CD rate in Louisiana? We doubt it! But let us know by leaving a comment!

Your first option would be to find a card with an extended 0% intro APR option. The longest term we’ve ever come across has been a 21 month 0% APR card from both Discover and Citibank. Fortunately for consumers in the market for these types of cards there are several 21 month 0% APR cards still on the market. Visit our balance transfer credit card marketplace to compare all the features of these cards as well as any promotional offers.

Now on to our favorite type of balance transfer card – the no balance transfer fee credit card.

These types of cards are always promotional offers that never last more than a few weeks. And we generally see them come around right after the new year. There is one still available through the end of this month in which we covered in an earlier article. However, for those that may have missed the offer it can be found using the link below (or read our review here).

Discover More “No Balance Transfer Fee” Credit Card

Here are some quick highlights of the card:

1) No Balance Transfer Fee. (Only if you sign up before Jan 31.)

2) 0% Intro APR on both balance transfers and purchases for 12 months.

3) 5% cash back in a rotating set of everyday type categories (gas, groceries, etc).

4) 20% cash back when you shop online through the Discover website.

No let’s further examine how valuable these “no balance transfer fee” cards really are and how much you can potentially save by transferring your existing debt to one of them.

First, the average balance transfer fee is between 3% and 5% for ALL balance transfer credit cards. Discover Bank is the only credit card issuer that we’ve seen waive this fee. Ever.

If you bank with a credit union and have an existing balance with another credit card outside of your credit union, you may want to see if they can provide a similar card as well if you’d prefer not to open a Discover Card, but we find it unlikely they have a similar offer.

Potential Savings with Discover Bank’s No Balance Transfer Fee Credit Card:

Assuming you have $1,000 in credit card debt and transfer it to a 0% APR balance transfer card you would be saving $50 assuming a 5% balance transfer fee.

5% x $1,000 = $50 in savings

Now assume you have $5,000 in credit card debt and transferred it over to a 0% APR card. Your savings would then be a much more substantial $250 (again assuming a 5% BT fee).

5% x $5,000 = $250 in savings

Now let’s go further and assume you have a whopping $15,000 in credit card debt and need to transfer it immediately to a 0% APR card because you’re likely getting smothered with interest charges. In this more extreme example you would be saving an incredible $750 (assuming 5% BT fee).

5% x $15,000 = $750 in savings

When obtaining one of these cards it’s absolutely crucial that you budget your monthly payments so that the debt you’ve transferred can be fully paid off before the 0% intro APR period is over otherwise you will likely be hit with an APR between 10.99% and 19.99% depending on your credit standing. And although they allow the 0% APR to cover new purchases as well, we would highly recommend never using the card for purchases only as a tool to recover from suffocating credit card debt.

When ‘no balance transfer fee credit card promotions’ become available they never last long, so if you’ve wracked up somewhat of a high credit card debt and are stuck with an unfavorable APR, now is the time to transfer your balance and take advantage of the potential savings.

You can Apply for the Discover More “No Balance Transfer Fee” Credit Card using this link.

– Offer Available Through January 2012 Only –

We love the ease in which one can obtain a CD through CiT Bank. It takes only minutes to set up and you can do it online with a direct deposit. The only catch is that they require a relatively steep minimum deposit requirement of $25,000.

Early this month we hinted that two year CD’s were likely the best FDIC insured deposit account to get involved at this time. Ben Bernanke and the FED has made note that these record low rates will likely remain this low throughout 2012 and most of 2013 as well. Even though he publicly stated this recently it doesn’t mean it’s set in stone, but it is more than likely the most probable outcome. Unless the economy as a whole takes a rapid turn for the better, interest rates in general will likely not budge.

The reason 2 year CD’s pose an enticing term is because your CD will mature at the precise time deposit rates may begin to rise – allowing you to re-invest your funds into a more lucrative CD rate with an alternative term.

An important reminder when investing in bank CDs is this: always call your bank ahead of time (as in one to two months before you CD matures) to make sure they know you would like your funds removed from the deposit account. In almost all situations banks and credit unions alike will automatically reinvest your funds in the exact same deposit product they were in beforehand unless you take the proactive approach in contacting them directly. We routinely receive complaints on our comment sections of people enraged at their bank or credit union for failing to do this.

Top 2 year CD Rates Available Nationally and Online (January 2012 Edition):

1) CiT Bank features a 2 year CD with an interest rate of 1.25% compounded daily (1.26% APY) and requires a $25,000 deposit.

2) VirtualBank holds the number 2 spot featuring a 2 year CD with an interest rate of 1.20% compounded daily (1.21% APY) and requires a $10,000 deposit.

3) USAA Bank and Discover Bank are tied for the third spot featuring 2 year CD’s with an interest rate of 1.19% compounded monthly for USAA Bank and 1.19% compounded daily for Discover Bank. USAA Bank requires a $1,000 minimum deposit while Discover Bank requires a $2,500 minimum deposit.

Top 5 Checking Accounts with No Overdraft Fees in California

1) Perkstreet Checking Account – This account with it’s current features will always hold the number one spot simply because it’s the most rewarding checking account on the market and it’s widely available. You can view our full review here. Just as a quick synopsis of this account, it essentially pioneered the way for “cash back checking accounts.” It comes with zero fees (including no overdraft fees). Plus it gives customers between 1% and 2% cash back on purchases – which can quickly add up to substantial savings. It was also featured in our top checking account promotions of 2011 publication.

2) ING Direct’s Checking Account with $50 Bonus – People regularly forget about this account because ING is cutting back on their physical branch locations but it has one of the simplest fees structures around – and that is that there is none. And we mean ZERO. Just like with Perkstreet mentioned above, there are no overdraft fees or monthly maintenance fees associated with this checking account. This account is available to California residents as well as consumers in all 50 states as well. Plus for a limited time, you’ll nab a $50 bonus just for opening the account!

3) Star One Credit Union – This checking account comes from a California based credit union and is geographically exclusive to that area. The way in which their overdraft fee protection works is that your checking account (debit card) is linked to your credit card so that if you withdrawal more funds than you possess in your checking account it will simply withdrawal it from your credit account without imposing any cash advance fees from the credit card as is typical with most cash withdrawals from credit cards. Star One Credit Union was established in 1956 and is based out of Sunnyvale, California and controls roughly $5.5 billion in assets from 86,000 members.

4) Patelco Credit Union – Patelco Credit Union based out of San Francisco, California has 42 locations throughout California and bordering states. Their “Free Checking Account” is a fairly straight forward checking account with no monthly maintenance fees and free overdraft protection. They will impose zero overdraft fees but they will take the overdrawn funds from another account you have with them (similar to Star One Credit Unions approach above).

5) California Credit Union – CCU based out of Glendale, CA has just 14 locations throughout the state and has been around since 1933. Their “Free Checking Account” also comes with overdraft protection that must be secured by a line of credit either through a credit card or an additional line of credit set up with the institution. Keep in mind though that interest will be paid on the advanced amount.

Since the constant threat of new checking account fees especially associated with the countries largest banks, we figured we’d give a state by state run down of alternative options that still believe in straight forward and easy-going checking. Let us know if you know of a noteworthy checking account in this respect.