Foster City, Calif. (PRWEB) October 15, 2012
In spite of continued overall declines in deposit interest rates, MoneyRates.coms Americas Best Rates survey finds that average savings and money market rates at online banks rose in the third quarter of 2012, heightening the already substantial advantage that online bank rates held over traditional bank rates in previous surveys.
The survey tracks interest rates throughout the quarter to identify banks that consistently offer consumers the best returns. While overall rates in the U.S. have been trending downward throughout 2012, the rates at online banks have consistently outpaced their brick-and-mortar counterparts.
Online banks are dealing with a different dynamic than traditional banks, says Richard Barrington, CFA, senior financial analyst for MoneyRates.com. They dont have the cost burden of a large branch structure. They are using this advantage to be more aggressive about offering higher rates to attract customers.
The average savings account rate in the survey dropped to 0.179 percent in the third quarter, down from 0.192 percent in the second quarter. The average money market account rate fell to 0.211 percent, down from last quarters 0.224 percent. Yet online saving accounts paid an average of 0.582 percent, up from 0.575 percent last quarter. Similarly, online money market rates increased to 0.633 percent from the second-quarter average of 0.620 percent.
The growing gap between online bank rates and traditional bank rates means that comparison shopping between accounts is becoming more important, says Barrington.
Really, the two best tips for customers are to be sure to shop around, and make sure you include online banks in your search, says Barrington. When the top online rates are five times what average rates are, smart shopping really does make a difference.
The banks paying the highest savings account rates(by APY) for the third quarter of 2012, according to MoneyRates.coms Americas Best Rates survey, are: