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Best Rates on Savings

January 6th, 2016 at 03:37 pm

The best rates on savings right now are with the online banks such as ally.com and mysavingsdirect.com

The yield on these accounts is around 1%, require no long term commitment, and are FDIC insured. 1% isn't much. However, considering that brokerage money markets yield less than 1/4%, and the best 6 month CDs are in the 1/2% range, and 1% looks pretty good.

The other thing, is that if the Federal Reserve continues with their plan, they will raise interest rates about 1% this year. So that 1% may be closer to 2% by year end. Still not great, but for super safe savings, it's the best deal going.

4 Responses to “Best Rates on Savings”

  1. Petunia 100 Says:
    1452097604

    See Frugal Texan's latest blog post for info on a bank which is offering 5% on balances up to 5k, and will allow one person to have up to 3 accounts. Alas, there are hoops to jump through to get the 5%.

  2. AnotherReader Says:
    1452100632

    Savings account interest rates do not necessarily follow the Fed funds rate. Nobody moved up with the first rate hike. Mortgage rates did go up at the same time.

    I would not use Mysavingsdirect. It's another online bank from Emigrant Bank out of New York. Their MO is to open an on-line bank, offer an enticing rate, and then ratchet the rate down quietly over the next 18 months. No thanks.

    Right now, Synchrony Bank and GE Capital Bank offer 1.05 percent APY. Synchrony offers 1.30 percent on a 14 month CD for existing customers and a 1.45 percent 2 year CD rate for everyone. Two percent savings account interest rates by year end? I would not bet on it.

    BTW, your blog looks like an ad for your investment advisory service. I see your company listed on Bright Scope, you manage around $24MM. Looks like you charge a percent of assets under management, ranging from 0.60 percent to 1.2 percent. Perhaps an illustration of why paying high fees produces superior results would be helpful to the readers here.

  3. Ima saver Says:
    1452101446

    I am always looking for the best savings rate. Right now I am with Mysavings direct, G.E. bank and Barclay Bank.

  4. donald_s Says:
    1452209896

    Thanks everyone for the feedback.

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