Savings Rates | Find the Best Savings Rates Today
Best Savings Rates| Get the Highest Savings Rates Below
Compare the highest savings account rates by using our savings account rates and money market rates list below. We maintain a list of the best savings account rates from local banks and national banks to make your search for the highest rates easier. There is no need to look anywhere else for current interest rates from many different banks.
Money market account rates held steady this week with the highest rate just under 1.00 percent. The best savings rates this week on our rate list also remains unchanged on our rate table at 1.00 percent. The highest CD rates, which are slightly higher remains at 1.04 percent with an APY of 1.05 percent.
When Will Savings Rates and Money Market Rates Move Higher?
We have been writing about when savings rates, money market rates, and all deposit rates will move higher. In order for deposit interest rates to move higher the Federal Reserve Open Market Committee (FOMC) will have to increase the federal funds rate, which is currently in a targeted range of zero percent to one quarter percent.
Over the past year, the FOMC has stated they won’t increase the federal funds rate until the unemployment rate falls below 6.5 percent. For the past year, we believed rates would increase in the summer of 2014 and the FOMC voted to increase the federal funds rate.
Now some of the Committee members are advocating keeping the federal funds rate near zero percent even when the unemployment rate falls below 6.5 percent. It remains to be seen whether or not this changes because at this point, only a small minority of the members have this view.
Make no mistake, interest rates on deposit accounts will move higher sometime during the second half of 2014.
Best Money Market Rates Right Now
The bank offering the best rate on our rate table at 0.90 percent is Sallie Mae Bank, the banking division of the student loan company Sallie Mae. The second highest money market account rate on our list this week is from EverBank at 0.86 percent. The third highest rate in our list is at 0.85 percent.
There are three banks this week offering money market rates at 0.85 percent. Ally Bank, GE Capital Retail Bank and Mutual of Omaha Bank have rates listed at 0.85 percent. The fourth highest rate on our list is from ableBanking, a division of Northeast Bank and First Internet Bank of Indiana at 0.80 percent.
The minimum deposit accounts for the money market rates listed above vary bank to bank. Check our rate list to find out the minimum amounts.
Highest Savings Rates Right Now
The highest bank savings rates on our rate table this week is from a small bank called The Palladian PrivateBank. This bank’s current savings account rate is 1.00 percent. The second best savings rate in our list this week is held by three different banks. CIT Bank, Barclays Bank and GE Capital Retail Bank are all offering savings rates at 0.90 percent.
The third best savings rate on our list is from 5 different banks at 0.85 percent. Ally Bank, American Express Bank, GE Capital Retail Bank’s Optimizer Plus account rate, FNBO Direct and Colorado Federal Savings Bank are all offering savings rates at 0.85 percent. Minimum opening balances vary per bank, check our rate list for the current minimums.
Money market rates and savings rates on average hover near record lows. The Federal Deposit Insurance Corporation’s (FDIC) Weekly National Rates and Rate Caps report shows current savings account rates are averaging 0.06 percent. Average money market rates are slightly higher at 0.09 percent.
The most recent data available for average rates from the National Credit Union Administration (NCUA) shows average savings rates at 0.14 percent and average money market rates at 0.17 percent. The average FDIC rates and average rates from the NCUA are on par with current 1 year U.S. bond rates, which closed yesterday at 0.11 percent.
I know, there is no reason to get excited about deposit rates that are this low but you can find banks and credit unions offering deposit rates much higher than the averages. In fact, the best savings rates available from some financial institutions are more than 15 times the FDIC average.
Best Savings Account Rates October 28, 2013
Right now, The Palladian Private Bank is currently offering savings rates at 1.00 percent. There many other banks offering savings rates just below 1.00 percent. CIT Bank, Barclays Bank, and GE Capital Retail Bank are all offering online savings account rates at 0.90 percent.
Other banks offering savings rates many times the national average savings rate include Ally Bank, who is currently offering rates at 0.86 percent. American Express Bank, Colorado Federal Savings Bank, and FNBO Direct are all offering savings rates at 0.85 percent. Discover Bank is offering savings rates at 0.80 percent, Capital One 360 savings rate is at 0.75 percent, First Trade Union Bank and Heartland Bank Direct are both offering rates at 0.70 percent.
Best Money Market Rates October 28, 2013
The best money market account rates available are many times the current national average money market rate. The best money market rate available is from Sallie Mae Bank, the banking division of the student loan company, Sallie Mae. This bank’s money market rate is currently at 0.90 percent.
