Deposit Rates Will Increase in 2015, Stay Invested in Variable Interest Rate Accounts

Checking on savings rates this week, we see the best savings rates available remain just below 1.00 percent at 0.95 percent. The best money market rates are also unchanged this week at 0.90 percent. Banks haven't increased variable rate accounts yet and probably won't until the Federal Reserve increases the fed funds rate.

On the other hand, banks have been increasing CD rates in hopes of locking in depositors in at lower rates. This trend started late last year as several banks increased CD rates on long term certificates of deposit.

The majority of banks will increase deposit rates sometime in 2015 once the Fed increases the fed funds rate. You should stick with variable rate accounts like savings accounts or money market accounts. Another option is locking into a very short term CD account like three months or six months. With interest rates so low right now, you don't want to be caught in a position to not take advantage of higher rates when they finally arrive.

Listed below are the highest savings account rates and money market rates this week:

Best Savings Rates

  • GE Capital Retail Bank Optimizer Plus 0.95%

  • CIT Bank 0.95%

  • Barclays Bank 0.90%

  • GE Capital Retail Bank 0.90%

  • The Palladian Private Bank 0.90%

  • Ally Bank 0.87%

  • FNBO Direct 0.85%

  • Discover Bank 0.85%

  • Colorado Federal Savings Bank 0.85%

  • American Express Bank 0.80%

Best Money Market Account Rates

  • Sallie Mae 0.90%

  • 0.90%

  • Ever Bank 0.86%

  • GE Capital Retail Bank Optimizer Plus 0.85%

  • Ally Bank 0.85%

  • Mutual of Omaha Bank 0.85%

  • Union Federal Savings Bank 0.85%

  • First Internet Bank of Indiana 0.80%

Author: Brian McKay
May 30th, 2014