Breakdown of the Top Savings Rates and Money Market Rates This Week

The average savings rate is 0.44 percent for account balances of at least $10,000, down from last week's average rate of 0.45 percent. While average rates declined this week, the best savings account rates remain unchanged.

The best savings rate in our database is more than double the current national average rate at 0.95 percent. We currently have two banks offering a rate of 0.95 percent, GE Capital Retail Bank and CIT Bank. There is no minimum opening balance to earn that rate at CIT Bank.  For GE Capital Retail Bank you need to open an account with a minimum deposit of $25,000.

The highest money market account rate is also unchanged this week at 0.90 percent. We have two banks offering the best MMA rate, Sallie Mae Bank and Union Federal Savings Bank. Sallie Mae doesn't have a minimum opening balance and Union Federal Savings Bank's minimum opening deposit is $2,500.

The best savings rates and money market account rates in our database are way above the FDIC's national average rates. For example, this week the FDIC's national average savings rate is at 0.06 percent. The top rate in our database is almost 16 times the FDIC national average. The FDIC's average money market rate this week is only at 0.08 percent. The top MMA rate more than 11 times the FDIC average rate.

Interest rates will be going higher in the coming years as the unemployment rate falls and the inflation rate moves higher. These economic changes will force the Fed's hand to increase the federal funds rate. Savings rates, money market rates and CD rates are tied to the fed funds rate, so when that rate moves higher, deposit rates will also move higher. Therefore it makes sense to either have your money in variable interest rate accounts, such as savings or money market accounts, or in short term certificates of deposit. You don't want to lock into a long term CD rate when rates are low. Stick to variable rate accounts or certificates of deposit with terms of 1 year or less. The best CD rates in our database of 1 year CD accounts are at 1.04% with an APY of 1.05%

Top Savings Rates This Week

• GE Capital Retail Bank Optimizer Plus 0.95% APY
• CIT Bank 0.95% APY
• Barclays Bank 0.90% APY
• GE Capital Retail Bank 0.90%
• The Palladian PrivateBank 0.90%

Top Money Market Rates This Week

• Sallie Mae Bank 0.90% APY
• Union Federal Savings Bank 0.90% APY
• EverBank 0.86% APY
• Ally Bank 0.85% APY
• Mutual of Omaha Bank 0.85% APY

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