The second highest money market rate available is from Ally Bank at 0.86 percent, which is the same rate Ally is offering on their savings account. GE Capital Retail Bank’s Optimizer Plus money market rate is currently at 0.85 percent. First Internet Bank of Indiana and ableBanking, a division of Northeast Bank, are both offering money market account rates at 0.80 percent.
Other banks offering money market rates several times the national average include Bank of Internet USA, which has a current rate of 0.75 percent. Discover Bank’s money market account rate is currently at 0.70 percent and VirtualBank current money market rate is at 0.65 percent.
All these bank deposit rates were gathered from RatesORama.com and are current as of October 28, 2013.
Savings account rates remain stable this week, on the heels of last week’s surprise statement by the Federal Open Market Committee (FOMC) to continue their purchasing of $85 billion a month in securities. The FOMC also decided to keep the federal funds rate at zero percent to ¼ percent which wasn’t a surprise.
Bond Rates and Mortgage Rates are Sharply Higher
The Fed has been purchasing $45 billion a month in long term bonds and $40 billion a month in mortgage-backed securities (MBS). For the past several months, market forces drove long-term bond rates and mortgage rates sharply higher. 10 year bond yields almost doubled from 1.60 percent to around 3.00 percent.
30 year mortgage rates rose from a low of around 3.25 percent to a recent high of 4.75 percent. The very act of these rates moving sharply higher in such a short period of time most likely changed the Fed’s plans on tapering. Back in May, the Fed Chairman, Ben Bernanke, hinted that the Fed might start slowing their purchases.
Long Term CD Rates Moved Higher
Long term CD rates also increased the past several months by following long term bond yields higher. The increase in 5 year CD rates was the largest increase in the past several years but not as steep as the increase in long term bond yields. At the highest point recently, 10 year bond yields increased 1.30 basis points,
The increase in the highest 5 year CD rates the past few months was only 50 basis points. Before the increase, the best CD rates on 60 month certificates of deposit were around 1.50 percent. Right now, the highest 60 month CD rates are at 2.03 percent. On a percentage basis, 5 year rates increased 33 percent which isn’t bad considering that rates have been moving lower for years.
Savings Rates and Money Market Rates Remain Stable
During this time of rising interest rates on bonds, mortgages, and certificates of deposit rates, other deposit accounts haven’t budged at all. The best savings rates this week are still at 1.00 percent and the best money market rates are still just below 1.00 percent at 0.90 percent. Savings rates and money market account rates won’t move higher until the Fed increases the fed funds rate.
The Fed isn’t going to change the fed funds rate until the unemployment rate falls below 6.5 percent, which is the point in which the Fed has stated they plan to increase the fed funds rate. The current unemployment rate stands at 7.3 percent, so it will probably be at least another 7 to 8 months before the rate falls to 6.5 percent.
Where to Invest Those Dollars Until Rates Move Higher
Many of our readers are unsure what do with maturing certificates of deposit. The best thing to do at this point is to either place your money in a variable rate account such as a savings account or money market account. Another option is to invest in short term certificates of deposit. The reasons being that interest rates will be moving higher in the coming months and years so the last thing you want to do is lock into a low rate for a long period time. Investing in a variable rate account will give you the opportunity to earn more interest once rates finally do move higher.
Investing in a short term certificate of deposit will also give you the opportunity to roll a maturing CD account into a higher rate CD account when rates move higher.
The relentless march higher for long term U.S. bond yields continues this week as savings rates and money market rates stay at current levels. 10 year bond yields are up another 0.06 percent this morning bringing the yield up to 2.88 percent. 10 year yields are almost at 3.00 percent which is hard to believe since 3 months ago in early May 10 year yields hit a low of 1.62 percent.
Back in early May, the best savings rates and money market rates were at or just below 1.00 percent. Currently, the best savings and money market account rates in our database are at pretty much the same level. The highest savings rate this week is from The Palladian PrivateBank at 1.00 percent and the highest money market rate is from Sallie Mae Bank at 0.90 percent.
Average Savings Rates and Money Market Rates
Average savings account rates in this week’s FDIC survey are at 0.06 percent, down slightly from the average rate of 0.07 percent in early May. Money market account rates are averaging 0.10 percent in the FDIC survey this week. Three months ago the average money market rate was only 1 basis point higher at 0.11 percent.
