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8 Banks Now Offering Deposit Rates at 1.00 Percent or Higher

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There are now 8 banks on our variable deposit rate list offering rates at or above 1.00 percent. GE Capital Bank and My Savings Direct have the best savings rate at 1.04 percent with an APY of 1.05 percent. The savings rate at GE Capital Bank was recently increased from 1.00 percent.

EverBank has the top money market rate with 1.01 percent APY. I should note, the EverBank MMA has an intro period of 1.40 percent for 6 months, then the rate falls to 0.61 percent. The first annual percentage yield combined is 1.01 percent.

We don't anticipate variable interest rates to move much higher from current levels until the Federal Reserve increases the fed funds rate.  The current fed funds rate has been in a targeted range of zero percent to one quarter percent since Average Variable Deposit Rates April 8 2015December 2008.

You can view average variable deposit rates to the right:

There is a debate raging about when the Fed will increase the rate. Until Friday's lackluster jobs report, we forecasted the first rate hike in over 6 years was going to happen in June. Now there is a chance we won't see an increase until the Fed's September meeting.

The April and May jobs reports will be the deciding factor on when the rate is increased. Better than expected job growth or wage growth will cause the Fed to increase the rate in June. Weak reports will force the Fed to wait until September.

Exactly when the fed funds rate is increased is still not certain but you can bank on the increase being only 25 basis points. A 0.25 percent increase will force the highest savings rates and money market rates towards 1.30 percent. The best 1 year CD rates which are around 1.30 percent right now will head towards 1.55 percent.


Listed below are the best variable deposit rates for April 8, 2015:

Best Savings Account Rates

  • GE Capital Direct Savings Rate 1.04% APY 1.05%

  • My Savings Direct Savings Rate 1.04% APY 1.05%

  • Synchrony Bank Savings Rate 1.00% APY 1.00%

  • CIT Bank Savings Rate 1.00% APY 1.00%

  • Barclays Bank Savings Rate 1.00% APY 1.00%

  • iGOBanking Savings Rate 1.00% APY 1.00%

  • Discover Bank Savings Rate 0.90% APY .090%

  • Colorado Federal Savings Bank Rate 0.85% APY 0.85%

  • Radius Bank Savings Rate 0.85% APY 0.85%

  • Capital One 360 Savings Rate 0.75% APY 0.75%

  • FNBO Direct Savings Rate 0.75% APY 0.75%

Best Money Market Account Rates

  • EverBank MMA Rate 1.01% APY (first year, 0.61% after)

  • ableBanking, a division of Northeast Bank MMA Rate 1.00% APY 1.00%

  • Synchrony Bank MMA Rate 0.85% APY 0.85%

  • Ally Bank MMA Rate 0.85% APY 0.85%

  • Mutual of Omaha Bank MMA Rate 0.85% APY 0.85%

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

  • Lone Star Bank MMA Rate 0.80% APY 0.80%

  • EH National Bank MMA Rate 0.80% APY 0.80%

  • Union Federal Savings Bank MMA Rate 0.75% APY 0.75%

Author: Brian McKay
April 8th, 2015