Chicago, IL – Local Money Market Rates Losing to Online Banks

If you reside in the greater Chicago, Illinois area and are in the market for a liquid savings account with FDIC insurance, you’re likely better off (interest rate wise) with an account from an online bank rather than a local institution.

After surveying the top money market rates offered by local banks and credit unions in Chicago, we found that there is only one local institution with reasonably competitive rates – Washington Federal Bank for Savings (headquartered in Chicago, IL). Their money market account is currently providing a yield of 1.01% APY with a minimum balance requirement of $1,000.

Related: Several months ago we rounded up some noteworthy long term CD rates in Chicago and found that local institutions trumped online and nationwide banks on interest rates quite handily.

Washington Federal Savings Bank, established in 1913, is a small institution with only 16 employees and 2 locations (both in Chicago). Their consumer savings accounts are FDIC insured up to $250,000.

Top MMA Rates for Chicago Residents (Local and Nationwide Institutions):

- Discover Bank 1.05% APY. $500 minimum deposit. Available Nationally.

- Washington Federal Savings Bank 1.01% APY. $1,000 minimum deposit. Local Only.

- Hudson City Savings Bank 1.00% APY. $2,500 minimum deposit. Available Nationally.

- Ally Bank 0.85% APY. $1.00 minimum deposit. Available Nationally.

- National Republic Bank of Chicago 0.75% APY. $2,500 minimum deposit. Local Only.

Reynolds State Bank’s CD Rates – Best APY’s

Reynolds State Bank out of Illinois is a pretty small bank which offers some noteworthy CD rates that pack a punch. With just 1 location and 6 full time employees, they offer some of the best CD rates in Illinois. As of this month their top product – the 12 month CD – is  reportedly offering a 2.01% APY with minimum deposits of $1,000. To put this offer in perspective, the current national average sits at just 0.89% APY for deposits with one year terms.

Reynolds State Bank has a net operating income of $268,240 with $77 Million in total assets. They are not even in the top 5,000 banks in the United States and ranked 387 overall in Illinois.

CD Rates offered by Reynolds State Bank (Illinois):

(Rates accurate as of June 2011. Visit our CD rate center for updated rates from around the country.)

- 6 month CD yielding 1.76% APY with a minimum deposit of $1,000 required. The national average for 6 month CDs stis at roughly 0.55% APY.

- 1 year CD yielding 2.01% APY with a minimum deposit of $1,000 required. The national average for 1 year CDs sits at roughly 0.90% APY.

- 30 month CD yielding 2.26% APY with a minimum deposit of $1,000 required. The national average for 24 month CDs stis at roughly 1.05% APY.

Reynolds State Bank Facts:

• Bank Legal Name: Reynolds State Bank
• FDIC #: 10080
• Headquarters: REYNOLDS, IL
• Date Established: January 01, 1888

Best CD Rates in 2011 – Top 10

CD rates in 2011 have undoubtedly left FDIC-insured investment seekers cranky. And just to make savers a little more frustrated we’ve seen CD rates throughout the country show tiny glimmers of hope as they bounce off of their all-time lows only to return to those levels the following week.

The current national averages for 6 month CDs, 12 month CDs and 3 year CDs currently sit at 0.56% APY, 0.90% APY and 1.40% APY by the leading online and nationally available FDIC insured institutions. With average deposit rates struggling to keep up with inflation, many savers are beginning to get restless.

Sometime next week Federal Reserve Chairman Ben Bernanke will hold his first quarterly news conference regarding (among other things) interest rates. However, I wouldn’t hold your breath as to whether he’ll decide to raise rates. Many analysts have suggested Mr. Bernanke and his team will claim it’s still too early to raise key rates as it may have an adverse impact on the still fragile economic climate.

Where can you find the best CD rates in 2011?

Your best bet is with either online banks – as they can offer slightly higher rates due to their lack of overhead costs that traditional brick and mortar institutions have – or local credit unions. Credit Unions can sometime offer higher CD rates (and better bank rates in general) because they don’t have a board of directors breathing down their necks demanding higher profit margins. Credit Unions are generally not-for-profit institutions which are owned by their members and any profits derived from business are passed along back to their members in the form of higher savings rates and lower loan rates.

Top 10 CD Rates Available (April 2011):

(Please keep in mind interest rates are time sensitive in nature. If this article is outdated, refer to our CD rate database to find the best local and nationally available CD rates.)

1) PEF Federal Credit Union (Ohio) has a 60 month CD rate yielding 3.29% APY with a minimum deposit of just $500 required.

2) Domino Federal Credit Union (Texas) has a 60 month CD rate yielding 3.257% APY with a minimum deposit of just $500 required.

