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Online Savings & Money Market Account Rates 2019

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Capital One Offers Enticing Rate on InterestPlus Online Savings Account

Rate information contained on this page may have changed. Please find latest savings rates.

Capital One offers a great interest rate on its InterestPlus account, but only if you read the fine print and follow the rules.

If you have $1,000 or more to invest in your savings account, you may want to take a look at the Capital One InterestPlus Online Savings Account. The APY is 1.35%, which is currently one of the highest rates available, and Capital One states there are no fees for this account. You also get an extra 10% quarterly bonus on your interest earned, but to qualify for the extra 10% bonus you must have at least $15,000 in your account each month or have a Capital One credit card that you use at least once a month.

If you have excellent credit are interested in taking advantage of the InterestPlus 10% bonus but don’t have $15,000 to keep in your account every month, you may want to consider getting either the Capital One No Hassle Cash Rewards Card or the Capital One Platinum Prestige card. Both cards come with a 0% introductory APR until July 2011. After the introductory APR period is over, the APY of the No Hassle Cash Rewards card increases to 14.9% and the APY of the Platinum Prestige card increases to 11.9%. Neither card has an annual fee, which is great news for customers in a time when banks are commonly increasing fees in an attempt to maximize profits.

If you’re a Costco member, you can get an even better interest rate through the Capital One InterestPlus account. Costco members can take advantage of a 1.40% interest rate, but there’s a catch. To get the higher interest rate through Costco, you must have $5,000 in your account instead of $1,000. You can still get the extra 10% quarterly bonus, but only if you keep at least $15,000 in your account each month. Through the Costco program, you can’t get the 10% bonus by just using a Capital One credit card once a month. However, you are eligible for an additional Costco member incentive: $60 if you’re an Executive Member, and $20 if you’re a Gold Star and Business member. This additional incentive will be deposited into your first Direct Banking account opened through the Costco program with at least $5,000 deposited into the account in the first 30 days after opening.

For the best information on credit cards click on the "Credit Cards" tab above, for the best information on savings account rates click the "Savings" tab above.


Fed Keep Rates at 0% Offering No Hope for Savers

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The Federal Reserve released its FOMC Statement today and there were no surprises. The Fed reiterated its support for "exceptionally low levels of the federal funds rate for an extended period." That means savers will continue to earn almost no rate of return on savings accounts and very little on longer-term certificates of deposit. This may force many investors to think about putting cash into other investments, such as bonds.

The statement pointed out that Europe's problems along with a detoriating real estate market and high levels of unemployment will keep the economy subdued for some time to come. Those expecting a roaring V-shaped recovery are starting to realize that's not going to happen. At this point, the world economy is one more shock away from falling back into recession.

For savers this is more of the same. Savings rates and CD rates will continue to drift lower. The bright side has been the significant slide in mortgage rates since peaking in mid-April. The average 30-year mortgage rate is now 4.76%, down from 5.25 in April 2010.

Low rates will also continue to support the stock market.  Dividend stocks like Verizon (VZ), AT&T (T), and Pfizer (PFE) lead Dow stocks in terms of yield and offer those needing income one way of generating it. Verizon for instance pays 6.85% versus an average savings rate of 1.31%. But unlike FDIC bank stocks, they also offer the potential loss of principle.

The good news for savers and bond holders alike is the absence of inflation. According to the Fed statement:

"Prices of energy and other commodities have declined somewhat in recent months, and underlying inflation has trended lower. With substantial resource slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is likely to be subdued for some time."

Those spreading panic about soaring inflation in 2009 were dead wrong, at least so far. The economy needs a strong heartbeat to stir inflation and all we have now are some sporadic pulses. Despite any sign of  inflation, gold remains near a 52-week high as investors remain spooked about Europe's sovereign debt issues.


Top Savings Rate Drops to 1.55% APY - CD Rates Steady

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Savings and CD rate averages have held steady over the past two weeks although the top savings rate has dropped significantly. Two weeks ago the top savings rate was 1.75% APY and now the top rate is 1.55% APY.

Savings and CD rate averages have held steady over the past two weeks although the top savings rate has dropped significantly.

Savings Rates

Average rates dropped slightly from 1.34% APY to 1.31% APY. The top rate has come down significantly. Two weeks ago the top rate was 1.75% APY and now the top rate is 1.55% APY. One month ago, the top rate was 2% APY. So, in four weeks the top rate you could get on a savigns account has fallen significantly. For promotional rates, Everbank remains on top with their 3-month introductory bonus rate of 2.25% APY. After the three-month period, the rate drops down to 1.26% APY for a blended one year APY of 1.51% APY.

CD Rates

The average 1-year CD also remained steady at 1.57% APY for the fourth week in a row. First City Bank continues to hold the top spot with a 1.80% APY CD. First City Bank is in bad financial shape and has been operating under a FDIC Cease and Desist Order since 10/09. Acacia Federal Savings has moved into the second sport with a 1.65% APY CD.

The average 3-year CD rate is the only average to dropped slightly from 2.43% to 2.42% APY. The top spot continues to be occupied by USAA Federal Savings Bankwhich offers a 2.65% APY CD with a minimum deposit of $175,000. The next highest rate is Acacia Federal Savings at 2.50% APY and a $500 minimum deposit.

The average 5-year CD rate remained steady this week at 3.12% APY after dropping from 3.17% APY four weeks ago. The average is now closing in on the 3% mark.

USAA continues to have the top rate at 3.31% APY. Everbank which holds the second highest rate dropped from 3.30% APY to 3.26% APY. A month ago Everbank was offering the same CD for 3.39% APY.

The spread between savings and 3-year CD rates dropped slightly and now stands at 1.11, from from a high of 1.24 in March. The ratio between 1-year CDs and 5-year CDs has remained steady over the past month and appears to have topped off. What does that mean? Both 1-year and 5-year CD rates have stopped dropping and are maintaining their relative ratios. The flat trends of the past month seem to support this conclusion. If the economy continues to improve I expect we'll see longer term CDs begin to move up first, followed by shorter maturities once the Fed looks poised to raise the Fed Funds Rate.