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Best Savings Account Rates at Online Banks and Credit Unions
 

Best Savings Account Rates at Online Banks and Credit Unions

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Average savings account rates are extremely low right now. The FDIC's current national average savings rate is only 0.09 percent. A savings rate of one tenth of one percent is pretty much what the big banks are offering right now.

Banks really don't have an incentive to raise deposits by offering decent savings account rates and CD rates since they can borrow from each other and the Fed at zero percent. Big national banks like CitiBank, Chase Bank and Wells Fargo Bank are all offering savings rates that are darn right pathetic.

Therefore you're better off placing your money in an online savings account which usually has a higher savings rate or a share savings account at a credit unions.

One online bank that has one of the best promotional money market rates right now is EverBank at 1.25 percent. This promotional savings rate is good for the first six months of opening the account. After the six month period the savings account rate drops to 0.76 percent.

When you combine the promo savings rate along with the ongoing savings rate you get the first year rate at 1.01 percent. The rate of 1.01 percent is also one of the highest savings rates around right now.

Other online savings rates that are consideribly higher than the average rates available include Ally Bank's savings rate at 0.84 percent and American Express Bank savings rate at 0.85 percent.

Local credit unions always offer great share savings rates and you can usually join if you live in a certain area which is the reason why most people are able to join. So check around for local credit unions and compare savings rates. You can find a list of credit unions in your area by using the credit union finder at the National Credit Union Association (NCUA).

Author: Monica Harris
June 25th, 2012