There wasn't much to report on savings rates this week. Average interest rates stood pat for two closely watched savings products, 1-year certificates of deposit and MMAs. The average rate on longer-term 5-year CDs was flat.
MMA rates unchanged
The average interest rate on money-market accounts, which are savings accounts that often have higher rates than conventional savings accounts and come with limited check writing privileges, was 0.12 percent this week. That's unchanged from last week.
A month ago, the average rate was 0.11 percent. A year ago, the average rate was 0.11 percent.
Earning a near-zero return has been the unfortunate reality for many savers since the financial crash. The news isn't all bad for savers, though. There are multiple FDIC-insured banks offering rates on savings products that are many times the national average.
1-year CD rates remain level
The average interest rate on 1-year CDs was flat at 0.35 percent this week. That's higher than the 52-week average of 0.32 percent.
A month ago, the average rate was 0.34 percent. A year ago, the average rate was 0.29 percent.
Longer maturities kept with that trend. The average rate for a 5-year CD was unchanged at 0.90 percent. A month ago, the average 5-year rate was the same as it is now. A year ago, it was 0.81 percent. Rates on three-year CDs, which split the difference between 1-year CDs and 5-year CDs, were down, falling 1 basis point to 0.63 percent.
As you may have noticed, the longer that maturity is on the CD, the better the rate of interest you can expect to earn. There are trade-offs, however; if you need to access the money before the term is up, you'll likely pay an early-withdrawal penalty, and if rates rise, you'll be locked into that lower rate for a while. One way to reduce those risks while still earning a decent return is through CD laddering.
Also, don't forget FDIC insurance is a must-have for CDs, money market accounts and other deposit products. And if you find a rate you like but feel a little worried about its safety and soundness, Bankrate's free Safe & Sound ratings can help you do some digging into its financial situation.
Weekly savings and CD rate survey
|Results from Bankrate's survey of banks and thrifts conducted 6/21/2017.|
|Money market account||1-year CD||3-year CD||5-year CD|
|This week's rate:||0.12%||0.35%||0.63%||0.90%|
|Change from last week:||N/C||N/C||-0.01||N/C|
Methodology: The "Bankrate.com National Average," or "national survey of large lenders," is conducted weekly. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the Bankrate.com national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We've conducted this survey in the same manner for more than 30 years, and because it's consistently done the way it is, it gives an accurate national apples-to-apples comparison.
To learn more about the different rate averages Bankrate publishes, see "Understanding Bankrate's Rate Averages."