After fours months of little to no movement, the national savings rate has increased in the past month to 0.30% APY, up from 0.28% APY. The slight jump is aided by rate hikes from online banks that now tout some of the top savings rates available nationwide.
GE Capital Retail Bank (not GE Capital Bank) is now offering a savings rate of 0.90% APY. CIT Bank also raised its online savings rate to 0.90% APY on balance of less than $25,000. On balances of $25,000 or more, customers will receive earn a savings rate 0.95% APY.
Despite the impressive push made by these online banks, the top nationwide savings rate currently stands at 1.01% APY from SFGI Direct, the online division of Summit Community Bank.
The uptick in the national savings average coincides with the Federal Reserve’s plan to continue tapering its bond-buying program, which should decrease downward pressure on interest rates. As seen in the latest CD Report from MyBankTracker, certificate of deposit rates are on the rise as well.
Although the unemployment rate is no longer a strict indicator of the time to raise rates, it is still a decent metric to track because the Fed continues to keep a close eye on the jobs market when discussing monetary policy. The January unemployment rate fell to 6.6 percent, down from 6.7 percent in December.
The table below provides a sample set of savings rates, and any changes to those rates, at benchmark financial institutions from Jan. 15, 2014 to Feb. 15, 2014. By monitoring the savings rates at some of the largest U.S. banks, we get an idea of the direction of deposit rates at other financial institutions.
|Bank||Savings account||APY (as of 1/15/14)||APY (as of 2/15/14)||APY Change|
|Bank of America||Regular Savings||0.01%||0.01%||0%|
|Ally Bank||High Yield Savings||0.87%||0.87%||0%|
|Capital One 360||360 Savings||0.75%||0.75%||0%|
|American Express||Personal Savings||0.85%||0.85%||0%|
Compare the top savings rates that are currently available: