9/26/11 (AEIN) The interest rates banks pay to savings account holders in the U.S. remain very low and continue to fall slightly in some areas. As of late September, many major banks were offering rates equal to only 1/20th of one percent on standard savings accounts.
The latest interest rates for September 26th were 0.05% at Bank of America, Wells Fargo and TD Bank. Key Bank was paying 0.04 percent on the first $2,500 dollars in savings. These rates may vary slightly depending upon the deposit amount and location.
Some regional U.S. banks and online banking services pay slightly more, though considerably less than a few years ago. The most recent rate for Seattle Bank was one-fifth of one percent, while Commerce Bank in Worcester, MA was paying half as much.
The latest interest rate for the online Orange Savings account offered by ING Direct stands at a full one percent. Fellow online banking service Ally Financial pays 0.99 percent. These banks reduce costs by eliminating the expense to maintain bank branches.
Some banks now charge monthly fees on savings accounts which do not meet a certain balance, usually ranging from $100 to $300. The fees typically run from one to five dollars, equivalent to the annual interest earned on several thousand dollars.