Average Savings Rates and Money Market Account Rates Fall in November

Average savings account rates and money market rates fell from October to November, following bond yields lower. The decline in average rates was small at only 0.02 percent on deposit amounts from $10k or more to $50k or more. While average deposit rates declined, the best savings rates and money market rates available on our rate tables have not declined.

Best Savings Rates November 2013

Average savings/money market rates on account balances of at least $10k are at 0.43 percent this month, down from October's average rate of 0.45 percent.

The best savings rate on our rate table for account balances of at least $10k is at 1.00 percent, more than double the national average rate. The best savings rate for less than a minimum balance of $10k ($0 opening balance) is at 0.90 percent, which is also more than double the national average rate.

The bank offering the highest savings account rate on our list is The Palladian Private Bank at 1.00 percent with an APY of 1.00 percent. The minimum opening balance is $10k and you have to maintain a minimum account balance of $10k to avoid paying a monthly fee. The fee is $10 per month on balances below $10k.

Banks Offering the Highest Savings Rates

• The Palladian Private Bank 1.00%
• CIT Bank 0.90%
• GE Capital Retail Bank 0.90%
• Barclays Bank 0.90%
• Ally Bank o.86%
• American Express Bank 0.85%
• FNBO Direct 0.85%
• Colorado FSB 0.85%
• Discover Bank o.80%

Best Money Market Rates November 2013

The best money market account rate on our rate table for all account balances is at 0.90 percent. The bank offering the highest money market rate is Sallie Mae Bank at 0.90 percent. There is no minimum opening balance to open an account or balance to maintain in order to earn the rate. There is also no fee incurred for not maintaining a minimum balance.

Banks Offering the Highest Money Market Account Rates

• Sallie Mae Bank 0.90%
• Ally Bank 0.86%
• Ever Bank 0.86%
• GE Capital Retail Bank 0.85%
• Mutual of Omaha Bank 0.85%
• First Internet Bank of Indiana 0.80%
• ableBanking, a division of Northeast Bank 0.80%

When Will Savings Rates and Money Market Rates Increase?

Savings rates, money market rates and CD rates will not move higher until the Federal Reserve increases their key benchmark interest rate, the federal funds rate. The current fed funds rate has been in a targeted range of zero percent to one quarter percent since December 2008.

The Federal Reserve has stated that they won't increase the fed funds rate until the nation's unemployment rate falls below 6.5 percent. The current rate is only 0.7 percent above 6.5 percent so we will probably see a higher fed funds rate in the first 6 months of 2014. When the fed funds rate is increased, banks will follow suit by increasing deposit rates.

Banks usually increase deposit rates shortly after the federal funds rate increases, which means we will see higher deposit rates in 2014. Rates will probably move higher sometime in the second or third quarter of 2014. The increases will be rather quick, so savings and money market rates will probably be above 2.00 percent before the end of 2014.