Tennessee Commerce Bank is offering a Savings Account that currently has an annual percentage yield of 2.30 percent. This high interest savings account is well above the national average savings account rate.

The savings rate is for balances between $250 to $100,000. The rate for savings account balances above $100,000 currently has an annual percentage yield of 1.50 percent.

There is a minimum $250 deposit to open account. You also have to maintain a minimum balance of $250 to avoid a $2.50 monthly fee. The downside to this account is there is a $2.50 charge for more than one withdrawal per month.

Money market account and savings account rates decreased fractionally this past week. The average savings account rate hasn’t changed much this year, after the dramatic decline from the higher savings account rates we had last year when one could find a savings rate between three percent and four percent.

The decline in rates for both savings accounts and money market account rates increased after the Troubled Asset Relief Program (TARP) gave banks another way to fund their reserves instead of using deposit accounts. Banks dramatically lowered their rates because it was cheaper for them to borrow money from the government then it was to pay depositors. Cheaper but at a price, many banks are now regretting borrowing funds from TARP because of the government oversight and scrutiny on their spending and executive compensation.

Savings Account and Money Market Account Rates

The average money market account and savings account rate for account balances of $2,500 decreased to 0.429 percent this week, down from last week’s average rate of 0.432 percent. AIG Bank is currently offering a savings interest rate of 1.76 percent on an account balance of $2,500.

Average savings account and money market account rates on account balances of $10,000 is at 0.527 percent this week, down from last week’s average rate of 0.532 percent. HSBC Direct is currently offering a high savings rate on all account balances, their rate is currently at 1.55 percent.

The average rate for money market account and savings account rates for account balances of $25,000 is at 0.609 percent this week, down from last week’s average savings rate of 0.615 percent.

The average money market account rate and savings account rate for account balances of $50,000 is 0.678 percent this week, down from last week’s average savings account rate of 0.684 percent. AIG Bank is offering a high interest savings account rate of 1.96 percent for account balances of $50,000 this week.

Bank of America is offering a promotion savings account rate for small businesses that currently has a 2.00% annual percentage yield. The promotional account is their “Promotional Business Interest Maximizer”.

The 2.00% annual percentage yield is good on deposits until October 31, 2009. The savings account rate is one of the best business savings account rate available these days.

To qualify for this promo savings account offer a promotional business interest maximizer account must include at least $10,000 of new money, money not currently deposited with Bank of America. You also must have a Bank of America small business checking account to qualify for the 2.00% savings account rate.

The promotional savings account rate of 2.00% is as of June 8, 2009 and applies to balances between $10,000 and $499,999, one of the highest savings account rate available today. If the average daily balance falls below $10,000 on the savings account the annual percentage yield is only 0.10% as of June 8, 2009. The APY for balances between $500,000 and $2,499,999 is 1.55% as of June 8, 2009. For balances of $2,500,000 and greater the APY is 0.50% as of June 8, 2009.

Savings account rates were down fractionally this past week. Rates on savings accounts are so low right now they can’t decline much further. Unlike the recent rise in U.S. Treasury prices that drove mortgage rates higher the past several weeks.

I don’t anticipate savings account rates and money market account rates to increase until later this year or early next year when the economy recovers and the Feds raises rates to temper the threat of inflation.

Savings Account and money market rates for account balances of $50,000 averaged 0.684 percent this week, down from last weeks national average rate of 0.691 percent. AIG Bank is currently offering one of the best savings rates for a savings account of $50,000. The rate as of 6/17/09 is 2.01 percent. Rates change constantly so check our savings account rate tables for rates in your zip code.

Savings Account/Money Market Account Rate Tables

National average rates for money market and savings accounts for balances of $2,500 declined this week to 0.432 percent, down from last week’s national average of 0.436 percent. Bank of Internet is offering one of the best savings account rates for balances of $2,500, their savings rate is currently 2.06 percent.

Average rates for a savings account and a money market account for balances of $10,000 is at 0.532 percent this week, down from last weeks average rate of 0.537 percent. Tennesee Commerce Bank is offering one of the highest savings rates on account balances of $10,000, their rate is currently at 2.30 percent.

Rates for account balances of $25,000 this week declined to 0.615 percent, down from last week’s national average rate of 0.622 percent.

Compare savings account rates online

Finding the best savings account rates has become easier over the past several years, although savings rates are very low right now.

Most banks now offer online savings accounts or internet savings accounts that have rates at are higher than their regular savings accounts and money market accounts. (Traditional being their brick and mortar bank branch rates.)

Comparing savings account rates is easy to do with various tools. MonitorBankrates.com offers a savings account research tool that allows you to search and compare savings account rates from several banks in a savings rate table we provide for free here.

Savings Rates/Money Market Rates

The average savings account rate is currently under one percent - not much of a return on your money these days. You can find rates a lot higher than the national averages for savings accounts. Some banks offer high yield savings account, Ally Bank (formerly GMAC Bank) is offering a high savings account that currently yields 2.05 percent. AIG Bank is also offering a savings account that currently yields just over two percent for balances over $50,000. One can open a savings account online with either bank.

Banks are also offering a combination checking savings account that have yields that are even higher than two percent. With combination checking savings accounts, one usually has to meet a certain monthly transaction requirement such as a direct deposit or a certain number of debt card transactions.

Compare Savings Account Rates and Money Market Account Rates.

Comparison Rate Tool

Savings account rates changed fractionally this past week. The interesting thing about this is, while savings rates are low, the U.S. savings rate as a percentage of disposable personal income has been increasing since the economy has taken a nose dive.

Folks are holding onto more of their disposable income just in case they need it. Everyone is scared they might be next to lose their job. Even though bank savings rates have been declining the U.S savings rate increased to 5.7 percent in April 2009, up from 4.5 percent in March. In actual dollar terms, the personal savings amounted to $620.02 billion in April, up from $488.7 billion in March 09.

Now for the national average savings rates. The average rate for a savings account with a balance up to $2,500 paid 0.442 percent, the rate was up to from 0.441 percent, Whoo-hoo.. (remember that bank?). The Average rate for savings accounts up to $10,000 is now 0.545 percent. For savings deposits up to $25,000 the rate this week is 0.631 percent. Savings account rates for balances up to $50,000 is 0.702 percent.

You can find online savings account (Internet savings account) rates higher than the national average savings rates. Monitorbankrates.com offers free savings rate tables to help you find the best savings rates in your zip code.

A Health Savings Account (HSA) is designed to give you an alternative to the rising costs of health care. With a health savings account you can contribute all for a portion of your health plan deductible info a tax-advantaged savings account with certain limits.

Another great benefit to a HSA is your dividend earnings are tax-free and funds remain tax-free as long as you use them to pay for qualified medical expenses. Qualified medical expenses can also include medical expenses that your health care plan doesn’t cover. Distributions (withdrawals) made that are not for qualified medical expenses prior to age 65 are subject to taxes and a 10 percent penalty.

To qualify for a HSA you need to have health care coverage under a high-deductible health care plan (HDHP). You cannot be covered by another health plan, this doesn’t include dental or vision plans. You also can’t be claimed as a dependent on another person’s tax returns or be entitled to Medicare benefits to qualify for a HSA.

Funds in the HSA that are not used in a particular year can be rolled over into the following year allowing your funds to grow annually to save for future medical expenses.

The Internal Revenue Service (IRS) imposes a penalty on excess contributions made into a HSA, but under certain circumstances allow for corrective distributions to be made. You also have to pay taxes on any dividends earned on those excess funds.

If you stop participating in a high deductible health care plan you can spend any funds remaining in your HSA to pay for qualified medical expenses but you can no longer contribute any new funds into the HSA.

Money market account rates and savings account rates are dismal these days. The average rates for all account balances are under one percent. You can find promotional money market accounts and savings account rates that are a lot higher than the average rates.

