Best savings account rates in California: Top 2

If you’re in the market for a traditional savings accounts – one with a variable interest rate and limited withdrawal allowances, don’t expect much in the way of great interest rates. The average yield for online savings accounts (money market accounts) are providing yeilds of less than 1.00% APY and the average yield for 12 month CDs (fixed interest rate for 1 year with penalties for early withdrawal) are garnering a rather pathetic 1.50% APY.

However, if you reside in the state of California and are willing to consider a couple of credit unions as potential options for your business, then you may be able to snag some higher rates. Below are summaries of two accounts that have better than average savings rates as well as a unique approach.

First is Alliant Credit Union, based out of San Francisco, California. Their savings accounts are currently yielding 2.0% APY (almost twice the national average for these particular accounts). The only problem with Alliant is that their doors are not open to everyone. If you do not fit within their membership eligibility guidelines then you’re most likely out of luck.

The second option, however, opens their doors to potential customers nationwide so long as you’re willing to open a membership savings account and maintain a balance of $5.00. Provident Credit Union, out of Redwood Shores has many locations throughout California. They have branch locations in Belmont, Dale City, Eureka, Folsom, Hayward, Los Gatos, Oakland, Millbrae, Palo Alto, Redwood City, Redwood Shores, San Francisco, San Jose, San Mateo, San Ramon, Sunnyvale, and Walnut Creek. Their savings account is called the “Accumulator Account” and promises a 1 year savings plan with a much higher rate than their 1 year CD (certificate of deposit). What’s unique about this account is that they guarantee the interest rate through 12 months (even if the market falls drastically). The “floor yield” is determined by the credit union and adjusted in January of each year. For 2008, the interest rate has been set at a now seemingly high 2.00% APY, however this rate will be readjusted next month.

Best CD Rates in San Jose, CA: Top 3

Best CD Rates in San Francisco, CA: Top 3

Below are the highest yielding CD (certificate of deposit) rates available to the residents of the Bay Area (San Francisco, CA). The institutions we will cover all include the following cities in California: Oakland, Santa Clara, Santa Cruz, Saint Luis Obispo, San Mateo, Berkley, Bellmont, Palo Altos, Fairfield, Walnut Creek and Vallejo. These come in the form of 6 month CDs, 12 month CDs and 24 month CDs. After sorting through dozens of rate pages by local community banks and credit unions serving the city of San Francisco as well as the state of California, we found that for the most part, you will be able to receive slightly better rates with local institutions than with national ones.

Keep in mind interest rates are time-sensitive in nature, so you will want to refer to the date of this article for accuracy. To get the most CD current rates from national banks, compare CD rates nationwide. 

How did we compile this list? As you are probably aware, higher CD rates tend to accompany longer maturities and since we did not want to strictly list long maturity CD’s we decided to list the deposit rates which beat the national average by the highest margins.

Best 6 month CD rates in San Francisco, CA:

• Pacific Service Credit Union (San Fran branch) has a 6 month CD yielding a whopping 3.50% APY with a minimum deposit of $1,000 required. This credit union has a strict eligibility check-list for membership.
• Far East National Bank has a 6 month CD and an 11 month CD yielding 2.0% APY with a minimum deposit of $5,000 required.
• Hanmi Bank (San Francisco) has a 6 month CD yielding 1.86% APY with a minimum deposit of $1,000 required.

Best 12 month CD rates in San Francisco, CA:

• Far East National Bank has the 11 month CD yielding 2.0% APY with a minimum deposit of $5,000 required.
• Metro United Bank has a 12 month CD yielding 2.0% APY with a minimum deposit of $5,000 required.
• iGoBanking has a 12 month CD yielding 2.0% APY with a minimum deposit of $1,000 required. This is an online bank which can accept deposits from any state.

Best 24 month CD rates in San Francisco, CA:

• Hudson City Savings Bank has a 24 month CD yielding 2.50% APY with a minimum deposit of $5,000 required. This is a national bank as well and can accept deposits from any state.
• Pacific National Bank has a 24 month CD yielding 2.30% APY with a minimum deposit of $1,000 required. 
• GateWay Bank (San Francisco) has a 24 month CD yielding 2.35% APY with a minimum deposit of $10,000 required.

Best interest checking accounts in California: Top 3

Below are the top 3 interest-bearing checking accounts available to the residents of the state of California.

If you are looking for an FDIC insured investment vehicle which is still providing a decent interest rate, then “high yield checking accounts” or “rewards checking accounts” may be your best bet. Keep in mind these accounts come with monthly requirements which must be fulfilled each month by the consumer in order to earn the lucrative interest rate. If you would like to learn more about interest checking accounts, follow the previous link.

As a general rule of thumb, most of the requirements associated with these accounts involve a certain number of debit card transactions, setting up at least one ACH automatic payment and enrolling in e-statements. They will also only provide the high interest up to a maximum balance which may vary between $10,000 and $100,000, however the majority of these account offers set the max at $25k.

