Weekly Savings Rates, Money Market Rates and Bond Yields May 7, 2013
Average savings rates, money market rates on short term bond yields moved little this past week. The same can't be said for intermediate and long term bond yields as recent economic indicators point to a strengthening economy. Since the start of the month 3, 5, 7, 10, 20 and 30 year bond yields have been on a tear, up between 5 basis points to 18 basis points in just 5 days.
The current national average savings/money market rate on account balances of at least $10k are at 0.50 percent, up from last week's average rate of 0.49 percent. The average rate on account balances of at least $25k averaged 0.66 percent, unchanged from last week. The average rate on account balances of at least $50k also remained unchanged at 0.68 percent.
The increases and declines in bond yields are market driven while bank savings rates and money market rates are tied to the federal funds rate. When the Fed increases the rate, banks follow suit with higher interest rates on deposit accounts and when the Fed decreases the rate banks follow (usually quicker on the downside) with lower deposit rates.
The current fed funds rate has remained at 0-0.25 percent since December 16, 2008, when the rate was lowered to that level. Since that time savings account rates, money market rates and all interest bearing accounts have declined to current low levels. While average rates remain between 0.50 percent to 0.68 percent this week, you can still find banks offering rates much higher than the averages.
The best money market rates in our rate database are current from EverBank at 1.01 percent APY. The best savings account rates this week are from CIT Bank at 1.00 percent with an APY of 1.00 percent for account balances of $25k or more. Below is a list of banks that are offering the best rates on both types of accounts.
Best Savings Rates May 7, 2013
Best Money Market Rates May 7, 2013
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