Say goodbye, for now, to savings accounts that pay 1.00% APY because you won’t be able to find that nationwide savings rate until the Federal Reserve starts to raise interest rates. In the past month, the last savings account to offer at least 1.00% APY had slashed its savings rates.
CIT Bank dropped the savings rate on its online savings account from 1.00% APY to 0.85% APY (applied to balances of $25,000 and up). On balances of under $25,000, the savings rate fell from 0.90% APY to 0.80% APY.
Meanwhile, most other banks did not make any significant changes to their savings rates. As a result, the national savings rate average remains unchanged from May at 0.29% APY.
The top nationwide savings rate of 0.95% APY is currently held by Bank X, followed closed by the 0.90% APY savings rate from Barclays.
All eyes will be looking at the next Federal Reserve board meeting. The central bank said it was prepared to scale back its quantitative easing measures, which would signal that the Fed believes that the U.S. economy is doing better. The sooner the economy improves, the sooner the Fed will increase interest rates.
Unfortunately, the U.S. unemployment rate rose to 7.6 percent in May, up from 7.5 percent in April. It’s one step backward from the key 6.5 percent unemployment rate, which would indicate the time that the Fed will start to raise rates.
The table below shows the changes in savings rates at benchmark financial institutions from May 15, 2013 to June 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 5/15/13)||APY (as of 6/15/13)||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%|
Use the MyBankTracker’s savings rate table below to compare the top savings rates currently available: