In the past month, the national savings rate average has dipped from 0.33% APY to 0.32%, according to bank data tracked by MyBankTracker. The drop doesn’t come as a surprise since some of the biggest names in online banking have slashed the rates on their savings accounts.
Ally Bank, one of the biggest online banks in the country, reduced its online savings rate — from 0.95% APY to 0.90% APY. Sallie Mae Bank’s savings rate fell from 0.90% APY to 0.85% APY. HSBC cut the savings rate on its online savings account again, after having already done so in early January.
Barclays maintains its rank as the online bank with the top nationwide savings rate at 1.00% APY. (TIAA Direct’s savings rate is also 1.00% APY but it has temporarily stopped accepting new customers.)
The top nationwide rate for 1-year certificates of deposit (CDs) is held by Sallie Mae Bank (1.05% APY).
Since the best rates on savings and CDs are so close to each other, savers should weigh the risks of further rate drops on savings accounts with the risks of not being able to access their cash.
In the latest board meeting of the Federal Reserve, the central bank did not announce any significant change to their monetary policy, which will keep interest rates at low levels until the unemployment rate falls to 6.5 percent. The Fed doesn’t expect that to happen until 2015. The January unemployment rate was 7.9 percent, up from 7.8 percent in December.
The table below shows the changes in savings rates at benchmark financial institutions. From Jan. 15, 2013 to Feb. 15, 2013. By monitoring the savings rates at some of the biggest banks, we get an idea of where rates will trend at other banks and financial institutions.
|Bank||Savings account||APY (as of 1/15/13)||APY (as of 2/15/13)||APY Change|
|Bank of America||Regular Savings||0.01||0.01%||0%|
|Ally Bank||High Yield Savings||0.95%||0.90%||-0.05%|
|Capital One 360||360 Savings||0.75%||0.75%||0%|
|American Express||Personal Savings||0.90%||0.90%||0%|
If you’re looking for a new savings account, be sure to look for a competitive rate to better grow your savings.