Money Market Rates Hold Steady This Week, Best Rate at Remains Just Under 1.00 Percent
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.
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