The First Quarter of 2015 Enjoys Higher Saving Account Rates
Investors look for the best bet when it comes to putting their money into a savings account. However, overall rates have been at a decline for quite a while now, and this could be refreshing news. Competition among banks has increased as some of the top banks raised their savings account rates in the first quarter of 2015. The top three highest yielding accounts are offering an annual percentage yield of 1 percent or better, according to a latest survey from MoneyRates.com. These rates mark the first time that percentage yield has reached this level since 2011.
In spite of leading banks taking the first step ahead, it hasn’t done much for the average level of savings account rates. It has fallen to just 0.171 percent. In the first quarter, money market account rates also experienced a decline of 0.158 percent. Against the last quarter rates of 2014, the money market rates have remained mostly flat, unlike the savings account rates.
A senior financial analyst for MoneyRates.com, Richard Barrington, claims that consumers who can find these banks and invest in the top savings account can enjoy earning five to six times higher than the average savings account customer can. These rates indicate that the competition for deposits among banks is growing strong. It is also an indication of greater rewards for perceptive bank shoppers.
Due to a long awaited hike to federal funds rate by the Federal Reserve, interest rates are a trending and hot topic. While some banks are laying low and sitting back, waiting for the Fed’s signal, others are getting ahead on the trend and raising rates.
There is also a growing divide between online based and tradition accounts that are opened in the branch. Accounts that are based online are offering greater account rates than branch-based accounts for a number of years now, but in the first quarter, this advantage seems to be growing further. On average, the interest rates offered by online-based accounts are seven times more than their traditional branch based counterparts.
The top three banks offering the highest savings account rates are:
- GE Capital Bank- 1.05 percent
- Barclays Bank- 1 percent (tie)
- Synchrony Bank- 1 percent (tie)
- Ally Bank- 0.99 percent
The top three banks according to America’s best Rates Survey for the first quarter to be offering highest money market account rates are:
- Sallie Mae Bank- 0.9 percent (tie)
- Santander Bank- 0.9 percent (tie)
- Ally Bank- 0.85 percent (tie)
- Mutual of Omaha Bank- 0.85 percent (tie)
- Synchrony Bank- 0.85 percent (tie)
- Discover Bank- 0.75 percent
Let’s see what the remaining year brings to us.