The average money market account rate - savings account rate is .70 percent for balances of $50,000 or more. Currently AIG Bank is offering an annual percentage yield of 2.06 percent. Almost three times the national average.

Average rates on money market/savings account rates for balances of $25,000 is .63 percent this week. Higher rates are available, Nationwide Bank is offering an annual percentage yield of 2.15% for balances of $25,000.

Rates on lower balance money market accounts/savings accounts are running at .54 percent for balances of $10,000 and .44 percent for balances of $2,500. Higher rates can be found for balances of $10,000, AIG bank is offering an APY of 2.01 percent and Nationwide Bank is offering an APY of 2.15 percent. For balances of $1,000, Bank of Internet is offering an APY of 2.06 percent.

Use our money market/savings account search engine to find the best rates in your area.

Nationwide Bank, the banking arm of Nationwide Mutual Insurance Company, is offering a respectable rate on their money market account. The annual percentage yield on the money market account is currently 2.15 percent as of May 11, 2009. The annual percentage yield is for all account balances.

The account has a minimum opening balance of $1,000, $250 minimum opening balance for Nationwide Associate and Agency Banking Program members. There is also a minimum average daily balance requirement of $1,000.

The money market account also is like a checking account. The first order of checks is free, you also have free online banking, free online monthly statements, free ATM card when requested. Two free non-Nationwide Bank ATM transactions per month. Free money transfer between your Nationwide Bank accounts and from your accounts with other banks. 

Transactions can be done online, over the phone, at an ATM, by mail. You can also link the money market account to a checking account for overdraft protection.

Discover Bank is offering a 2.00% annual percentage yield (APY) on their money market account. The minimum balance on the account to receive the 2.00% APY is $25,000. Balances from $2,500 to $49,999 receive a 1.75% APY.  The rates are valid as of April 28, 2009 and can change at anytime.  The rates are only for personal accounts.

You can access your funds by ATM, by check and with a Discover Card or Discover Debit Card You may make up to six pre-authorized transfers from your money market account per statement cycle, including automatic and telephone transfers. No more than three of the six transfers may be made by check, draft, debit card or similar order made by the depositor and payable to third parties.

Darby Direct, an online division of Darby Bank headquartered in Vidalia, Georgia, is offering an online savings account that currently has an annual percentage yield (APY) of 3.00 percent.

Looks like the rate hasn’t changed in a while, which is unusual because banks have been lowering rates frequently. The 3.00% APY is as of November 1st 2008. The minimum opening deposit is only $1.00 and the online savings account application process only takes 10 minutes. You will need to provide the following information to open an online savings account.

• Driver’s license or a passport
• U. S. social security number
• U. S. citizenship or resident alien status
• Account numbers for accounts that you plan to transfer funds to your new Darby Online Savings Account

The online savings account is offered by Darby Bank & Trust Co. Deposit accounts are insured by the FDIC.Darby Bank & Trust Co’s FDIC Cert is 14580.

Rates on savings accounts, certificate of deposit accounts and mortgages have been going down the past year, this is the result of the economy tanking and the government programs in place that are trying to get the economy going again by lowering rates. 

The U.S. Treasury Department has been lending hundreds of billions of dollars to  large and small banks since the Troubled Asset Relief Program (TARP) started in the fourth quarter of 2008.

TARP has also caused savings rates to go down since banks have a cheaper source of funds from which they can borrow. There has been less of an urgent need to offer promotional deposit rates to entice depositors.

The Federal Reserve has also had its hand in forcing rates down.  The Feds have kept the Fed Funds rate at a starting range of 0 percent to .25 percent since late last year to get the credit markets and the economy going again.

The Feds have also been flooding the markets with newly printed money, buying large quantities of mortgage backed securities to further drive mortgage rates down.  A side affect of driving mortgage rates down is lower rates on deposit accounts.

Rates on savings accounts will stay low until the end of the year or early next year.  When the economy starts to recover the Feds will have to start raising the Fed Funds rate to keep a lid on inflation. This is will cause savings account rates to start creeping up again.