Variable Deposit Rate Report August 2, 2015

The best savings rates and money market rates remained the same this week. The Federal Reserve had a chance to increase interest rates this past week but kept the fed funds rate at the current level. Since the Fed didn't move on interest rates, banks kept their rates the same.

Keeping the fed funds rate near zero percent was expected but the Fed did set the stage for an interest rate hike. An increase will come in the next several months, possibly as soon as the Fed's September meeting.

Information received since the Federal Open Market Committee met in June indicates that economic activity has been expanding moderately in recent months. The labor market continued to improve, with solid job gains and declining unemployment. .The Committee continues to see the risks to the outlook for economic activity and the labor market as nearly balanced.

A higher fed funds rate will send both variable and fixed deposit rates higher. This is good news for savers who have dealt with low deposit rates for almost a decade. Unfortunately, when the Fed increases the fed funds rate, mortgage rates will also move higher.

Mortgage rates are not directly tied to the fed funds rate but are tied to bond yields. When the fed funds rate is increased, bond yields will move higher, forcing mortgage rates higher. If you're thinking about refinancing your loan or financing the purchase of a home do so sooner than later, otherwise you will pay more per month for the same loan amount.

The highest savings account rate this week is from MySavingsDirect at 1.24 percent with an APY of 1.25 percent. The highest money market account rate is from iGObanking at 1.09 percent with an APY of 1.10 percent. Listed below are the top deposit rates and average deposit rates for August 2, 2015. Average deposit rates this week are listed to the right.