Republicans Extending the Debt Ceiling Limit Keeps Savings Rates Stable

A decision by Republicans to increase the debt ceiling for three months to avoid the Untied States from defaulting on debt payments keeps savings rates stable for now. The next several months will be an interesting time for the economy and savings account rates as Republicans and Democrats hash out debt talks.

Three different issues coming can easily throw the economy into another recession if the two political parties can't come to an agreement. The sequester of automatic spending cuts, appropriations for the coming year and the new time frame on the debt ceiling are all coming over the next three months.

If you think interest rates are low now, if the economy falls into a recession interest rates on interest bearing assets will fall even further. Granted since money market rates and savings account rates on average are very low they can't fall that much more but the best savings rates and money  market rates can fall much more.

The current average savings account rate in the FDIC survey for the week ending January 22, 2013, is at 0.07 percent. Current average money market rates are slightly higher at 0.12 percent. On our rate tables this week the highest savings account rates are at 1.00 percent while the highest money market account rates are at 1.04 percent.

Below is a list of the best rates in our database as of January 27, 2013:

Best Savings Rates

  • CIT Bank Savings Account Rates 1.00% APY 1.00%

  • Barclays Bank Savings Account Rates 1.00% APY 1.00%

  • Ally Bank Savings Rates 0.90% APY 0.90%

  • Colorado FSB Savings Rates 0.85% APY 0.85%

  • FNBO Direct Savings Rates 0.85% APY 0.85%

  • Bank of Internet Savings Rates 0.80% APY 0.80%

  • Discover Bank Savings Rates 0.80% APY 0.80%

Best Money Market Account Rates

  • Union FSB Money Market Account Rates 1.04% APY 1.05%

  • EverBank Money Market Account APY 1.01%

  • Able Banking Money Market Rates 0.96% APY 0.96%

  • Ally Bank Money Market Rates 0.90% APY 0.90%

  • GE Captial Retail Bank Money Market Rates 0.85% APY 0.85%

  • First Internet Bank of Indiana MMA Rates 0.80% APY 0.80%

  • Bank of Internet Money Market Account Rates 0.75% APY 0.75%

Author: Robert Till
January 27th, 2013