3) Liberty Bank (Florida) has a 60 month CD rate yielding 3.00% APY with a minimum deposit of $10,000 required.

4) Premier Community Credit Union (California) has a 60 month CD rate yielding 3.00% APY with a minimum deposit of $1000 required.

5) Signature Bank (New York) has a 60 month CD rate yielding 3.01% APY with a minimum deposit of $5000 required.

6) Bank of Utica (New York) has a 60 month CD rate yielding 3.00% APY with a minimum deposit of just $500 required.

7) SeaComm Federal Credit Union (New York) has a 60 month CD rate yielding 2.99% APY with a minimum deposit of $1000 required.

8 ) Liberty Bank (Illinois) has a 60 month CD rate yielding 3.00% APY with a minimum deposit of $10,000 required.

9) American Savings Bank FSB (Ohio) has a 60 month CD rate yielding 3.00% APY with a minimum deposit of just $500 required.

10) Citadel Federal Credit Union (Pennsylvania) has a 60 month CD rate yielding 3.00% APY with a minimum deposit of just $500 required.

The banks and credit unions we’ve listed above are regional institutions. Visit their individual website(s) to see if they have branches near you or if you can open a deposit product over the phone or online.

Do you know of a better CD rate offered through your local bank or credit union that we haven’t mentioned? If so, please share by leaving a comment!

Chicago, IL Bank CD: Best Rates for a 5 Year Term

We’ve reported on several of the best CD rates in Illinois throughout the course of 2010 (and 2011), however, most of the products were only available outside of the Chicago area in smaller credit unions and banks serving rural Illinois.

Today we were forwarded a pretty noteworthy 5 year CD rate from a credit union with branches in Chicago. Great Lakes Credit Union has a 60 month “President’s Club CD” yielding 2.75% APY with a minimum deposit of $1,000 required. Great Lakes CU occupies one location in the middle of Chicago (on LaSalle Street) and have 7 locations north of Chicago. If you happen to live in Chicago or north Illinois and are in the market for a bank CD you may want to stop by a local GLCU branch.

Membership Eligibility:

If you live in Lake County, McHenry County, or Kenosha County, Illinois or if you happen to work for one of their selected employers you will likely be eligible for membership. Also, if you have a family member who is already a member you will likely be eligible to join as well. You will need to fill out an online application on their website for approval.

CD Rates at GLCU:

- 3-5 month CD yielding 0.45% APY with a minimum deposit of $1,000 required.

- 6-11 month CD yielding 0.65% APY with a minimum deposit of $1,000 required.

- 1 year CD yielding 0.95% APY with a minimum deposit of $1,000 required.

- 2 year CD yielding 1.25% APY with a minimum deposit of $1,000 required.

- 3 year CD yielding 1.55% APY with a minimum deposit of $1,000 required.

- 5 year CD yielding 2.75% APY with a minimum deposit of $1,000 required.

Compare the rates above with the best CD rates in Chicago from 2 years ago to see how market conditions have declined.

7 year Bank CD (certificate of deposit) Deal

Although in this environment we are generally reluctant to recommend long term CDs, we’ve been forwarded a decent 7 year CD rate that we think deserves some recognition. Personally none of us here at BankVibe would invest in a CD longer than 24 months, however, if you must go long West Town Savings Bank out of Chicago, Illinois has a 7 year CD going for 3.24% APY with a minimum deposit of $1,000 required.

Related: 20 year Bank CDs -Would you invest?

For most of us, this deal is off the table regardless. You must live near a local branch which primarily operates in the greater Chicago area. You’ll need to drop by the branch of West Town Savings Bank to open an account. The bank has it’s primary offices in the cities of North Riverside and Cicero in Illinois (suburbs on the western portion of Chicago). If you have questions you can call the Cicero branch at 708-652-2000 while the North Riverside can be reached at 708-447-3330. Remember this deal is for local residents only. Check out our database of the best CD rates available nationwide if you aren’t eligible for this one. You can also compare this offer with the best CD rates in Chicago to see how it stacks up against the local competition.

West Town Savings Bank has been listed with the FDIC since 1951.

Complete List of CD Rates from West Town Savings Bank:

(Rates accurate as of January 2011.)

- 6 month CD yielding 0.45% APY with a minimum deposit of $1,000 required.

- 12 month CD yielding 0.65% APY with a minimum deposit of $1,000 required.

- 24 month CD yielding 1.00% APY with a minimum deposit of $1,000 required.

- 36 month CD yielding 1.36% APY with a minimum deposit of $1,000 required.

- 60 month CD yielding 1.51% APY with a minimum deposit of $1,000 required.

