Banks and Credit Unions in California with No Overdraft Fees

We will be conducting research on a number of checking account products from hundreds of banks and credit unions throughout the country and publishing our results of the institutions imposing no overdraft fees associated with their checking accounts on a state by state basis. Although we are starting with California this week, stay tuned as your state will pop up in the near future. If you happen to be one of those individuals that occasionally withdrawals slightly more than you have, rest assured that you wont be hit with overdraft fees from the following accounts.

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.

California Credit Union CD Rates – Top 5 APY’s in 2011

If you happen to live in California and are in the market for a bank CD, we’ve rounded up the best available CD rates from California credit unions in 2011. Like we’ve mentioned many times before, if you’re frustrated with current CD rates you may want to check out the APY’s offered through your local credit unions – they wont provide significantly larger yields but in many cases they will be able to beat the current national average. Credit Unions are generally not-for-profit, member-owned institutions which don’t have to report to shareholders (only to their members).

A few of the deposit products we’ve featured below may be available outside of California as well. You’ll want to check each institutions website to see which geographical areas they service. To get a better idea of where CD rates stand, you can compare the APY’s below with the best CD rates from credit unions in 2011 or the top online savings account rates in 2011.

California Credit Union CD Rates (Best APY’s):

(Rates accurate as of June 2011. Please visit our CD rates center for updated rates across the country.)

- America Airlines Federal Credit Union (San Jose, California) has a 12 month CD yielding 1.26% APY with a minimum deposit requirement of $10,000.

- Alliant Credit Union (San Francisco, California) has a 12 month CD yielding 1.20% APY with a minimum deposit requirement of $1,000.

- Alaska USA Federal Credit Union (Victorville, California) has a 2 year CD yielding 1.55% APY with a minimum deposit requirement of $1,000.

- Sandia Laboratory Federal Credit Union (Livermore, California) has a 2 year CD yielding 1.51% APY with a minimum deposit requirement of $1,000.

- Premier Community Credit Union has a 5 year CD yielding 2.65% APY with a minimum deposit requirement of $1,000.

To put the offers above in perspective the current national average for 12 month CDs and 60 month CDs sit at 0.94% APY and 2.22% APY, respectively.

If you live in California and know of a better CD rate offered through your local credit union, please share by leaving a comment!

Bay Area CD Rates: This week’s best offers!

We’ve dug up a few noteworthy CD rates for 6 month, 12 month and 24 month terms available to residents in the Bay Area of California. The banking institutions offering these deposits may have locations outside of the bay area as well, but you’ll need to contact the institutions directly for possible locations near you.

6 month CDs

Opus Bank has a 6 month CD yielding 1.15% APY with a minimum deposit of $10,000. Opus Bank has a number of branches in California, however, this particular offer comes from the Torrence, CA branch but may be available at all of their locations. The next best offer comes from Omni Bank out of San Jose, California. They have a 6 month CD yielding 1.1o% APY with a minimum deposit of $5,000 required.

12 month CDs

There are several 12 month CD’s in the bay area with interest rates that are significantly beating the national average. The first is a 12 month CD from Mid-Cities Financial Institution yielding 1.50% APY with a minimum deposit of only $100 required. The current national average for 1 year CD rates sits at roughly 1.00% APY (to put this offer in perspective). The second noteworthy offer comes from a Pacific Mercantile Bank. They have a 12 month CD yielding 1.31% APY with a minimum deposit of $1,000 required. The third offer comes from American Airlines Federal Credit Union. This credit union frequently offers significantly higher interest rates than the national average on the majority of their savings products, however, they are a fairly exclusive credit union when it comes to membership. They primarily serve employees of American Airlines and their families so if you have a relative working for this airline company you may be able to join. Their 1 year CD is yielding 1.26% APY with a minimum deposit of $10,000 required.

24 month CDs

First Imperial Credit Union has a 2 year CD yielding 1.70% APY with a minimum deposit of $500 required. To put this offer in perspective the national average for 3 year CDs sits at roughly 1.50% APY. The next best offer comes out of San Francisco from a credit union called Alliant Credit Union. They have a 2 year CD yielding 1.60% APY with a minimum deposit of $1,000 required.

If you live in the bay area and know of a better CD rate offered through your local bank or credit union, please share by leaving a comment. You may also want to compare these offers with the best CD rates in San Francisco.

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