With most short term rates falling in the past week, bank savings account rates were not about to fight this trend.  The average for the best bank savings accounts rates were down by three basis points or 3/100 of a percent to 2.09% for the week ending July 3, 2009. 

During the week a Federal Reserve voting members expressed more concern about deflation over inflation and hinted that rate were not going to be increased in the foreseeable future.  This would certainly lead to the expectation that rates on short term rates such as savings accounts were due to fall further.  Of course this contrasts with previous consensus forecast that called for increase rates of inflation and subsequent higher bank rates. 

The highest bank savings account rate dropped by two basis points down to 2.30%.  The best saving account rate was held by First Trade Union Bank last week, but has since lowered their rate substantially to 2.06%.  The savings rate leader is once again Tennessee Commerce Bank which offers an interest rate of 2.30% on their savings account with a minimum $250.00 balance.  1st Constitution Direct falls five basis points back with a savings account rate at 2.25%.  An abrupt drop of 10 more basis points is the third highest savings account rate from The Palladian Private Bank at 2.15%.  Rounding out the top five bank rates are the savings accounts of Bank of Internet and First Trade Union Bank that both yield 2.06%.

With anemic average yields on bank savings rates, it certainly behooves investors to shop for the best FDIC insured money market and savings rates available nationwide.

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