The best nationally available savings account rate has again fallen below 1% APY.
Following a rate cut from The Palladian PrivateBank, the top available deal pays 0.91% APY from SFGI Direct. Five other banks pay 0.90% APY.
This is the second time in 2013 that rates have fallen below 1% APY. The best deal paid just 0.90% in June and July.
With SFGI (www.sfgidirect.com), you need to make a deposit of at least $500 to open an account, but there’s no minimum balance required, and the account has no fees. SFGI Direct is the online division of Summit Community Bank in Moorefield, W.Va.
Of the banks paying 0.90% APY, three have easy terms to earn that rate.
Barclays (www.banking.barclaysus.com) has no minimum deposit requirement to open an account or earn interest, and the account carries no fees. The bank is part of Barclays Bank PLC of London, with U.S. headquarters in Wilmington, Del.
GE Capital Bank (www.gecapitalbank.com) has no minimum deposit requirement, no minimum balance requirement and no monthly fees. The bank is a subsidiary of the General Electric’s financial services division and is based in Utah.
GE Capital Retail Bank (www.gecrb.com) has no minimum deposit requirement, but if your balance dips below $50, you’ll pay a $5 monthly fee. The bank also is owned by GE but has separate FDIC insurance and is based in Draper, Utah.
The two other banks that offer a 0.90% APY rate impose some restrictions.
The Palladian PrivateBank (www.palladianprivatebank.com) requires a deposit of at least $10,000 to open an account and charges a $10 monthly fee if your balance falls below that threshold. The Palladian PrivateBank is the online division The PrivateBank and Trust Co., based in Chicago.
CIT Bank (www.bankoncit.com) requires a balance of $25,000 or more to earn its top rate. Lower balances earn 0.85% APY. It takes a minimum deposit of $100 to open an account, and the account has no fees. CIT bank is a division of New York-based CIT Group.