America’s Best Rates 2011 Q2: Where to put your savings now
See the current America's Best Rates feature
Even as the national average for savings and money market rates push towards zero, you don't have to settle. There are still banks where you can consistently get interest rates in excess of 1 percent annual percentage yield (APY).
To help you find banks that consistently offer the best savings and money market rates, MoneyRates.com tracks average rates offered by banks throughout the most recent calendar quarter and reports them as America's Best Rates. These are banks that offer high savings and money market rates day in and day out, rather than those that offer high rates as a short-lived marketing promotion.
Which banks offered America's Best Rates in the second quarter of 2011?
America's Best Rates: savings account interest rates
The following banks had the top ten savings account rates in the most recent quarter:
American Express National Bank
Cashmere Valley Bank
One West Bank
Mile High Banks
Discover Bank climbed to the top spot after placing second on the savings account rate list in recent consecutive releases of America's Best Rates. Discover wasn't the only repeat bank in the top ten. In all, nine banks from the first quarter of 2011 made the list again, and seven banks are featured for the third quarterly release in a row.
What's clear is that banks featured on America's Best Rates are consistent--we're not talking about bait-and-switch rate gimmicks just to get your money in the door.
But while the banks topping America's Best Rates offer you an edge over average savings account rates, they are not immune to the macro trend of falling interest rates. The top savings account rate slipped from 1.31 percent in the fourth quarter of 2010 to 1.27 percent in the first quarter of 2011, and now to 1.16 percent in the second quarter.
To see the rates banks are offering now, check the current savings rates.
America's Best Rates: money market rates
Here are the banks with the best money market rates last quarter:
Hudson City Bank
One West Bank
Mile High Banks
State Farm Bank
Think Mutual Bank
The list of money market rates on America's Best Rates has shown even more consistency than the top savings account rates. Nine of this quarter's top ten made the list in each of the two previous quarters. Think Mutual Bank is the only new entrant to the top ten.
Furthermore, six banks pulled off the double feat of appearing in the top ten for both savings and money market rates.
While the top savings account rates have reflected the general trend towards lower interest rates, the best money market rates have held steadier. The top money market rate was 1.16 percent in the fourth quarter of 2010, which dropped to 1.10 percent in the first quarter of 2011 before rising to 1.15 percent in the second quarter.
To see what banks are offering now, check the current money market rates.
Beating the averages with America's Best Rates
The banks that made the lists of America's Best Rates offer you a chance to earn 0.70 percent APY or more on your money--at a time when the average savings account rate is just 0.25 percent and the average money market rate is barely higher at 0.29 percent.
What this latest analysis shows is that there are banks offering a significant edge over average rates, but these leaders represent a very select handful of banks. If you don't want to settle for average, it's worth your while to seek out one of the best savings accounts or money market accounts from this list.
America's Best Rates are based on the MoneyRates Index, a composite of over 100 banks, including the 50 largest in the U.S. plus a sampling of mid-sized banks.
Purpose Of Account:
Currently Banking With:
- Capital One
- Synchrony Bank
- Ally Bank
- CIT Bank
- Sallie Mae Bank
- American Express National Bank
- Discover Bank