Since mid-March, it has been a quiet month for savings rates, resulting in no significant change in the national savings rate average, which remained flat at 0.30% APY.
As the Federal Reserve pointed out after its March board meeting, the U.S. economy continues to strengthen, albeit at a very slow pace. Most banks did not react to the central bank’s meeting with any rate cuts.
The potential for interest rates to rise is inching closer as the jobs market continues to improve ever so slightly. From February to March, the unemployment rate dropped from 7.7% to 7.6%. Savers should know by now that the Federal Reserve projects interest rates to rise when the unemployment rate falls to 6.5 percent.
TIAA Direct did slash the rate on its online savings account from 1.00% APY to 0.92% APY. The online bank, which is still currently not accepting new customers, had dropped the rate from 1.25% APY to 1.00% APY in January. TIAA Direct held the top savings rate for most of last year.
On the bright side, a new online bank has entered the arena to vie for consumer deposits. Bank X, another online banking subsidiary of BofI Federal Bank (parent of Bank of Internet USA and UFB Direct), offers a competitive online savings rate of 0.95% APY, the same rate that is offered by Sallie Mae Bank.
But, the top nationwide savings rate continues to belong to Barclays Bank, which is offering 1.00% APY.
There was no movement in savings rates regarding the nation’s biggest banks and online banks.
The table below shows the changes in savings rates at benchmark financial institutions from March 15, 2013 to April 15, 2013. By monitoring the savings rates at some of the largest banks, we get an idea of where rates at other banks and financial institutions are headed.
|Bank||Savings account||APY (as of 3/15/13)||APY (as of 4/15/13)||APY Change|
|Bank of America||Regular Savings||0.01||0.01%||0%|
|Ally Bank||High Yield Savings||0.84%||0.84%||0%|
|Capital One 360||360 Savings||0.75%||0.75%||0%|
|American Express||Personal Savings||0.85%||0.85%||0%|
Take a look at the top rates currently available: