Highest Savings Rates This Week: Best 1 Year APY at 1.05 Percent

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As we wait for the Federal Open Market Committee's (FOMC) decision on whether or not more easing is coming to lower interest rates, the Federal Deposit Insurance Corporation's (FDIC) average savings rates are at 0.08 percent this week. In the FDIC's weekly national rate survey average jumbo savings account rates are also averaging only 0.08 percent. 1 year U.S. Treasury yields are doing at little better at 0.18 percent.

The highest savings account rates are currently 13 times the FDIC national average rate. The best savings rates on our rate list are from CIT Bank. Current CIT Bank savings account rates are at 1.04 percent with an APY of 1.05 percent. The minimum opening deposit for a CIT online savings account is $25,000. With CIT Bank's account you can still earn a "jumbo savings rate" without having to have the traditional jumbo deposit amount of $100,000.



The best money market account rates available right now are also many times the FDIC average. In the FDIC's national average rate survey this week average money market account rates are at 0.12 percent. Jumbo money market rates are averaging 0.19 percent, just 1 basis point over 1 year bond yields.

Thankfully the highest money market rates are more than 8 times the FDIC average. 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. Union Federal's minimum deposit on their money market is $2,500.

The second best savings rate on our rate list this week is from  Barclays Bank. Current Barclays Bank online savings rates are at 1.00 percent with an APY of 1.00 percent. Barclays' savings rate is more than 12 times the FDIC average rate.There is no minimum opening deposit on a Barclays account.

The second best money market interest rate on our list is a promotional rate. EverBank money market rates currently have a promotional rate of 1.24 percent with an APY of 1.25 percent. This promo rate is only for 6 months so when you combine the ongoing rate of 0.76 percent you get the first year APY at 1.01 percent, which makes the APY the second best on our money market list.

The third highest savings interest rate on our list is from Ally Bank. The former GMAC bank is offering current online savings account rates at 0.95 percent with an APY of 0.95 percent. There is no minimum opening balance for an Ally Bank savings account.

The third highest money market rate is from the banking division of the student loan company Sallie Mae. Curent Sallie Mae Bank money market rates are at 1.00 percent with an APY of 1.00 percent. There is no minimum opening balance on a Sallie Mae money market account.

If you have student loans you're paying a higher interest rate than you can get on any deposit account these days. That being said if you have enough money in your "emergency account" to cover 6 months of expenses instead of adding more money into a low yielding account pay off your student loan(s).

The fourth best savings rate on our list is from the banking arm of the credit card company American Express Financial. American Express Bank savings rates are currently at 0.90 percent with an APY of 0.90 percent. There is no minimum opening deposit for an American Express online savings account.

Ally Bank also offers a money market account which has the fourth best money market rate on our list. Current Ally Bank money market rates are at 0.95 percent with an APY of 0.95 percent, the same rate as the bank's savings account rate. There is also no minimum opening deposit for an Ally Bank money market account.

Discover Bank's savings rate rounds out our top 5 national savings account rates. Current Discover Bank savings rates are at 0.85 percent with an APY of 0.85 percent. The minimum opening deposit on a Discover Bank online savings account is $500.

Able Banking has the fifth highest money market interest rate on our national rate list. AbleBanking's current money market rate is at 0.90 percent with an APY of 0.90 percent. There is a $1,000 minimum opening deposit for an ableBanking money market account.
 
Author: Lisa Graham
September 13th, 2012