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Online Savings & Money Market Account Rates 2020

Online Savings & Money Market Account Rates

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Top Savings Rates Steady at 2% APY - Average Dips to 1.41%

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

Savings rates dipped slightly this week with the average dropping from 1.45% APY to 1.41% APY. Despite that, the top savings rate remained at 2% (ReadySaver.com from Southern Community Bank).

Savings rates dipped slightly this week with the average dropping from 1.45% APY to 1.41% APY. Despite this drop, the top savings rate remained at 2% (ReadySaver.com from Southern Community Bank). Everbank also continued to offer their promo rate of 2.25% APY for the first three months on new money. After three months, the rate drops to 1.26% APY for a 1-year blended APY of 1.51%.

Other notable rates include Franklin Synergy Bank at 1.75% APY and EBSB at 1.67% APY.

For those of you looking to deposit your money into a larger bank, student lender Sallie Mae just opened an Internet bank and is offering a 1.35% APY savings account. American Express Federal Bank is offering a 1.30% APY.

The table below shows the distribution of savings rates on the BestCashCow rate table. Remember, these are already the most competitive savings rates in the country. The distribution shows that the best nationally available savings rates are distributed between 1.5% APY and 1.25% APY.

SavingsRates-Distribution

The table below shows the trend with savings rates as well as select cd rates. For savings, the trend is generally down.

TrendofSavingsRatesandCDRates


Best Savings Account Rates - Everbank 2.25% APY, Southern Community Bank 2% APY

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

The best savings account rates remain near the 2% range this week. Everbank tops the list with their guaranteed 2.25% 3-month promo rate for new money. Southern Community Bank has the highest non-promo rate with their Ready Saver Account.

The best savings and money market account rates remain near the 2% range this week.

Everbank tops the list with their guaranteed 2.25% 3-month promo rate for new money. Southern Community Bank has the highest non-promo rate with their Ready Saver Account, offering 2%.

I've liked the the Everbank account for new money for several reasons. It comes with a 3-month rate guarantee. So, it's an essence a liquid 3-month CD. The top 3-month CD rate is only 1.10% APY. Anyone considering a 3-month CD should be putting their money into the Everbank account. After 3-months, the rate drops down to 1.25% APY. The blended 1-year APY is 1.51% APY. That's not bad but it's the 3-month boost I like the best.

Southern Community Bank's 2% APY is well above the average BestCashCow savings rate of  1.46% APY. Other banks above the average include:


Bernanke Says Interest Rates to Stay Low for Extended Period

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In the Fed's semiannual report to Congress, Chairman Ben Bernanke reiterated that rates will stay low for an extended period. How long is an extended period? Certainly through 2010 and perhaps longer in my opinion.

Here's what Bernanke had to say in his prepared statement:

“Although the federal funds rate is likely to remain exceptionally low for an extended period, as the expansion matures, the Federal Reserve will at some point need to begin to tighten monetary conditions to prevent the development of inflationary pressures."

In other words, rates are staying rock bottom until the economy shows that it has some life. And that certainly hasn't happened recently. In his remarks, he said that much of the pick-up at the end of last year was attributed to companies repleneshing inventories and not due to an increase in demand.

“As the impetus provided by the inventory cycle is temporary, and as the fiscal support for economic growth likely will diminish later this year, a sustained recovery will depend on continued growth in private-sector final demand for goods and services,” he said.

There were a couple of very interesting and almost humorous exchanges, humorous in a pathetic way. Ron Paul, the arch-nemesis of the Fed insinuated that the Fed had helped finance the 1972 Watergate break-in as well as bankrolled Saddam Hussein. Bernanke replied:

“The specific allegations you have made are absolutely bizarre. I have no knowledge of anything remotely like what you’ve described.”

Both the allegations and the response made me chuckle.

And then I also sat and watched as Congressmen and Congresswomen botched basic economics, confusing the Discount Window with the Federal Funds Rate. One representative (a woman whose name I did not catch) kept pressing Bernanke to release the names of banks who borrowed from the Discount Window in the name of transparency. That of course, would defeat the very purpose of the Discount Window,which is to help stave off a financial panic. What bank is going to borrow if the fact they are borrowing becomes public knowledge?

It's sometimes scary to listen to the testimony and realize just how little our legislators understand how the financial system works.