Money Market Rates and Savings Account Rates December 24, 2012

Money market rates are stable this week, there were no declines in the best money market rates available as the average account rates were mixed. For the week ending December 24, 2012, the highest money market rates continue to hold at 1.04 percent with an APY of 1.05 percent. The best savings rates continue to be just below the best money market rates at 1.00 percent.

The average savings rates/money market rates on account balances of at least $10,000 also fell one basis point this week to 0.51 percent. Average savings and money market rates on account balances of at least $25,000 increased to 0.58 percent this week, up from the prior week's average of 0.56 percent. Average rates on account balances of at least $50,000 increased to 0.64 percent, up from last week's average of 0.63 percent.

Savings Account Rates December 24, 2012

• CIT Bank Savings Rates 1.00% APY 1.00%
• Barclays Bank Savings Rates 1.00% APY 1.00%
• Ally Bank Savings Account Rates 0.95% APY 0.95%
• American Express Rates 0.90% APY 0.90%
• Colorado FSB Savings Rates 0.85% APY 0.85%
• Discover Bank Savings Account Rates 0.80% APY 0.80%
• Bank of Internet Savings Rates 0.80% APY 0.80%
• ING Direct Savings Account Rates 0.75% APY 0.75%
• First Trade Union Bank Savings Rates 0.70% APY 0.70%

Money Market Rates December 24, 2012

• Sallie Mae Bank Money Rates 1.04% APY 1.05%
• Union Federal Savings Bank Money  Rates 1.04% APY 1.05%
• EverBank Money Market APY 1.01%
• Able Banking Money Market Account Rates 0.96% APY 0.96%
• Ally Bank Money Market Account Rates 0.95% APY 0.95%
• MetLife Bank Money Rates 0.85% APY 0.85%
• First Internet Bank of Indiana MMA Rates 0.80% APY 0.80%
• Bank of Internet Money Rates 0.75% APY 0.75%
• Virtual Bank Money Market Rates 0.70% APY 0.70%

As we close out 2012 and head into 2013 we don't expect to see average rates or the best rates much higher from where rates are right now. What we probably will see is the continue slow declines on both average rates and the highest rates available. In fact, this pattern will continue for at least another two years as the Federal Open Market Committee holds the Fed funds rate at near zero percent to lower the unemployment rate and foster growth.