bank rates

Last 1% Savings Account Vanishes

$5 bill folded into a paper airplane headed downAnd then there were none.

CIT Bank (www.bankoncit.com), the last holdout paying 1.00% APY on nationally available savings accounts, slashed its rate to 0.85% APY — and that’s only for balances of $25,000 or more.

The rate on lower balances also fell, from 0.90% APY to 0.80% APY.

In recent weeks, rates at the three banks that were paying 1.00% APY have plunged. That means the best you can hope to earn with a nationally available savings account is a lowly 0.90% APY.

Several nationally available money market accounts pay more than 1%

With all these moves, Barclays (www.banking.barclaysus.com) and Salem Five Direct (www.salemfivedirect.com) are the new savings leaders, paying 0.90% APY on all balances.

At Barclays, there’s no minimum deposit needed to open an account or earn interest, and the account has no fees. The bank is part of Barclays Bank PLC of London, with U.S. headquarters in Wilmington, Del.

Salem Five Direct’s eOne Savings account requires a minimum deposit of $100 to open, but there’s no minimum balance required to earn interest. The account also has no fees.

The bank is the online operation of Salem Five Cent Savings Bank in Salem, Mass.

You can check to see how these rates compare to the best savings and money market account rates in our extensive database of banks.

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