While long term bond yields are moving higher, short term bond yields haven’t moved higher at all the past three months. 1 year bond yields are currently averaging 0.13 percent, the same level yields were back in early May. At this point you’re better off placing your money in deposit accounts or certificate of deposits instead of U.S. bonds.
Highest Rates on Longer Term Bonds
Rates are higher on longer term bonds but unless you plan to buy longer term bonds of 7 years or more even a 7 year rate currently offered at 2.28 percent isn’t the best investment you can make since interest rates are moving higher. Also bond prices move lower as yields move higher, so you’ll have to hold onto the bonds until maturity or lose of your principal investment.
You’re better off waiting out this low interest rate cycle for another year or two so you’ll be in a position to take advantage of higher rates. The Federal Reserve Open Market Committee (FOMC) is scheduled to meet in September and the markets believe the FOMC will announce an end to their purchases of bonds and mortgage-backed securities (MBS).
When Will Deposit Rates Move Higher?
The belief that the FOMC will end their purchasing of bonds and MBSs has already sent long term bond yields and fixed mortgage rates much higher. If the FOMC does announce an end to their purchases, rates will move even higher from current levels. Savings rates and money market rates still won’t move higher if this plays out. We will have to wait until the FOMC increases the federal funds rate before deposit rates move higher.
The current federal funds rate is fluctuating in a targeted range of zero percent to one quarter percent. The FOMC has held the fed funds rate at this level since December of 2008. They state they plan to keep the rate this low until the unemployment rate falls below 6.5 percent. The current unemployment rate is at 7.4 percent.
When the rate will fall below 6.5 percent is debatable but since the rate is only 0.9 percent below the target rate we don’t have long. The rate could possibly fall below 6.5 percent by the first quarter of 2014. Soon after the FOMC is expected to start increasing the fed funds rate and then banks will increase deposit rates soon after.
If this scenario plays out we could see higher savings rates, money market rates, and CD rates by the second quarter of 2014. You can find the best deposit rates right here at RatesORama.com.
Most of the time interest rates move in cycles in relation to the economy and inflation. Interest rates rise when the economy is strong and the inflation rate is moving higher. Interest rates fall when the economy slows or contracts and the inflation rate falls. The current cycle for interest rates is at the bottom of a very long downward cycle. Rates haven’t increased overall because economic growth is sluggish and inflation isn’t a concern right now.
Some interest rates have increased recently but not due to a stronger outlook for growth or a higher expected rate of inflation. The reason for interest rates on U.S. Treasuries and mortgage rates increasing dramatically the past three months has been misplaced fear that the Federal Reserve would end their accommodative policy stance.
Savings Rates and Money Market Rates Remain Low
Although Treasury yields and mortgage rates moved higher, savings rates and money market rates continue to remain at low levels. CD rates have also remained low and will for the foreseeable future, regardless of how high bond yields go. Interest rates on all deposit products will remain low until the Federal Reserve increases interest rates.
The Federal Reserve has kept their benchmark interest rate, the federal funds rate, in a targeted range of zero percent to one quarter percent since December 2008. This has kept deposit rates low for almost 5 years now. The Fed has also been buying $85 billion a month in long term U.S. Treasuries and mortgage-backed securities to suppress long term interest rates.
Bond Interest Rates and Mortgage Rates Skyrocket
Interest rates on long term bond yields and mortgage rates skyrocketed the past month. Rates increased so much, several officials at the Fed had to say the Fed wasn’t planning on changing their policy stance any time soon. The FOMC’s most recent statement on economy policy released on July 31, didn’t contain any surprises, they said they will continue to keep rates low and buy $85 billion a month in MBS and bonds.
Long term bond yields continue to move higher. Since the Fed statement was released two days ago, 10 year bond yields have increased from 2.60 percent to 2.72 percent this morning. If rates on bonds and mortgage loans continue to rise at this pace the economic recovery could be in jeopardy, which would send rates tumbling again.
Current Interest Rates on Deposit Accounts
Current national average savings account rates and money market account rates are ridiculously low. You can see from the chart to the right now low rates are.
The FDIC’s national average savings rate this week is at 0.06 percent. The FDIC’s national average money market rate isn’t doing much better at 0.09 percent. The best savings rates and money market rates are much higher than the averages but you won’t get rich with the best rates around 1.00 percent.
