Ten Banks Now Offering Variable Deposit Rates at 1.00 Percent or Higher
For the past year, we have seen many banks and credit unions increase savings rates and money market rates before the FOMC has increased the federal funds rate. This week there are now ten financial institutions offering variable deposit rates at 1.00 percent or higher.
For the most part, the banks offering these rates are online banks. Some might have a traditional brick and mortar location or two, but the banks get most deposits online. Over the past 15 years, online banking has gotten more mainstream and the best rates available have mostly been from online banks.
This trend accelerated after the financial crisis and Great Recession when the big banks had no interest in attracting deposits. Money became so cheap to borrow from the Fed there was no reason to pay depositors higher rates. Hopefully this will change in the coming months once the FOMC increases the fed funds rate.
Best Online Savings Rates
The best online savings rate in our rate database this week is from MySavingsDirect at 1.24 percent with an APY of 1.25 percent. This rate is just as good as the best 1 year CD rates available right now. MySavingsDirect savings rate is more than double the current national average savings rate of 0.48 percent. The minimum opening account balance is only $1.
Other online banks offering the top savings rates this week include The Palladian PrivateBank. The bank's current savings rate is at 1.09 percent with an APY of 1.10 percent. The minimum opening account balance at this bank is much higher at $10,000.
Two banks are tied with the third best online savings rate this week. Synchrony Bank and GE Bank are both offering current savings rates at 1.04 percent with an APY of 1.05 percent. There is no minimum opening deposit for savings account at both banks.
Best Online Money Market Rates
The best online money market account rate in the database this week is at 1.09 percent with an APY of 1.10 percent. iGObanking.com is currently offering that rate and yield for accounts that have a minimum deposit of $25,000. This money market rate is almost 14 times the FDIC national average money market rate of 0.08 percent.
The second highest money market rate in the database this week is from EverBank at 1.01 percent APY. EverBank's rate is a promotional rate just for the first year the account is open. The rate for the first 6 months is 1.40 percent and the ongoing rate after the first 6 months is 0.61 percent. The minimum opening deposit for this account is $1,500.
AbleBanking, a division of Northeast Bank, has the third best MMA rate in our database this week. The bank's current MMA rate is at 1.00 percent with an APY of 1.00 percent. The minimum opening deposit for this account is only $250.00.
You can view all variable deposit rates by searching our database: Variable Deposit Rates
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