Higher Savings Rate at American Express Bank

For years now all I have been reporting on are lower savings rates and CD rates. Recently I reported on two banks raising CD rates and one bank increasing their savings rates. Now I'm happy to report on American Express Bank increasing their savings account rate.

American Express Bank's savings rate has been increased from 0.75 percent to 0.85 percent after recently decreasing the rate from 0.90 percent to 0.75 percent earlier this year. American Express Bank's savings rate in Oct 2011 was 1.00 percent.

Granted a 10 basis point increase isn't much when the rate is annualized but percentage wise the increase was a 13.3 percent increase. Amex Bank's savings rate isn't the best savings rate around either but its still nice to see a third bank increase deposit rates in the past month.

Could this be a new trend of banks offering higher rates? I doubt it especially since recent economic news is pointing to a slowing economy which is pushing U.S. Treasury yields lower.

In fact just yesterday 10 year bond yields hit a record low of 1.53 percent. Yields will decline even more today because China released a report showing a slowdown in Chinese manufacturing.

As for banks offering savings interest rates higher than Amex Bank, CIT Bank's savings rate is at 1.04 percent with an APY of 1.05 percent. Barclays Bank savings rates are at 1.00 percent with an APY of 1.00 percent.