Savings Rate Up in February as Savings Account Rates Continue to Decline
Every month the U.S. Department of Commerce Bureau of Economic Analysis releases the rate in which Americans are saving money. The savings rate, not to be confused with savings account rates, is calculated by taking personal income minus personal spending. In the most recent report, Americans saved more despite the fact that savings account rates continue to decline.
The U.S. Department of Commerce Bureau of Economic Analysis’ Personal Income and Outlays for February showed the rate in which Americans save increased to 2.6 percent. February's savings rate increased 2 basis points from January's average rate of 2.4 percent.
The increase in the savings rate had nothing to do with actual savings account rates increasing in February. In fact, for the month of February the average savings account rate declined to 0.53 percent and has fallen even further today. The current national average savings rate for account balances at a minimum of $10,000 is 0.49 percent.
Think the 0.49 percent savings rate is low? The FDIC national average bank savings rate was reported to be at 0.07 percent for the week ending April 1, 2013. Jumbo savings rates are not doing any better in the FDIC survey as the average jumbo savings rate is also at 0.07 percent. These rates are average rates but you can find banks offering savings rates well above the averages.
The best savings rates in our rate database this week are at 1.00 percent with an APY of 1.00 percent. We have two banks that are currently offering that rate and yield, CIT Bank and Barclays Bank. The best money market rate in our rate database is at 0.85 percent but we also have a bank offering a promotional 6 month money market rate at 1.25 percent APY.
The two banks offering a money market account rate at 0.85 percent is GE Capital Retail Bank and ableBanking. The bank offering the 6 month promo money market is EverBank. The ongoing money market rate after the 6 month period is 0.76 percent. This makes the first year APY 1.01 percent on EverBank's money market account.
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