In the past month, the national savings rate average stayed the same at 0.28% APY, with only slight changes to rates on some savings accounts. Although savings rates have stopped falling, it may be temporary as there are signs that the Federal Reserve may delay rate hikes further than expected.
Ally Bank boosted the rates on its online savings and money market accounts from 0.84% APY to 0.86% APY, but they fell down to 0.85% APY two weeks later. TIAA Direct’s money market account had its tiered rates drop 0.26% APY.
The most noteworthy rate change comes from HSBC, which cut the rate on its HSBC Advance online savings account from 0.10% APY to 0.01% on balances under $10,000 and from 0.10% APY to 0.05% APY on balances of $10,000 or more. Several years ago, the account was known for having the highest online savings rates, but now it has become rather unremarkable compared to the leading savings currently available.
To savers, the steadily declining unemployment rate may have been the ticket out of the low-rate environment. Unfortunately, some central bankers are hinting at the idea of reducing the unemployment rate target of 6.5 percent, which marked the time when the Fed is prepared to hike rates. If the target jobless rate is lowered, the rate hikes are likely to come later.
The October unemployment rate was 7.3 percent.
The table below shows the changes in savings rates at benchmark financial institutions from Oct. 15, 2013 to Nov. 15, 2013. By monitoring the savings rates at some of the largest U.S. banks, we get an idea of where rates at other banks and financial institutions are headed.
|Bank||Savings account||APY (as of 10/15/13)||APY (as of 11/15/13)||APY Change|
|Bank of America||Regular Savings||0.01||0.01%||0%|
|Ally Bank||High Yield Savings||0.84%||0.85%||+0.01%|
|Capital One 360||360 Savings||0.75%||0.75%||0%|
|American Express||Personal Savings||0.85%||0.85%||0%|
Compare the top savings rates and the potential annual interest you can earn: