Bank Savings Rates for Super Bowl XLVII
Average bank savings rates remained unchanged this week as we all watch the San Francisco 49ers and the Baltimore Ravens play in Super Bowl XLVII. Mortgage rate searches will be down as families across America are glued to the television today. For those looking for a break, the best savings rates remained unchanged this week and there is hope interest rates might move higher before mid-2015, the date the Federal Reserve has set to keep the fed funds rate at near zero percent.
The reason rates might move higher before mid-2015 is a string of positive economic data has the been released the past several months showing signs the economy is growing. Employment for all of 2012 was better than expected as well - there were revisions higher showing 181,000 jobs a month were created on average in 2012.
Job numbers for the final two months of 2012 were also revised sharply higher. November was revised higher showing 247,000 jobs were created in that month. We need job growth of 250,000 a month to bring down the unemployment rate which is currently at 7.9 percent. Once the rate drops to 6.5 percent, the Fed will lighten up on their policies to foster growth. Doing so will lead to a higher Fed funds rate, which in turn will lead to higher savings account rates and higher rates on all interest bearing assets.
The one negative piece of news released was recently was 4th quarter GDP, which showed the economy contracted 0.1 percent in the final three months of 2012. Although this was a surprise, the good news is that the two factors that caused the downturn (reduced government spending and lower build up in business inventories) won't be an issue in 2013. 1st quarter GDP is expected to expand again with the average estimate around 2.00 percent.
Average savings rates in Bankrate's national rate survey this week are at 0.50 percent for account balances with a minimum of $10,000. Average rates on account balances of at least $25,000 are at 0.71 percent and average rates on account balances of at least $50,000 are at 0.71 percent. Below is a list of the highest savings rates and money market rates.
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