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There's no way rates will go up above even 3% until the Fed fund rates go past 6% and that will have a huge impact to the economy if it goes that high. We will be in a major recession if that happens or when it does.
Savings rates, down like an elevator, up like an escalator. It is like when there is a gas shortage, gas doubles in price the same day, and then rtakes 3 months to creep back down to normal when the shortage is over. Because they can.
Fed Funds rate is at 2.33% at the moment. Some online savings accounts paying 2.1%. Market forces drive these up eventually. What a big bank pays will differ greatly but if they don't need more cash then they will keep rates very low but pays to shop around and get multiple higher paying online only accounts if you park cash in savings.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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We have money in credit union savings accounts getting only 2.02%, but that's just the everyday savings that we could grab any time for unusual expenses. For a significant amount it's best to work with a financial planner, where you might get as much as 10%, at a cost of 1%, even in this economy. Also, putting it into a retirement instrument like a 401K or IRA can yield better results and reduce your tax.
Capital One 360 savings account rate just moved up to 1.9%. I am waiting for my old CD to come due in September and then I believe I will purchase a brokered CD or a CD ladder through Fidelity. The rates there have held steady for over a week now.
there's no way rates will go up above even 3% until the fed fund rates go past 6% and that will have a huge impact to the economy if it goes that high. We will be in a major recession if that happens or when it does.
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