Online Deposit Bank Rate Tracker: Which Online Bank Cranked Their Savings Account Rate up to 5%?

Online Savings Account League Table—Exhibit 1 is a league table of online savings accounts for the seven online banks we have been tracking since March 2022, plus Bread & Citizens. Bread has the highest savings account rate at 5.00%, followed by Sallie Mae at 4.75%.

Deposit Beta Update—Based on 525bps of cumulative Fed rate hikes, the +386bps average increase in online savings account rates would equate to a deposit beta of 73.6%

Online Savings Accounts—Marcus (+15bps to 430bps) & Bread (+10bps to 500bps) raised their online savings account rate. Looking at online savings accounts, the banks that we have tracked since March 2022 (ex Bread & Citizens) have int. rates that avg. 436bps, +2bps week/week, & +386bps since the Fed first raised rates. We note that Ally's money mkt. rate of 4.40% is above their savings acct rate at 4.25%.

Online 1yr CDs—In terms of 1-year CDs, we saw no rate changes. For the online banks we have been tracking since March 2022 (ex Bread & Citizens), the avg. 1-year CD rate was flat week/week at 499bps, and up +434bps since the Fed first raised rates in March. The highest 1-year CD rate is Sallie Mae at 550bps. (Exhibit 4)