Top 3 interest checking accounts available in California:

(click on the institution for more information)

• Bank of the Sierra: 4.51% APY on balances up to $25,000. This account is available to customers nationwide and has been featured as one of the best interest checking accounts offered throughout the country. 
• FAST Federal Credit Union: 4.08% APY on balances up to $25,000. Like most rewards checking accounts, you must complete 10 debit transactions, set up one recurring direct deposit payment and enroll to receive e-statements. This account is available to California residents only.
• Pacific Resource Credit Union: 4.07% APY on balances up to $25,000. This account functions the same as most interest checking accounts, however they call it the “high flying checking account.” This account is also available nationwide even though the branches all reside within the state of California. 

Highest yielding money market account rates in California

Below are the best money market account rates we have found serving residents in the state of California. After digging through a number of rate pages of local banks and credit unions we have found that national banks are able to provide more competitive interest rates the local California banks. The only credit union offering a lucrative interest rate was Provident CU and it is a promotional offer which is set to expire this year.

We had a pretty substantial debate on BankVibe last month on whether or not local banks and credit unions offered better products than the large national banks and concluded that it varied from state to state. Many states with high population density such as California tended to lean towards the national banks for more competitive rates, while states such as Kansas, Nebraska and Idaho tended to lean towards local institutions for the highest yielding interest rates.

Top 2 MMA (money market accounts) in California:

(clicking on the institution will bring you to their home page)

• Provident Credit Union: Redwood Shores, CA. Money market account yielding 2.0% APY. This is a promotional offer which is subject to change without notice. Their is no minimum balance associated with this account. Provident Credit Union also has a rewards checking account which features an APY of 3.50%. Like all rewards checking accounts, you must complete a list of monthly requirements to earn the advertised interest rate. Provident CU has several locations throughout California. They have branches in San Jose, Belmont, Daly City, Eureka, Folsom, Hayward, Los Gatos, Millbrae, Monterey, Oakland, Palo Alto, Redwood City, Redwood Shores, San Francisco, San Mateo, San Ramon and Walnut Creek. Joining Provident CU is based upon where you work, where you live, and who your family members are (is anyone in your family a member?).
• First Choice Bank: Cherritos, CA. Money market account yielding 2.0% APY with a minimum deposit amount of $10,000. The mission of First Choice Bank is to set a new banking standard where the customer always comes first. They claim that their primary goal is to understand the individual concerns and financial services needs of our customers, and to provide a prompt, professional and decisive response. First Choice Bank will strive to exceed the expectations of our customers and shareholders through vision, innovation, integrity, commitment and teamwork.

Both of the above institutions are federally insured by either the FDIC or NCUA. If you live in California and know of a better money market account offered through your local bank or credit union, please share by leaving a comment.

Pleasanton, California certificate of deposit rates

Below are the top 3 CD rates available to residents in Pleasanton, California. The best rate comes from Patelco credit union. We have covered this credit union a few times in the past because of their superb 12 month CD yielding an unheard of 7.0% APY. Obviously there is a catch with this deal though, and that is you can only invest up to $1000. The second and third best CD rates available to Pleasanton residents have no maximum deposit amounts, however your money will only be federally insured (by the FDIC) up to $250,000. After researching local credit unions and banks in this region, I have found the best CD rates to come in the form of 1 year CDs, 2 year CDs, and 5 year CDs. You may want to scroll through our archive of CD rates in California or compare CD rates nationwide to make sure you are getting the most bang for your buck. In general local banks and credit unions serving the Pleasanton area will offer similar rates to those offered by national banks. In some cases you will receive more lucrative rates from national banks than you will from local ones in this region.

Top 3 CD rates (Pleasanton, California)

(these rates may be available outside Pleasanton as well)

Patelco Credit Union: Hayward, California. 12 month CD yielding 7.0% APY with a MAXIMUM deposit amount of $1,000. Patelco CU offers it’s members a wide range of financial products from home loans and insurance to savings products and IRA’s. They claim to be one of the most financially sound credit unions in the country and also claim to have avoided the sub-prime lending frenzy. They are a not-for-profit member-owned financial institution.

CitiBank, National Association: Dublin, California. 25 month CD yielding 2.40% APY with a minimum deposit amount of $5,000. This product is not exclusively available at CitiBank’s Dublin, CA branch. This is a nationally available product. CitiBank also has a checking account sign-up bonus to new customers.

US Bank, National Association: Dublin, California. 59 month CD yielding 4.0% APY with a minimum deposit amount of $1,000. Again, this is another product available to customers nationwide.

If you reside in Pleasanton, CA or the surrounding area and know of a local rate that is higher than the ones listed above, please share by leaving a comment!

4.0% dividend rate from Pacific Resource Credit Union

Another high yield checking account just came in to our inbox, this time coming from a not-for-profit credit union out of California. Currently Pacific Resource Credit Union has a “high flying checking account” yielding an APY of 4.00% for balances of $25,000 or less. For balances of $25k to $250k you can still earn 1.329% APY if all conditions are met.