- 7 year CD yielding 3.24% APY with a minimum deposit of $1,000 required.

Related: 2.50% APY Bank CD Rates – How long must you invest?

Illinois 12 Month CD Rates – This week’s best offers

Anyone in the market for a certificate of deposit can attest to how terrible the annual percentage yields are for both long term and short term bank CD’s. The national average for 1 year CD rates sits at roughly 1.0% APY while the national average for 3 year CD rates sits at 1.72% APY. The rates generally don’t differ too much throughout the nation, however if you are eligible to join a local credit union, you may be able to beat the national average by a significant margin. Many savings experts have suggested people hold their funds (which would be placed into bank CD’s) in FDIC insured liquid accounts, which can then be transferred to higher yielding deposits when rates begin to rise.

After receiving a few inquiring emails as to where to find the best CD rates in the midwest (and more specifically Illinois), we decided to track down the highest yielding 12 month CD rates for Illinois residents.

Best 1 year CD rates in Illinois:

(Rates accurate as of 9/2010. Visit our bank deposit center for updated rates in your area.)

- Buffalo Prarie State Bank is offering a 1 year CD with an APY of 2.01% and a minimum deposit requirement of $500.

- Reynolds State Bank is offering a 1 year CD with an APY of 2.01% and a minimum deposit requirement of $1000.

- Community State Bank is offering a 1 year CD with an APY of 1.76% and a minimum deposit requirement of $500.

- Grand Rivers Community Bank is offering a 1 year CD with an APY of 1.73% and a minimum deposit requirement of $1000.

- Farmers State Bank of Medora is offering a 1 year CD with an APY of 1.61% and a minimum deposit requirement of $1000.

If you live in Illinois and know of a better 12 month CD rate offered through your local bank or credit union, please share by leaving a comment.

Allstate Bank CD Rates and Review

Allstate, otherwise known as the “good hands” company, has managed to work its way to the top of the insurance industry. The company is the second-largest personal lines insurer in the US, just behind rival State Farm. Its Allstate Protection segment sells auto, homeowners, property/casualty, and life insurance products to consumers in both Canada and the United States. Allstate Financial provides life insurance through subsidiaries Allstate Life, American Heritage Life, and Lincoln Benefit Life. It also provides investment products, targeting affluent and middle-income consumers. Allstate Motor Club provides emergency road service and, adding to its repertoire, the company also offers the nationwide online Allstate Bank – which offers competitive CD (certificate of deposit) rates, money market accounts and high yield savings accounts. AllState Bank is federally insured by the FDIC and headquartered in Illinois.

Opening an Allstate Bank Certificate of Deposit:

You may open a deposit account with Allstate using one of 4 different methods. You can open an account through participating “STAR” atm’s which accept deposits, you can transfer money electronically via ACH wire transfer, you can make a direct deposit using Allstate Bank’s ABA routing number or you can simply mail them a check.

Current CD rates offered through Allstate Bank:

- 30 day CD rate of 0.20% APY with minimum deposit of $1,000 required.

- 90 day CD rate of 0.40% APY with minimum deposit of $1,000 required.

- 6 month CD rate of 0.60% APY with minimum deposit of $1,000 required.

- 1 year CD rate of 1.10% APY with minimum deposit of $1,000 required.

- 2 year CD rate of 1.25% APY with minimum deposit of $1,000 required.

- 3 year CD rate of 1.60% APY with minimum deposit of $1,000 required.

- 5 year CD rate of 2.30% APY with minimum deposit of $1,000 required.

Additional Terms and Conditions:

Annual Percentage Yield (APY), effective on 6/7/2010. Initial deposit of $1,000 required for Certificates of Deposit ($10,000 for non-personal accounts). A penalty will be imposed for early withdrawal on CDs. Rates subject to change daily. Minimum monthly average daily balance of $250 required to avoid a $4 monthly fee on High Yield Savings. Minimum monthly average daily balance of $2,000 required to avoid an $11 monthly fee on Checking Plus Interest. Minimum monthly average daily balance of $250 required to avoid an $8 monthly fee on Insured Money Market accounts. Rates on Checking Plus Interest, Insured Money Market and High Yield Savings accounts subject to change daily after account is opened. Fees may reduce earnings on accounts.

Harris Bank CD Rates and Review

Harris Bank, based out of Chicago, Illinois was first established in 1882 as NW Harris and Co. Today they control more than $376 billion in assets and have locations (branch or affiliate branches) in 12 states. They operate in several banking verticals including wealth management, small business, middle market, institutional markets as well as personal financial services. Within the personal financial services sector they offer checking, savings, money market accounts, certificates of deposit, mortgages and loans.

