Savings Account Rates in 2013 and Beyond, Expect Low Savings Rates for the Foreseeable Future

2012 closes out another year of very low savings account rates with no relief from low rates in 2013. In fact, we expect these ultra low savings rates to stay with us for another three years and possibly longer if the unemployment rate stays high and the inflation rate stays low. You might be thinking, what does the unemployment rate have to do with savings rates? One word, the Fed.

That's right the Federal Reserve as a dual mandate of low unemployment and low inflation. Right now the Fed says the unemployment rate is "elevated" warranting a very "accommodating stance on interest rates". To put this in layman's terms, the Fed is keeping interest rates near zero percent (Fed funds rate) to help lower the high unemployment rate. The inflation rate is also low right now which is another reason why the Fed is comfortable keeping interest rates so low.

The Fed plans to keep the Fed funds rate at near zero percent until mid-2015. This means all types of deposit rates at banks, including savings rates, money market rates and certificate of deposit rates will also stay low until mid-2015. Right now the best savings rates at banks are at 1.00 percent. The highest money market account rates are just above savings rates at 1.04 percent.

I remember the good old days of just a few years ago when you could find many bank savings rates and credit union savings rates in the 4 percent range to 5 percent range. Granted there are some credit union's offering share rates as high as 5.00 these days but there is usually an account balance maximum of $1,000. Below is a quick breakdown of the best interest rates on both savings accounts and money market accounts as of today:

Savings Account Interest Rates

  • CIT Bank Savings Rates 1.00% APY 1.00%

  • Barclays Bank Savings Rates 1.00% APY 1.00%

  • Ally Bank Savings Account Rates 0.95% APY 0.95%

  • American Express Rates 0.90% APY 0.90%

  • Colorado FSB Savings Rates 0.85% APY 0.85%

  • Discover Bank Savings Account Rates 0.80% APY 0.80%

  • Bank of Internet Savings Rates 0.80% APY 0.80%

  • ING Direct Savings Account Rates 0.75% APY 0.75%

  • First Trade Union Bank Savings Rates 0.70% APY 0.70%

Money Market Interest Rates

  • Sallie Mae Bank Money Rates 1.04% APY 1.05%

  • Union Federal Savings Bank Money  Rates 1.04% APY 1.05%

  • EverBank Money Market APY 1.01%

  • Able Banking Money Market Account Rates 0.96% APY 0.96%

  • Ally Bank Money Market Account Rates 0.95% APY 0.95%

  • MetLife Bank Money Rates 0.85% APY 0.85%

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

  • Bank of Internet Money Rates 0.75% APY 0.75%

  • Virtual Bank Money Market Rates 0.70% APY 0.70%

Interest rates change constantly so by the time you read this post the rates might have changed. Always search our rate tables for the most current interest rates.
Author: Stacy Everest
December 30th, 2012