GE Capital Retail Bank and My Savings Direct Top Savings Rate List

This week two online banks, GE Capital Retail Bank and My Savings Direct, are offering the highest rate on our savings account rate table. Both banks are currently offering savings rates at of 1.04 percent and an APY of 1.05 percent. While the highest rates available remained the same, average rates moved slightly higher.

The average savings/MMA rate (account balances $50k+) increased 2 basis points to 0.65 percent. Average rates moved higher because some banks on our rate table increased their rates. In fact, we are starting to see more and more banks increase deposit rates.

The biggest change in rates will come when the Federal Reserve increases the federal funds rate. An increase in the fed funds rate could come as soon as the Fed's June meeting, just over 4 months from now. Bank rates are tied to the fed funds rate, so when the rate is increased, banks increase deposit rates.

In anticipation of higher rates coming from the Fed, banks have increased fixed certificate of deposit rates. Banks are hoping to lock in deposits at lower current fixed rates before the Fed forces rates even higher. Variable account rates have also moved higher but not as fast as fixed account rates.

Over the past year the best 1 year CD rate available on our rate list has increased 20 percent. Variable account rates have only increased 5 percent.

The highest 1 year bank rate right now is at 1.20 percent APY. Early in 2014 the highest rate was only 1.00 percent. During the same time the highest variable deposit rate has increased 5 percent, from 1.00 percent APY to 1.05 percent APY.

Listed below are this week's highest variable rates and fixed 1 year CD rates.

Savings Rates