Banks are awash in deposits, so expect many of them to be slow to respond to broader economic trends by raising rates. However, most consumers could get higher rates today simply by shopping around and making a change.
Foster City, CA (PRWEB) July 29, 2014
Despite another tough quarter for depositors that saw overall savings and money market account rates fall again, some banks are continuing to resist the low-rate trend, according to the second-quarter 2014 America’s Best Rates survey from MoneyRates.com. The survey finds that the rates on the top accounts offered more than five times the interest of the survey’s average rates.
The average rate for savings accounts in the survey fell to 0.180 percent. The average money market account rate also fell, hitting 0.162 percent. But the top account rates in each category exceeded 0.900 percent.
As in previous quarters, the online-only banks in the survey again offered significantly higher average rates than traditional, brick-and-mortar institutions. The average savings account rate at online banks was 0.536 percent, compared to just 0.096 percent at traditional banks. Money market account rates averaged 0.560 percent at online banks, compared to 0.109 at traditional banks.
In terms of bank size, medium-sized banks – those with between $5 billion and $10 billion in deposits – offered higher average rates than their smaller and larger counterparts. The difference here was most pronounced in the savings account category, in which medium-sized banks offered an average rate of 0.277 percent, compared to 0.169 percent for large banks and 0.11 percent for small banks.
While the second quarter offered little immediate hope for depositors, Richard Barrington, CFA, senior financial analyst at MoneyRates.com, says he believes things may soon change.
“I believe we are near a turning point,” Barrington says.
Barrington says that recent increases in U.S. employment and rising inflation could soon push rates higher, but that given the slow-moving nature of deposit rates, consumers would be wise to shop for higher yields now.
“Banks are awash in deposits, so expect many of them to be slow to respond to broader economic trends by raising rates,” Barrington says. “However, most consumers could get higher rates today simply by shopping around and making a change.”
Here are the top 10 banks for savings account rates, along with their average annual percentage yield (APY) for the quarter, in the second-quarter America’s Best Rates survey:
(Note: There are 11 banks below because of a tie for 10th place.)
1. Synchrony Bank – 0.950 percent
2. Doral Bank – 0.934 percent
3. Barclays Bank (tie) – 0.900 percent
3. CIT Bank (tie) – 0.900 percent
3. GE Capital Bank (tie) – 0.900 percent
6. Ally Bank – 0.870 percent
7. (tie) Capital One Bank – 0.850 percent
7. (tie) Discover Bank – 0.850 percent
7. (tie) FNBO Direct – 0.850 percent
10. (tie) American Express Bank – 0.800 percent
10. (tie) Sallie Mae Bank – 0.800 percent
Here are the top 10 banks for money market account rates, along with their average APY for the quarter, in the second-quarter America’s Best Rates survey:
1. Doral Bank – 0.938 percent
2. Sallie Mae Bank – 0.900 percent
3. (tie) Ally Bank – 0.850 percent
3. (tie) Mutual of Omaha Bank – 0.850 percent
3. (tie) Synchrony Bank – 0.850 percent
6. Discover Bank – 0.700 percent
7. Nationwide Bank – 0.660 percent
8. EverBank – 0.610 percent
9. OneWest Bank – 0.500 percent
10. Santander Bank – 0.480 percent
For more details on this survey, please see the full feature on MoneyRates.com.
America’s Best Rates are calculated from savings account rates and money market account rates recorded in the MoneyRates Index throughout the previous quarter. The MoneyRates Index is a composite of 100 banks, including the 50 largest U.S. banks by deposit amount, plus 50 smaller banks. This sampling was constructed to be broadly representative of the general banking environment.
MoneyRates.com has been a leading source of information on bank rates, personal finance, savings accounts and investing since 1999. The site seeks to provide the highest rates on CDs, money market accounts and high-yield savings accounts. MoneyRates.com is owned and operated by QuinStreet, Inc. (NASDAQ: QNST), one of the largest Internet marketing and media companies in the world. QuinStreet is committed to providing consumers and businesses with the information they need to find, research and select the products, services and brands that best meet their needs. The company is a leader in visitor-friendly marketing practices. For more information, please visit QuinStreet.com.