After rising slightly last week, bank savings account rates dropped modestly for the week ending June 5, 2009.  The average for the best bank savings account rates declined from 2.15% to 2.13% for the week.  In light of the carnage found in the majority of bank rates with substantial rate reductions in bank CDs and money market accounts, the rate drop for savings accounts was relatively tame. 

The highest bank savings account rate remained unchanged at 2.30%.  This bank savings rate can be found at Tennessee Commerce Bank.  Two banks, Acacia Federal Savings Bank and Doral Bank Direct, share the next best bank rates at 2.25%.  Ally Bank had also offered that interest rate but has now reduced their savings account rate down to 2.05%.  The Palladian Private Bank promotes an interest rate of 2.15% on their savings account ranking it as the fourth best bank rate.  The lowest rate on the top ten list for savings account rates available nationwide fell just one basis point to 2.02% keeping the spread between the highest and lowest rates very tight.

As Treasury rates have been rising and CD rates have fallen, the modest reduction in bank savings rates stands out as an opportunity for safe and secure short term investment returns.  Bank savings account rates unfortunately, do suffer from a lack of security in yield since these rates are variable.  However, as signs lead to higher interest rates in the future and other bank rates tumbling further, these deposit options are looking more desirable.

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