Bitcoin tops 41,000. Check current cryptocurrency prices here:

Federal Open Market Committee Keeps Fed Funds Rate at Exceptionally Low Levels Until Middle 2015

This past week the Federal Open Market Committee (FOMC) decided to keep the Fed funds rate in a target range of zero percent to one quarter percent past the end of 2014, until the middle of 2015. This means that these ultra low savings rates will remain low for at least another three years and probably longer. Right now the best savings rates are just above 1.00 percent while average savings rates are less than 0.10 percent.

The Fed admits that economic conditions warrant exceptionally low rates and the policy of keeping rates very low hurts holders of savings accounts, certificates of deposit and other interest bearing investments. The Fed also said their policy also supports the value of other assets such as business and homes. Well if you don't own a business or a home, you're out of luck and you have to continue to suffer with returns lower than inflation.

Every week the FDIC releases a national rate survey and in this week's survey the average savings account rate for account balances under $100,000 is a measly 0.08 percent. If you have over $100,000 to deposit into a savings account you think you would receive a higher savings rate, that isn't the case. In this week's survey average jumbo savings rates are also at 0.08 percent.

Thankfully the highest savings rates are many times the FDIC average rates. The highest savings account rates on our rate list for the week of September 18, 2012, are at 1.04 percent with an APY of 1.05 percent. Current CIT Bank savings rates are paying that rate and yield for account balances of at least $1,000.  CIT Bank online savings account rates are more than 12 times the FDIC national average regular savings account rate and jumbo savings account rate.

We also list the best money market account rates on our national rate list which are also well above the FDIC weekly average. In this week's FDIC survey average money market rates are at 0.12 percent while average jumbo money market rates are at 0.19 percent.

The highest money market rates on our rate list for September 18, 2102, are also several times the FDIC average rate. Right now the best money market rate on our rate list is from Union Federal Savings Bank at 1.04 percent with an APY of 1.05 percent for account balances of $2,500 or more.  Union Federal Savings Bank's current money market rate is almost nine times the FDIC average for account balances under $100k and six times the jumbo money market rate.

We list many other savings account rates and money market account rates on our rate tables. Most of the bank rates listed are well above the national average rates. Feel free to search and compare rates yourself so you can maximize your earnings in this low interest rate environment.
Author: Lisa Graham
September 18th, 2012