Best Deposit Rates This Week
Money Market Rates
To ensure you find the best rates available, search our interest rate database at RatesORama.com.
For the past several years the Federal Open Market Committee (FOMC) has stated they plan to keep their key interest rate, the federal funds rate, low until the economic outlook improves. The FOMC said they would keep the rate at near zero percent until the nation’s unemployment rate fell below 6.5 percent, which would be around mid 2015.
Interest Rates Forced Down to Record Lows
While this policy has forced mortgage rates to record lows and helped homeowners lower their borrowing costs, it has also forced savings rates, money market rates, and all deposit rates down to record lows. Those whose income comes from interest-bearing assets such as deposit accounts have seen their income decline dramatically. The best savings rates and money market rates are below 1.00 percent these days, the lowest rates in more than a generation.
The FOMC has also been purchasing long term U.S. Treasuries and mortgage-backed securities to keep long term interest rates and mortgage rates low. Several signals from the Fed pointing to an end of these purchases as early as September spooked the markets and sent long term bond yields soaring. 10 year Treasury yields soared almost 100 basis points during this time, from 1.66 percent to 2.60 percent yesterday.
Relentless Rise in Interest Rates
To calm the markets and stop the relentless rise in interest rates, last month Ben Bernanke raised the prospect of a lower threshold for the jobless rate to start increasing the fed funds rate. The president of the Minneapolis Fed, Narayana Kocherlakota, has been touting lowering the jobless rate number to 5.5 percent for over a year now.
If the number is lowered to 6.0 percent or 5.5 percent before the Fed will increase the fed funds rate, it means deposit rates will also be at current levels past mid-2015. The past year, the jobless rate has fallen on average about a tenth of a percent each month. If the rate continues to fall at that pace, it could be mid-2016 before interest rates will increase.
Current Money Market Rates – Savings Rates
Average money market rates and savings rates are in the single digits this week. The current national average money market rate is at 0.09 percent and the average savings account rate is at 0.09 percent. The best savings rate in our database this week is from The Palladian PrivateBank at 1.00 percent. The best money market rate in our database of rates is lower at 0.86 percent from EverBank.
Top Money Market Rates
Top Savings Rates
You can always find a list of the best interest rates available at RatesORama.com.
The Palladian PrivateBank has come in with the best savings rate available. The Palladian PrivateBank’s current savings account rate is at 1.00 percent with an APY of 1.00 percent. This bank’s savings rate is many times the current national average savings rate of 0.07 percent.
Last week, the highest savings rate on our list was from Barclays Bank at 0.90 percent with an APY of 0.90 percent. The Palladian PrivateBank’s rate also beats the best money market rate on our list from EverBank at 0.89 percent with an APY of 0.89 percent.
The minimum opening balance to open an account at the The Palladian PrivateBank savings account is $10,000. You also have to maintain a balance of at least $10k to avoid $10 a month in account fees.
The third highest savings rate in our database is at 0.85 percent offered by FNBO Direct and Colorado Federal Savings Bank. The minimum opening deposit at FNBO is $1 while Colorado FSB’s minimum opening balance is $2,500. Ally Bank has the fourth highest savings rate in our database this week at 0.84 percent with an APY of 0.84 percent. Ally Bank has no minimum balance to open a savings account.
The fifth best savings account rate on our list is from Discover Bank at 0.75 percent with an APY of 0.75 percent. Discover’s minimum opening balance on a savings account is $500. The sixth highest rate on our list is from Capital One 360 at 0.75 percent with an APY of 0.75 percent. The minimum opening balance on a Capital One 360 savings account is $1.
Top Money Market Rates
Moving onto money market rates in our database, the second best rate is from two different banks Mutual of Omaha Bank and GE Capital Retail Bank. Both banks are offering money market account rates at 0.85 percent with an APY of 0.85 percent. Mutual of Omaha Bank’s minimum opening balance is $5,000 and GE Capital Retail Bank’s minimum opening balance is $25,000.
The third highest money market rate is from ableBanking, a division of Northeast Bank, and First Internet Bank of Indiana at 0.80 percent with an APY of .080 percent. AbleBanking’s minimum opening deposit for a money market account is $250 and First Internet Bank of Indiana’s minimum opening deposit is $100.
Interest rates change constantly so be sure to check our rate tables for a list of the most current savings rates and money market rates. Our database of rates is updated many times daily to ensure you always receive the most current and accurate information on rates at RatesORama.com.
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