Best Savings Rates This Week Remain Unchanged Despite Federal Reserve
This past week brought more disappointing news that the best savings rates and money market account rates will remain very low for at least another three years thanks to the Federal Reserve. This week's highest savings account rates and money market rates remained unchanged at 1.04 percent with an APY of 1.05 percent. The FDIC's national average savings rate is at 0.08 percent. Jumbo savings rates in the weekly national average are also at 0.08 percent. Money market rates are averaging 0.12 percent and jumbo money market rates are averaging 0.18 percent this week.
The Federal Reserve has been keeping interest rates very low to lower the unemployment rate and promote growth. The Fed Funds rate which has been in a targeted range of zero percent to one quarter percent for the past three years was supposed to remain in the range until the end of 2014. This Fed announced that the end period will be extended until mid 2015. This will keep bank savings rates and money market rates low until 2015.
This policy hurts retirees but there is nothing that can be done. In the latest press conference by the Fed Chairman, Ben Bernanke, he admitted the policy hurts holders of interest bearing accounts but the policy also helps inflate the value of other assets.
The best savings account rates on our rate list this week are from CIT Bank at 1.04 percent with an APY of 1.05 percent. The best money market account rates are from Union Federal Savings Bank also at 1.04 percent with an APY of 1.05 percent. Both these rates are well above the national average rates. Here is a list of the top rates on both savings accounts and money market accounts this week:
Best Savings Rates
Best Money Market Rates
All the interest rates listed above are above the FDIC's national average rates.
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