Their CD rates are tiered based on the minimum deposits invested. Below are their current rates along with the associated minimum deposit required to earn that rate (interest rates accurte as of May 28, 2010).

Harris Bank CD Rates:

Terms and Conditions:

- Maximum opening deposit of $100,000 per CD applied for online.
- The CD must be funded within 10 business days of online application.
- Funds from CDs applied for online may not be withdrawn for the first 11 days after funding.
- CDs applied for online can only be in individual or joint ownership.

- Deposits at FDIC-insured institutions are now insured up to at least $250,000 per depositor through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except for IRAs and other certain retirement accounts which will remain at $250,000 per depositor.

Promotions through Harris Bank:

$150 bonus with new Harris Bank checking account

Bank of Kampsville offering exceptional CD rates

The Bank of Kampsville, based out of Pleasant Hill, Illinois, is currently offering some short term CD rates that are beating the national average by a fairly substantial margin. Unfortunately for most of us, these products will be off limits as the bank is a small regional bank that accepts local funds. However, if you do live in Illinois and are in the market for a short term CD, you may want to stop by one of their branches. They have 4 locations within the state of Illinois – Kampsville, Brussels, Pleasant Hill, and Hardin.

Current CD Rates offered by The Bank of Kampsville:
3 Month Certificate of Deposit               1.26
6 Month Certificate of Deposit 1.51 – current national average sits at just 0.80% APY
12 Month Certificate of Deposit 2.02 – current national average sits at just 1.17% APY
18 Month Certificate of Deposit              2.02
24 Month Certificate of Deposit              2.02
30 Month Certificate of Deposit             2.27
36 Month Certificate of Deposit 2.27 – current national average sits at 1.98% APY
48 Month Certificate of Deposit              2.52
60 Month Certificate of Deposit              3.03

Terms and Conditions:
- $1,000 minimum deposit required
- penalties for early withdrawal
- rates accurate as of March 5, 2010

The margin in which The Bank of Kampsville’s CD rates beat the national average tapers off a bit as the duration of the product increases. In other words, when compared to the national average you are receiving a much better offer if you opt for the short term products (6 month – 36 month) then you would if you signed up for a long term CD (4-5 years). Their 5 year CD rate is pretty much on par with the national average for that given duration.

If you live in the midwest and are in the market for a bank CD, you may want to compare The Bank of Kampsville’s CD rates with other CD rates in Illinois, CD rates in Missouri or CD rates in Oklahoma.

Best CD Rates in Chicago, IL area: Top 3

Below are the highest yielding CD (certificate of deposit) rates available to the residents of Chicago, IL. The banks and credit unions mentioned below may also provide their services to residents of the following cities: Des Plaines, Northbrook, Bloomington, Forest Park, Mount Prospect, Lisle, West Chicago, Naperville, North Chicago, and Elmhurst, IL.

The featured products are 6 month CDs, 12 month CDs and 24 month CDs. After surveying the interest rates of local community banks and credit unions in the greater Chicago area, we found that 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. To review current CD rates nationwide use our CD rate database.

How did we compile this list? After conducting our survey we’ve only listed the rates that beat the national average by the highest margins.

Best 6 month CD rates in Chicago, Illinois:

• Access Credit Union has a 6 month CD yielding 1.91% APY with a minimum deposit of $10,000 required. They have locations throughout the city with primary branches in Cicero, IL.
• United Trust Bank has a 6 month CD and a 9 month CD yielding 1.76% APY with a minimum deposit of $1,000 required. They have branch locations in Chicago and Bridgewater, IL.
• Beverly Bank and Trust Company, National Association has a 6 month CD yielding 1.75% APY with a minimum deposit of $1,000 required. They are based out of Chicago.

Best 12 month CD rates in Chicago, Illinois:

• Access Credit Union also has 12 month CD yielding 2.15% APY with a minimum deposit of $10k required.
• Quorum Federal Credit Union has a 12 month CD and a 15 month CD yielding 2.15% APY with a minimum deposit of $1,000 required. They have locations (either branch or ATM) in Chicago.
• Park National Bank has a 12 month CD yielding 2.10% APY with a minimum deposit of $1,000 required.

Best 24 month CD rates in Chicago, Illinois:

• Seaway Bank and Trust Company (Chicago branch) has a 24 month CD yielding 2.52% APY with a minimum deposit of $5000 required.
• First Suburban National Bank has a 24 month CD yielding 2.37% APY with a minimum deposit of $500 required. They have locations in Chicago and Crestwood, IL.
• Banco Popular North America has a 24 month CD yielding 2.35% APY with a minimum deposit of $10,000 required. They have locations primarily in Cicero, IL.