Savings Rates Going Nowhere Since 1st Quarter GDP Growth is Revised Lower

We have all wondered when interest rates will move higher on savings accounts and money market accounts. Don't hold your breath for higher rates anytime soon. Another piece of economic data was released recently which will keep the status quo in place on the Federal Reserve's policy. 1st quarter Gross Domestic Product was revised downward to 1.8 percent, down from the first estimate of 2.4 percent.

Recent comments by various Federal Reserve Governors on interest rates and the Federal Reserve's accommodative policies also point to more of the same. In the Federal Reserve's June statement of economic policy, 15 of 19 Fed Governors support keeping the fed funds rate low for another two years. This will mean savings rates and money market rates will also remain low for at least two more years.



Best Savings Rates Well Above National Average Rates


Savings Rates Going Nowhere as 1st Quarter GDP Growth is Revised LowerThe best savings account rates in our rate database are still double the national average savings rate of 0.47 percent. The best rate in our database is more than 16 times the FDIC national average savings rate of 0.06 percent for the week ending June 24, 2013. The highest savings rate in our database is at 1.00 percent from The Palladian PrivateBank.

Below is a list of banks with the highest savings account rates this week:

  • The Palladian PrivateBank 1.00%

  • Barclays Bank 0.90%

  • FNBO Direct 0.85%

  • Colorado FSB 0.85%

  • Ally Bank 0.84%


Best Money Market Rates Higher than National Average Rates


The highest money market rates in our database are also many times the FDIC average this week. The best MMA rate in our database is from EverBank at 0.89 percent APY. Ever Bank's rate is almost 9 times the current FDIC national average money market rate of 0.09 percent. EverBank's rate is also much higher than the FDIC national average jumbo money market rate of 0.15 percent.

Below is a list of banks that are currently offering the best money market rates this week:

  • EverBank 0.89%

  • GE Capital Retail Bank 0.85%

  • Ally Bank 0.84%

  • First Internet Bank of Indiana 0.80%

  • ableBanking, a division of Northeast Bank 0.80%


Beside finding the best interest rates on savings accounts and money market accounts you can also find the best rates on certificates of deposit at MonitorBankRates.com.
 
Author: Brian McKay
June 28th, 2013