Savings Account

Finding a decent rate on a savings account isn’t an easy thing to do these days. Savings account rates have been decreasing for over a year now, falling as fast as the economy.

Monitor Bank Rates will post a great rate being offered by a bank and in less than a month the rate posted by the bank will have decreased on average of over one percent.

Over a year ago one could find online savings account rates around five percent. That’s changed since the Feds have been lowering rates. Most savings account rates are in the three percent to four percent range.

Savings account deals we are aware of right now include:

These rates are out of date, please check the bank’s website for more current rates.

• Hudson City Savings Bank’s Internet Money Market Account, currently yields 2.40%
• Doral Bank Personal Savings Account, currently yields 2.25%, the rate was 3.50% earlier this month
• Costco/Capital One Online Savings Account, currently yields 2.55%

Savings account rates and yields are so low now it’s just a matter of time before rates start creeping up again. Once the economy starts to improve the Fed will start increasing rates to keep a handle on inflation.

The Fed increasing rates will spur the banks to increase rates on deposit accounts including savings accounts, money market accounts and certificate of deposits. Considering how bad things are now that might not be until the beginning for the middle of 2010.