Savings Rates- High Yield Savings Accounts and Money Market Accounts
Use our savings rates list below to search for and compare the best savings rates from banks and credit unions. Our list of savings account rates are the highest savings rates around from both local banks and credit unions. We also list the best savings rates from national banks. There is no need to search for savings rates elsewhere since we maintain the best list of rates.
Money market account rates are slowly moving higher in 2017, primarily as a result of the fed funds rate increases. Starting out the year, the highest money market rates offered by online banks were around 1.00 percent. Right now, the best online money market rate is 1.15 percent from My Banking Direct.
Interest rates are moving higher this year because the Federal Reserve increased their key benchmark interest rate, the fed funds rate, three times in 2017. The Fed has been very forthcoming and said they expect to increase the rate four times this year, so that leaves us one more rate hike.
You will only find money market rates at or above 1.00 percent with online banks. Local and regional banks are the second best place to go for rates but most of those banks don’t offer rates as high.
The last place you want to go is the big national banks. For example, Bank of America’s very best money market rates is a paltry 0.06 percent. Think 0.06 percent is bad? Wells Fargo’s Way2Save account has a current internet rate of 0.01 percent.
The good news is that looking forward, money market rates are moving higher in 2017 and in future years. With at least one more fed funds rate increase this year, money market rates will probably move towards 1.25 percent.
Fed Funds Rate and Money Market Rates in 2018 and 2019
Of course, the one thing that would derail any forecast for higher interest rates is a recession.
Quick tip: If it looks like a recession is eminent, money market rates will decline because they are variable rate accounts. So be sure to lock in a higher rate with a certificate of deposit. You can find a list of CD rates at MonitorBankRates.com.
The best savings account rates available in the rate database moved higher again this week and are now at 1.30 percent. There are two banks offering savings rates at this level – UFB Direct and BankPurely. A yield of 1.30 percent is much higher than the current national average savings rate of 0.58 percent.
Savings rates and other deposit rates have been slowly inching higher for about 18 months now. Rates started moving up just before the Fed increased the fed funds rate in December 2015. Before the rate increases, the highest savings rates in the database were around 0.90 percent, 40 basis points less than now.
Since December 2015, the Fed has increased the rate two more times and is anticipated to increase the rate two more times this year. Two more rate increases would put the top end of the federal funds rate at 1.50 percent. If those hikes do take place in 2017, the top savings rates will be around 2.00 percent.
2.00 percent rates are nothing to write home about but are better than the current rate and more than double the 0.90 percent rate we saw in 2015. At least interest rates are headed higher.
The Fed met last week and didn’t increase interest rates. Standing pat on interest rates was expected for the May meeting. The Fed meets again next month and is expected to increase the fed funds rate by 25 basis points. An increase of 0.25 percent would put the fed funds rate in a range of 1.00 percent to 1.25 percent. The last time the rate was at 1.00 percent was in December 2008.
If we do see a rate hike next month, banks and credit unions will likely increase their rates. We could see the top savings rates and money market rates head towards 1.50 percent or above. The top CD rates are already at 1.50 percent and would likely be increased to 1.75 percent.
Listed below are the top savings account rates available on our database for January 11, 2017. The sole leader with the best savings account rate this week is Popular Direct with a rate of 1.14 percent and a yield of 1.15 percent.
Top Savings Rates
Interest rates change constantly, you can always get a list of the most current rates by searching our rate database at Savings Rates.
Another Fed meeting came and went last week with one major difference. The Federal Open Market Committee increased the fed funds rate 25 basis points. This is only the second increase in the past decade. The new target range for the fed funds is 0.50 percent to 0.75 percent.
The rate increase was announced a few days ago and as of this morning, none of the financial institutions in our database increased their rates. There is hope for higher rates, maybe not with this fed rate increase but with future increases.
If rates do move higher we will quickly announce any increases from banks or credit unions.
In additional to increasing the rate this time around, the Fed did something it never has done before. The Fed announced there will likely be three rate increases in 2017 and possibly more if needed. This was a surprise not only because the announcement was made prior to this meeting but also because only one rate increase was expected in 2017.
Three fed funds rate increases in 2017 will likely entice banks and credit unions to increase their deposit rates. Three rate increases will put the top savings rates and money market rates near 2.00 percent.
The current top savings account rate in our database is from Popular Direct at 1.14 percent with a yield of 1.15 percent. The current top money market account rate is at 1.10 percent with a yield of 1.11 percent from EverBank (6 month promo rate/yield).
You can always get a current list of the best savings rates and money market rates by reaching our rate database at Variable Deposit Rates.
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