Savings Rates | Find the Best Savings Rates Today
The best online savings rate on our list hit another new high in 2018. The current best savings rate is now at 1.79 percent with an APY of 1.80 percent. We might see the highest savings rate hit 2.00 percent this month or next.
Just last month, the best savings rate was 15 basis points lower at 1.55 percent. In early January, the top rate was even lower at 1.50 percent. A 30 basis point increase in just over 2 months is nice to see and the good news is that rates will keep moving higher.
Best Online Savings Rate Poised to Move Higher
Savings rates, money market account rates, and CD rates will all continue to move higher for the rest of 2018. The driving force behind higher rates is that the Federal Open Market Committee will be increasing the federal funds rate.
Note: The federal funds rate is the central interest rate in the U.S. financial market. The federal funds rate influences other interest rates such as the prime rate, the rate banks charge their customers with higher credit ratings. Additionally, the federal funds rate indirectly influences longer-term interest rates such as mortgages, loans, and savings rates.
The FOMC is widely expected to increase the fed funds rate another 25 basis points this month. The CME Group’s FedWatch Tool puts the probability of a rate hike at 88.8 percent. Another 25 basis point increase will put the fed funds rate in a range of 1.50 percent to 1.75 percent.
Banks will increase deposit rates because of the higher fed funds rate. The highest savings rates and money market rates will head towards 2.00 percent. The highest 1 year CD rates will likely go up to 2.25 percent to 2.35 percent, up from the current highest 1 year CD rate of 2.10 percent.
Marcus by Goldman Sachs’ savings rate is competitive and currently at 1.40 percent. The savings rate is only 20 basis points lower than the top savings rate available right now. Marcus doesn’t only offer online savings accounts the bank also offers personal loans.
According to Goldman the investment bank listed to 10,000 people tell them about their experiences with debt. The endless cycle of high interest rate credit card debt, fees and trying to pay that debt off.
Marcus by Goldman Sachs Personal Loans Review
Goldman decided to do things different and offer personal loans with no hidden fees and at fixed rates. Personal loans also have customizable payment options, giving borrowers more flexibility with payments. Interest rates on loans range of 6.99% to 23.99 percent.
These rates are competitive for unsecured personal loans. Though when you get up to the high double digits it might not make sense to borrow to pay off other loans or credit cards. Goldman states only the most creditworthy applicants qualify for the lowest rates. Interest rates are also higher for longer-term loans.
Borrowing from a reputable financial institution like Goldman is always better, plus there are no hidden fees. The fact that there are no hidden fees is crucial because there are many unscrupulous personal loan lenders charging exorbitant fees.
Like with anything else, you have to shop around for the best rates and figure out what loan makes most financial sense for you.
Marcus by Goldman Sachs Savings Rate and Review
Goldman Sachs used to offer online CD account and savings accounts through Goldman Sachs Bank. The bank has now offering deposit products under the new name Marcus by Goldman Sachs. All deposit products are insured with the FDIC under the Goldman Sachs name. The Goldman Sachs FDIC Cert number is 33124.
As I mentioned before, the current Marcus by Goldman Sachs savings rate is 1.39 percent with a APY of 1.40 percent. This isn’t the best savings rate available right now but the rate is in the top 5 rates available. In fact, the savings rate of 1.40 percent is tied for the third best rate. The minimum opening deposit for a savings account is only $1.00.
Goldman Sachs didn’t pull the name Marcus out of the blue. Goldman Sachs’ founder was Marcus Goldman who started the firm in 1869.
The top online savings rates and money market rates were increased again last week because the Fed increased the fed funds rate. These increases bring the best variable deposit rates to 1.30 percent, up from the prior top rate of 1.25 percent. You won’t find these rates from traditional brick and mortar banks, these rates can only be found from Internet banks.
To give you some perspective on how much higher deposit rates are from online banks, we listed the top online rates along with rates from the largest banks. The savings rates offered by the top brick and mortar banks are paltry at best. Even finding rates the brick and mortar banks are offering is difficult – you really have to dig through their websites to find the actual rates they’re offering.
Top Online Savings Rates
Savings Rates at Largest Banks
As you can see, there is no comparison. Don’t bother opening a savings account with any of the big 4 banks. In addition to their extremely low savings rates, there are also many hidden fees and charges. You can quickly get a negative return on your deposit if some of these fees are charged.
You can search for and compare savings rates and money market rates from dozens of banks and credit unions by searching our deposit rate lists for the best savings rates.
The new highest savings account rate on our rate list this month is from Popular Direct savings account rate , currently at 1.25 percent with a yield of 1.26 percent. Popular Direct’s savings rate is two and a half times the national average savings rate as reported by MonitorBankRates.com. Popular Direct is the online banking division of Banco Popular North America (BPNA).
The best savings rates are found with online banks because you will always get a better rate than a brick and mortar bank. Many brick and mortar banks have online banking divisions which offer higher deposit rates than the parent bank. BPNA’s online savings rate is 1.26 percent but their top brick and mortar savings rate is only 0.35 percent.
Getting access to your money with an online account is also very easy these days. You can link both internal and external accounts to transfer money in and out. Mobile banking also gives you the ability to deposit checks just by taking a photo of the front and back of a check to submit for payment.
The minimum account opening account balance for a Popular Direct savings account is $5,000. There are a number of account fees you will be charged if certain criteria aren’t met on a monthly basis.
If you don’t maintain a minimum account balance of $500 you will be charged $4.00 a month. You will be charged an excessive withdrawal fee of $5 if you exceed the legal limit of 6 withdrawals or transfers during any statement cycle.
You have to keep the savings account open for a minimum of 180 days, failure to do so will cost you a fee of $25.00. There is a dormancy fee of $5 if there is no account activity in 12 months. Interest earned on the account is calculated using the daily balance method, which gives the account a higher overall annual percentage yield.
Another Fed meeting has come and gone with no interest rate hike but there is hope for the future for savings rates. Over the past year, we have already seen banks and credit unions increase savings account rates. In fact, this past month we have a new highest savings rate of 1.26 percent on our rate list.
Looking past this month, it’s very likely savings rates and money market account rates will continue to inch higher. Pressure is mounting for the Fed to increase the fed funds rate and it’s looking like that will happen during the Fed’s scheduled December meeting.
When the fed fund rate is increased, it’s likely the best savings rates from online banks will also increase. The current fed funds rate is in a targeted range of 0.25 percent and 0.50 percent. If the range is increased to 0.50 percent to 0.75 percent the top savings account rates could rise to 1.50 percent.
The last time we saw the top variable deposit rates at 1.50 percent was several years ago. You might be able to find a bank offering a promotional rate of 1.50 percent or higher but it’s a limited time promotional rate. You have to go back to right after the financial crisis around 2009/2010 to find deposit rates that high.
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