Even though Pacific Resource Credit Union is located in Las Angeles, California, US residents nationwide can take advantage of this financial product.

One noteworthy aspect of their high flying checking account is the “dividend rate range” associated with balances of $25k or more. With $25k or less you are clearly set to earn an APY of 4.074%, however with balances of $25k to $250k you can earn APY’s anywhere from 1.329% to 4.25%. Currently the yield is 1.329, however this is a variable rate and can change at anytime (but will not dip below 1.329%).

Checking Account Requirements:

• 10 debit card transactions per cycle
• eStatement required
• 1 direct deposit or ACH auto debit per cycle

Checking Account Benefits:

• Earn up to 4.074% interest every month
• No minimum to open
• No minimum balance
• Up to $25 in ATM fees refunded per cycle
• Free Online Banking
• Free Resource Bill Pay
• Overdraft Protection Available
• Free Visa Debit Card
• Free eStatements

Best Checking Accounts in California

If you live on the west coast, particularly California, then you have a few decent options available as far as interest checking accounts are concerned. In most cases high interest checking accounts come with monthly requirements which need to be fulfilled before you can earn your advertised interest rate, however, there are a few banks/credit unions in the southern California area which offer these products without the traditional requirements.

High Interest Checking in California

(Southern California)

State Farm Bank FSB:  1.55% APY

• Minimum opening deposit is $100
• Minimum balance to earn interest is $2,500
• FDIC insured
• 24-hour account access via phone and Internet
• Initial package of 50 blue Specialty checks free
• Overdraft protection available if you have a State Farm Bank Savings Account, Money Market Account, or State Farm Bank Visa®
• All account holders must be at least age 13 and one person named on the account must be at least age 18
• Interest compounded daily and credited to your account monthly

La Jolla Bank FSB: 1.74% APY on balances greater than $20,000 (1.50% APY on balances below)

• Minimum deposit amount: $1,000
• Variable interest rate
• Interest will be credited to your account monthly on your cycle date
• They use the daily method to calculate interest on your account. This method applies a daily periodic rate to the principal in the account each day.
• There are no minimum balance or monthly fees associated with this account
• First batch of checks are free

Baxter Credit Union: “Power Savings Account” 3.50% APY

• See Interest Checking Accounts to review requirements

Baxter Credit Union’s Savings Rates

Much thanks to BankVibe reader Jefferey for submitting a few of Baxter Credit Union’s savings rates (Los Angeles, California) as they currently have a few interesting (and noteworthy) savings products available.

Baxter Credit Union’s “Rainy Day” Savings Account:

(as of June 9, 2009)

The first noteworthy rate comes with a product called the “Rainy Day Savings Account.” This product acts as a typical savings account with an interest rate change after the first 12 months.

For the first 12 consecutive months you will earn an APY of 1.50%. After you have completed year 1, your interest rate gets bumped up to a much more lucrative 3.00% APY.

The second noteworthy rate comes in the form of an interest checking account. They call this product a “power checking account” and it yields an APY of 3.50% (this rate is only applied to balances up to $25,000, 1.0% APY applied to balances above $25k). Like most high interest checking accounts there a monthly requirements in which you must complete to earn the advertised interest rate.

Baxter Credit Union’s Power Checking Account Terms and Conditions:

(as seen in their fine print)

• Must have direct deposit of at least $500 into your POWER CHECKING account
• Enroll in Online statements with a valid E-mail address
• Complete a minimum of ten (10) checking transactions that include any combination of the following transactions: online bill pay, ACH withdrawal, ACH deposit, debit signature based transaction, online credit union loan payment (all other transfers between credit union accounts do not apply). Bill pay is defined as an ACH withdrawal.
• Accounts not meeting all monthly requirements will not earn interest and will be charged the applicable BCU ATM fee for each ATM transaction over five per month.
• Transactions apply toward the monthly requirements in the month they post to your account.
• You will not automatically be enrolled in online statements when opening this share type.
• You can enroll in online statements via the internet. POWER CHECKING is only available as a personal account only.

Patelco Credit Union’s New Member Certificate: 7.0% APY!

Patelco Credit Union out of San Francisco, California has a very enticing offer for prospective customers. Currently, if you are new to their credit union, they have a 12 month CD (certificate of deposit) yielding an astounding 7.00% APY! Don’t get too excited over this offer if you had planned on investing in a 12 month jumbo CD as this offer has a $1,000 maximum (and minimum) deposit.

Patelco Credit Union’s 12 month new member CD terms and conditions:

• Available for a limited time.
• Funds deposited to this account must come from an institution other than Patelco.
• Minimum deposit $1,000, maximum deposit $1,000.
• Account available to new members only-must open a new membership.
• One certificate per member.
• Not available as an IRA certificate.

If you are looking to invest a larger chunk of money (>$1,000) in an FDIC insured investment, then I wouldn’t count on Patelco Credit Union for any great rates. Other than their promotional 12 month new member certificate, their rates are fairly underwhelming. The next best CD rate they offer is a 60 month CD with an APY of 2.55%.