Bond Yields Continue to Move Higher as Deposit Rates Languish Near Record Lows

Bond yields continue to move higher this month as deposit rates on savings accounts and money market accounts languish near record lows. Long term bond yields started moving higher in early May after the bond markets believed the Federal Reserve would slow down or completely stop their purchases of long term bonds.

The markets overreacted and have since calmed down but long term bond yields are not far from recent highs. Any signs that the economy is picking up steam will send yields even higher. This doesn't mean savings rates and money market rates will move higher, that will have to wait until the Federal Reserve increases their key benchmark interest rate, the federal funds rate.

This week Monitor Bank Rates reported the national average savings account rate on account balances of at least $10,000 remains at 0.49 percent. The national average rate on savings balances of at least $25,000 is at 0.62 percent, a 1 basis point decline from last week's average rate.

The average savings rate on account balances of at least $50,000 is at 0.65 percent, also down 1 basis point from the prior week. The national average savings rates/money market rates published by Monitor Bank Rates is many times the FDIC national average rate. In this week's Weekly National Rates and Rate Caps the average savings account rate is at 0.06 percent and the average money market rate is at 0.09 percent.

Monitor Bank Rates'  rate tables are offering rates considerably higher than the national average jumbo interest rates reported by the FDIC. The current national average jumbo savings rate is at 0.06 percent and the national average jumbo money market rate this week is at 0.14 percent. These rates are average rates, Monitor Bank Rates has many banks in our database that are currently offering savings rates and money market rates well above the averages. The best savings rate in our database this week is at 0.90 percent from Barclays Bank. The best money market rate is also at 0.90 percent from Sallie Mae Bank.

You can search for and compare the best savings rates and money market rates by searching our database. We list regular account rates based on account balances. We also list jumbo rates and IRA rates.
Author: Brian McKay
July 25th, 2013
Posted in: Savings Accounts