Best Savings Rates| Search for the Best Savings Rates from Banks and Credit Unions
Use our savings rates list below to search for and compare the best savings rates from banks and credit unions. Our list of savings account rates are the highest savings rates around from both local banks and credit unions. We also list the best savings rates from national banks. There is no need to search for savings rates elsewhere since we maintain the best list of rates.
Variable deposit rates continue to inch slowly higher this week. The best savings rate available is at 1.25 percent with a yield of 1.26 percent. The best money market account rate available is slightly lower at 1.24 percent with a yield of 1.25 percent.
Listed below are the best savings rates and money market rates available in our database for November 27, 2016.
Best Savings Rates
Best Money Market Account Rates
Variable deposit rates have been slowly creeping up for the past several months. The interest rate increases have been small; in increments of less than 10 basis points for the most part. Even with the small increases, the best variable deposit rates are almost comparable to best the 1 year CD rates.
The best savings rate on our rate database is at 1.25 percent with an APY of 1.26 percent from Popular Direct. This savings rate is only 4 basis points lower than the top 1 year CD rate in our database at 1.29 percent with a yield of 1.30 percent. The highest money market yield on our list is 5 basis point lower at 1.24 percent with a yield of 1.25 percent.
Listed below are today’s current highest savings rates and money market rates
Highest Savings Rates
Highest Money Market Rates
To view a current list of savings account rates and money market account rates search our database at SavingsAccount.MonitorBankRates.com.
Popular Direct, the online banking arm of Banco Popular North America (BPNA), is currently offering the best savings rate in our database. Popular Direct’s savings rate is at 1.25 percent with an annual percentage yield of 1.26 percent. Popular Direct’s savings yield of 1.26 percent is 21 basis points higher than the second best savings rate in our database.
Popular Direct is also in a healthy financial position and gets a 5 out of 5 star rating.
These days, most online savings accounts have a bare minimum opening deposit of $1 or less. The minimum opening deposit for a savings account at Popular Direct is $5,000. Popular Direct’s savings rate is tiered based on the account balance but right now all tiers have the same rate and yield.
There is an ongoing minimum balance of $500 that has to be maintained for each statement period. If the balance falls below $500 for even a single day a fee of $4 is charged to the account.
Another popular feature with most online deposit accounts is the ability to deposit checks by just taking photos of the check with your mobile device. Popular Direct also has this feature called Mobile Deposit. Other mobile features include checking your account balance and transferring money between accounts.
Popular Direct’s Savings Account Fine Print
For more information on this savings account or to open an account go to Popular Direct Savings Account.
Despite comments in late August by Fed Chair, Janet Yellen, and NY Fed President, William Dudley, regarding a September rate hike, it didn’t happen. The FOMC wrapped up their meeting yesterday and decided to leave the fed funds rate unchanged.
The FOMC did telegraph one rate hike in 2016 which will likely come during the Fed’s December meeting, after the election. A likely 0.25 percent rate hike in December would put the fed funds rate in a range of 0.50 percent to 0.75 percent.
A 0.25 percent increase is not enough to entice banks to increase deposit rates. As we have reported for the past many years, any large increases in savings rates or money market rates will have to wait until the Fed makes a more significant increase to the fed fund rate.
Currently, the best savings rate in our database is at 1.25 percent with a yield of 1.26 percent from Popular Direct. A 1.25 percent savings rate is on par with the highest 1 year CD rate in our database currently at 1.30 percent. The highest MMA yield in our database is a promotional rate from EverBank at 1.11 percent.
The likelihood of savings rates and money market rates moving higher has increased as a result of some recent Fed comments. The Fed Chairperson, Janet Yellen, and the NY Fed President, William Dudley, both made comments this week that a fed fund rate hike is possible soon.
In a speech on Friday, Yellen said a rate hike this year is still on the table. “I believe the case for an increase in the federal funds rate has strengthened in recent months.”
William Dudley also commented on Friday suggesting a rate hike is possible as soon as the Fed’s September meeting. He said the Fed is “edging closer towards the point in time where it will be appropriate I think to raise interest rates further.”
Strong economic news is the key to a rate hike in September or the two remaining meetings scheduled in 2016. A really strong employment report for August will be the catalyst for a fed funds rate hike in September. It’s unlikely the Fed will increase rates during the November meeting, which is less then a week before the fall election.
If we don’t see a rate hike in September, the last chance for a hike in 2016 will be the during the December meeting. A hike in September or December will only be 25 basis points and would put the fed funds rate at 0.75 percent. It’s highly unlikely the Fed will hike in both September and December.
The fed funds rate at 0.75 percent might entice banks to increase deposit rates. It is doubtful we will see any banks or credit unions increasing their rates by 25 basis points. A more likely increase will be only around 5 to 10 basis points, which would put the best savings rates or money market rates around 1.25 percent.
In the meantime, the current highest savings rates in our database are at 1.05 percent and the highest money market rates are at 1.11 percent. Right now you can get a slightly higher rate on a 1 year certificate of deposit. The best 1 year CD rates in our database are at 1.30 percent.
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