Unemployment Low and Hourly Wages Up Should Mean a Rate Increase

The Fed meets in just over a month to decide on monetary policy. The strong November employment report makes it more likely the Fed participants will vote to increase the fed funds rate. A higher fed funds rate will lead to higher variable deposit rates, possibly as soon as next month.

November's unemployment rate fell to 5.00 percent and average hourly earnings have risen by 2.5 percent over the past year. The unemployment rate is now at the lowest level since April 2008, just before the financial crisis. The rate is also at a point where many Fed officials see as consistent with full employment. 

Full employment and higher wage growth should force the Fed to vote on increasing rates. The CME Group's Fed Watch Tool puts the probability of a rate hike in December at 65.9 percent. Whether or not the rate is increased will depend on December's employment report.

Listed below are the most current savings rates and money market rates available in the rate database.

Savings Account Rates

• My Savings Direct 1.09% Yield 1.10%
• Radius Bank 1.09% Yield 1.10%
• The Palladian PrivateBank 0.90% Yield 1.10%
• Synchrony Bank 1.04% Yield 1.05%
• CIT Bank 1.04% Yield 1.05%
• GE Capital Bank1.04% Yield 1.05%
• Barclays Bank 1.00% Yield 1.00%
• iGObanking.com 1.00% Yield 1.00%
• Ally Bank 1.00% Yield 1.00%
• Discover Bank 0.95% Yield 0.95%

Money Market Account Rates

• EverBank 0.61% Yield 1.11% (promotional rate)
• Dime Savings Bank of Williamsburgh 1.09% Yield 1.10%
• Northeast Bank 1.09% Yield 1.10%
• iGObanking.com 1.09% Yield 1.09%
• ableBanking 1.00% Yield 1.00%
• Sallie Mae Bank 0.90% Yield 0.90%
• Ally Bank 0.85% Yield 0.85%
• Mutual of Omaha Bank 0.85% Yield 0.85%
• Synchrony Bank 0.85% Yield 0.85%
• MyCBB 0.83% Yield 0.83%

Average Deposit Rates November 13, 2015